BP and Bunge complete formation of BP Bunge Bioenergia JV in Brazil
BP and Bunge announced the completion of the formation on 2 December of BP Bunge Bioenergia, the Brazilian bioenergy joint venture that combines their Brazilian bioenergy and sugarcane ethanol businesses.
The continued growth of biofuels will be a key enabler to decarbonising transportation. Brazil is one of the world’s largest and fastest growing markets for biofuels and, through this transaction, BP Bunge Bioenergia is now the second largest operator by effective crushing capacity in the Brazilian bioethanol market.
Mario Lindenhayn from BP will be the executive chairman of BP Bunge Bionergia and Geovane Consul from Bunge will be chief executive. BP and Bunge have equal representation on the board of directors of the company.
“Biofuels is an increasingly important part of a lower carbon energy system. We are proud to complete the formation of BP Bunge Bioenergia, which provides a strong foundation to build upon the capabilities of both organisations to develop ideas for growth and deliver significant operational and financial synergies,” said Lindenhayn.
“BP Bunge Bioenergia is well-placed to support Brazil’s increasing demand for low carbon bioenergy. Our joint venture will enable us to leverage shared best practices to improve efficiency and sustainability, maximising the use of technology and identifying opportunities to develop future capabilities in this crucial market,” Consul said.
The joint venture has 11 biofuels sites in five Brazilian states, with more than 10,000 employees. It has total crushing capacity of 32 million metric tonnes of sugarcane per year, capable of producing more than 1.5 billion litres of ethanol, 1.1 million tons of sugar and exporting 1,200 gigawatt hours of electricity to the national grid in Brazil.
BP and Bunge’s agreement to form the joint venture was announced in July 2019.