BP, Copersucar to Form 50-50 Ethanol JV in Brazil

BP Biofuels and Copersucar have agreed to form a joint venture (JV) to own and operate a major ethanol storage terminal in Brazil, better and flexibly connecting ethanol production with the country’s main fuels markets.

Copersucar is the world’s leading sugar and ethanol trader, with the largest sugar and ethanol storage capacity in Brazil. BP Biofuels, part of BP’s alternative energy business, is a significant producer of ethanol from sugarcane in Brazil.

The 50:50 joint venture will own and operate the Terminal Copersucar de Etanol in Paulinia in the state of Sao Paulo, which is currently solely owned by Copersucar. Joint ownership of the terminal will support the strategies of both companies - connecting important ethanol production with flexible storage capacity close to the main ethanol consumer markets in Brazil.

In addition to the shareholders’ business, the terminal will continue providing services to its current customers.

“BP is committed to the dual mission of delivering the energy that the world needs while advancing the low carbon world that we all want. We believe that biofuels offer one of the best large-scale solutions for decarbonizing the transport sector and demand will continue to grow for decades to come. This collaboration enables us to extend and expand our existing value chain to meet the growing demand in Brazil, “said Dev Sanyal, BP’s CEO alternative energy.

“The new joint venture will optimize ethanol logistics, with competitiveness gains and more flexibility in the way we serve the market. In addition to the values we share, the partnership with BP reinforces our commitment to the development of biofuels in Brazil,” added Paulo Roberto de Souza, president of Copersucar.

“This important partnership with Copersucar will enable BP Biofuels to significantly expand our commercial presence in Brazil. In addition to the strategic benefits of its geographic location and the flexible multimodal access to the terminal, these first-class assets also operate with the highest safety standards,” said Mario Lindenhayn, president of BP Biofuels and head of country for Brazil.