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USA: BP unveils giant Brazilian bioenergy joint venture

“As far as sugarcane-based ethanol is concerned, in Brazil, it is grown on land that is not suitable for growing food. Our facilities are concentrated about 1,500 kilometres from the Amazon rainforest.” The 50:50 venture, which is due to be based in São Paulo, would rank as the second-largest player in the sugarcane biofuel sector in Brazil, the firms said. BP entered the Brazilian biofuels market in 2008 and currently owns three sites that can annually process 10 million tonnes of sugarcane, employing 4,500 staff. Royal Dutch Shell joined forces with Cosan to form the Brazilian industry leader Raízen in 2011. Because sugarcane absorbs carbon from the atmosphere as it grows, ethanol produced from sugarcane is regarded as one of the most carbon-efficient biofuels with lifecycle emissions around 70 per cent lower than conventional petrol or diesel.