Agribusiness giant Bunge, which has facilities in Destrehan, Metairie and Darrow, is partnering with BP to form a bioenergy company in Brazil.
BP will combine its Brazilian biofuels and biopower businesses with Bunge to create a world-scale, highly-efficient producer of sugarcane ethanol in Brazil, BP Bunge Bioenergia. The partnership will double BP's interests in biofuels.
Bob Dudley, BP group chief executive, said: “This is another large-scale example of BP’s commitment to play a leading role in a rapid transition to a low carbon future. Biofuels will be an essential part of delivering the energy transition and Brazil is leading the way in showing how they can be used at scale, reducing emissions from transport.
BP Bunge Bioenergia will have 11 biofuels sites in Brazil. The company will have 32 million metric tons of combined crushing capacity per year. The joint venture will have the flexibility to produce a mix of ethanol and sugar. It will also generate renewable electricity from sugar cane biomass burned in cogeneration facilities to power all its sites and sell surplus electricity to the Brazilian power grid.
The combined business will be ranked the second largest player in the sugar cane ethanol biofuel industry in Brazil by effective crushing capacity.