BP creating world-class bioenergy company

BP creating world-class bioenergy company

Baku, Azerbaijan, July 22

By Leman Zeynalova – Trend:

BP has agreed to form a 50:50 joint venture with Bunge – a leader in agriculture, food and ingredients - that will create a leading bioenergy company in one of the world’s largest fastgrowing markets for biofuels, Trend reports citing the company.

“BP will combine its Brazilian biofuels and biopower businesses with that of Bunge to create a world-scale, highly-efficient producer of sugarcane ethanol in Brazil, BP Bunge Bioenergia. BP’s interest in the new venture will grow its existing biofuels business by more than 50 percent,” said the company.

Brazil is the world’s second largest and most integrated market for ethanol as a transportation fuel with demand forecast to grow rapidly. The majority of vehicles in the country – around 70 percent – are already able to run on ethanol and the country’s demand for ethanol is estimated to increase by around 70 percent by 2030.

Reportedly, BP Bunge Bioenergia will have 11 biofuels sites in Brazil. With 32 million metric tonnes 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 - fuelled by waste biomass from the sugar cane - through its cogeneration facilities to power all its sites and sell surplus electricity to the Brazilian power grid.

Under their agreement, BP and Bunge will each contribute their existing Brazilian biofuel, biopower and sugar businesses into the new, equally-owned, standalone joint venture. On completion, BP will pay Bunge $75 million, subject to customary closing adjustments, and the joint venture will assume $700 million of non-recourse debt associated with Bunge’s assets.

Subject to satisfaction of conditions precedent, including obtaining the necessary regulatory clearances and approval, the deal is expected to complete in the fourth quarter of 2019.

Following completion, the aim is for BP Bunge Bioenergia to generate significant operational and financial synergies, through scale efficiencies and by applying best practices, optimised technologies and operational capabilities across all the assets of the new business.

The new business is expected to be headquartered in São Paulo. Mario Lindenhayn from BP will be executive chairman, Geovane Consul from Bunge, chief executive, and Marcus Schlosser from BP, chief financial officer. BP and Bunge will have equal representation on the board of directors.

---

Follow the author on Twitter: @Lyaman_Zeyn

Subscribe to Trend in Google News! Subscribe
Azerbaijan increases propylene production in 9M2021
Azerbaijan increases propylene production in 9M2021
Azerbaijan talks provision of Internet to inaccessible areas
Azerbaijan talks provision of Internet to inaccessible areas
Azerbaijani products on display at int'l exhibition in China (PHOTO)
Azerbaijani products on display at int'l exhibition in China (PHOTO)
Loading Bars
Latest
Biden heads to G20 to talk energy prices, supply chain woes
President Aliyev names visit of President Erdogan to Azerbaijan example of true brotherhood
Day will come when it will be possible to get from Zangezur to Istanbul - Erdogan
You are going to Armenian border, aren't you? You will go further - Turkish president
If Armenia shows sincere will in its relations with Azerbaijan, there will be no obstacles to normalization of relations with Turkey - President Erdogan
Turkey and Azerbaijan, as two brotherly countries, always next to each other – President Aliyev
Joint steps of Azerbaijan and Turkey will forever remain in history - President Aliyev
Shusha Declaration officially raised Azerbaijani-Turkish relations to level of alliance - President Aliyev
Presidents of Azerbaijan and Turkey make press statements (PHOTO/VIDEO)
Georgian GDP continues its robust recovery – Renaissance Capital
President Erdogan presents President Aliyev with 'Kharybulbul' image watch (PHOTO/VIDEO)
Presidents of Azerbaijan and Turkey hold one-on-one meeting in Zangilan (PHOTO)
Russia to supply Turkmenistan’s Turkmengaz with pipes
Iran facing problems at filling stations
Azerbaijan increases propylene production in 9M2021
Azerbaijani, Turkish presidents view works done under “smart village” project in Zangilan (PHOTO/VIDEO)
Uzbekistan reveals data of foreign investment in mining industry
Uzbekistan, Singapore to co-op for humanitarian programs and projects
GM to boost EV profile with 40,000 charging stations in U.S., Canada
First Vice-President Mehriban Aliyeva posts photos from Aghali village, Zangilan district on her Instagram page (PHOTO)
Russia, UAE ink inter-governmental space exploration deal
Georgia plans to renovate its Airports Association
U.S. home price growth slowed in August- S&P Case-Shiller
Kazakhstan counts on international experience on operating nuclear power plants
Bahar Azadi gold coin price dips in Iran
Engineering work in Azerbaijan's liberated lands continues - MoD (PHOTO/VIDEO)
Uzbekistan's GDP grows in 9M2021
Kazakhstan sees decrease in production of iron ores
Kazakhstan’s Energy Ministry comments on Marine Access Channels project
Iran keen to increase Methanethiol production
Webinar on Engineering products organised by the Embassy of India (PHOTO)
Iran plans to develop Chaharmahal Bakhtiari Province
Azerbaijan becomes largest diesel supplier to Georgia
Bahrain approves Sinopharm vaccine for children aged 3-11
Official welcome ceremony held for Turkish President Recep Tayyip Erdogan in Aghali village, Zangilan district (PHOTO/VIDEO)
Israeli co Emtan to provide Spanish police with 9,120 pistols
Iran boosts its TEU container transit via Shahid Rajaee port
Iran issues loans to several enterprises
Azerbaijan talks provision of Internet to inaccessible areas
Turkmen Khazar Consortium opens tender for chemicals
Opening of Fuzuli Int’l Airport to speed up investment, social dev’t of Azerbaijan’s Karabakh - Israeli expert
President Ilham Aliyev and President Recep Tayyip Erdogan lay foundation for “Dost Agropark” in Zangilan (PHOTO/VIDEO)
Kazakhstan increases cargo transportations volumes via maritime
Turkmen company to purchase chemical products via tender
Azerbaijani products on display at int'l exhibition in China (PHOTO)
Turkey unveils number of ships docking at Iskenderun port
India, UK take part in joint exercise Konkan Shakti 2021
Fitch Ratings unveils long-term IDR of Astana Gas KMG
TDB and ICD sign MoU to support private sector investment in common African member states
Georgia shares its TOP-5 fuel exporters
Kazakhstan provides transit corridor for Afghan women
Iran’s West Oil & Gas Production Company prevents declining gas production
Iran’s Tejarat Bank provides loans related to coronavirus
Azerbaijan's mortgage fund issues record number of loans for 10M2021
Kazakhstan, Hungary sign memorandums in number of spheres
Iran reveals COVID-19 data for October 26
Turkey sees growth in number of registered Iranian companies for 9M2021
Leadership of Turkish Defense University visit Azerbaijani War College of Armed Forces (PHOTO)
Azerbaijan, WB discuss possible co-op in restoration of liberated lands (PHOTO)
Iran not to raise price of energy carriers - PBO
Ports giant DP World expects container volume growth to moderate in Q4
Azerbaijani, Turkish presidents laid foundation stone for Zangazur corridor (PHOTO/VIDEO)
Russian company plans to participate in restoration of Azerbaijan's liberated lands
Kazakhstan offers Hungary to launch Budapest - Almaty - Budapest flight
Azerbaijan shares data on number of vaccinated citizens
Bank of Georgia to support construction of solar power plant
Tehran in need for new small-scale gas stations
Iran`s TEDPIX keeps downward trend
Azerbaijan confirms 2,266 more COVID-19 cases, 1,194 recoveries
Iran unveils details of its gas extraction, consumption and export
Iran begins cargo shipment from northern ports
TAP covers 17% of Greek demand for natural gas
Iran and Russia's trade turnover increases
Gadkari bats for green hydrogen; says India needs to reduce oil imports
Indian Defence Minister invites foreign defence firms to take part in DefExpo 2022
Iran's crude steel production declines
Foreign companies to pay taxes online in Kazakhstan since 2022
European Fund for Southeast Europe provides funding to Georgian TBC Bank
Russia records another 36,466 coronavirus cases
Hungary names areas for further co-op with Kazakhstan
Hungary increases export of goods to Kazakhstan
Uzbekistan forms new investment projects with South Korea
President Ilham Aliyev and President Recep Tayyip Erdogan attend opening ceremony of Fuzuli International Airport (PHOTO)
BSTDB ready to expand cooperation with local financial institutions in Azerbaijan (Exclusive)
Iran shares data on its oil extraction and exports
BSTDB may consider supporting Azerbaijan in issuing green bond (Exclusive)
Azerbaijan, Turkmenistan implementing large transport projects
Six Indian Naval Ships Arrive In Sri Lanka To Boost Defence Cooperation
Turkish President Recep Tayyip Erdogan arrives in Azerbaijan. First official welcome ceremony held at Fuzuli International Airport (PHOTO/VIDEO)
High oil prices to improve Azerbaijan’s external balance – BSTDB president (Exclusive)
New steel production plant to appear in Georgia
Azerbaijan repairs civilian properties in Barda destroyed by Armenia (PHOTO)
Iran can extract oil for next hundred years - Iranian Parliament's Research Center
Turkish president's current visit to Azerbaijan is another step towards strengthening bilateral ties - administration
Iran increases aluminum ingots production
Turkey reveals data on car shipments between its Tuzla, Italy's Trieste ports for 9M2021
High probability of oil reaching $100/barrel - Blackrock CEO Fink
Some 30 people died from methanol poisoning in Russia’s Urals
bp’s ACE platform to be launched in coming months
Turkish president leaves for one-day visit to Azerbaijan
All news