BP is making a splash in the Brazilian renewables market by snapping up significant chunks in biofuel businesses in combined deals worth nearly $100 million.
The UK supermajor plans on doubling the capacity of one ethanol operation in the South American energy powerhouse after taking full control of the company.
BP has spent $71 million on acquiring the 50% in Tropical BioEnergia which it did not already own from its joint venture partners in the business. Maeda SA Agroindustrial and LDC-SEV Bioenergia each had 25% stakes.
The purchase gives BP full control of the ethanol mill in Edeia, Goias state where it has plans to double the size of the operation to 5 million tonnes of crushed cane, or 450 million litres of ethanol equivalent, per year.
The British oil giant also announcement to expand its ethanol operations in the region and now has three mills in Brazil.
Biofuel produced at the facility will supply both the Brazilian and international markets.
Separately BP has snaped up a further 3% stake in Brazilian sugar and ethanol producer Companhia Nacional de Acucar e Alcool from LPC Bioenergia. The stake purchase has cost BP $25 million and takes its holding to 99.97%.
In April BP had bought 83% of CNAA and converted the company's long-term debt into equity. Upstream had reported as early as February that the UK outfit had its eye on acquiring CNAA.
Wednesday's announced deals form part of BP chief executive Bob Dudley's stated aim in May of spending $1.5 billion on biofuel operations in Brazil.
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