Going big in biofuels

The transaction will create a 50:50 joint venture combining BP and Bunge’s biofuels businesses in the fast-growing Brazilian market.  

The combination of assets and experience creates value through scale and efficiency and positions the new business for growth in biofuels and biopower.

BP Bunge Bioenergia will have 11 biofuels sites and the production capacity of 32 million metric tonnes of sugarcane a year, making it the second largest player in the sugarcane ethanol biofuel industry in Brazil.  

Dev Sanyal, chief executive of BP Alternative Energy, said: “In one step, this will allow BP to significantly grow the scale of our business in one of the world’s major growth biofuels markets. With a shared commitment to safety and sustainability, bringing together our assets and expertise will allow us to improve performance, develop options for growth and generate real value. BP Bunge Bioenergia will be well-placed to support Brazil’s increasing demand for both low carbon biofuels and biopower.”

BP has a 10-year history of operating a successful biofuels business in Brazil, the world’s second largest and most integrated market for ethanol as a transport fuel. It’s a business in which BP has invested and is now achieving among the best operating efficiency and safety performance in the sector. This has given BP the confidence to grow it further. 

BP’s existing biofuels CEO and head of country for Brazil, Mario Lindenhayn, will become the executive chairman for the new JV, in addition to retaining head of country accountabilities. The JV CEO will be Geovane Consul, the current head of Bunge’s Brazilian biofuels business. Marcus Schlosser, currently CFO for BP Biofuels, will be appointed CFO.

The BP Bunge Bioenergia joint venture

• 11 sites
• Sugarcane crushing capacity of 32 million tonnes a year
• Capable of producing more than 2 billion litres of ethanol equivalent a year 
• More than 10,000 employees

Brazil biofuels

• In 2018, the Brazilian market for ethanol was 26 billion litres