British oil giant, BP said it will create a bioenergy company in one of the world’s largest fastgrowing markets for biofuels.
The oil giant said will combine its Brazilian biofuels and biopower businesses with that of Bunge to produce sugarcane ethanol in Brazil.
The venture will be called BP Bunge Bioenergia. BP’s interest in the new venture will grow its existing biofuels business by more than 50%.
Ethanol produced from sugarcane is one of the most carbon-efficient biofuels available globally, with lifecycle greenhouse gas emissions around 70% lower than conventional hydrocarbon transport fuels. 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% – are already able to run on ethanol and the country’s demand for ethanol is estimated to increase by around 70% by 2030.
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. This combination will unlock new possibilities for improved efficiency and future growth in this key market.”