Bunge, BP launch BP Bunge Bioenergy joint venture in Brazil

By Erin Voegele | December 03, 2019

Bunge Ltd. and BP plc announced Dec. 2 they have completed the formation of BP Bunge Bioenergia, a 50:50 joint venture that combines the two companies’ Brazilian bioenergy and sugarcane ethanol businesses.

BP Bunge Bioenergia is now the second largest operator by effective crushing capacity in the Brazilian ethanol market. The joint venture includes 11 biofuel plants in five Brazilian states. It has a total crushing capacity of 32 million metric tons of sugarcane per year. The joint venture is capable of producing 1.5 billion liters (396.26 million gallons) of ethanol, 1.1 million tons of sugar and exporting 1,200 gigawatt hours of electricity to the national grid in Brazil.

Mario Lindenhayn from BP will serve as executive chairman of BP Bunge Bioenergia, while Geovane Consul from Bunge has been named chief executive. BP and Bunge have equal representation on the joint venture’s board of directors.

“Biofuels is an increasingly important part of a lower carbon energy system,” Lindenhayn said. “We are proud to complete the formation of BP Bunge Bioenergia, which provides a strong foundation to build upon the capabilities of both organizations to develop ideas for growth and deliver significant operational and financial synergies.”

“BP Bunge Bioenergia is well-placed to support Brazil’s increasing demand for low carbon bioenergy,” Consul added. “Our joint venture will enable us to leverage shared best practices to improve efficiency and sustainability, maximizing the use of technology and identifying opportunities to develop future capabilities in this crucial market.”

The agreement to form BP Bunge Bioenergy was first announced in July 2019. The joint venture is headquartered in Sao Paulo, Brazil, and employs more than 10,000 people.