BP Biofuels to expand ethanol production in Brazil

By BP Biofuels | December 13, 2012

BP Biofuels has announced that it plans to invest $350 million to expand its ethanol processing capacity of Tropical, one of its sugarcane processing ventures in Brazil.

The expansion, which is scheduled to start next year, includes the building of a new mill and is expected to create around 7,650 direct and indirect jobs.

Tropical’s processing capacity will double to five million tons of sugarcane producing 450 million litres of ethanol equivalent per year. The mill is expected to be operating at full capacity by the end of 2014 or early 2015.

“This expansion reinforces our commitment to the Brazilian sugarcane industry and will enable us to grow our business in the future,” said Mario Lindenhayn BP Biofuels Brazil CEO.  “Since we started operating in May 2011, we have been improving our operational efficiency and this announcement marks a further milestone in delivering our biofuels strategy.”  

About the investment

  • BP’s fully-owned Tropical sugarcane mill is located in Edeia, Goiás State.
  • BP will invest $350 million to double Tropical’s processing capacity from 2.5 million to 5 million tons of sugarcane per year.
  • With the expansion, the mill will be able to produce around 450 million liters of ethanol equivalent per year. It will also be able to export approximately 340 GWh of electric energy to the Brazilian national grid.
  • The investment is expected to create around 7,650 direct and indirect jobs, associated with the construction and running of the mill, as well as sugar cane cultivation.
  • The agricultural area for sugarcane cultivation related to the project meets the requirements of the Agro-Ecological Zoning of Sugarcane in Brazil.

In 2011, BP Biofuels expanded its investments significantly with the full acquisition of Brazilian sugar and ethanol producer Companhia Nacional de Açúcar e Álcool (CNAA). In addition to Tropical, BP operates two producing ethanol mills located in Itumbiara (Goiás State) and Ituiutaba (Minas Gerais State).  




2 Responses

  1. Graham Allan



    How can one get in touch with Mario Lindenhayn of BP Biofuels ?

  2. Lizonete



    I'm very disappointed in this ineirvetw. Though I do commend Shell for being among the best of the oil companies in their support of the introduction of renewables, they are still ONLY that of the best among the OIL COMPANIES that by and large benefit from having things change as little as possible, which includes combustible alternatives (ie biofuels as Mr. Powell obviously gives the most support for) being preferred over converting cars to run on hydrogen cells which would need, not combustible power, but electricity which could be generated VERY efficiently through wind. The reason Mr. Powell downplays wind is obvious. Solar is less of a threat because solar cells are still so expensive and guess what! they need Shell's oil to make them! I happen to know quite a bit about wind energy and have had numerous experiences being very close to wind mills close enough to picnic directly beneath them. I did a survey for any signs of dead birds. Not one. Standing even directly beneath the windmill with one hand touching it, one can easily have a conversation without raising the volume of ones voice. Seriously, there is no noise disturbance. From a mere 100 yards away, there is no perceptible noise whatsoever. They are also very pretty. The people in communities that have windmills that I have talked to are exceedingly pleased with them and proud of them. Farmers brag that with windmills they can grow healthy orchards right beneath them while the alternative fossil fuel, coal, would use 1,000 s of pounds of explosives to blow up the entire mountain to get at the coal inside. Wind is an important investment for America and should not be downplayed.


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