BP Announces Expansion of Biofuels Business in Brazil

BP has agreed to pay approximately US$680 million to acquire 83 per cent of the shares of CNAA and to refinance 100 per cent of CNAA's existing long term debt.
After the acquisition, which is subject to regulatory approval and agreed closing conditions, BP will become the operator of two producing ethanol mills, located in Goiás and Minas Gerais states. A third CNAA mill is currently under development in Minas Gerais state.
“Low carbon energy will play an increasingly significant role in meeting world energy demand. BP is committed to producing biofuels to help meet this demand. Today's transaction also fits BP's strategy of increasing our exposure to growing energy markets,” said Carl-Henric Svanberg, Chairman of BP.
According to the recently published BP Energy Outlook 2030, alternative energy is expected to be the fastest growing energy sector over the next 20 years, with global biofuels production projected to more than triple.
“This strategic acquisition underlines BP’s commitment to building material businesses in growing economies and continued expansion in Brazil through exploration and production, as well as biofuels investments”, said Bob Dudley, BP Group Chief Executive. “This is the biggest acquisition to date for BP Alternative Energy as we continue to build a leading low carbon fuels business.”
Commenting on the deal, Philip New, Vice President of BP Biofuels, added, “This acquisition is a key milestone in our strategy of building a leading position in sustainable and scalable biofuels. It will provide a solid growth platform for our business.”
He said: “As operators, we are focused on safe, reliable, sustainable and profitable activities. We will bring investment, technologies and capabilities which complement the existing knowledge and expertise.”