0121 568 8793 [email protected]

Shell and Cosan beef up Sugarcane Ethanol JV in Brazil

November 29 2016

Oil giant Shell and Brazilian bioethanol company Cosan have reached an agreement to strengthen their sugarcane ethanol joint venture (JV), Raízen, in Brazil, through a change in its contractual structure.

The partners have agreed to remove the mutual time-bound buyout options included in the original JV agreement, signed in June 2011, and in doing so have transformed Raízen from a temporary to a permanent joint venture.

Shell’s downstream director, John Abbott said: “Low-carbon, sustainable biofuels play an important role today and will be required long term for heavy duty and long distance transport. We are pleased with Raízen’s strong performance.

“This commitment reaffirms the stability of Shell and Cosan’s partnership, and our shared view of the long-term objectives and value of the business.”

Cosan’s CEO Marcos Lutz, added: “Transforming Raízen into a permanent joint venture strengthens the partnership we built with Shell over the last five years, while paving the way to continue our successful journey in Brazil.

“Our partnership with Shell is instrumental to being recognised for excellence in the development, production and marketing of sustainable energy.”

Raízen is the world’s largest individual producer of sugarcane, producing more than four million tonnes of sugar, more than two billion litres of ethanol and 2.2 gigawatt hours of cogenerated energy in 2015.

It also operates a network of more than 5,800 Shell-branded service stations in the country. According to Shell, the combination of Shell and Cosan’s retail experience and technical expertise have contributed to Raizen’s strong financial and operational performance since the venture was established.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Chinese firm to build Steel Mill in Brazil under “Belt & Road” Initiative

A Chinese investment company intends to build an 8 million tonnes per year steel mill in Brazil for flat rolled steel under China’s “Belt & Road” initiative (BRI), its backers aim to commission the plant in 2025. The Beijing-based...

Read More

Stay up to date

Sign up to our monthly newsletter:

Email Address

By signing up to our newsletter you indicate your consent to receiving email marketing messages from us. If you do not want to receive such messages, tick here: 

You can opt out any time via the unsubscribe link at the bottom of our newsletter or click here