BP and Bunge have completed the creation of their 50-50 Brazilian joint venture, BP Bunge Bioenergia, that will combine their biofuels and biopower businesses, as announced in July 2019.
BP Bunge Bioenergia will operate 11 biofuels sites in five Brazilian States (3 sites in the key region of São Paulo), with a total crushing capacity of 32 Mt/year (second largest capacity in Brazil) and a production capacity of more than 1.5 billion liters of ethanol equivalent per year. Waste biomass from the sugarcane will be burnt in cogeneration plant to power all the biofuel production sites and surplus electricity will be sold to the Brazilian power grid (1.2 TWh of bio-power injected into the national grid in 2018).
BP Bunge Bioenergia bets on the new low carbon transport policy ("RenovaBio") to encourage continued growth in the biofuel market and support development of the sugarcane ethanol industry.