December 6 (Renewables Now) - BP Biofuels and Copersucar have agreed to set up a 50/50 joint venture (JV) to own and operate an ethanol storage terminal in Brazil, the companies said last week.
The BP plc (LON:BP) unit and the sugar and ethanol trader will jointly own the Terminal Copersucar de Etanol in Paulinia in the state of Sao Paulo, which has been in operation since September 2014. The facility is currently solely owned by Copersucar. It has storage capacity of 180 million litres (47.6 million gallons) of ethanol and moves about 2.3 billion litres annually, with the potential for further expansion, the companies said.
"Brazil is one of the largest markets globally for ethanol as a fuel and this collaboration with Copersucar enables us to extend and expand our existing value chain to meet its growing demand," said Dev Sanyal, BP's chief executive Alternative Energy.
"The new joint venture will optimize ethanol logistics, with competitiveness gains and more flexibility in the way we serve the market," said Copersucar president Paulo Roberto de Souza.
In addition to the business of its owners, the terminal will continue to serve its current customers, according to the announcement.