Tropical BioEnergia is constructing a 435 million-liters-per year ethanol refinery in Edeia in the Goias State of Brazil.
The joint venture, in which Santelisa Vale and Maeda Group will each hold 25%, also intends to progress plans to build a second ethanol refinery, investing a total of approximately BRL1.66 billion in the two refineries.
Assuming all the required approvals are received, BP will pay around BRL100 million for the 50%, subject to working capital adjustments, and provide funding for the agreed future investment in line with its shareholding. The parties hope to be able to complete the transaction before the end of June 2008.
The joint venture will focus on potential sugarcane production and the manufacturing and marketing of conventional ethanol, including the associated agricultural assets and cogeneration plants.
Operations at the first refinery are expected to commence during the second half of 2008, with full capacity anticipated by mid-2010. The refineries will be positioned to supply the Brazilian ethanol markets, with the potential to export to the markets in the US, Europe and Asia.
