Greenergy International has entered into a joint venture with Bauche Group (30%) to source and sell sustainable Brazilian bioethanol. The new business, Greenergy Brazil headquartered in Sao Paulo, has been established to meet demand for UK RTFO and EU Renewable Energy Directive compliant bioethanol.
Greenergy supplies a number of UK fuel companies and forecourt operators with sustainable Brazilian bioethanol and has established a gold standard sustainability audit programme for producers in Brazil.
Greenergy said that the joint venture will help secure future supplies of sustainable product and reduce the overall cost of buying bioethanol. The joint venture will strengthen Greenergy’s commercial relationships with Brazilian producers and, as a significant direct inland buyer, will give it further leverage in influencing the take up of its sustainability criteria by bioethanol mill owners.
It will also underpin the delivery of Greenergy’s UK Flexibio product guaranteeing RTFO or RED compliant biofuel to major oil companies to offset their RTFO and RED compliance risk.
In 2010 traded volumes are expected to exceed 600,000cbm, of which approximately 50% will be supplied by Greenergy into the UK market. These levels are expected to more than double over the next three years as obligated biofuel inclusion levels increase across Europe.
The new business brings together both the players in the development of Brazil’s bioethanol export market. Bauche Group claims to have an established presence in Brazil with extensive trading relationships with local mills and has been working with Greenergy to establish best practice suppliers of sustainably sourced and traceable bioethanol for movement into the UK and Europe for a number of years.
Andrew Owens, CEO of Greenergy, said: ”Greenergy Brazil secures our presence in a territory recognised for its leadership in the delivery of low carbon intensity high quality bioethanol. We now have outstanding access to significant volumes of pre-certified product that meets and exceeds RTFO and RED sustainability requirements and are ideally placed to capitalise on growing demand for RED compliant product in Europe.”
Alexander Bauche, board director of Bauche Group, said: ”Working with Greenergy has enabled us to strengthen our network and to develop the supply infrastructure to guarantee the highest quality sustainable bioethanol from the Brazilian market. Greenergy Brazil is the next step in establishing a secure export market and in expanding our trading position .”