Shell and Cosan have launched a joint venture (JV) in Brazil to produce ethanol from sugar cane.
The JV, called Raízen, plans to produce and sell over two billion litres of the low carbon biofuel annually.
The multi-billion dollar JV will also distribute biofuels and over 20 billion litres of other industrial and transport fuels yearly through 4,500 Shell-branded service stations.
The new undertaking will combine Shell’s expertise and technology partnerships in advanced biofuels with Cosan’s experience in the commercial production of low-carbon biofuels.
Raizen’s can process up to 62 million tonnes of cane into sugar or ethanol annually aided by its 24 mills.
The JV has also introduced a system that recycles up to 90% of water used, as part of an initiative to improve the sustainability of its operations.
The company also supports the development of varieties of sugar cane suitable for the regional climate.
Raízen has also teamed with other sugarcane producers, non-governmental organizations and other experts, as part of Bonsucro to establish an EU-approved certificate for sustainable sugar-cane production.