bp acquires full ownership of biofuels joint venture, Bunge Bioenergia
Published on: Jun 20, 2024
The transaction will allow the company to realize synergies, continue to grow its biofuels business and reassess its strategy.
bp has agreed to acquire Bunge’s 50% holding interest in its Bunge Bioenergia S.A. joint venture, one of Brazil’s leading biofuels-producing companies.
Upon completion, the mobility giant will become sole owner of the industrial scale sugarcane and ethanol business. This enables it to accelerate value creation through integration with its trading and technology capabilities.
The enterprise value of the stake to be acquired is approximately $1.4 billion, resulting in consolidation of 100% of the venture’s financial results.
Following completion, bp will have the capacity to produce around 50,000 barrels a day of ethanol equivalent from sugarcane through Bunge Bioenergia’s 11 agro-industrial units across five Brazilian states. The company operates with an integrated business model that covers the entire production chain through to sales of ethanol and sugar.
In parallel to this acquisition, bp is scaling back plans for development of new sustainable aviation fuel (SAF) and renewable diesel biofuels projects at its existing sites. In addition, it will pause planning for two potential projects while continuing to assess three for progression, a mov aligned with the company’s drive to simplify its portfolio, focusing on value and returns.
