BP is evaluating opportunities to expand and diversify its biofuel operations in Brazil, including exploring new products like second-generation ethanol and sustainable aviation fuel (SAF), after acquiring full ownership of the joint venture BP Bunge Bioenergia, the company told Reuters.
The venture, which includes 11 sugarcane processing plants across five Brazilian states, represents a significant bioenergy platform with cost advantages, BP stated. “We will seek to explore new growth opportunities in the region and develop new bioenergy platforms, such as next-generation ethanol, SAF, e-fuels, and biogas,” the company said in written comments.
BP's strategy mirrors that of Shell, which partnered with Brazilian firm Cosan years ago to form Raizen SA, now developing the world's largest cellulosic ethanol program.
Soren Jansen, a biofuels expert and former executive at Brazil's Copersucar, emphasized the importance of effective biofuels in achieving emissions reductions. “Good biofuels – those that actually help achieving emissions savings – are still seen as having an important role to play,” Jansen said.
Unlike many sugarcane processors in Brazil focusing on sugar production amid higher international prices, BP intends to expand ethanol production at its Brazilian complex. Raizen, for example, recently opened its second-generation ethanol plant in May, producing fuel with significantly lower carbon emissions compared to gasoline.
BP's plans underscore a broader industry trend towards bioenergy and sustainable aviation fuels, supported by substantial investments from major oil companies across global markets including Brazil, the U.S., Europe, and Japan.
