By OGJ editors
HOUSTON, Aug. 26 -- Shell International Petroleum Co. and Cosan SA, Piracicaba, Brazil, have signed binding agreements to form a $12 billion joint venture for production and sale of ethanol and electric power from sugar cane.
The venture, formation of which remains subject to regulatory approval, would be able to produce more than 2 billion l./year of ethanol, cogenerate electricity from bagasse, and distribute industrial and transportation fuels through a combined distribution and retail network in Brazil.
It also would explore opportunities to produce and sell ethanol and sugar globally.
Cosan would contribute to the joint venture 60 million tonnes/year of sugar cane crushing capacity at 23 mills, ethanol production capacity of more than 2 billion l./year, 10 existing cogeneration plants, downstream assets including 1,730 retail sites plus supply and distribution properties, ethanol logistics assets, net debt of $2.5 billion, and additional debt from the Brazilian Development Bank.
Shell would contribute $1.6 billion in cash; Brazilian downstream assets including 2,740 branded retail sites, supply and distribution properties, and an aviation fuel business that includes assets recently acquired from Cosan; its 50% interest in Iogen Energy, a developer of cellulosic ethanol; and its 14.7% interest in Codexis, a provider of biocatalysts.
Photo from ExxonMobil Corp.
Photo from Esso SAF.
