The joint venture (JV) between the Netherlands-based Shell International Petroleum Company Limited (Shell) and Cosan S.A. (Cosan) will invest around $12 billion in the Brazilian bioethanol industry.
Online PR News – 19-March-2010 – – The joint venture (JV) between the Netherlands-based Shell International Petroleum Company Limited (Shell) and Cosan S.A. (Cosan) will invest around $12 billion in the Brazilian bioethanol industry. According to the memorandum of understanding (MoU), both companies will contribute their existing Brazilian assets to the JV. Shell will contribute $1.6 billion in cash, paid over a period of two years. The joint venture will produce ethanol, sugar and power, and will supply and distribute its ethanol produce through its retail outlets.
The agreement will enable Shell and Cosan to establish a scalable and profitable position in the sustainable biofuels market. Biofuels are seen as the most viable option to reduce carbon emissions in the transportation sector over the next twenty years and are therefore an attractive business. This JV between Shell and Cosan will enable the companies to become market leaders in Brazil, which is the most efficient ethanol producing country in the world. The JV, with an annual production capacity of about 2,000 million liters, will make them one of the world’s largest ethanol producers alongside Archer Daniels Midland and POET.
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