By Ian Walker

BP is taking full control of its Brazilian biofuels joint venture, BP Bunge Bioenergia, with the acquisition of its partner's 50% shareholding valued at $1.4 billion, as part of its plan to focus on new biofuels projects.

The oil major said Thursday that upon completion of the deal it will have 50,000 barrels a day of ethanol equivalent from sugarcane through BP Bunge Bioenergia's 11 agro-industrial units across five Brazilian states.

The joint venture has net debt of $500 million and lease obligations of $700 million.

BP said that acquisition and a focus on key biofuels production projects support the continuing growth of its strategic bioenergy business which includes both biofuels and biogas.

They are expected to deliver around $2 billion earnings before interest, taxes, depreciation and amortization from bioenergy by 2025 and $3 billion to $4 billion across all its transition growth engines.

Write to Ian Walker at

(END) Dow Jones Newswires

06-20-24 0816ET