BP Biofuels to invest in higher flexibility ethanol production in Brazil

The ethanol market in Brazil has remained under pressure for the last five years of nearly frozen petrol prices, while biofuel production costs kept rising. Pump prices have not been competitive for two years. However, BP Biofuels (a subsidiary of the BP oil company) has decided to invest US$345 million to refurbish its distillery at Usina Tropical in Edeia, the state of Goiás, in the mid-west. Production at the refurbished distillery is expected to top 500 million liters annually and will create 7,600 direct and indirect jobs by 2014. Besides an output increase, the investment will enable the plant to deliver more flexible ethanol and sugar production. Usually, the split is 55%- 45% for either product, which may be brought to 60%-40% according to the price competitiveness of the products.
 
Additionally, BP Biofuels has announced the improvement of electric power cogeneration at Tropical (fuelled by waste, crushed sugar cane bagasse). It is estimated that 340 GWH will be sold to the national, interlinked power network when the project is completed. (January 2, 2013)