BP plans to quadruple sugarcane-crunching capacity

BP Biocombustiveis, the Brazilian biofuels division of global oil giant BP PLC revealed plans to quadruple its sugarcane-crushing capacity within the next five years so that it can capitalize on the growing market for ethanol. BP Biocombustiveis currently operates three sugarcane mills in Brazil with a combined capacity of 7.5 million tons a year. The firm wants to increase its crushing capacity to 30 million tons per year by 2017. It plans to achieve this goal by expanding its existing mills and building an additional three mills. BP Biocombustiveis President Mario Lindenhayn, said that BP invested US$750 million in 2011 to bring its stakes up to 100% in Tropical Bioenergia, which owns one sugarcane mill, and CNAA, which has two functioning mills and a Greenfield project in Minas Gerais and Goias. Sugarcane-based alcohol is a major fuel source in the country and about half of the domestic auto fleet in Brazil have flex-fuel engines that can run on pure hydrous ethanol. Regular gasoline in Brazil has a 20% mixture of anhydrous ethanol. (February 15, 2012)