Shell to make Brazil a global platform for biofuels

Shell is confident that Brazil will become its global platform for biofuels, after creating a joint venture (JV) with local ethanol giant Cosan, Brazilian daily O Estado de S. Paulo reported. Shell has set aside US$1.5 billion to invest in the JV. In addition to expanding operations in Brazil, the company wants to test second-generation ethanol technology being developed by Iogen Energy, which is also part of the deal with Cosan. The JV, first announced in February, will merge Cosan’s and Shell’s ethanol and fuel distribution operations in Brazil, in a transaction estimated at US$12 billion. (September 21, 2010)