British Petroleum Acquires a Stake in Tropical Bioenergia S.A.

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Researched by Industrial Info Resources (Sugar Land, Texas) --On April 24, 2008, BP (British Petroleum) (NYSE:BP) bought a 50% interest in Tropical Bioenergia S.A. (Goias, Brazil), which was established to build two ethanol refineries in Brazil.

Tropical Bioenergia S.A. is now a joint venture 50% owned by BP (British Petroleum), 25% owned by Maeda Group (Goias, Brazil) and 25% owned by Santelisa Vale (Sao Paulo, Brazil). BP is investing $61 million to acquire the 50% stake in Tropical Energia S.A.

Tropical I, located in Placed in Edeia, Goias State in Brazil, will be the first ethanol refinery to be built. The plant will be constructed in two phases and will reach a maximum capacity of 4,800,000 tons per year by mid 2010. According to the plant manager, Juliano Fisher, the first plant is under construction and will be operational in the second half of 2008. The first phase Tropical I will have a processing capacity of 2,400,000 tons per year, the harvest 2008/2009 beginning on June 2008 will be 1,300,000 tons per year, the harvest 2009/2010 beginning on April 2009 will have 2,400,000 tons per year; products at this phase will be composed of 50%t sugar and 50% ethanol. The second phase will begin with the April 2010 harvest, and the 2010/2011 harvest will have 3,600,000 tons per year; the second harvest will begin in April 2011, and will reach in 2011/2012 harvest the maximum capacity of 4,800,000 tons per year, production will be composed of 25% sugar and 75% ethanol.

A second ethanol refinery in Edealina, Goias State, Brazil, Tropical II, is to be built with the same processing capacity as Tropical I, but with ethanol as the only generated product. Construction will begin in the first quarter 2009 and the unit will be operational by 2010. Investment has been estimated at $ 1 billion. Ethanol will be supplied to Brazil and will have the potential to be exported to the United States, Europe and Asia. The refineries will also supply each 30 MW (megawatts) of electricity to the state grid.

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