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Last updated on May 26, 2012 at 17:19 EDT

Cosan-Shell Deal Expands Global Penetration Outlook for Brazilian Ethanol, Says Brazilian Sugarcane Industry Association

February 1, 2010
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SAO PAULO, Feb. 1 /PRNewswire-FirstCall/ — The joint venture announced
today simultaneously in Sao Paulo and London involving Brazilian ethanol group
Cosan and Royal Dutch Shell increases prospects of an expanding global
presence for Brazilian sugarcane ethanol. The assessment came from Brazilian
Sugarcane Industry Association (UNICA) President Marcos Jank.

In his view, the deal brings together two companies that are strongly
complementary: “The partnership generates scale, efficiency and technology,
all of which certainly contribute to gain access for Brazilian ethanol to
global markets and overcome protectionist obstacles that still hinder its
growth,” Jank commented.

The President of UNICA was pleased with comments regarding the qualities
of Brazilian ethanol, made by Shell officials during the news conference:
“They stressed that they consider Brazilian ethanol as the biofuel that
contributes the most to greenhouse gas emission reductions, as well as being
the most efficient, sustainable and commercially viable in the world. It is
important to highlight that not only Shell, but several other global companies
doing business with the Brazilian sugar and ethanol industry, no longer have
any doubts about these aspects when discussing the ethanol produced here.”

According to UNICA, with the involvement of Iogen, a world leading
biotechnology firm specialized in cellulosic ethanol, and Codexis, a leading
developer of clean biocatalytic process technologies — both subsidiaries of
Shell, the agreement also has the potential to promote advancements in the
development of second generation ethanol from sugarcane biomass. “The way
forward for our industry includes the expanding use of new technologies. This
is something that is already happening, but requires even greater levels of
commitment and investment in order to become a vital aspect for the future of
our activity,” concluded Jank.

This US$12 billion deal brings together the largest Brazilian and global
producer of sugarcane ethanol and holder of the Esso and Mobil brands in the
country, with one of the largest oil companies in the world, with almost 100
years of experience in the Brazilian market. The deal with Cosan makes Shell
the third oil company to invest in ethanol production in Brazil — BP was
first in 2008, followed by Petrobras, which made its first direct investment
in production in late 2009.

ABOUT UNICA

The Brazilian Sugarcane Industry Association (UNICA) represents the top
producers of sugar and ethanol in the country’s South-Central region,
especially the state of Sao Paulo, which accounts for about 50% of the
country’s sugarcane harvest and 60% of total ethanol production. UNICA
develops position papers, statistics and specific research in support of
Brazil’s sugar, ethanol and bioelectricity sectors. In 2008, Brazil produced
an estimated 565 million metric tons of sugarcane, which yielded 31.3 million
tons of sugar and 25.7 billion liters (6.8 billion gallons) of ethanol, making
it the number-one sugarcane grower and sugar producer in the world, and the
second-largest ethanol producer on the planet, behind the United States.

    MORE INFORMATION:
    CDN Corporate Communications - Sao Paulo, Brazil

    Rosa Webster - (5511) 3643 2707 / rosa.webster@cdn.com.br
    Mariane dos Santos - (5511) 3643 2730 / mariane.santos@cdn.com.br

SOURCE Brazilian Sugarcane Industry Association


Source: newswire