SAO PAULO – BP PLC (BP.LN) concluded the acquisition of an 83% stake of Brazilian bioethanol producer Companhia Nacional de Acucar e Alcool, or CNAA for $680 million, BP said Thursday in a press release.
Details of the acquisition were announced by the company in March.
The acquisition, which BP said is the largest yet by BP Alternative Energy, is expected to increase BP’s overall Brazilian biofuel production capacity to around 1.4 billion litres of ethanol equivalent per year from 435 million at present. BP has identified biofuels as a particularly prospective area among the different forms of renewable energy.
With the CNAA’s acquisition, BP will become the operator of two producing ethanol mills, located in Goias and Minas Gerais states. A third CNAA mill is currently under development in Minas Gerais state.