BP PLC has agreed to acquire majority control of Cia. Nac. de Acuacar e Alcool, an ethanol and sugar producer in Brazil for $680 million and assumption of all the company's long-term debt.
BP will become operator of two ethanol mills in Goias and Minas Gerais states. A third mill is under development in Minas Gerais.
When fully developed, each mill will have capacity to crush 15 million tonnes/year of sugar cane grown nearby and to produce 480 million l./year of ethanol equivalent. Each mill also will be able to supply 380 Gw-hr/year of electrical power.
Sellers of the plants are Acucar e Alcool Fundo de Investimento em Participacoes and Acucar e Alcool II Fundo de Investimento em Participacoes.
BP already owns a 50% interest in Tropical BioEnergia SA, which operates a 435 million l./year ethanol plant in Goias.
