BP BP Plc

By Dieter Holger

BP PLC (BP.LN) said Monday that it has formed a joint venture with agriculture company Bunge Ltd. (BG) to produce biofuels in Brazil from sugarcane.

The new company, BP Bunge Bioenergia, has 11 biofuel sites in five Brazilian states, employing more than 10,000 people, BP said. Per year, the venture can produce more than 1.5 billion liters of ethanol and provide 1,200 gigawatt hours of electricity in Brazil.

BP's Mario Lindenhayn has taken the position of executive chairman of the new venture, with Bunge's Geovane Consul as chief executive. Both companies have equal representation on the board of directors.

"Biofuels is an increasingly important part of a lower carbon energy system," Mr. Lindenhayn said.

Write to Dieter Holger at dieter.holger@wsj.com; @dieterholger

(END) Dow Jones Newswires

December 02, 2019 07:04 ET (12:04 GMT)

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