SAO PAULO (Reuters) - Brazil’s Copersucar, one of the world’s largest ethanol merchants, and BP’s Brazil unit said on Thursday they will form a 50-50 logistics joint venture in the country.
The venture will operate Copersucar’s recently built ethanol storage complex in the Brazilian city of Paulínia, the country’s largest fuels hub.
The announcement comes two days after Brazil’s lower house of Congress passed legislation proposing to increase the use of biofuels in the country while fuel sales start to recover from a two-year recession.
Copersucar’s Paulínia ethanol complex has capacity to move 2.3 billion liters of the fuel per year and is able to store 180 million liters at its ten tanks, the companies said in a statement.
“This partnership will allow BP to sharply increase its commercial presence in Brazil,” Mario Lindenhayn, country head for BP, said in the statement.
Copersucar did not disclose financial details of the deal, which is subject to approval by regulators.
Reporting by Marcelo TeixeiraEditing by Chizu Nomiyama