Changes in Brazil's Ethanol Market

The FT has two reports on new developments in the Brazilian ethanol market.  First:

Cosan, Brazil’s biggest sugar and ethanol producer, has agreed to buy the Esso chain of filling stations in Brazil from ExxonMobil for $826m plus $198m in debt. The deal represents the first big investment by a sugar and ethanol producer in retail fuel distribution.

Cosan’s acquisition of Esso comes as sales of fuel ethanol have overtaken sales of gasoline in the country for the first time, including the use of ethanol as an additive in gasoline of up to 25 per cent by volume.

Full article here (subscription required).

And second:

BP (British Petroleum) announced plans to invest $560m in biofuels on Thursday and argued that its proposals to develop ethanol production from sugar cane in Brazil would not affect food supplies. The oil group plans to spend $60m buying a 50 per cent stake in a Brazilian joint venture and invest a further $500m in two ethanol refineries.

Full article here (subscription required).

These show the continued acceleration of investments in the alternative fuels industry and regions pursuing energy strategies should note the major players and size of the deals.