The queen of oil enters the ethanol market.

After Shell partnered with Cosan a year ago, now it's BP's turn, another of the global giants in the oil sector, to enter the Brazilian ethanol market. The company announced its intention to buy 83% of Companhia Nacional de Açúcar e Álcool (CNAA), a Brazilian ethanol producer. The deal involves US$680 million and will expand BP's presence in the biofuel industry in the country. This is the company's largest operation in the area of ​​alternative energies for the British group.

In recent months, BP has restructured its asset portfolio. At the same time, it is struggling to overcome the effects of the Gulf of Mexico oil spill on its business and image. The agreement with CNAA should increase BP's production capacity in Brazil to approximately 1,4 billion liters of ethanol per year, compared to the current level of 435 million liters, the company reported, adding that it is the largest transaction ever carried out by BP Alternative Energy. "This acquisition is an important milestone in our strategy to build a leading position in sustainable biofuels," said Philip New, Vice President of BP Biofuels.