Bunge’s Post

How do you make money in #energytransition? BP edition: In June BP agreed to take full ownership of its Brazilian #biofuels joint venture, acquiring Bunge's 50% interest. A couple highlights: * Returns: According to the release, "the acquisition meets bp’s expected returns threshold for #bioenergy of more than 15%". * Integrated Business Model: This was highlighted in both the presser and is featured on the BP Bunge (see the image below) as a key driver of economics. * Focus: the BP Bunge platform will be the focus and plans for other projects will be scaled back. * Growth: Further integration, from trading to shipping to biosciences expertise, is highlighted as a driver for further value creation. Image Source: BP Bunge Website

Interesting move for the industrial enzyme sector…

British food trader Czanikow Group Ltd is set to expand into the Brazilian ethanol and power markets, with plans to launch CzEnergy for ethanol trading, leveraging Brazil's robust biofuel industry. With approval from Brazil's ANP, Czarnikow aims to tap into a market 50% larger than sugar. The move aligns with Brazil's significant reliance on ethanol, constituting 40% of its light vehicle fuel. Additionally, Czarnikow eyes electricity trading in Brazil's growing ACL market, reflecting a strategic diversification beyond sugar.

Shell and Cosan are capitalizing on rising demand for ESG and Green Bonds through their joint-venture Raízen. This is the first major green bond issuance tied to production of second-generation ethanol (as far as I'm aware). According to Infralogic, the bonds which were issued yesterday are securitized by receivables which are underpinned by a take-or-pay offtake agreement with Shell. Raizen's E2G technology, which relies on technology developed in Ottawa by iogen, achieves a 90% carbon emissions reduction when compared to gasoline.

There’s a lot of questions surrounding chemical/molecular/advanced “pyrolysis”recycling and for good reason. Burning plastic is a dangerous and risky practice. However, food processors around the world use highly engineered plastics to keep perishable food products safe in the supply chain from “farm to fork”. Until alternative methods are developed or we shorten the supply chain, these types of plastics are needed. The type of pyrolysis mentioned in this short article is being developed in Europe. It could provide plastic manufacturers with PCR (post consumer resin) created through this process to increase “recycled content” and provide a way to recycle these films. Stay tuned as this is a fascinating subject to those looking for increased sustainability of flexible films.

Raízen, the world’s largest sugar exporter and cellulosic ethanol producer, selects ION’s #CTRM solution TriplePoint to manage its extensive commodities portfolios of #sugar, #biofuels, #fossilfuels, and #renewable certificates. In a market heavily impacted by volatile prices, shifting #geopolitics, and frequent weather-borne supply chain disruptions, they chose TriplePoint for its holistic approach. This strategic move allows Raizen to capitalize on various advantages, including optimized #trading operations, enhanced #supplychain efficiency, sophisticated #riskmanagement, and real-time movement monitoring. The success stories of businesses like Raizen demonstrate the tangible benefits of our solutions. Explore the comprehensive details in our latest case study. Download now: https://lnkd.in/dkyJuE7N

BP has agreed to acquire Bunge's 50% stake in their Brazilian #sugar and #ethanol joint venture, BP Bunge Bioenergia, for $1.4 billion. This move reflects BP's bet on rising demand for low-carbon biofuels. Expected to close by the end of 2024, the deal will give BP full ownership of Bioenergia, which produces around 50,000 barrels of ethanol equivalent per day from #sugarcane. BP will also take on Bioenergia's $1.2 billion in debt and lease obligations, resulting in a net payment of $800 million to Bunge. Despite investor concerns and a recent credit outlook downgrade by S&P Global due to slower debt reduction, BP expects the acquisition to yield returns above 15% and fit within its $16 billion annual spending plan. Concurrently, BP is scaling back new biofuel projects, pausing developments at its Lingen refinery in Germany and Cherry Point refinery in Washington, while assessing three other projects. #Reuters #EDFMan

Latest News Leading biofuel producer TruAlt Bioenergy Ltd has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The IPO is a mix of fresh issuance of equity shares worth Rs 750 crore and an offer for sale (OFS) of up to 36 lakh equity shares by promoters, according to the draft red herring prospectus (DRHP. The OFS consists of up to 18 lakh equity shares each by Dhraksayani Sangamesh Nirani and Sangamesh Rudrappa Nirani. The company may consider raising Rs 150 crore under the pre-IPO placement round. If such placement is completed, the fresh issue size will be reduced. Out of the proceeds from the fresh issuance, Rs 425 crore will be utilised for funding working capital requirements, Rs 172.68 crore for setting up multi-feed stock operations, besides, a portion will be used for general corporate purposes. Based in Bengaluru, TruAlt Bioenergy focuses on ethanol production, with a daily production capacity of 1,400 ...

Raízen, a leading global producer of ethanol from sugarcane, has inaugurated its state-of-the-art second generation ethanol (E2G) plant at the Bonfim Bioenergy Complex. With an investment of BRL1.2 billion (USD230 million), this new facility is the largest of its kind in the world, boasting an annual production capacity of 82 million litres (21.6 million gallons). Remarkably, 80% of this capacity is already secured under long-term contracts. Raízen is a joint venture between Shell plc and the Brazilian energy producer Cosan. #biofuel #BonfimBioenergyComplex #cellulosicethanol #E2Gplant #Guariba #Raízen #renewableenergy #RicardoMussa #SãoPaulo #second-generationethanol #sustainablefinance Follow F&L Asia Ltd. for more industry updates here: https://lnkd.in/fGDzetn Subscribe here: https://lnkd.in/g-9sDz3PIn

OMCs announce Rs 5.79 per liter incentive on maize-based ethanol In a significant move to boost ethanol production from maize, Oil Marketing Companies (OMCs) have announced an additional incentive of Rs 5.79 per liter (Excluding GST) for ethanol sourced from the grain. This comes on top of the existing procurement price of Rs 66.07 per liter for Maize-based ethanol, bringing the total effective price to Rs 71.86 per liter. The incentive will be applicable for all ethanol supplies purchased by OMCs after 5th January 2024, effectively covering the remaining period of the Ethanol Supply Year (ESY) 2023-24. OMCs will disburse the incentive through credit notes or by directly incorporating it into purchase orders. The increased incentive is expected to attract greater participation from maize-based ethanol producers, potentially expanding domestic ethanol production capacity and contributing to India’s ambitious goal of achieving 20% ethanol blending in petrol by 2025. #Ethanol #Ethanolforindia #OMC #ethanolindustry #Incentiveprice #feedstock #biofuel #ethanolblending #EBP #ethanolconsultant #Pioneer #PCS