Brazilian energy company Raízen has agreed to buy Louis Dreyfus Holding subsidiary Biosev, a sugar and ethanol unit.
The agreement included nine production units – six in São Paulo, three in Mato Grosso do Sul and one in Minas Gerais – with a crushing capacity of 32M tonnes of sugarcane, Raízen said in its 8 February statement.
“More than expanding the production of ethanol, sugar and bioenergy, this is an opportunity to boost business by using technology to leverage productivity and the use of sugarcane in biorefineries, with the possibility of expanding our second generation ethanol and biogas”, Raízen CEO Ricardo Mussa said.
Following the purchase, which is subject to approval by the Brazilian Competition Authority (CADE), Raízen would have a total of 35 production units, with a total capacity of 105M tonnes of sugarcane and about 1.3M ha of cultivated area.
Once the transaction was completed, Biosev would become a subsidiary of Raízen.
Raízen is involved in the production of biofuels and bioelectricity from sugarcane, and it is actively expanding its portfolio in renewable sources, such as second generation ethanol (E2G), biogas, biomass and solar energy.