Petroleum giant Shell and Brazilian sugar conglomerate Cosan announced on 23 November that they had agreed to transform their Raízen joint venture in Brazil from a temporary to a permanent one.

“The partners have agreed to remove the mutual time-bound buyout options included in the original joint venture agreement, signed in June 2011,” Shell said.

Raízen was the world’s largest individual producer of sugarcane, producing more than 4M tonnes of sugar, more than 2bn litres of ethanol and 2.2 gigawatt hours of cogenerated energy in 2015, Shell said.

“It also operates a network of more than 5,800 Shell-branded service stations in the country. The combination of Shell and Cosan’s retail experience and technical expertise have contributed to Raizen’s strong financial and operational performance since the venture was established.”

Raízen John Abbott, Shell’s downstream director, said: “Low-carbon, sustainable biofuels play an important role today and will be required long term for heavy duty and long distance transport. This commitment reaffirms the stability of Shell and Cosan’s partnership, and our shared view of the long term objectives and value of the business.”