Shell, Cosan turn Brazil JV into permanent deal

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Thursday, November 24, 2016

Royal Dutch Shell and Cosan have turned their Raízen sugar and biofuel joint venture in Brazil into a long-term partnership, the companies said on Wednesday.

The firms agreed to cancel mutual time-bound buyout options, established when Raizen was created in 2011, to form a "permanent" union, according to a Shell statement.

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"Low-carbon, sustainable biofuels play an important role today and will be required long term for heavy duty and long distance transport. We are pleased with Raízen's strong performance," Shell downstream director John Abbott said.

Raízen produced more than 4Mt of sugar, 2Bl of ethanol and 2.2GWh of cogenerated energy in 2015, making it one of the world's largest sugarcane companies.

It also operates more than 5,800 Shell-brand service stations in Brazil.