Oil major Shell and Cosan have reached an agreement to strengthen their Raizen joint venture in Brazil through a change to its contractual structure.
The firm said the partners have agreed to remove the mutual time-bound buyout options included in the original agreement signed four years ago.
It means the project has gone from a temporary to permanent joint venture.
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. We are pleased with Raízen’s strong performance. 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.”
Raizen is the world’s largest individual producer of sugar cane and produced more than four million tons of sugar, more than two billion litres of ethanol and 2.2 gigawayy hours of cogenerate energy last year.
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