LONDON (Alliance News) - Oil and gas major Royal Dutch Shell PLC on Wednesday said it has agreed a change to the contractual structure of its Raizen sugar cane joint venture in Brazil.
Shell said it and Cosan, the Brazilian bioethanol, sugar, energy and food conglomerate, have agreed to remove the mutual time-bound options included in the original joint venture, signed in June 2011.
By doing so, the pair made the joint venture permanent rather than temporary.
Raizen is the largest individual sugar cane producer in the world, producing over 4.0 million tonnes of sugar, 2.00 billion tonnes of ethanol, and 2.2 gigawatts of co-generated energy, Shell 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 Raizen'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," said John Abbott, Shell's downstream director.
Shell 'A' shares were up 0.5% to 2,039.00 pence on Wednesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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