Shell buys 3.25 billion litres of sugar-cane ethanol under Raizen deal

(Alliance News) - Shell PLC on Monday said it will buy 3.25 billion litres of sugar-cane cellulosic ethanol under a deal with its subsidiary, Brazilian energy company Raizen.

Raizen expects to invest around USD1.5 billion to build five new plants that will produce the ethanol in Brazil, with the last expected to be operational by the end of 2027 at latest. The company currently has four cellulosic ethanol facilities.

Raizen is a joint venture of Shell and Brazilian bioethanol, sugar and energy producer Cosan SA.

Shell said the deal will help it towards becoming a net-zero emissions energy business by 2050.

Shell noted that demand for sustainable fuels is increasing. "Combining Raizen's innovative sugar-cane waste technology with Shell's global distribution network and customer relationships will help to meet that demand," Andrew Smith, Executive Vice President for Shell Trading & Supply, said.

Shell shares were 1.3% lower at 2,494.66 pence each in London on Monday afternoon.

By Tom Budszus; tombudszus@alliancenews.com

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