Shell and Cosan reaffirm commitment to Brazil distribution with revised JV agreement
Shell and Cosan have reached an agreement to strengthen the Raízen JV in Brazil, through a change in its contractual structure. The partners have agreed to remove the mutual time-bound buyout options included in the original JV, signed in June 2011, and in doing so have transformed Raízen from a temporary to a permanent JV.
“Low-carbon, sustainable biofuels play an important role today and will be required long term for heavy duty and long distance transport,” John Abbott, Shell’s Downstream Director, said. “We are pleased with Raízen’s strong performance.”
Raízen is the world’s largest individual producer of sugar cane, producing more than 4 MMt of sugar, more than two billion liters of ethanol and 2.2 gigawatt hours of cogenerated energy in 2015. It also operates a network of more than 5,800 Shell-branded service stations in the country.
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