Company in which it is a partner with Cosan, Raízen, had the purchase of Cosan Biomassa approved by CADE and Shell enters into yet another fuel business in the country
With CADE's approval of the purchase of an 81,5% stake in Cosan Biomassa by Raízen, a company owned by Shell in partnership with Cosan in the fuel sector, the Anglo-Dutch oil multinational is ready to enter yet another branch of energy in Brazil. See the agreements that the Brazilian government is signing with China!
Shell and Cosan are partners, each with 50%, of Raízen Combustíveis and Raízen Energia and several subsidiaries. The companies produce sugar and ethanol and operate in fuel distribution and logistics.
Cosan Biomassa, the target of the business, produces and sells sugarcane bagasse and straw pellets, biomass used as fuel, for the time being sold to overseas customers, who use them on an experimental basis.
Industry growth
The biomass sector has grown a lot in Brazil and according to the National Union of Corn Ethanol (Unem), corn ethanol production has the potential to reach 8% of the national biofuel supply in 2020 and reach 20% in 2028.
Currently, the state of Mato Grosso is the largest national producer of corn ethanol.
During the 19th Datagro International Conference on Sugar and Ethanol, the Minister of Mines and Energy, Bento Albuquerque, declared that: “We rely, more than ever, on ethanol, to lead this new period that begins for biofuels”.
It is worth remembering that the MME minister is visiting China, along with President Jair Bolsonaro, trying to convince the Chinese to invest in the biofuels segment in Brazil.
Datagro Consultoria estimates that sugarcane crushing in the 2019/2020 harvest in the Center-South will be 593,16 million tons, up 3,5% compared to the 2018/2019 harvest.
