Brazil’s Cosan eyes ethanol expansion in US and Brazil

In Brazil, the CFO of Cosan said that the company is seeking acquisitions to add to its portfolio of 17 ethanol plants, and included a focus on investment in the US.

He said the company’s $1 billion IPO, completed last year, provided the necessary growth capital for the company, which derives 33 percent of its revenue from ethanol production.

In Brazil, Petrobras, the state oil company and Cosan, have locked horns over a Petrobras plan to build a state-owned pipeline to transport ethanol. “If Petrobras has the logistics, it will have control of the sector and this we don’t want,” said Rubens Ometto Silveira Mello, Cosan’s controlling shareholder and chief executive officer, told Agencia Estado. The proposed ethanol pipeline will run from Goias state to Sao Paulo.

The state pipeline will be financed by the Japan Bank of International Cooperation, and the Inter-American Development Bank. Petrobras’ has planned a second pipeline from Goias to Paranagua, a major commodities port.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Brazilian ethanol leader, Cosan, outlines three-step strategy for international expansion; eyes US ethanol plants

In Brazil, Cosan said it is aggressively seeking opportunities in the United States. The chief commercial officer, Marcos Lutz, told Ethanol Statistics that Cosan has established a three-step strateg...

Brazil’s Cosan expands growthj strategy to include stock-based acquisitions; seeking “major ethanol entity”

In Brazil, Cosan announced that it is considering acquisition of companies and the establishment of partnerships, expanding its previous expansion strategy that focused on sugar mill acquisition. The ...

Brazil’s Cosan merges with Nova America: Cosan now controls 10 percent of Brazilian sugar trade

In Brazil, Cosan announced that it would merge with Nova America and acquire four new sugar cane factories and gain control of leading sugar company Uniao in return for giving Nova shareholders 11 per...

Brazil’s Cosan to acquire Usina Benacohol for $61 million plus assumption of $20 million debt

In Brazil, Cosan announced that it will acquire the Usina Benalcohol ethanol plant for $61 million, plus assumption of $20 million in company debt. Benalcohol has a 1.3 million tonnes of cane a year,...

India’s Shree Ranuka Sugars aims to invest $100 million in Brazil, eyes Grupo Moema

In Brazil, Valor Economico is reporting that India's Shree Renuka Sugars (SRES.BO) has retained Morgan Stanley as an advisor and may bid for an investment sugar and ethanol producer Grupo Moema. Shree...

Cosan buys 1500 ExxonMobil stations in Brazil for $826 million

In Brazil, Cosan has acquired ExxonMobil's 1500 Brazilian service stations (under the Esso brand) in an $826 million deal. The company said that it is buying the stations to assure itself of a distrib...