SHELL AND COSAN SIGN MOU TO FORM ETHANOL JOINT VENTURE IN BRAZIL

摘要

Shell International Petroleum Company Limited, a subsidiary of the global oil giant Royal Dutch Shell pic, and Cosan S.A., a leading ethanol developer in Brazil, have signed a nonbinding memorandum of understanding (MOU) to form a $12 billion joint venture in Brazil for the production of ethanol, sugar and power, and the supply, distribution and retail of transportation fuels. Under the terms of the MOU, each company will contribute certain existing Brazilian assets to the venture. In addition, Shell would contribute a total of $1.625 billion in cash, payable over two years. The two parties will continue to negotiate a binding joint venture agreement.rnIf finalized, the joint project will enable Shell and Cosan to establish a scalable and profitable position in sustainable biofuels over the next twenty years by building a market position in the one of the largest ethanol producing countries. With annual production capacity of about 2 billion liters and significant growth potential, the joint project could be one of the world's largest ethanol producers. In addition, the inclusion of Shell's equity interests in logen and Codexis would potentially enable the joint venture to deploy next generation biofuels technologies in the future.