ITOCHU, Bunge partnership produces ethanol

In Tocantins, Brazil, Pedro Afonso Açúcar e Bioenergia, a joint venture between ITOCHU and Bunge, began manufacturing ethanol on 22 July.

ITOCHU holds 20% of the shares in the joint venture, through its wholly owned subsidiary JB BioEnergy. Bunge owns the remaining 80%.

ITOCHU and Bunge have also formed a partnership for the production and sales of ethanol in Minas Gerais, at the same investment rate. The two projects require an investment of around $800 million (€556 million).

Pedro Afonso began building its first plant in January 2009, which was completed in July 2010. After the completion of trial operations, the plant began operating at almost full capacity in May 2011. Although the annual processing capacity of sugarcane at the Pedro Afonso mill is currently 2.5 million tonnes per year, plans are in place to expand it to 4.4 million tonnes.