GO
Loading...

UPDATE 1-Copersucar, Eco-Energy to form world's top ethanol trader

Monday, 5 Nov 2012 | 3:10 PM ET

* Two firms to produce 10 bln liters ethanol per year

* Copersucar hopes to increase exports to Europe

SAO PAULO, Nov 5 (Reuters) - Brazil's Copersucar SA, the world's biggest sugar exporter, is taking control of United States-based Eco-Energy to become the world's largest ethanol trader with a 12 percent share of the global market in the biofuel, Copersucar said on Monday.

Together the two firms will produce 10 billion liters (2.64 billion gallons) per year of ethanol distilled from sugar and corn, up from the 4.8 billion liters Copersucar expects to produce in the 2012/13 season, the group said.

Copersucar's investment guarantees it control of Eco-Energy but the milling group did not make a stake purchase of the firm, Copersucar's Chief Executive Roberto da Souza said on a conference call.

He did not give investment details or the precise percentage Copersucar gains in Eco-Energy, citing a confidentiality agreement, but said Eco-Energy's current investors would see their shares diluted.

Copersucar plans to increase its ethanol exports to Europe and hopes to double Eco-Energy's operations in the United States in the next three years.

Brazil is typically the world's largest exporter of cane-based ethanol, shipping around 3 billion liters a year. It uses 23-28 billion liters for its domestic flex-fuel car fleet.