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Shell Studies Partnership for Sugar Plant in Brazil, Valor Says

Bloomberg

By Joao Lima

Dec. 2 (Bloomberg) — Royal Dutch Shell Plc is studying whether to enter a partnership for a plant that sugar-cane processor Cosan SA Industria e Comercio is building in Jatai, Brazil, Valor Economico reported, without saying where it got the information.

The talks between Shell and Cosan are in an “initial” phase, the Brazilian newspaper said. Shell may have a minority stake in the plant, according to Valor. The plant will involve investing an estimated $200 million and will have capacity to process 3.3 million tons of sugar cane a year, Valor said.

Cosan is the world’s largest producer of ethanol from sugar cane.

To contact the reporter on this story: Joao Lima in Lisbon at[email protected].

Last Updated: December 2, 2008 04:49 EST

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