Eco-Energy, a U.S.-based integrated biofuel marketing, distribution and trading company, and Copersucar, the largest sugar and ethanol trader in Brazil, today announced the integration of their ethanol operations, expanding both companies' ethanol platforms.
Together, the companies will reach global supply capacity of 2.6 billion gallons of biofuel per year to become the largest ethanol trader in the world. This new structure is expected to create significant efficiencies in the global supply chain and add value to both of the companies' partner plants.
Eco-Energy operates in the marketing and distribution of biofuels, currently handling 9% of the U.S. ethanol market, with more than $3 billion in annual sales.
Copersucar is projected to market the equivalent of 24% of the production from the sugarcane production in the Center-South region of Brazil in 2012-13, with a volume of 1.3 billion gallons of ethanol and 8.7 million tons of sugar, and revenues estimated at $7.5 billion.
Luís Roberto Pogetti, Coperscucar chairman, says there are key global possibilities with the new partnership.
"With this partnership, Copersucar becomes a truly global company in the biofuel market, expanding the scale of its operations to the two main ethanol markets in the world, which are the United States and Brazil, both in production and consumption volume," Pogetti says.
Eco-Energy CEO Chad Martin adds that the partnership will contribute to Renewable Fuels Standard requirements in the U.S.
"The biofuels industry continues to evolve and expand beyond the borders of North America, and we need to constantly be working to open new markets, while also being in a position to meet the current biofuel requirements domestically under the RFS," Martin says. "This partnership builds on the great platform and team we have created at Eco-Energy and opens up significant opportunity for our producer partners."
The closing is still subject to certain regulatory approval.