{"id":84933,"date":"2024-06-24T00:00:00","date_gmt":"2024-06-24T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2024\/06\/24\/bp-buys-out-bunge-in-brazilian-biofuels-jv-elon-musk-ups-his-stake-in-tesla\/"},"modified":"2024-06-24T00:00:00","modified_gmt":"2024-06-24T00:00:00","slug":"bp-buys-out-bunge-in-brazilian-biofuels-jv-elon-musk-ups-his-stake-in-tesla","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2024\/06\/24\/bp-buys-out-bunge-in-brazilian-biofuels-jv-elon-musk-ups-his-stake-in-tesla\/","title":{"rendered":"BP buys out Bunge in Brazilian biofuels JV + Elon Musk ups his stake in Tesla"},"content":{"rendered":"

BP to fully acquire Brazilian bioenergy venture for USD 1.4 bn: <\/strong>British global energy giant BP has agreed to buy out Bunge's<\/a> 50% stake in their Brazilian sugar and ethanol joint venture BP Bunge<\/a> for USD 1.4 bn, according to a statement<\/a> released on Thursday. The transaction \u2014 expected to close by the end of 2024 \u2014 will give BP full control of BP Bunge, which can produce around 50k barrels of ethanol per day from sugarcane. BP will also assume the firm\u2019s USD 1.2 bn debt and lease obligations, resulting in a net payment of USD 800 mn<\/a>.<\/p>\n

BP plans to expand biofuel operations:<\/strong> BP plans to expand and diversify its biofuel operations in Brazil following its acquisition of Bunge's stake in their joint venture, Reuters<\/a> reported Friday. The company aims to leverage the venture\u2019s biofuel base \u2014 comprising 11 plants across five states \u2014 to develop new bioenergy projects. BP's strategy includes exploring next-generation ethanol, sustainable aviation fuel (SAF), e-fuels, and biogas.<\/p>\n

REFRESHER- Mubadala Capital backed out of BP\u2019s bioenergy venture:<\/strong> Mubadala Capital withdrew<\/a> from bidding for ethanol JV BP Bunge last year, with reports suggesting that the UAE state investor dropped out after concluding negotiations to acquire Atvos.<\/p>\n

ON A RELATED NOTE- EU faces challenges meeting SAF quotas: <\/strong>EU producers of SAF cannot ramp up production fast enough to meet increasing quotas, German transport company Fraport\u2019s<\/a> CEO Stefan Schulte told Reuters<\/a>, with current production rates lagging behind the EU's requirements.<\/p>\n

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Tesla\u2019s shareholders\u2019 approved a USD 56 bn pay package <\/strong>for founder and CEO Elon Musk, and to move its headquarters from Delaware to Texas<\/strong>, Reuters<\/a> reported. The vote is considered a huge victory for Musk, who is attempting to overturn a decision by the Delaware court to void a package of options, the largest in US history, which would boost Musk\u2019s stake in the company to 20%, up from 13% currently. The story also grabbed ink in <\/strong>The Financial Times<\/a><\/strong>, <\/strong>Bloomberg<\/a><\/strong>,<\/strong> WSJ<\/a><\/strong>, and <\/strong>CNBC<\/a><\/strong>.<\/strong><\/p>\n

IN OTHER US NEWS- The Biden Administration rolled out <\/strong>finalized rules for new clean energy subsidies to make green jobs and wages competitive with the oil and gas sectors<\/strong>, Reuters<\/a> reported. Projects that apply for tax credits under the US\u2019 green incentive package the Inflation Reduction Act<\/a> and are paying prevailing wages to workers while hiring apprentices will be eligible to receive \u201cfive times the law's base credit of 6%,\u201d the outlet explains. The Biden administration said it is also encouraging the adoption of project labor agreements that set wage and employment terms between trade unions and contractors to ensure compliance with the new rules. <\/p>\n

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-<\/strong><\/p>\n