Brazilian state-controlled Petrobras said late yesterday it is seeking a buyer for its 50pc stake in biodiesel producer BSBios as part of plan to divest non-strategic assets.
BSBios owns two biodiesel plants in southern Brazil, and is one of the country's largest producers. The company recently expanded its plant in Marialva, Parana state, which raised biodiesel production capacity from 209mn liters/yr (3,601 b/d) to 288mn l.
Earlier this year, the company also increased capacity 288mn l/yr at its Passo Fundo plant in Rio Grande do Sul state, from a previous 216mn l/yr.
BSBios sold 413mn l of biodiesel in government-sponsored auctions in 2017. The company was also the first to export biodiesel from Brazil.
Petrobras also owns plants in Candeias in Bahia state and Monte Claros in Minas Gerais state which were not mentioned in the announcement.
Petrobras' partner in BSBios, RP Biocombustiveis controlled by the Batistella family, has tag-along rights as part of the shareholders agreement. This means that a potential buyer would be required to offer the same price to the Batistella family for its 50pc stake.
Petrobras is seeking to sell the asset as the outlook for the biodiesel industry is starting to improve following the senate passage this week of a new regulatory framework, known as Renovabio. Brazil's mandatory biodiesel blend will increase to 10pc from 8pc on 1 March.
In September 2016, Petrobras said it plans to completely exit biofuels production as part of its 2017-21 strategic plan.
The company has already sold stakes in Brazilian sugar and ethanol producers.
