Shell has begun trading shares of Raizen, its renewable energy joint venture with Brazilian energy company Cosan, on the Sao Paulo Stock Exchange (B3), following an initial public offering (IPO).
Raizen makes first- and second-generation biofuel from sugar cane and completed a recent agreement to acquire Biosev and the integration of Shell’s lubricants business in Brazil into Raizen (both subject to deal completion).
Raizen’s second-generation biofuels production capacity is also being expanded to contribute to Shell’s target to become a net zero emissions energy business by 2050.
“Shell is committed to Raizen as we grow our renewable energy business and our presence in Brazil and Argentina,” said Huibert Vigeveno, Shell’s downstream director.
“This IPO should help Raizen to grow faster, enabling it to deliver more and cleaner energy to our customers. We believe this IPO is the best way to fund the strategy and provide consistent returns on investment for the joint venture partners and new investors alike.”
The Shell-branded retail sites and lubricants business in Brazil and Argentina will continue to be managed by Raizen.
Raizen produces second generation ethanol on a commercial scale, reusing bagasse, the fibrous by-product of sugar cane production.
Second-generation biofuels such as these are Shell’s primary focus for investment and scaling up biofuels availability.