bp has agreed to buy out US grain trader Bunge's stake in a Brazilian biofuels joint venture for $1.4 billion.

The British energy group holds a 50% stake in this joint venture (JV), called 'bp Bunge Bioenergia', which produces ethanol from sugarcane, with Bunge holding the remaining 50%.

In a press release, bp explains that the operation will enable it to generate synergies and continue to grow the entity, which generated an operating profit before non-recurring items (Ebitda) of $800 million last year.

This transaction comes at a time when the group has set itself the target of increasing its biofuel production to some 50 million barrels per day by 2025.

By 2030, bp aims to have biofuel production in the region of 100 million barrels per day.

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