(Mandadeal.co.uk) Energy giant BP has agreed to acquire a majority stake in Brazilian-based ethanol and sugar producer Companhia Nacional de Acucar e Alcool (CNAA).

The deal is worth a total of $680 million (£424.6 million) and will see BP acquire 83 per cent of CNAA. BP will also refinance 100 per cent of CNAA’s existing long-term debt.

Carl-Henric Svanberg, chairman of BP, believes that low carbon energy will play an increasingly significant role in meeting world energy demand.

Svanberg adds: ‘[The] transaction also fits BP’s strategy of increasing our exposure to growing energy markets.’

According to a report published by BP in January, alternative energy is expected to be the fastest growing energy sector over the next 20 years. BP Energy Outlook 2030 states that global biofuels production is projected to more than triple.

Philip New, vice president of BP Biofuels comments: ‘This acquisition is a key milestone in our strategy of building a leading position in sustainable and scalable biofuels. It will provide a solid growth platform for our business.’