BP Biocombustiveis, the Brazilian biofuels unit of BP (NYSE: BP), has announced that it will invest $25.5m in the development of a project for energy cogeneration from sugar cane bagasse.

The development will be located at its sugar and ethanol mill Tropical, in Brazil’s central Goias state.

As a result of the project, the unit, which has capacity to crush 2.5 million tonnes of sugar cane per harvest, will be able to produce 170 GWh.

The company’s energy cogeneration will ramp up to 510 GWh in 2013 from the 340 GWh estimated for this year, according to Mario Lindenhayn, CEO of BP Biocombustiveis.

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