Aug 8 (Reuters) - BP Bunge Bioenergia, the Brazilian

bioenergy venture controlled by BP Plc, will invest 530

million reais ($94.49 million) to expand sugarcane crushing

capacity at its Pedro Afonso plant in the state of Tocantins, it

said late on Wednesday.

The Pedro Afonso mill is one of 11 that BP manages in five

Brazilian states. The plant capacity will increase by 800,000

metric tons to 3.4 million tons of sugarcane crushing per crop.

BP said expansion works in Tocantins will start in October,

with completion planned for July 2026. Upon conclusion of the

project, the company's total cane crushing capacity in Brazil

will rise to 33.2 million tons per crop, which puts the firm

among the three largest in the country.

BP reached an agreement with Bunge Global SA ( BG ) in June

to buy Bunge's 50% share of the venture. Financial details of

the deal, one of the largest ever in the Brazilian sugar and

ethanol industry, were not disclosed.

The company said after the deal that it plans a forey into

second generation ethanol, the type made out of cane waste,

while also evaluating production of sustainable aviation fuel

(SAF).

BP Bunge Bionergia also released results from its 2023/24

crop in Brazil, saying total revenues increased 7% year-on-year

to 8.4 billion reais.

As part of the expansion plan in Tocantins, the company said

it will plant 6,000 more hectares with sugarcane, and that a big

part of that will be irrigated.

The Pedro Afonso mill, which does not produce sugar but only

ethanol and electricity, will have its capacity to make the

biofuel increased to 280 million liters per crop from 200

million liters currently.

($1 = 5.6091 reais)