BP's ethanol production rose by 47% on the year in 2015 to 795 million liters, the company said in its annual report published Friday.
The Brazilian production facility produces ethanol from sugar cane and is consumed domestically and exports to the US and Brazil.
BP said it was investing via a joint venture with DuPont in the development and commercialization of biobutanol, a second-generation biofuel which can be blended with gasoline in higher proportions than traditional ethanol, or used independently as a road fuel.
The company did not give any further details on its current stage of development.
Despite having sold its stake in UK ethanol producer Vivergo in 2015, BP said it believed "biofuels could offer the most cost-effective pathway to a secure, lower-carbon future" and could reduce reliance on imports.
The company also said biofuels remained part of its business model because of the ease with which they can be included in the road fuel mix "without significant engine modifications to existing fuel-delivery systems."
