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São Martinho announces construction of biomethane plant and expands its portfolio of renewable products
The renewable natural gas, manufactured through the anaerobic digestion of vinasse, will be produced at the Santa Cruz unit, located in Américo Brasiliense (SP)
With an investment of R$ 250 million, the company innovates and will have 100% ownership of the biomethane molecule
São Paulo, October 31, 2023 - São Martinho, one of the world's largest sugarcane energy companies, will construct its first biomethane plant, a renewable fuel capable of replacing fossil natural gas. Produced through the anaerobic digestion of vinasse, a residue from ethanol production, the plant will process 100% of the vinasse generated at the Santa Cruz unit, located in Américo Brasiliense, in the interior of São Paulo (SP), to produce approximately 15 million cubic meters of biomethane per harvest. At this volume, by replacing the consumption of fossil natural gas, São Martinho's use of biomethane has the potential to prevent the emission of up to 32,000 metric tons of greenhouse gases. This quantity is equivalent to 91,000 truck trips between the cities of São Paulo and Rio de Janeiro per year or 250 trips per day.
With an approximate investment of R$ 250 million, the new venture will commence its operations in the second half of 2025. It is part of a master plan devised by the company to fully explore its potential for biomethane generation from vinasse. The first step, initiated at the Santa Cruz unit, accomplishes 20% of this ambition. The remaining 80% is under evaluation, considering the competitive advantages and unique characteristics of its other three units: São Martinho and Iracema in the interior of São Paulo (SP), and Boa Vista in the interior of Goiás (GO).
"The Santa Cruz biomethane plant marks São Martinho's entry into the renewable natural gas market and strengthens our commitment to effectively contribute to the energy transition towards a low-carbon economy. This new venture aligns with our strategic plan, enabling us to increase profitability per cultivated hectare, generating more value for our shareholders while ensuring the production of low-cost renewable carbon. The biomethane production begins with 20% of our potential, connected to the distribution system via pipelines and capable of providing a renewable alternative to a region with high fossil fuel consumption," highlighted Fabio Venturelli, President of São Martinho, regarding the project that will enable customer service through the sale of pressurized or injected biomethane from the gas distribution network in the Araraquara region, northeast of the state of São Paulo.
"It is worth emphasizing that the digested vinasse will continue to be used as organic fertilizer in the unit's sugarcane fields, just as it was done before with raw vinasse. This is yet another significant example of circular economy at São Martinho, transforming what was once considered waste into revenue, and sustainably contributing to economic progress in the use of renewable energy sources," Venturelli concluded. For this initiative, the company relies on financing from the Brazilian Development Bank (BNDES) under the BNDES Climate Fund program and the Renewable Energies subprogram, as well as from the Financier of Studies and Projects (FINEP) under the Ministry of Science, Technology, and Innovations (MCTI).
Another innovation brought by São Martinho upon entering this market pertains to the business model developed for exploring this opportunity. Unlike other announced projects, São Martinho will operate under a model in which it owns 100% of the generated biomethane molecule, providing autonomy in production and commercialization. Among other aspects, this independence allows for the optimal utilization of the molecule, such as continuing the development of tests and research towards replacing the use of diesel in its own fleet, especially in trucks that require high power and torque when subjected to the conditions of sugarcane operations. Such tests have been ongoing at São Martinho since 2016.
Biogas History at São Martinho
The newly announced business for biomethane production is the result of the company's consistent investments in innovation and sustainability throughout its history. Since 1987, the company has been working on developing technologies for biogas production from vinasse. In 1993, the first plant with Upflow Anaerobic Sludge Blanket (UASB) technology, equipment developed and patented by the company, began operations at the São Martinho unit in Pradópolis, São Paulo (SP). This plant operated for more than 20 years, utilizing the produced biogas for yeast drying.