Company plans to invest more than R$350m in its first biomethane plant from sugarcane waste
04/12/2024
Atvos, owned by the Arab fund Mubadala, is set to invest over R$350 million in establishing its inaugural biomethane production unit from sugarcane waste. An investment memorandum has been signed for the construction of the facility in Nova Alvorada do Sul, in the Brazilian state of Mato Grosso do Sul, the location of Usina Santa Luzia (USL).
This new unit is expected to produce 28 million cubic meters of biomethane each harvest. Currently, the plant at Nova Alvorada do Sul has the capacity to process 5.5 million tonnes of sugarcane and generate 498 million liters of ethanol annually.
Bruno Serapião, CEO of Atvos, highlighted that this initiative would signify the company’s foray into the renewable natural gas market, benefiting from large-scale production to satisfy increasing demand.
The aim is to utilize biomethane production to partially fuel the logistics fleet of Atvos and its agricultural affiliates, potentially reducing diesel usage by up to 40%. Any excess biomethane is intended for distribution to nearby municipalities.
In Brazil, most operational biomethane plants currently utilize their output for internal purposes rather than commercial sales. Out of 20 operational plants, only six are selling their produced gas, according to the Brazilian Biogas Association (ABIOGÁS). The association forecasts that in five years, there will be 90 commercially operating plants, with 42% anticipated to be within the sugar-and-ethanol sector.
The proposed biomethane facility by Atvos is undergoing engineering analysis for final approval, with construction expected to start within the year.
*Por Paulo Santos — São Paulo
Source: Valor International