São Martinho Announces Construction of a Biomethane Plant and Expands Its Portfolio of Renewable Products

(Invest SP (Google Translation)) Natural gas of renewable origin, manufactured from the biodigestion of vinasse, will be produced at the Santa Cruz unit, located in Américo Brasiliense (SP); Investment will be R$250 million

São Martinho, one of the largest sugar-energy companies in the world, will build its first biomethane plant, a renewable fuel capable of replacing fossil natural gas. Produced through the biodigestion of vinasse, a residue from ethanol manufacturing, the plant will process 100% of the vinasse generated at the Santa Cruz unit, located in Américo Brasiliense, in the interior of SP, to produce around 15 million cubic meters of biomethane per harvest. . In this volume, by replacing the consumption of fossil natural gas, the use of biomethane from São Martinho has the potential to avoid the emission of up to 32 thousand equivalent tons of greenhouse gases, an amount compatible with 91 thousand truck trips between the cities of São Paulo and Rio de Janeiro per year, or 250 trips per day.

With an investment of approximately R$250 million, the new business will begin operations from the second half of 2025 and is part of a master plan designed by the company with the objective of exploring its entire potential for generating biomethane from vinasse, the first step of which, debuted at the Santa Cruz unit, operationalizes 20% of this ambition. The remaining 80% are being evaluated according to the competitive advantages and particularities of its three other units, São Martinho and Iracema, also in the interior of SP, and Boa Vista, in the interior of GO.

“The Santa Cruz biomethane plant marks São Martinho’s entry into the renewable natural gas market and reinforces our position in contributing effectively to the energy transition towards a low-carbon economy. This new business is aligned with our strategic plan and allows us to increase profitability per cultivated hectare, generating more value for our shareholders by ensuring the production of renewable carbon at a lower cost. Biomethane production starts at 20% of our potential, connected to the distribution system via gas pipeline and capable of offering a renewable alternative to a region with high fossil fuel consumption”, highlights Fabio Venturelli, president of São Martinho, about the project which will enable customer service through the sale of pressurized or injected biomethane from a gas distribution network in the Araraquara region, northeast of the state of São Paulo.

“It is also worth emphasizing that biodigested vinasse will continue to be used as organic fertilizer in the unit's sugarcane fields, as was previously done with fresh vinasse . It is another great example of a circular economy in São Martinho, transforming into revenue what was previously seen as waste, and contributing in a sustainable way to economic advancement in the use of renewable energy sources”, concludes Venturelli. For this initiative, the Company counts on financing from the National Bank for Economic and Social Development (BNDES) – within the scope of the BNDES Climate Fund program and the Renewable Energy subprogram – and from the Financier of Studies and Projects (FINEP) – from the Ministry of Science , Technology and Innovations (MCTI).

Another innovation brought by São Martinho, upon entering this market, concerns the business model built to exploit the opportunity. Unlike other announced projects, São Martinho will operate in a model in which it owns 100% of the biomethane molecule generated, with production and commercialization autonomy. Among other aspects, this provides independence to use the molecule in the best possible way, 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 conditions of use of the sugarcane operation. Such tests have been underway since 2016 in São Martinho.

The new business announced for the production of biomethane is the result of constant investments in innovation and sustainability made by the Company throughout its history. Since 1987, the company has worked on developing technologies for manufacturing biogas from vinasse. In 1993, the first plant with UASB technology ( Upflow Anaerobic Sludge Blanket – Upflow Anaerobic Sludge Blanket) went into operation at the São Martinho unit, in Pradópolis (SP) , equipment developed and patented by the company, which operated for more than 20 years, using the biogas produced to dry yeast. READ MORE