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The Multinational Volkswagen Is Investing in Biomethane Alongside Raízen in Its Factories in the State of São Paulo. The Initiative Aims to Reduce the Company’s CO₂ Emissions.
About four months ago, Volkswagen struck a deal with Bradesco for a bank loan linked to commitments related to environmental, social, and corporate governance (ESG), which involves reducing fossil CO₂ emissions from its industrial operations. A few weeks ago, Raízen announced the installation of a new biogas facility in Piracicaba (SP). From this unit, the biomethane that Volkswagen is committed to purchasing will start replacing fossil gas in two plants in the State of São Paulo, Taubaté and São Bernardo do Campo.
Biomethane Production Set to Begin Next Year
The ESG practice has changed the relationship between companies. While it brings together sectors that previously had no common interests, it also provokes new discussions among companies that already had agreements.
The commitments made by two companies, Volkswagen and Yara, one of the largest fertilizer producers in the world, for the use of renewable energies, will support the initial phase of the new biomethane factory operated by Raízen. Volkswagen and Yara will each hold half of the biomethane production in Piracicaba, expected to start next year.
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In Volkswagen’s case, according to the company, the use of biomethane will reduce CO₂ emissions by more than 90% compared to natural gas. The plants in Taubaté and São Bernardo will collectively utilize over 50,000 cubic meters of biomethane daily, starting in 2023 and 2024, respectively. Therefore, both will stop emitting around 19,000 tons of fossil CO₂ annually.
Biomethane Will Be Produced from Agricultural Waste
Pablo Di Si, president of the multinational in Latin America, reminds that particularly the vehicle painting area operates with natural gas.
According to the company, the same pipeline currently used by Comgás to deliver gas to these facilities will be used for transporting biomethane, which, in Raízen’s case, will be generated from agricultural waste, in an industrial park where the company already has an ethanol plant. Di Si states he is fascinated by what he has learned about ethanol since he began researching the fuel three years ago.
In the case of the biomethane acquired by Volkswagen, the first automaker to announce the use of this type of fuel, the extraction will be done using vinasse, a residue obtained after distilling sugarcane juice, and the so-called filter cake, an organic compound that comes from filtering the juice.
Brazil May Gain a Prominent Position Using Ethanol
According to the multinational director, about 20 years ago, the ethanol bagasse was wasted. The executive is one of the leaders of the movement that plans to make the country a center for developing hybrid vehicles powered by ethanol.
For him, the expertise in sugarcane products could propel Brazil to a prominent position at a time when developed countries are focusing on fully electric cars. Volkswagen’s project to use biomethane starts with the São Paulo factories due to the infrastructure planned by Raízen and Comgás. However, according to the executive, the automaker is already studying a plan for the São José dos Pinhais (PR) unit.
The multinational announced the commitment to transfer 12% of fossil CO₂ emissions to biogenic sources by 2024 and to expand the fuel’s share to 20% of the total gas consumed in the region’s units.
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