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Raízen Invests R$ 300 Million To Build New Biogas Plant In São Paulo

Written by Valdemar Medeiros
Published on 27/04/2022 at 12:22
Raízen - São Paulo - biogás - biometano - fábrica
Joint venture Raízen Geo Biogás investe em biometano – imagem: Divulgação
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Raízen Is Investing R$ 300 Million in the Construction of Its New Biogas Plant That Will Produce Raw Material for Yara Brasil.

In an official market announcement made this Tuesday (26), Raízen announced that it will begin the development of a new unit focused on biogas production, with expectations for the factory to start operations in São Paulo as early as next year. The company’s announcement had been anticipated since September 2021, when the company closed a partnership with Yara Brasil Fertilizantes involving the sale of more than 20,000 cubic meters per day.

Biogas Factory Will Have Enough Capacity to Supply About 200,000 Homes in the State

According to the document, Raízen will invest R$300 million in the Biogas plant, which will be attached to the Costa Pinta facility in the municipality of Piracicaba, São Paulo. In the same location, the sugar-energy company already produces second-generation ethanol.

Thus, this will be the company’s first plant dedicated to producing renewable natural gas. The company has a biogas plant in Guariba (SP), but this one focuses on electricity production. The biogas production capacity of Raízen’s unit in São Paulo will be 26 million m³ per year. According to the company, this volume is sufficient to supply about 200,000 homes in the state.

However, Raízen reported that the biogas produced at the factory already has a final destination, having been fully sold to Yara Brasil Fertilizantes and to Volkswagen do Brasil, in long-term contracts. According to the company’s announcement, the factory project expands Raízen’s portfolio of solutions in clean and renewable energy, reinforcing the company’s role in Brazil’s energy transition, generating value for customers, suppliers, consumers, and shareholders.

Understand Why Yara Brasil Bought Green Ammonia

According to what was announced in September, Yara plans to use the product for the manufacture of hydrogen and green ammonia in its industrial parks. Thus, the biomethane is to be injected into Comgás pipelines to Yara’s ammonia plant in Cubatão (SP).

Also according to the company, in a statement sent to the press, the acquired volume of 20,000 m³ per day represents about 3% of the total amount consumed by the manufacturing unit. According to Daniel Hubner, Vice President of Industrial Solutions, the use of this raw material in the production process is a concrete manifestation of the company’s efforts in Brazil to promote the decarbonization of its plants.

Get to Know Raízen

The company mobilizes people and enhances businesses through the energy it delivers. The company’s operations are supported by various roots, which is why it is present in the lives of thousands of people every day. The company acts with the boldness of someone who thinks big, always aiming for the future and innovation, with a commitment to ethics, sustainability, and safety.

Raízen was founded in 2011 from the joint venture between Shell and Cosan. In the same year, it achieved Bonsucro certification. The following year, the company reached investment grade with top ratings from Fitch, Moody’s, and S&P.

The company is one of the most competitive in the electric sector worldwide. Just last year, Raízen generated over R$ 114.6 billion in revenue and had an EBITDA of R$ 6.6 billion, making it the fourth largest company in revenue in Brazil and the second largest fuel distribution company in the country. It operates 35 production units of sugar, bioenergy, and ethanol, among others.

Valdemar Medeiros

Formado em Jornalismo e Marketing, é autor de mais de 20 mil artigos que já alcançaram milhões de leitores no Brasil e no exterior. Já escreveu para marcas e veículos como 99, Natura, O Boticário, CPG – Click Petróleo e Gás, Agência Raccon e outros. Especialista em Indústria Automotiva, Tecnologia, Carreiras (empregabilidade e cursos), Economia e outros temas. Contato e sugestões de pauta: valdemarmedeiros4@gmail.com. Não aceitamos currículos!

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