Raízen is investing BRL 300 million in the construction of its new Biogas plant that will produce raw material for the company Yara Brasil.

In an official communiqué to the market released this Tuesday (26), Raízen announced that it will begin the development of a new unit dedicated to the production of biogas and the expectation is that the factory will begin its operations in São Paulo next year. The company's announcement had been expected since September 2021, when the company entered into a partnership with Yara Brazil Fertilizers involving the sale of more than 20 cubic meters per day.

Biogas plant will have enough capacity to supply around 200 homes in the state

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

This will be the company's first plant designed to produce renewable natural gas. The company has a biogas plant in Guariba (SP), but this is focused on the production of electricity. The biogas production capacity of the Raízen unit in São Paulo will be 26 million m³ per year. According to the company, the volume has enough capacity to supply around 200 homes in the state.

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

Understand why Yara Brasil bought Amônia Verde

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

Also according to the company, in a statement sent to the press, the volume purchased, which is 20 m³ per day, represents about 3% of the 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 Raizen

The company mobilizes people and boosts business through the energy it delivers. The company's businesses are supported by several roots and that is why it is present in the lives of thousands of people every day. The company operates with the boldness of those who think big, always looking to the future and innovation, 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. In the following year, the company reached investment grade with maximum ratings by Fitch, Moody's and S&P.

The company is one of the most competitive companies in the electricity sector in the world. In the last year alone, Raízen earned more than BRL 114,6 billion and had an EBITDA of BRL 6,6 billion, being the 4th company in revenue in Brazil and the second largest fuel distributor in the country. It has 35 production units for sugar, bioenergy and ethanol, among others.