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Initiative developed in the interior of São Paulo combines renewable fuel production, low-carbon logistics, and circular economy, opening a new business front for the national agribusiness and reducing dependence on fossil fuels.
What was once seen only as waste from the sugar-energy production now gains a strategic role in transforming the energy matrix of Brazilian agribusiness. Sugarcane, traditionally associated with the production of sugar, ethanol, and electricity, now assumes a new function: generating renewable fuel capable of replacing diesel in large-scale logistics operations.
According to information released by Forbes Brasil in a report published by Vera Ondei, the Rota Verde project, developed by São Martinho in partnership with Necta, Transvale, and Rumo, marks a new stage in the decarbonization of freight transport in the country. The initiative began operating in May 2026 and will use trucks powered by natural gas, with a gradual transition to biomethane, to transport about 350 thousand tons of sugar per year from the Santa Cruz Unit, located in Américo Brasiliense, in the interior of São Paulo, to the Port of Santos.
Besides the logistical impact, the proposal represents a structural change in how the agro-industrial sector can produce, distribute, and consume its own renewable energy.
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How sugarcane is transforming into renewable fuel
The basis of the project is the biomethane plant inaugurated by São Martinho in August 2025, in Américo Brasiliense. The enterprise received investments of R$ 250 million and was designed to utilize waste generated during the sugarcane processing.
The process begins with the use of vinasse and other by-products of the sugar-energy activity. These materials undergo biological processes that generate biogas. Then, the fuel is purified until it reaches the necessary quality to transform into biomethane.
In practice, biomethane has characteristics similar to natural gas. The main difference lies in the origin. While natural gas is a fossil fuel extracted from underground reserves, biomethane is produced from renewable sources.
For Fabio Venturelli, CEO of São Martinho, the goal is to maximize the energy potential of sugarcane.
According to the executive, the company seeks to extract all possible energy from the raw material, increasing the efficiency of the operation and reducing dependence on traditional fuels. The strategy strengthens a concept increasingly valued globally: the circular economy.
In this model, sugarcane generates sugar, ethanol, and residues. The residues produce biomethane. The biomethane fuels the trucks responsible for transporting the sugar. Thus, the fuel used in logistics is born within the production chain itself.
The result is a practically closed energy circuit, with lower greenhouse gas emissions and better utilization of available resources.
Rota Verde Project promises to reduce emissions and operational costs
The environmental gains are significant. According to a Life Cycle Assessment (LCA) study conducted by the Brazilian Institute of Information in Science and Technology (Ibict), the operation could reduce greenhouse gas emissions by up to 87% when compared to equivalent models powered exclusively by diesel.
However, those responsible for the project emphasize that the initiative was not built solely with an environmental focus.
Economic viability is one of the central pillars of the proposal.
Transvale, the company responsible for the road operation, will invest approximately R$ 15 million in the acquisition of ten 47-ton rodotrem dump truck sets dedicated to the new route.
According to Ivo Ilário Riedi Filho, CEO of the company, trucks powered by biomethane show superior energy performance in certain applications and can generate savings of around R$ 1 per kilometer driven compared to diesel-powered vehicles.
This factor significantly changes the return on investment analysis.
For many years, decarbonization projects were associated with high costs and dependence on government incentives. Now, the reduction in operational expenses is beginning to drive the adoption of these technologies.
In the assessment of the executives involved, the new generation of sustainable projects manages to combine environmental responsibility and financial profitability.
The billion-dollar potential of biomethane for Brazilian agribusiness
The discussion goes beyond the logistics operation of São Martinho.
For José Eduardo Moreira, CEO of Necta, Brazil has a unique strategic opportunity to lead the expansion of biomethane on a global scale.
Currently, there are nearly one and a half million trucks and buses powered by natural gas and biomethane in circulation worldwide. At the same time, Brazil still imports about 20% of the diesel consumed by heavy transport.
This combination highlights a huge opportunity for energy substitution.
The country has approximately two and a half million trucks and buses in circulation. Half of this fleet is concentrated in the State of São Paulo, precisely the region that concentrates a large part of the sugar-energy plants connected to Necta’s infrastructure.
According to estimates presented by the company, only São Paulo has the potential to produce more than six million cubic meters of biomethane.
A large part of this capacity is located near sugarcane production hubs.
This proximity reduces logistical costs, facilitates fuel distribution, and creates favorable conditions for the expansion of the activity.
Besides road transport, experts see future applications for biomethane in industrial operations, railway systems, and even maritime transport.
Therefore, the so-called Green Route is seen as a pilot project capable of paving the way for new low-carbon logistics corridors in different regions of the country.
Financial market begins to look at low-carbon operations
The advancement of sustainable projects is also attracting increasing attention from the financial market.
Historically, investors used to see environmental initiatives as additional expenses. However, this scenario is beginning to change as new technologies demonstrate the ability to generate economic returns.
According to the executives involved in the project, financial institutions already offer specific lines for operations focused on innovation, energy efficiency, and emission reduction.
The National Bank for Economic and Social Development (BNDES), for example, has mechanisms that allow structuring financing with more competitive costs for sustainable projects.
In São Martinho’s view, financial recognition tends to grow as economic results consolidate.
The company already shows positive signs of operational efficiency. On March 26, 2026, the company released the results for the fourth quarter of the 2025/26 harvest, reporting a net profit of R$ 172.85 million, an increase of 64.6% compared to the previous period.
Among the factors cited for the performance are precisely initiatives aimed at reducing operational costs and achieving industrial efficiency gains.
In this context, biomethane emerges not only as an energy alternative but as a new source of revenue and competitiveness for Brazilian agribusiness.
As the world demands more sustainable production chains, companies capable of producing renewable energy within their own operations can gain significant advantages in national and international markets.
The Green Route project shows that sugarcane is no longer just a raw material for food and traditional fuels. Now, it takes on a central role in building a low-carbon economy, connecting productivity, innovation, and sustainability in a single value chain.
Original source: Forbes Brasil.
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