Atvos, one of Brazil’s leading producers of biofuels, announced on Wednesday that it has signed an agreement to construct a biomethane plant in the state of Mato Grosso do Sul.
The biomethane facility, which will cost more than $69M, will have a capacity of 28 million cubic metres per harvest and will be Atvos’ inaugural plant utilising sugar cane waste.
The new facility will use vinasse and filter cake, by-products of the sugar cane production process, as raw materials.
Bruno Serapiao, CEO of Atvos, commented that the facility will mark its “entrance into the market for renewable natural gas, with the added benefit of producing it on a large scale to meet an ever-expanding demand.”
He added, “In doing so, we have broadened our range of sustainable solutions and, most importantly, effectively contributed to the transition of the energy matrix by adopting a circular economy approach, by disposing of and generating new revenues from waste from our production chain.”
Atvos disclosed that the project will undergo an engineering analysis phase for final approval, with construction scheduled to commence this year, according to The National News.
Serapiao noted that the biomethane will serve as an alternative to fossil fuels, particularly in regions lacking gas pipelines or in remote areas.
He also highlighted its potential for industrial use, replacing liquefied petroleum gas (LPG) and fuel oil, as well as in thermoelectric plants.
Regarding production plans, Serapiao stated, “In the case of Usina Santa Luzia, production is expected to be directed towards supplying a portion of the company’s and its partners’ logistics fleet, with the aim of reducing diesel consumption by up to 40 per cent in the medium term.”
Abiogás, the Brazilian Biogas Association, forecasts a 600 per cent increase in biomethane production by 2029.
At present, there are 20 production plants in the country, with only six selling biogas. It is anticipated that the total number of production units dedicated to commercialisation will reach 90 in the next five years, with 42 per cent originating from the sugar-energy sector.
Atvos’ operation in Nova Alvorada do Sul has the capacity to process 5.5 million tons of sugar cane and produce 498 million litres of ethanol, enough to fuel nine million compact cars, as well as cogenerating 376 GWh of clean electricity, sufficient to power a population of 1.8 million.
Mubadala Capital, the investment arm of Mubadala Investment Company, invested $99.6M in Atvos last year in exchange for a 31.5 per cent stake.
In October, Reuters reported that Mubadala Capital increased its stake in Atvos via the FIP MC Green investment fund, acquiring the 6.85 per cent stake held by Grupo Novonor, previously known as Odebrecht.
Established in 2011, Mubadala Capital has expanded significantly over the past decade, with offices worldwide. It manages $22B in total across its own investments and third-party capital vehicles, encompassing private equity, solutions, venture capital, and Brazil businesses.
In October, Mubadala Capital concluded its second investment fund in Brazil after raising more than $710M.
Brazil Special Opportunities Fund II attracted capital from a diverse range of global investors, including a prominent public pension fund, family offices, corporations, private equity funds, and asset managers from North America, Europe, the Middle East, and Asia, according to a statement from Mubadala.
Mubadala Capital concluded its initial fund in Brazil in February 2022, with total commitments of $322M.
In April last year, Mubadala Capital’s energy subsidiary Acelen announced a $2.5B investment over the next decade to produce renewable diesel and sustainable aviation kerosene in the northeastern Brazilian state of Bahia.
Acelen, which owns the Mataripe Refinery in Bahia, Brazil’s second-largest and one of its oldest, plans to commence production in 2026.
