Biomethane is produced by refining biogas generated from organic resources. As biomethane has the same composition as methane, the main component of conventional city gas, existing city gas infrastructure can be used, thus contributing to carbon neutrality while minimizing additional social costs.

Brazil is one of the countries with the greatest potential for bioenergy production due to its extensive agricultural activities, notably the largest sugarcane production in the world, and experiences in biofuel production. Its sugar-energy sector has opportunities yet to be explored to boost the production of biomethane. The large-scale mechanized sugarcane cultivation in Brazil allows for the efficient recovery of the raw materials needed for biomethane production.

In the context of global efforts towards carbon neutrality, the Fuel of the Future law was enacted last year to expand the use of biofuels and develop new technologies in the country. There is growing interest in biomethane as a fuel for power generation and transportation to reduce greenhouse gas emissions.

Under the terms of this agreement, the four companies will conduct a joint study for the construction and operation of an innovative and industrial scale pilot plant with a capacity of 5,500 Nm³ of biomethane per day at FAI site in São Paulo, Brazil, with the aim of starting operations in 2026.

In the future, based on the results of the demonstrations, the companies aim to move forward to increase the volume of production up to a commercial scale in Brazil, with an eye to export to Japan in the future after developing the supply chain infrastructure including land logistics in Brazil and maritime transport.

The four companies are committed to promoting the use of biomethane, raising awareness of its potential roles in the global energy matrix, and working to mitigate greenhouse gases, achieving carbon neutrality.