FS, one of the largest producers of ethanol and animal nutrition in Brazil, has completed technical studies confirming the suitability of geological conditions for injecting carbon dioxide (CO2), emitted in the fermentation phase of biofuel production, in the subsoil. This development paves the way for FS to become the world’s first ethanol producer with a negative carbon footprint and the first to implement BECCS technology (bioenergy production with carbon capture and storage) in ethanol production outside the United States. As announced by the Minister of Mines and Energy, Bento Albuquerque, during the 3rd Energy Transition Working Group, G20 meeting held in Minas Gerais, Brazil, the adoption of this technology will prevent approximately 423 thousand tons of CO2 emissions annually from the company’s operations in Lucas do Rio Verde (MT). This solution can be subsequently implemented in other industrial units, with the potential to remove over 1.8 million tons of carbon from the atmosphere yearly. The BECCS technology offers an innovative solution for capturing carbon, a major contributor to the greenhouse effect, and injecting it deep underground into geological layers for safe storage for thousands of years, effectively mitigating its impact on global warming. FS has invested four years in this project, drilling a stratigraphic well approximately 2,000 meters deep in Mato Grosso to examine rock formations below its Lucas do Rio Verde facility. Studies revealed that the Diamantino rock formation, located in the Parecis Basin in Mato Grosso, possesses the necessary porosity and permeability conditions to receive injected CO2 at a depth exceeding 800 meters. Currently, only two ethanol producers globally employ BECCS technology, both in the United States. However, FS’s facility will be the first carbon-negative operation, utilizing only second-crop corn as raw material and renewable biomass from planted forests as an energy source. FS CEO, Rafael Abud, emphasizes the significance of this technical study in driving investments in BECCS technology by the ethanol sector. He highlights the need for advancements in regulation and carbon trading markets to support the project’s implementation. Additionally, Abud highlights the potential of ethanol produced with this technology for use in sustainable aviation fuel (SAF) and marine fuel, further contributing to Brazil’s role in the global energy transition. Upon the approval of the regulatory framework by the Senate, FS plans to invest an additional $100 million to implement equipment for capturing, dehydrating, compressing, and injecting CO2 underground. The project aims to commence later this year, with completion scheduled for the end of 2025. The construction and assembly phases are expected to create approximately 230 direct jobs. The project has received financial support from FINEP, a public agency dedicated to innovation and sustainable development in Brazil. According to Gustavo Saboia, FS’s Vice President of Sustainability and New Business, this is a pivotal step towards FS’s vision of becoming the world’s largest producer of carbon-negative fuel. FS will focus on monetizing the project through the sale of carbon credits and awaits the Senate’s approval of the legal framework.
FS Set to Implement Carbon Capture and Storage Technology for Ethanol Production in Brazil
