São Paulo to host country’s first plant for capturing and storing carbon from sugarcane ethanol

The initiative, estimated to cost BRL 30 million, brings together FAPESP, the University of São Paulo, the State Department for the Environment, and the productive sector.

By Maria Fernanda Ziegler  |  Agência FAPESP – The state of São Paulo is set to build Brazil’s first plant dedicated to capturing and storing carbon emissions from sugarcane ethanol production. Governor Tarcísio de Freitas announced this during an event held on June 10 to celebrate Environment Week. During the event, the agreement to establish the Center for Biogenic Carbon Capture and Storage Technologies (CTCCSBio) was signed.

The new Science Center for Development (SCD), funded by FAPESP and based at the Engineering School of the University of São Paulo (POLI-USP), is being implemented in partnership with the State Department for the Environment (SEMIL), Petrobras, the São Martinho Group, and the law firm Rolim Goulart Cardoso Advogados. The team will study the feasibility of the new plant and plan its implementation.

The state of São Paulo is Brazil’s largest producer of ethanol and sugar. The technology known as BECCS (Bioenergy with Carbon Capture and Storage) allows São Paulo’s ethanol production to theoretically become “carbon negative” – that is, it removes more carbon from the atmosphere than it adds. This is because capturing the CO₂ released during ethanol production and storing it underground would reverse the balance of greenhouse gas emissions.

“Ethanol production from sugarcane is considered a sustainable alternative to fossil fuels because it emits less carbon dioxide. Therefore, by capturing that gas and injecting it underground, we’re actively removing the carbon that was already circulating in the life cycle of the plant. Currently, ethanol still has a positive carbon footprint, but with carbon capture, a negative footprint is possible. That’s extremely interesting for the sugar-energy sector and for the country,” says Bruno Souza Carmo, a professor at POLI-USP and director of CTCCSBio.

Monetization

According to Carmo, the technology for carbon capture and storage already exists; therefore, the new center’s greatest challenge will be to make it viable in São Paulo and the sugar-energy sector. “Carbon storage doesn’t generate direct revenue. We’ll study monetization mechanisms, such as the carbon market, environmental offsets, and incentive policies,” he stated.

The center will operate in a multidisciplinary manner, bringing together experts in engineering, geology, economics, law, and psychology. The main priorities include assessing economic feasibility and analyzing the regulatory framework to enable carbon credits. During this phase, the researchers will identify the most suitable locations to install the plant and store the captured CO₂ through geological studies. According to Carmo, the plant must be located near deep saline reservoirs – formations more than a thousand meters deep composed of porous rocks filled with highly saline water that is unsuitable for human consumption.

The announcement was made at an event held on June 10 in celebration of Environment Week (photo: Daniel Antônio/Agência FAPESP)<

Two-phase development

The five-year project is estimated to cost BRL 30 million and will be implemented in two phases. During the first two-year phase, the team will scout locations for the plant’s installation and analyze São Paulo’s potential for using the technology. Factors such as geology, proximity to power plants, infrastructure, costs, environmental impact, and social perception will be considered. The second phase is expected to involve the construction and operation of the new plant.

Currently, Brazil has only one carbon capture and storage plant, located in the state of Mato Grosso, which focuses on corn ethanol. The São Paulo plant will be the first dedicated to sugarcane ethanol.

At the launch of the new center, Governor Tarcísio de Freitas emphasized the importance of FAPESP in the state’s scientific advancement. “A powerful tool has been created that fosters research, development, and science. It’s a tool that works, and it’ll continue to work,” said the governor. “São Paulo is a state that has grown in productivity and agriculture, but it has also grown in sustainability,” he added.

In a press release, SEMIL Secretary Natália Resende stated that the project aligns with the 2050 Climate Action Plan and the State Energy Plan. The statement reads, “BECCS is essential for decarbonizing São Paulo’s agro-industrial sector and maintaining its international competitiveness in the face of growing global environmental demands.”