Initiative with an estimated investment of R$30 million brings together Fapesp, USP, State Secretariat for the Environment and the productive sector
The State of São Paulo will build the first Brazilian plant to capture and store the carbon emitted by the production of ethanol from sugar cane. The announcement was made by the governor (Republicans) during an event held on Wednesday (June 10, 2026), in celebration of Environment Week. On that occasion, the term of creation of CTCCSBio (Center for Technologies for Capture and Storage of Biogenic Carbon) was signed.
It is a new (Science Center for Development), financed by the (Foundation for Research Support of the State of São Paulo), headquartered at the (Escola Politécnica da Universidade de São Paulo) and implemented in partnership with the (Secretariat of State for the Environment), and the office. The team’s mission will be to study the feasibility and plan the implementation of the new plant.
The State of São Paulo is the largest producer of ethanol and sugar in the country, and the technology known as BECCS (acronym in English for Bioenergy with Carbon Capture and Storage) allows, in theory, this ethanol from São Paulo to become a “carbon negative” fuel – that is, it takes more carbon out of the atmosphere than it adds. This is because the process of capturing CO₂ released in the production of ethanol and its storage underground can reverse the balance of greenhouse gas emissions.
“The production of ethanol from sugar cane is already considered a more sustainable alternative to fossil fuels as it emits less carbon dioxide. Therefore, by capturing this gas and injecting it underground, we are actively removing carbon that was already circulating in the plant’s life cycle. Currently, ethanol still has a positive carbon footprint, but with removal, it could reach a negative carbon footprint. Something extremely interesting for the sugar-energy sector and for the country”, says, professor at Poli-USP and director of CTCCSBio.
MONETIZATION
According to Carmo, the technology to capture and store carbon already exists and, therefore, the new center’s biggest challenge will be to make it viable in the context of São Paulo and the sugar-energy sector. “Carbon storage does not generate direct revenue. We will study monetization mechanisms, such as carbon markets, environmental compensations and incentive policies”, he states.
The center will have multidisciplinary operations, bringing together experts in engineering, geology, economics, law and psychology. Among the main fronts are the assessment of economic viability and the analysis of the regulatory framework to enable carbon credits. At this stage, researchers will also identify, through geological studies, the most suitable locations to install the plant and store CO₂ captured. For Carmo, the plant needs to be close to deep saline reservoirs, formations more than 1,000 meters deep and composed of porous rocks filled with highly saline water, that is, not useful for human supply.
DEVELOPMENT
The project will last 5 years, with an estimated total investment of R$30 million and will be implemented in two phases. In the 1st, lasting 2 years, the team will prospect locations for installing the plant and analyze São Paulo’s potential for using the technology. To achieve this, factors such as geology, proximity to plants, infrastructure, costs, environmental impact and social perception will be considered. In the 2nd phase, the project must move towards the implementation and operation of the new plant.
Currently, Brazil has only one carbon capture and storage plant in the State of Mato Grosso, which is focused 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 highlighted the relevance of Fapesp in the scientific advancement of the State. “A powerful instrument was created, which promotes research, development, science. It is an instrument that works, that will continue to work”, said the governor. “São Paulo is a State that has grown in productivity, grown in agriculture, but has also grown in sustainability”, he added.
Semil’s secretary, Natália Resende, stated in a statement released by the ministry that the project is aligned with the . “BECCS is essential to decarbonize São Paulo’s agro-industrial sector and maintain its international competitiveness in the face of growing global environmental demands”, says the text.
This text was originally published by Agência, on June 11, 2026. The content is free for republication, citing the source, and was adapted to the standard of Poder360.
