IFC to provide São Martinho with $165M for RNG from sugarcane vinasse

In Brazil, the International Finance Corporation (IFC), a member of the World Bank Group, is providing an up to $165 million financing to São Martinho S.A., one of Brazil’s leading producers of sugar, ethanol, and renewable energy. This investment aims to support the company’s decarbonization efforts in the agribusiness sector, contributing to climate change mitigation and adaptation.

The ten-year IFC loan will support the construction of São Martinho’s first biomethane plant at their Santa Cruz Unit, which will produce renewable natural gas through the biodigestion of sugarcane vinasse. Additionally, the funds will be used to renovate sugarcane fields and treat sugarcane crops at the Santa Cruz Unit, enhancing the renewable biomethane production project. This initiative will also boost biomethane production by improving sustainable agricultural productivity.

IFC will also support São Martinho`s efforts to reduce greenhouse gas (GHG) emissions and achieve its decarbonization goals, particularly for agricultural equipment, such as tractors, trucks, and irrigation pumps. Using biomethane as a fuel source for these vehicles and machinery can significantly reduce emissions and contribute to a more sustainable agricultural ecosystem. Moreover, IFC will collaborate with São Martinho by advising them on their vocational capacity building program for vulnerable populations, including women in rural settlements and underemployed youth groups, within its area of influence.