BIOS BIOGENIC CARBON IN BIOENERGY
Department of Oil Products and Biofuels (SDB) Division of Oil, Gas and Biofuels Studies (DPG) President Thiago Guilherme Ferreira Prado Director of Division of Oil, Gas and Biofuels Studies Heloisa Borges Bastos Esteves Technical Coordination Angela Oliveira da Costa Rachel Martins Henriques Rafael Barros Araujo Technical Team Administrative Support Raquel Lopes Couto BIOGENIC CARBON IN BIOENERGY Guilherme Correa Naresse Rachel Martins Henriques Rafael Barros Araujo Rafael Belém Lavrador
3 Disclaimers ThispublicationcontainsinformationabouttheavailabilityofbiogenicCO₂indifferent bioenergy-relatedprocesses,accordingtostudiesbytheEnergyResearchCompany(EPE). Also,perspectivesonitsuseinproductivesystemsorasanassetincarboncaptureand storageoperationsarealsopresented. Thisdocumenthasinformationalpurposesonly,aimingtosupporttheplanningofthe nationalenergysector.Therefore,anydecisionsregardingnextsteps(suchasthe formulationofpublicpolicies,definitionofstrategicguidelines,investmentdecisions,or businessstrategies)aretheresponsibilityofotherpublicandprivateinstitutions. EPEdisclaimsanyresponsibilityforanyactionsordecisionsthatmaybetakenby economicagentsoranyindividualbasedontheinformationcontainedinthisdocument.
4 Public Value EPEconductsstudiesandresearchtosupporttheformulation,implementation,and evaluationofBrazil’senergypolicyandplanning. Withthisstudy,EPEpromotestransparencyandreducesinformationasymmetryby publishingdataandinsightsthatcanenhancethedevelopmentofinitiativesaimedatafair andinclusiveenergytransitionthatleveragesBrazil’scompetitiveadvantages. Inthisreport,EPEanalyzesopportunities,challenges,andtheinternationallandscapeof biogeniccarboncapture,utilization,andstorageactivities,inadditiontoproviding georeferenceddataontheimmediateandpotentialavailabilityofthisresourceacrossthe nationalterritory.Disseminatingsuchdatacansupporttheimplementationofpublic policiesandprivateventuresthatdrivethedevelopmentoflow-carbonbusinessesinthe country,aligningdecarbonizationstrategieswithnationaldevelopment.
INDEX ▪Context ▪Opportunities for the use and/or storage of Biogenic CO₂ ▪Availability of Biogenic CO₂ in Brazil ▪Challenges for the use and/or storage of Biogenic CO₂ ▪International Overview of Biogenic CO₂Capture, Utilization, and Storage ▪Final Remarks
Context
7 Reducinganthropogenicgreenhousegas(GHG)emissions*isacentralthemeininternationaleffortsaimedatglobalclimatechange mitigation.Inthiscontext,severalcountrieshavecommitted,inthelastdecade,toNationallyDeterminedContributions(NDCs), establishingemissionreductiontargets.
- Theincreasedconcentrationofgreenhousegasesintheatmosphereisthemaincauseofphenomenaassociatedwithglobalclimatechange.Themaingreenhousegasesthataccumulateinthe atmosphereasaconsequenceofhumanactivitiesareCO₂,CH 4 ,andN 2 O.AccordingtotheIPCC,thedecadeof2011-2020recordedanincreaseof1.1°Cinglobalaveragetemperaturecomparedto theperiodfrom1850to1900,unequivocallyduemainlytohumanactivities. Brazil'sNDC,updatedin2024,setsatargetofreducingemissionsby59%to67%by2035,basedonthecountry's2005emissions, andachievingaGHG-neutraleconomyby2050.Thisgoalencompassesallsectorsoftheeconomy. Nationally Determined Contributions kg CO ₂ eq
/ year 2005 Emissions (baseline) Target for 2035: reduction of 59% to 67% Goal for 2050: Brazil neutral in GHG emissions Brazilian targets for reducing GHG emissions
8 AlthoughtheenergysectorisonlythethirdlargestemitterofGHGsintheBrazilianeconomy,itoffersseveralopportunitiesand technologiesfordecarbonizationwithahighdegreeofmaturity,whichcanrepresentsignificantemissionreductionsintheshortand mediumtermandcontributeconsiderablytoachievingBrazil'sNDCgoals.Thedevelopmentofsolutionsforenergydecarbonizationis amplifiedbyinternationalefforts,sincethesectoristhelargestglobalemitter. Theuseand/orstorageofbiogenicCO₂isahighlyeffectivestrategicpossibilityforreducingGHGemissionsinenergy,even potentiallyleadingtonegativeemissionlevelsinthesector(netcarbonremoval).Thispotentialcanbedecisivetoachievingneutrality by2050,asothersegmentsmayhavegreaterdifficultyinreducingemissions. 36% 32% 22% 5% 5% Sectoral share of net emissions in Brazil, in CO₂equivalent. Uso da terra, mudanças do uso da terra e florestas Agropecuária Energia Processos industriais e uso de produtos Resíduos Source: EPE based in MCTI 2024 Energy sector for emissions reduction Landuse,land-usechangeandforests Agricultureandlivestock Energy Industrialprocessesandproductuse Residues
Opportunities for the use and/or storage of Biogenic CO₂
10 What is biogenic carbon? Carbonisthebasisofmanyproductsusedtodayacrossvarioussectorsoftheeconomy: Solid, liquid and gaseous fuels Plastics and polymersChemical industryPharmaceuticals and cosmetics Advanced materials etc... Regardlessoftheapplication,carboncanonlybeobtainedfromthreemajorsources: Fossil and mineral resources (e.g., coal, oil, and natural gas) Biological raw material (e.g., plant or animal biomass) Directly from the atmosphere (eg., CO₂ or CH 4 ) Biogeniccarbonisdefinedascarbonthat originatesfrombiologicalrawmaterials. Biogeniccarbonisrenewableandcanbe usedinawidevarietyofapplications, includingenergyandmaterials. Inthecontextofenergy,biogeniccarbonispresentinliquidandgaseousbiofuelsandin solidbiomassusedforbioenergy. TheuseoftheseenergysourcesresultsintheresidualgenerationofbiogenicCO₂,thatis, CO₂containingbiogeniccarbon. Inthisreport,theopportunitiesandchallengesfortheeconomicuseofbiogenicCO₂willbe highlighted,aswellastheavailabilityoftheresourceinBrazil. Pulp and paper
11 CO₂utilization in energy systems CO₂fromenergyproduction,traditionallyconsideredaresidueofthe process,canbebetterutilizedeconomically: CO₂ capture CO₂ transport CO₂
Injection (CCS) Energy systems generate CO₂
- Acronyms for Carbon Capture and Utilization -CCU, Carbon Capture ansStorage –CCS, and for the respective operations associated with bioenergy (Bioenergy with CCU – BECCU and Bioenergy with CCS – BECCS). CO₂generatedinenergysystemsistypicallyfoundmixed withothercompounds,suchasNOx,particulatematter, andinertgases. Therefore,toenablebetterresourceutilization,itis necessarytoseparateandpurifyit,generatingstreams thatcanbebetteremployeddownstream. TypicalCO₂capturetechnologiesincludeabsorption, adsorption,membraneseparation,andcryogenic separation. Thetechnologicalchoicedependsonaspectssuchasthe scaleofoperation,requiredpurity,initialCO₂ concentration,andtypeofimpurity. PurifiedCO₂canbetransported viapipelinesorothermeans,in compressedform. TheidealcharacteristicsforCO₂ transportarehighlyspecificto eachcaptureproject,asthey dependheavilyonthedistance betweenthecollectionpoint andthepointofuseorinjection, thevolumeofCO₂captured, andtheavailableinfrastructure. CCSconsistsofthepermanentinjectionof capturedCO₂intogeologicalreservoirs. CCSallowsforasignificantreductionin greenhousegasemissionsfromenergysystems, leadingtopotentialeconomicgainsforthe involvedagentsthroughregulatedorvoluntary carbonmarkets. CO₂ Use (CCU) CCUconsistsofusingCO₂asafeedstockin productionprocesses. Intheenergysector,catalyticreactionswith hydrogenfortheproductionofe-methanolor synthetichydrocarbonsstandout.Theseproducts areevaluatedaspromisingadvancedfuelsforthe energytransition. Non-energyapplicationsofCO₂canalsobe mentioned,suchasbeveragescarbonation,urea production,amongothers. WhencaptureinvolvesbiogenicCO₂,theoperationsarenamed BECCUandBECCS*. Alsonoteworthyisthepossibilityofmixedstrategies,called BECCUS,inwhichCO₂storageoccursconcurrentlywithitsuse.
12 Carbon cycles in energy systems BiogenicCO₂constitutesarenewable carbonsource,sequesteredfromthe atmospherebyphotosynthesis.Thus,it enablesenvironmentallyadvantageous cyclesandprocesseswhencomparedto fossilCO 2 : •Zeronetcarbonemissions,incases wheretheexhaustedCO₂returnstothe atmosphere; •Productionof100%renewablefuelsin CO₂captureandutilizationoperations (BECCU),providedthatCO 2 isassociated withrenewableH2; •Carbonremovalflowswithnegativenet emissionsinoperationsthatcaptureand storeCO₂(BECCS). Photosynthesis sequesters atmospheric CO₂ Biogenic CO₂exhaustion: carbon neutrality CO₂ capture and injection Bioenergy: biogenic CO₂ emissions Fossil fuels: fossil CO₂ emissions Fossil CO₂exhaustion: carbon emissions BECCS: carbon removal Fossil CCS: avoided emissions Production of synthetic hydrocarbons and methanol Biomass generates biofuels and bioelectricity Oil, natural gas, and coal generate fossil fuels and electricity H 2
13 Biogenic CO₂sourceApplication Availability characteristic Typical CO₂ concentration Combustion of biomass or biofuels Biomass cogeneration (thermal power plants) Stationary Below 15% (vol/vol) Internal combustion engines using biofuels Mobile Biogas purification* Key step for biomethane production StationaryAbove 85% (vol/vol) Alcoholic fermentation Key step in ethanol production, both from sugarcane and corn StationaryAbove 95% (vol/vol) Origins of biogenic CO₂in bioenergy BiogenicCO₂isgeneratedduringthecombustionofbiomassorbiofuels.Furthermore,itisalsopresentinotherstreams derivingfromthebioenergychain,inpurerconditions: MoreconcentratedCO₂streamsconstitutemorecost-effectiverawmaterialsforBECCUorBECCSbecausetheyconsiderablyreducethecostsassociated withcapturingstep.Bioenergystandsoutforprovidingstreamswithveryhighpurity. ThelevelizedcostofcapturingonetonofCO₂canbeestimatedas 1 : -US$25–35foralcoholicfermentation(concentratedstream); -US$50–100forthermalpowerplants(dilutedstream); -US$134–342fordirectcapturefromtheatmosphere(highlydilutedstream,~400ppmofCO₂). Capturing CO₂from mobile sources is more challenging than from stationary sources, whether due to technical challenges or the need for developing more sophisticated business models involving additional stakeholders, such as gas stations, for example. 1 IEA 2021 *Biogasisagaseousmixturetypicallycontainingmethane(35%-70%),CO₂(15%-50%),andotherimpurities(Gupta et al. 2023).Afterthepurificationprocess,biogasgivesrisetoaspecifiedbiomethanestream, interchangeablewithnaturalgas,andaresidualstreamrichinCO₂.
14 Energy uses of CO₂ SomeofthemostpromisingBECCUoperationsinvolvesyntheticfuelsproduction.Theseprocessesoccurthrough catalyticchemicalreactionswithhydrogen*.Theobtainedproductdependsonthecatalystusedandthetemperature andpressureconditionsofthereactor: CO₂ + H 2 RWGS (Reverse Water-Gas Shift) Fischer-Tropsch Reaction CO₂ direct conversion to Methanol CO conversion to Methanol Methanol Synthetic Gasoline Renewable Diesel Synthetic Jet Fuel (SAF) Synthetic Bunker Synthetic Nafta H 2 H 2 O CO H 2 O CO₂canalsobeinjectedintooilreservoirstoincreasewellproductivity,aprocesscalled EnhancedOilRecovery(EOR).ThisisanexampleofBECCUS. •Whenhydrogenisobtainedfromwaterelectrolysis,theresulting productsarecalledelectrofuels.Inthesecases,theyreceivethe prefix"e"(e.g.,e-Methanol,e-SAF,e-Gasoline,etc.).
15 Non-energy uses of CO₂ CO₂alsohasusesinnon-energysectors,amongwhichthefollowingstandout: Beverages Carbonation CO₂isdissolvedintheproductionofcarbonatedbeverages,awell-establishedandcommonpracticeinfoodindustry. Urea production UreaisobtainedfromthechemicalreactionbetweenCO₂andNH 3 .ThisprocessiscurrentlythelargestCO 2 industrialconsumer. Productionofconcretewithcarbonates CO₂canbeusedtoproducenewconcretescontainingcarbonates,atechnologythatisstillinitsearly-stages,butwhichhashighpotential. Usesinthechemicalindustry SeveralprocessesthatuseCO₂asaninputinthechemicalindustryarecurrentlyunderdevelopment,includingpolymerproduction.
16 Public Policies National Biofuels Policy (Renovabio) – Law N° 13,575/2017 Thenationalbiofuelspolicyprovidesabonusofupto20%ontheenergy-environmentalefficiencyrating(NEEA)ofbiofuelproducersorimporterswho demonstratenegativegreenhousegasemissions,encouragingtheadoptionofBECCSsystems. Climate Mitigation Plan – Energy Sector Plan BECCSareenvisagedashighlyrelevantoperationstoachievingthe goalsoftheBrazilianClimateMitigationPlanforenergy. Forexample,theplanmentionssomeexpectedresultssuchasthe implementationofBECCSpilotplantsby2030andtheexpansionof CO₂pipelinesassociatedwiththeidentificationofstoragesitesforCCS by2035.Increasedproductionofsyntheticfuelsisalsomentionedas anobjectiveoftheplan. Energy Transition Acceleration Program (Paten) – Law N° 15.103/2025 PATENincludedlow-carbonsyntheticfuelsandcarboncaptureand storageactivitiesaspriorityadheringsectorsintheprogram,allowing projectstoaccessfinancingfromtheGreenFund(BNDES)andtax transactionmechanismsconditionedoninvestmentinsustainable development. SeveralrecentpublicpolicieshavefosteredthedevelopmentofBECCUandBECCSinBrazil: Future Fuel Law – Law N° 14,993/2024 TheFutureFuelLawofficiallyintroducedthecapture,utilization,andgeologicalstorageofcarbondioxideintotheBrazilianlegalframework.Currently,the MinistryofMinesandEnergyisconductingPublicConsultationn°205,whichproposesanadditionaldecreeintroducingfurtherdetailsforCCS-related provisions.Sofar,themainadvancesintroducedbythelawinclude: • Legaldefinitionoftheactivitiesof"carbondioxidecapture,""geologicalstorageofcarbondioxide,"and"syntheticfuels"; •Inclusionofsyntheticfuelsandrecognitionofcarbondioxidecaptureandstorageasastrategyformitigatinggreenhousegasemissionsinthe NationalEnergyPolicy; •IndicationoftheNationalAgencyofPetroleum,NaturalGasandBiofuels(ANP)astheauthorizingandregulatoryagentforcarbondioxidecapture, utilization,andstorageactivities; •The ANP Resolution N° 859/2024 authorizes,onatransitionalbasis,theanalysisofprojectsrelatedtocarboncaptureandstorageactivitiesto becarriedoutthroughanexperimentalregulationmechanismbypilotproject,accordingtotherulesestablishedina2024report.This mechanismprovideslegalcertaintytoventurescurrentlybeingestablishedorthatwillbeestablishedwhiledefinitiveregulatorydefinitionsare underdevelopment.Furthermore,itallowsfortheactiveparticipationofentrepreneursintheregulatorydesign.
Availability of Biogenic CO₂ in Brazil
18 Immediate availability of CO₂–Alcoholic Fermentation Brazilisthesecondlargestethanolproducerintheworld,withalargeand widespreadnetworkofmills.Thealcoholicfermentationprocessproduces approximately0.7to0.75kgofCO₂/lofethanol. Asitconsistsofhigh-puritystreams,fermentation-derivedCO 2 canbeconsidered animmediatelyusablesourceofbiogeniccarbon,eliminatingtheneedforlarge investmentsincaptureequipment. Basedon2024ethanolproduction,theavailabilityofbiogenicCO₂from fermentationisthefollowing: Total CO₂ 27 Mt / year Sugarcane (20.6 Mt / year) The large geographical concentration of sugarcane mills among the states of São Paulo, Minas Gerais, Paraná, and Goiás may facilitate carbon capture hubs implementation. However, the seasonality of CO₂ availability, linked to the sugarcane harvest, may present challenges to its utilization. Corn (6.4 Mt / year)* Corn processing plants operate continuously throughout the year, ensuring the supply of CO₂and facilitating its utilization. Many corn processing plants have large operating scales, which can facilitate the implementation of proprietary projects.
- Ethanol millsthatprocessbothsugarcaneandcorn(flexible)wereincludedinthe"corn"category becausetheyalsopresenttheadvantageofnotbeingrestrictedtoseasonalityforCO₂
availability. Immediate availability of CO₂(Fermentation) Corn (t / year) Sugarcane 1G and 2G (t / year)
19 Immediate availability of CO₂–Biogas purification Biomethanehasincreasinglyscaledasapromisingemergingbioenergysource forBrazil'senergytransition.Biomethaneisdirectlyinterchangeablewithnatural gasandcanbeusedinthesameapplications,makingitahighlyversatileenergy source. Biomethaneisobtainedfromthepurificationofbiogas,amixtureofmethane andCO₂.Thus,theresidualgasfrompurificationishighlyconcentratedincarbon dioxide,alsorepresentinganimmediatelyusableavailabilityofbiogeniccarbon. Accordingto2024production,theimmediateavailabilityofbiogenicCO₂from existingbiomethaneplantsandthefutureavailabilityfromplantsundergoing authorizationbytheANPis*: Total 491 kt /year Operating plants: 99 kt / year Under authorization: 392 kt / year
- ThefiguresarebasedonproductivitydataprovidedbytheANP(NationalAgencyofPetroleum,NaturalGasandBiofuels)thatexcludesinternalconsumption.Therefore,theymaybeunderestimated. Immediate availability of CO₂(Biomethane) Authorized by ANP (t / year) Under authorization ANP (t / year)
20 Potential additional availability of CO₂in the ethanol sector Additional CO₂availability: cogeneration in ethanol plants Additional CO₂availability: biomethane from vinasse and filter cake Beyondimmediateavailability,ethanolplantshavethe potentialtosupplysignificantlylargerquantitiesof biogenicCO₂from: •Capturefrombiomasscogenerationexhaust streams,resultingfromtheuseofbiomassin boilerstogenerateelectricalandthermal energy.Sugarcanemillsusebagasseas biomass,whilecornmillstypicallyemploywood chips; •Biomethaneproductionfromvinasse-andfilter cake-derivedbiogasinsugarcanemills. MakingtheseCO₂streamsavailablerequiresamore significantinvestmentbytheplants,eitherthroughthe implementationofmorerobustpost-combustioncapture systemsortheinstallationofbiomethaneproduction units. Othersectorsthatproducebioelectricityalsohold potentialasCO 2 suppliers,suchasthepaperandpulp industry. Total 160 Mt/year Bagasse cogeneration: 140 Mt / year*
- Bagassecogenerationalsoincludesthesugarcanefractiondestinedforsugarproduction,whichjustifiesitshighvolume Wood chips cogeneration: 15 Mt / year Biomethane from vinasse: 5.3 Mt/year Corn (t / year) Sugarcane 1G and 2G (t / year) Sugarcane mills (t / year)
21 Current and future CO₂potential in the ethanol sector TheannualavailabilityofbiogenicCO₂from theethanolsectorcouldreach197Mtby 2035: •36MtofCO₂fromfermentation,being 67%fromsugarcaneethanolplantsand 33%fromcornethanolplants; •6MtofCO₂fromthepurificationof biomethanederivedfromvinasseand filtercakeinsugarcaneethanolplants, consideringthehypothesisoftotal conversionoftheseresidues; •155MtofCO₂fromcogeneration,being 90%fromtheuseofsugarcane bagasseand10%fromtheuseofwood chipsincornethanolplants. Projection of immediate and potential availability of biogenic CO₂in sugarcane and corn ethanol plants until 2035 0 20 40 60 80 100 120 140 160 180 200 202520272029203120332035 CO₂ Availability (Mt/year) Sugarcane Fermentation (Mt)Corn Fermentation (Mt) Potential Vinasse Biomethane (Mt)Sugarcane Bagasse Cogeneration (Mt) Wood Chip Cogeneration (Mt)
Challenges for the use and/or storage of Biogenic CO₂
23 Logistical challenges DuetotheBrazil’stypicallylargegeographicaldistances,thetransportofCO₂betweenitscollectionpointanditsuseand/orinjection sitecanrepresentalogisticalbottleneckfortheimplementationofBECCUandBECCSoperations. CO₂capture point (industrial plant) CO₂point of use (industrial plant) CO₂ injection point (geological reservoir) Pipeline Transportation Thepipelinealternativesignificantly reducesoperatingcostsand emissionsassociatedwithCO₂ transportation,especiallyoverlong distances.However,itdependson infrastructurethatcurrentlydoesnot existinthecountry,whichresultsin highinvestmentcostsandalonger implementationtime. Road Transportation Theroadtransportalternative presentshighoperatingcostsand highemissionsassociatedwithCO₂ transport,especiallyoverlong distances.Atthesametime,itutilizes roadinfrastructurethatisalready widelyavailableinthecountry, significantlyreducinginvestment costsandimplementationtime. or BECCUoperations,whichwillbebasedonfuture industrialplants,offergreatergeographicalflexibilityfor implementation.Inthisregard,thelocationoftheCO₂ consumingunitcanbedefinedpriortoconstruction,ina waythatminimizeslogisticalcosts. BECCSoperations,inturn,dependonthephysical locationofthegeologicalreservoirs;thus,theyareless flexibleintermsofinjectionlocation. InformationalChallenge GeologicalknowledgeofpotentialCO₂injectionsitesinBrazilislimited, especiallyintheinteriorregionsofcountry. Thedevelopmentofcontinentalgeologicalprospectingactivitiesaddscosts andriskstotheimplementationofBECCSoperations. Learn more: TheNationalZoningofOilandGas Resources,publishedevery2yearsby EPE,providesamappingofBrazil's potentialforCO₂injection.
24 Technological challenges TechnologicalimprovementsareessentialforreducingcostsatallstagesoftheBECCUandBECCSsupplychains. Notably,CO 2 captureusuallyrepresentsthemostexpensivestep,particularlyinoperationsthatuseCO₂fromcogeneration,whichis dilutedinexhaustgases.Varioustechnologiescanbeemployedatthisstageoftheprocess,eachpresentingspecificchallengesfor technologicalimprovementandcostreduction: TechnologySimplified description of the process Main technological challenge for use in post- cogeneration streams Chemical absorption Chemical absorption is the most commonly employed technology for capturing CO₂ from exhaust gases at scales typical of thermal power plants. The CO₂ is chemically absorbed by a solvent, typically an amine-based liquid. Subsequently, the solvent is regenerated by increasing the temperature to recover the gas and recycle the solvent. A significant amount of energy is required for solvent regeneration, which constitutes the primary cost driver of the process. Physical absorption Physical absorption is a technology with industrial significance, but which is primarily used in pre-combustion capture operations. It operates on a cycle similar to chemical absorption but under lower temperatures and higher pressures. The process requires pressurizing and cooling of post- combustion streams, which results in high energy consumption and cost and hampers thermal optimization. Adsorption Adsorption is a technology used industrially, but typically on smaller operating scales than those required in post-combustion systems. CO₂ is captured by a solid adsorbent, which is then regenerated by increasing the temperature or reducing the pressure. Scaling up the process to the capacities required by thermal power plants remains challenging. Membrane separation Membrane separation is a technology with lower maturity levels. Even so, there are examples of suppliers offering operational membranes for CO₂ capture. These materials selectively allow solely the passage of CO 2 molecule, which separates it from the exhaust gas. Scaling up the process to the capacities required by thermal power plants remains challenging. Conventional membranes have lower operating temperatures than those required for post-combustion gases. Source: EPE based in Hekmatmehr et al. (2024). RegardingBECCUforenergeticpurposes,technologicalimprovementisalsostillrequiredforoptimizingCO₂andH 2 conversion processes.ThisisparticularlytrueforFischer-Tropschsynthesis(SAF,GreenDieseletc.)andforthedirectconversionofthese inputsintomethanol.
25
Regulatory and market challenges
ThewidespreaddevelopmentofCO₂capture,transport,use,and/orinjectionactivitiesinBrazilstilldependsontheestablishmenta
seriesofregulatoryframeworksandthedevelopmentofmarketincentivestocreateconsolidateddemand.
Future Fuel Law
Although the Future Fuel Law
represents an important step forward
by designating ANP as the regulatory
authority for the capture, use and
injection of CO₂, technical
specifications are still needed to
ensure regulatory safety for these
activities.
For example, details still need to be
developed on the broad criteria for
issuing operating permits, including
aspects of capture, injection,
monitoring and accountability (short-
and long-term), environmental
licensing, etc.
The formation of consolidated and
scalable markets for biogenic CO₂
depends on the fair valuation of the
environmental benefits provided by
activities involving its use or storage.
To achieve this, advances are still
needed to ensure the creation of an
effective demand for the product,
justifying investments in these
activities.
There may arise a competition for
biogenic CO₂ between use and
injection pathways. The destination of
the resource will depend on the
market mechanisms developed for
each option.
TheregulationofbiogenicCO₂marketsalsostillremainsan
openissueinmanycasesandplaysacrucialroleinthe
formationofcompetitiveandfirmdemandfortheproduct.
InBrazil,Law15,042/2024establishedtheBrazilian
GreenhouseGasEmissionsTradingSystem(SBCE),whichcan
becomeadecisivemechanismforthedevelopmentof
regulatedandconsolidatedcarbonmarketsinthecountry.
However,itisstillnecessarytodefinespecificregulationsfor
startingthismarket’soperation.
Internationally,aseriesofprogramsarebeingdevelopedto
createmarketsforproductsthatusebiogenicCO₂orstorethe
gasduringproduction.Forenergyapplications,suchas
methanolorSAFproduction,fuelcompetitivenessinthese
programsdependsheavilyontheassumptionsusedto
calculatecarbonintensities(CI),whicharestillbeingdefined
forseveralpathways.
ThedefinitionofCIcalculationassumptionsandbonuses
mechanismforBECCSoperationsarealsostillpendingwithin
theRenovabioframework.
International Overview of Biogenic CO₂ Capture, Utilization, and Storage
27 Currently,thereare6operationalBECCS/BECCUSplantsintheworld,withatotalcapture capacityof2.03MtCO₂/year(4.1%ofthetotaloperationalcapacityofCCS/CCUS) Global overview of BECCS/BECCUS Source: EPE based on IEA and personal communications. ProjectCountry Capacity (tCO₂/year) CO₂ Source CO₂ Destination Illinois IndustrialUSA1,000,000Fermentation (corn)CCS Arkalon EthanolUSA310,000Fermentation (corn)CCUS (EOR) Blue Flint EthanolUSA200,000Fermentation (corn)CCS GEVOUSA180,000Fermentation (corn)CCS Mikasa Power PlantJapan180,000Cogeneration (palm residues)CCS 1 Bonanza BioenergyUSA160,000Fermentation (corn)CCUS (EOR) Accordingtoannouncedprojects,theexpectedglobalBECCS/BECCUScapacityby2032is: •Underconstruction:4.35MtCO₂/year(4.4%oftotalcapacityunderconstructionforCCS/CCUS) •Totalplanned:80.72MtCO₂/year(14.2%oftotalannouncedcapacityforCCS/CCUS) Theaveragecapacityofcogenerationprojectsis1,335tCO₂/year,comparedto435tCO₂/ yearforfermentation.Thelargerscale,typicalofbioelectricityprojects,canoffsetthe highercapturecostassociatedwiththelowerconcentrationofexhauststreams. 1 This projectis in demonstration phase–the CO₂is not yet being transported to its final injectionsite. USA 40.7 Mt CO₂/ year 51% Cogeneration (8 projects) 49% Fermentation (46 projects) No biomethane projects Europe 36.6 Mt CO₂ / year 95% Cogeneration (32 projects) 3% Fermentation (2 projects) 2% Biomethane (3 projects) Brazil 1.8 Mt CO₂ / year 100% fermentation (corn) BECCS/BECCUS operational and announced capacity worldwide
- Thisincludeswaste-to-energyprojects,whichmay,insomecases,mixnon-biogeniccarbon withbiogenicCO₂. 0 10 20 30 40 50 60 70 80 90 20252026202720282029203020312032 Estimated Capture Capacity (Mt CO₂/year) Planned - BiomethanePlanned - Cogeneration* Planned - FermentationOperational or Under Construction - Cogeneration* Operational or Under Construction - Fermentation
28 Global overview of BECCU in the energy sector BECCU operational and announced capacity for e-methanol and e-SAF worldwide* InBrazil,the2024publiccallforproposalsbyBNDES/FINEPnamed"BusinessPlans forinvestmentsinlow-carbonaviationandshippingfuels”received11project proposalsinvolvingBECCUfore-methanol,withatotalcapacityofapproximately0.79 Mtmethanol/year.Thiscallreflectsinvestmentintentionsforprojectsthathavenot yetbeenofficiallyannounced. TheCO₂emissionstargetedbytheseprojectsoriginatefromthefollowingoperations: •Fermentation:0.53MtCO₂consumed/year •Biomethane:0.48MtCO₂consumed/year •Cogeneration:0.39MtCO₂consumed/year ForSAFproduction,themainprojectssubmittedtothecallfocusonotherproductive routesthatdonotdirectlyinvolvetheuseofbiogenicCO₂. *Includedonlyprojectsforwhichitwasidentifiedpublicannouncementsoftheintentiontouse biogenicCO 2 ,atleastpartially.Thereareotherrenewablee-methanolande-SAFprojectsannounced forwhichtheCO 2 sourcehasnotbeenspecified,amountingtoanadditionalpotentialannualcapacity ofBECCUof13Mtofe-methanoland1.6Mtofe-SAF. Source: EPE based on Methanol Institute, ICAO, eFuel Alliance e T&E E-methanolande-SAFproductionusingbiogenicCO₂isstillinitsearlystagesworldwide, withonlyfouroperationalprojectsreported,allatthepilotscale. TheexpectedglobalBECCUcapacityfore- methanolby2031is: •Underconstruction:0.29MtMethanol/year (approximately0.40MtCO₂consumed/year) •Totalplanned:8.1MtMethanol/year (approximately11.1MtCO₂consumed/year) Europe 4.6 Mt / year Uruguay 0.77 Mt / year India 0.5 Mt / year TheexpectedglobalBECCUcapacityfore- SAFby2031is: •Underconstruction:0.014MtSAF/year (approximately0.04MtCO₂consumed/year) •Totalplanned:2.3MtSAF/year(approximately 7.3MtCO₂consumed/year) Australia 0.2 Mt / year China 0.2 Mt / year China 1.2 Mt / year Europe 1.9 Mt / year 0 2 4 6 8 10 12 14 16 18 20 2025202620272028202920302031 Production Capacity of e
Methanol and e
SAF or Associated CO₂ Consumption (Mt/year) CO₂ Consumed - PlannedCO₂ Consumed -Operational or Under Construction e-SAF Production - Plannede-Methanol Production - Planned e-SAF Production - Operational or Under Constructione-Methanol Production - Operational or Under Construction
29 Implementation example: Summit Carbon Solutions Image source: S&P Global (2024) AprominentimplementationexampleofabiogenicCO₂captureandstoragehubisthe projectoperatedbyaUScompany,SummitCarbonSolutions. Theconstructionofover4,000kmofpipelinesforthecollectionandtransportofCO 2 is underwayat57plantsacrossfiveU.S.states,thevastmajorityofwhichinvolvesbiogenic CO 2 derivedfromcornethanolproduction.Theinjectionwilltakeplaceintogeological reservoirsinthestateofNorthDakota. Completionisexpectedby2027.Thesystemsisdesignedtooperatewithacapacityofup to18.5MtCO₂/year. Thecompanyistakingadvantageofthesignificantrecentadvancementsintheregulatory frameworksforCCSinthestateofNorthDakota,thegeographicalproximityofcorn ethanolplants,andtaxincentivesfortheactivityintheUnitedStates(e.g.,45Qcredits)to maketheoperationeconomicallyviable. Thebusinessmodelbasedoncapturehubs,withanoperatorresponsiblefor collectingCO₂atdifferentavailabilitysources,allowsforconsiderableeconomiesof scaleandrisksharing. SimilarmodelscouldbeimplementedinBrazil,giventhegeographicconcentration ofplantssupplyingbiogenicCO₂. Theviabilityoftheseoperations,however,stilldependsonthestructuringofmore advancedregulatoryframeworksandthecreationofrobustmarkets,assuch projectsrequiresubstatialinvestments.
Final Remarks ThechallengeofreducinganthropogenicGHGemissionsisthedrivingforcebehindthesearchfornewmitigationstrategiesbyClimate Agreements’signatorycountries,suchasBrazil. TheeconomicexploitationofbiogenicCO₂cansupportBrazilinachievingthisgoal.Thisresourcecanbeinjectedintogeological reservoirsorusedinproductionprocesses,forenergyornon-energyuses. Brazilhasmadeprogressinbuildingalegalframeworktosupportthisstrategy.Recentpublicpolicies,suchasRenovaBioandthe FueloftheFuture,aswellasPATENandtheClimatePlan,addressthisissue. ThereisgreatnationalpotentialformakingbiogenicCO₂available.Themainopportunitiesinvolvealcoholicfermentationandbiogas purification(intermsofeaseofcapture)andbiomasscogeneration(intermsofvolume). SeveralchallengesstillneedtobeovercomefortheeffectivedevelopmentoftheseopportunitiesinBrazil,suchaslogistical obstacles,technologicalimprovementstoreducecosts,regulatorydefinitions,andmarketconsolidation. TheconsumptionofbiogenicCO₂forstorageoruseisexpectedtogrowrapidlyinternationally.Externalexperiencescanbeinspiring fortheimplementationofsolutionsadaptedtothenationalcontext.
Follow EPE on social media and digital platforms BIOS Ícone Descrição gerada automaticamente Logotipo Descrição gerada automaticamente Ícone Descrição gerada automaticamente Ícone Descrição gerada automaticamente Logotipo, Ícone Descrição gerada automaticamente Ícone Descrição gerada automaticamente Acknowledgments We thank the institutions BNDES, the Ministry of Mines and Energy, and FS Bioenergy for providing information, data, and technical contributions, which were fundamental to the preparation of this study. We also thank our colleagues from SPG, with whom we have collaborated on this topic.