Sumitomo And Cemvita Partner To Integrate Biomethane And Bio-Oil Production In Brazil

Sumitomo Corporation do Brasil and Cemvita Inc. have signed a memorandum of understanding to develop integrated biomethane and renewable bio-oil projects in Brazil, with the bio-oil intended as a precursor for sustainable aviation fuel (SAF).

Under the agreement, the companies will jointly evaluate the integration of Cemvita's FermOil bio-oil technology with renewable natural gas (RNG) production at an initial Brazilian facility, assessing approximately five waste and by-product feedstocks for their suitability to produce both fuels simultaneously. The parties will also explore scaling the model across additional sites.

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Moji Karimi, chief executive of Cemvita, said the partnership reflected a view of bioenergy "not as single-product projects, but as integrated systems," combining Cemvita's biotechnology platform with Sumitomo's infrastructure capabilities to extract higher-value, lower-carbon outcomes from waste streams.

Takamasa Ueda, senior director at Sumitomo Corporation do Brasil, said Brazil was a critical location for long-term biofuel supply and that integrating bio-oil production with RNG projects would increase the supply of waste-based feedstock for SAF while generating RNG in parallel.

João Simões, director of energy innovation at Sumitomo Corporation do Brasil, highlighted Brazil's position as one of the world's largest generators of agri-food residues, arguing that a co-located biorefinery model would improve the economics of both products and deliver benefits for residue generators and fuel consumers alike.

The partnership will be overseen by a joint steering committee, with a commercial and technical roadmap targeting execution in 2026.