Compass and Orizon to create JV for $90M landfill biomethane plant

In Brazil, Compass, a gas trader from the Cosan group, and Orizon Meio Ambiente, from Orizon Valorização de Residues, announced the formation of a joint venture for the construction of a biomethane plant at the landfill in Paulínia (SP).

The unit will have an initial capacity to produce 180,000 m3/day, starting in 2025, but could reach up to 300,000 m3/day in the future.

In all, Compass will invest up to R$ 355 million in the business. The Cosan group company will allocate:

·      BRL 100 million for the initial stage of formation of the joint venture ;

·      BRL 135 million for the Orizon Group

·      and up to R$ 120 million to increase the plant’s production, subject to the delivery of a greater volume of biogas.

The owner of the original project for the biomethane plant in Paulínia, Orizon, in turn, is committed to supplying biogas for the production of renewable gas for 20 years.

Compass will have 51% and Orizon 49% of Biometano Verde Paulínia, the name given to the JV. The first stage of the project will demand up to R$ 450 million.