Heineken advances industrial decarbonization with biomethane and biomass project in Brazil

The Brazilian division of beverage producer Heineken has closed an $89 million deal with biogas producer Veolia to replace natural gas with a mix of biomethane and biomass at its factory in Jacareí city.

The project is in a ramp-up phase, expected to reach full capacity in 2027, when it will generate 110 metric tons of vapor per year, to be used in the unit's boilers.

The agreement is valued at 460 million reais ($89 million) for a 10-year period, during which Veolia will manage and operate the thermal energy supply at the unit.

"This partnership allows us to complete the decarbonization of thermal energy in Heineken's Brazilian units, in addition to our current 100% renewable electricity usage," Sustainability Director at Heineken, Ligia Camargo, told Platts Aug. 28.

With 13 brewing units in the country and two microbrewers, the project represents a step towards achieving the company's net-zero target for scope 1 and 2 in 2030, which it tracks in partnership with the Science Based Targets Initiative (SBTi).

"We are on track to reach zero scope 1 and 2 emissions by 2030," Camargo said.

Beyond the environmental angle, the solution aims to reduce uncertainty in the company's fuel sourcing, as natural gas prices often track Brent.

"Although natural gas appears to be cheaper, the renewable vapor offers more predictability and less exposure to fossil fuels' price volatility," Camargo said.

Platts' dated Brent assessment was $89.64/barrel Aug. 28, having reached $144.42/b on April 7, and as low as $68.17/b on July 2.

Veolia will supply the biomethane from its own biogas generated at its urban waste management facilities. The company manages 10 such facilities throughout Brazil.

"We have been discussing this partnership for over a year, and were able to tailor the solution to Heineken's needs," said José Renato Bruzadin, Veolia's director for business development.

Platts is part of S&P Global Energy.