Sumitomo Brazil and Cemvita partner to integrate RNG and bio-oil production, advancing waste-based fuels and scaling Brazil’s circular bioeconomy.
Sumitomo Corporation do Brasil and Cemvita, Inc. have entered into a strategic collaboration through the signing of a Memorandum of Understanding (MOU) aimed at advancing integrated bioenergy solutions in Brazil. The agreement focuses on the joint development of projects that combine the production of bio-methane, also known as Renewable Natural Gas (RNG), with renewable bio-oil, specifically Cemvita’s FermOil™, which serves as a key precursor for Sustainable Aviation Fuel (SAF). This initiative underscores both companies’ commitment to accelerating the deployment of low-carbon fuels derived from waste streams, while reinforcing Brazil’s role as a leading player in the global circular bioeconomy.
As part of the collaboration, the two organizations will evaluate the feasibility of integrating Cemvita’s proprietary bio-oil technology with RNG production at an initial facility in Brazil. The project will involve the assessment of around five different waste and industrial by-product feedstocks to determine their suitability for dual-output production. The objective is to optimize carbon utilization, enhance operational efficiencies, and improve overall project economics by leveraging synergies between the two processes. Beyond the initial phase, both companies intend to explore opportunities to replicate and expand this integrated production model across additional sites and future developments identified within their respective portfolios.
Moji Karimi, CEO of Cemvita, Inc., emphasized that the partnership represents a shift toward integrated bioenergy systems rather than single-product solutions. He highlighted that combining Cemvita’s advanced biotechnology platform with Sumitomo’s extensive infrastructure capabilities and global market reach can unlock greater value from waste resources while reducing carbon intensity. This approach is expected to accelerate commercialization efforts in Brazil and support the broader transition to sustainable fuels.
From Sumitomo’s perspective, RNG remains a key strategic focus globally, with Brazil identified as a critical market for long-term biofuel supply. Takamasa Ueda, Senior Director at Sumitomo Corporation do Brasil, noted that integrating bio-oil production with RNG facilities creates meaningful operational and economic advantages. This dual-production model enables simultaneous generation of waste-based bio-oil for SAF and RNG, addressing the complexities of biofuel project development while supporting scalable and responsible growth.
Brazil’s vast agricultural sector further strengthens the case for such initiatives. The country generates significant volumes of agri-food residues and industrial side streams, which, if left underutilized, can lead to environmental challenges and increased disposal costs. João Simões, Director of Energy Innovation Initiative at Sumitomo Corporation do Brasil, pointed out that integrating both production streams within a single biorefinery can significantly enhance the financial viability of these projects. This approach not only benefits residue producers by creating value from waste but also supports end-users of SAF and RNG by improving supply availability.
To ensure effective execution, the partnership will be overseen by a Joint Steering Committee responsible for governance, milestone tracking, and risk management. The collaboration is expected to deliver a comprehensive technical and commercial roadmap, with a target timeline for execution set for 2026. A final integrated assessment report will also be developed to guide future expansion and investment decisions.
Established in 1955, Sumitomo Corporation do Brasil operates as part of the broader Sumitomo Corporation group, a global trading and investment organization with a presence in dozens of countries and a diverse portfolio spanning multiple industries. Through initiatives like this, the group continues to pursue its long-standing mission of creating sustainable value and contributing to society.
