Cocal, Siemens Brazil, and the German sustainable development agency GIZ formalized a cooperation agreement to test the production of green hydrogen and sustainable aviation fuel from sugarcane at a plant in the interior of São Paulo. The project aims to assess the technical and economic feasibility of integrating the production of ethanol, green hydrogen, e-methanol, and SAF (sustainable aviation fuel) at one of Cocal’s units in western São Paulo. The funding and supervision come from the H2Uppp program, an initiative of the German Ministry of Economy and Energy.
The agreement transforms a sugarcane mill in the interior of São Paulo into a laboratory for one of the most promising frontiers of the global energy transition. Siemens provides technical and economic support, Cocal offers the operational infrastructure and raw materials, and GIZ supervises quality assurance and alignment with German hydrogen expansion goals. Aviation fuel made from sugarcane is one of the most concrete bets to decarbonize a sector that accounts for about 2.5% of global CO2 emissions and has no viable electric alternative on the horizon.
What is the sustainable aviation fuel that will be tested in the interior of São Paulo
image: globorural
According to information from the portal Globo Rural, SAF (Sustainable Aviation Fuel) is a fuel designed to replace conventional aviation kerosene, made from fossil sources. The version to be tested in the interior of São Paulo follows the route known as MtJ (methanol-to-jet), in which sugarcane provides the ethanol and the CO2 captured during fermentation.
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These inputs are combined with green hydrogen produced by water electrolysis using solar energy to generate e-methanol, which is then converted into aviation fuel.
The difference with this route is that it utilizes resources that the sugar mill already naturally produces. The fermentation of sugarcane juice generates ethanol and releases CO2 as a byproduct.
Instead of discarding this carbon dioxide, the process captures and reuses it as a raw material for sustainable fuel, closing a cycle that makes production significantly cleaner than conventional methods.
For the aviation industry, which desperately needs alternatives to fossil kerosene, having a fuel route that is already integrated with existing mills is a strategic advance.
How green hydrogen fits into the sugarcane equation
Green hydrogen is the ingredient that connects solar energy to fuel production. The project plans to install a photovoltaic plant in the region of Cocal’s mill to generate the electricity needed for electrolysis, the process that separates water into hydrogen and oxygen using renewable electricity. This hydrogen is called “green” precisely because the energy used to produce it comes from a clean source—in this case, solar panels in the interior of São Paulo.
The green hydrogen produced will be combined with the CO2 from ethanol fermentation to create e-methanol, which will then be converted into aviation fuel.
The research will also analyze the optimization of carbon dioxide supply throughout the year, as the sugarcane harvest does not cover the full 12 months, and for the fuel plant to operate continuously, the CO2 supply needs to be stable. Solving this seasonality is one of the most important technical challenges the project will face.
Why Germany is investing in sustainable fuel in Brazil
The answer lies in the geopolitics of energy. Germany is one of the most industrialized economies in the world and heavily depends on imported fuel. After the energy crisis caused by the war in Ukraine and the cut of Russian gas, Berlin intensified its search for alternative energy sources from reliable partners.
Brazil, with its abundance of sugarcane, sun, and biomass, is a natural candidate to become a supplier of sustainable fuel and green hydrogen for Europe.
The H2Uppp program, which finances the project, is a strategic initiative of the German government to develop hydrogen production chains in countries with competitive advantages in renewable energy.
The interior of São Paulo offers conditions that few places in the world provide: abundant raw materials (sugarcane), intense sunlight for solar energy, existing industrial infrastructure (mills), and a skilled workforce in the sugar-energy sector. For Germany, investing here is betting on a fuel route that can supply European aviation with a cleaner and traceable product.
What this partnership could change for the Brazilian energy sector
If the tests in western São Paulo demonstrate technical and economic viability, Brazil could position itself as one of the leading global producers of sustainable aviation fuel.
Sugarcane mills that currently produce sugar and ethanol would gain a third revenue stream with SAF and green hydrogen, diversifying their portfolio without needing entirely new facilities. The infrastructure already exists; what changes is what is produced from it.
For the Brazilian sugar-energy sector, the partnership with Siemens and GIZ represents a gateway to markets that pay significant premiums for clean fuel.
European and American airlines are already required or pressured to incorporate increasing percentages of SAF into their operations, and the demand for this type of fuel will grow exponentially in the coming years.
If Brazil can produce competitive SAF from sugarcane, the mill in the interior of São Paulo that is currently seen as an agricultural commodity could become a central piece of the global energy transition.
Do you think Brazil should invest more in sustainable aviation fuel from sugarcane? Could this partnership with Germany be transformative?
