Brazil's FS Sells 10,000 Carbon Removal Credits to Freepoint Europe

en.Wedoany.com Reported - FS, one of Brazil's largest corn ethanol producers, announced this Friday that it has signed an agreement with Freepoint Commodities Europe to sell future carbon credits generated from its carbon capture and storage (BECCS) project.

Under the contract, the subsidiary of the U.S.-based global trading firm will purchase 10,000 carbon credits. The project, located in Lucas do Rio Verde, Mato Grosso (MT), captures emissions through BECCS technology and permanently removes carbon by storing CO₂ in geological reservoirs.

FS stated that this move makes it the first company to produce ethanol with a negative carbon balance. The project has been designated as a pilot by Brazil's National Agency for Petroleum, Natural Gas, and Biofuels (ANP) and serves as a reference for the development of Brazil's carbon capture and storage (CCS) regulations, having obtained an installation license in November 2025.

FS plans to begin CO₂ injection in September 2026. The ethanol producer noted that the agreement reflects the growing global demand for high-integrity carbon removal credits. The company has secured long-term financing of 384.3 million Brazilian reais approved by the Brazilian Development Bank (BNDES), with an estimated capacity to store approximately 12 million tons of carbon over 30 years.

In a statement, Freepoint said the partnership reinforces its commitment to supporting pioneering carbon removal projects.

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