Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Kenichi Hori) has invested in a biomethane production project in Minas Gerais State, southeastern Brazil, through its wholly owned subsidiary, Mitsui Gás e Energia do Brasil Ltda. ("MGEB").

Biomethane is produced by refining biogas generated through the decomposition of organic matter by microorganisms. As an alternative to fossil fuels, it has the potential to contribute to the reduction of greenhouse gas (GHG) emissions. As the world's largest producer of sugarcane, Brazil has access to abundant feedstock required for biomethane production, making the country a highly attractive market for efficient, large-scale biomethane production and development. As global momentum toward carbon neutrality continues to accelerate, demand for low-carbon energy is increasing in Brazil, particularly in the industrial and transportation sectors. The introduction of policies such as the "Fuel of the Future Law," which mandates natural gas suppliers to procure biomethane or certificates of origin, is expected to further support market expansion.

In 2024, Mitsui established GEOMIT Participações S.A. ("GEOMIT") together with Geo bio gas&carbon ("Geo"), a pioneer in Brazil's biogas industry with over 19 years of experience and a proven track record in stable, year-round biomethane production at commercial scale. Through this project, GEOMIT has formed a new joint venture with a subsidiary of Companhia Mineira de Açúcar e Álcool S.A. ("CMAA"), a sugar and ethanol producer in Minas Gerais State. The joint venture will produce biomethane in the city of Uberaba using by-products from CMAA's sugar and ethanol production processes. Mitsui has reached a final investment decision for the biomethane production business through this joint venture.

The biomethane production facility is scheduled to commence commercial operations in May 2028 following construction and will have a production capacity of approximately 50,000 m³ per day. The biomethane produced will be supplied through Companhia de Gás de Minas Gerais S.A. ("Gasmig"), the state gas distribution company and subsidiary of Companhia Energética de Minas Gerais, to industrial customers in the region that currently rely on fuel oil, diesel, LPG (liquefied petroleum gas), and other energy sources. The facility's production capacity is equivalent to approximately 20% of the biomethane demand projected by Gasmig in the region. By replacing conventional fuels, the project is expected to reduce GHG emissions by approximately 90%^* compared with diesel. In addition, by-products generated during the biomethane production process can be utilized as agricultural fertilizer, contributing to the advancement of a circular economy.

Under its Medium-term Management Plan 2029, Mitsui has positioned "Global Energy Transformation 2.0" as an evolved key strategic initiative focused on expanding diverse energy supply menus in response to changing environment and customer needs, while optimizing its gas value chain. Through this project, Mitsui will leverage the expertise and knowledge it has accumulated through its gas business in Brazil since its investment in MGEB in 2006, while expanding its biomethane portfolio through GEOMIT. In doing so, Mitsui aims to contribute to Brazil's energy transition and pursue further value creation opportunities by drawing on its broad business platform and network in the country.

*Based on a comparison of lifecycle GHG emission intensity, including fuel production, distribution and use, published by EPE (Empresa de Pesquisa Energética), a public energy research company affiliated with Brazil's Ministry of Mines and Energy. Actual emission reductions may vary depending on the application, equipment efficiency, operating conditions and other factors.

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