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Closing the loop on farm energy
Read time: 4.5 minutes
How Adecoagro is scaling up biomethane production to control costs, reduce emissions, and power agricultural machinery— including the New Holland T6 Methane Power tractor
We seek to combine agricultural productivity, industrial efficiency and sustainability, always with a long-term vision
For Adecoagro, organic byproducts can be a source of energy and nutrients. Founded in 2002, the agro-industrial company operates across Argentina, Brazil and Uruguay, integrating crop and dairy farming with rice processing, sugar, ethanol and renewable energy production. At its Ivinhema mill in Brazil, Adecoagro also applies this approach to agricultural machinery. Sugarcane vinasse—a liquid byproduct of ethanol distillation—is processed to produce biogas, part of which is upgraded to biomethane and used at the same site to fuel the company’s vehicle fleet, including a New Holland T6.180 Methane Power tractor. In this way, a byproduct of ethanol production becomes a renewable fuel for the mill’s machinery. At its Angélica and Ivinhema mills in central Brazil, Adecoagro generates more than one million MWh of electricity per year from sugarcane bagasse—the fibrous material left after the juice has been extracted. High-pressure steam boilers and turbogenerators convert the bagasse into electricity, part of which is used in the company’s operations, with the surplus supplied to the national grid. According to Adecoagro, the annual output is enough to supply approximately 300,000 households. Adecoagro applies similar resource-recovery principles at other locations. In Argentina’s Santa Fe province, manure from dairy cows is processed in biodigesters to produce biogas, which fuels generators that produce electricity. The nutrient-rich digestate is returned to the fields as fertilizer to grow fodder for the cows, creating a circular production model. From its earliest days nearly a quarter century ago, Adecoagro has prioritized operational efficiency. And there are many more examples, from rice to sugar and ethanol, where it has applied circular economy principles on a massive scale. “We seek to combine agricultural productivity, industrial efficiency and sustainability, always with a long-term vision,” says Mariano De Santis, Procurement Director at Adecoagro. “The differentiating factor of our model lies precisely in the integration between field and industry, which allows us to capture value throughout the entire chain and adjust the production mix according to market opportunities.” The Ivinhema project was launched in 2021 as part of Adecoagro’s efforts to improve resource efficiency. For De Santis, its value lies in treating vinasse as a resource from which the company can recover both energy and nutrients. “Vinasse is not a waste product, but rather a byproduct of the ethanol production process,” says De Santis. “We return nutrients to the field and, at the same time, we produce renewable fuel. It's a clear example of a circular economy, where we can extract even more value from the resources generated by the operation itself.”
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Cost and environmental benefits
In 2022, Adecoagro incorporated a New Holland T6.180 Methane Power tractor into its fleet. Matching its diesel equivalent with 180 hp and 740 Nm of torque, the tractor handles field operations and transport duties with equal pull power. Moreover, it costs up to 30% less to operate than its diesel counterpart, while providing the same power and reducing overall emissions by 80%.
“The biomethane tractor is an important opportunity to demonstrate, in practice, the use of a renewable fuel produced within our own operation,” says De Santis. “Beyond the environmental benefits, we see potential for increasing our energy autonomy and bringing greater cost predictability, reducing dependence on diesel, which is still subject to fluctuations in the international market due to geopolitical factors.”
With the emergence of new products, new markets need to be created and that requires rules and transparency. To ensure quality and authenticity, certificates are issued to corroborate biomethane production. These enable companies to substantiate their voluntary use of clean fuel to reduce their greenhouse gas (GHG) emissions.
The biogas plant in Ivinhema was the first in Brazil to be able to issue Renewable Natural Gas Certificates (Gas-REC) for industries wishing to decarbonize their production process. Adecoagro was also a pioneer in their commercialization at the beginning of 2022.
Gas-REC and other initiatives, such as the Certificate of Guarantee of Origin for Biomethane (CGOB), bring more regulatory clarity and confidence to the sector. Such initiatives help encourage investment in decarbonization solutions and support the growth of an embryonic but growing market, De Santis explains.
Leading the energy transition
Brazil’s farm sector is undergoing an energy transition and Adecoagro is at its heart. In 2025, the country’s biomethane production jumped by 75% to 1.1 million Nm³ (normal cubic meters) per day. With a number of projects in the pipeline, this is projected to reach 3.37 million Nm³/d by 2028.
And that only scratches the surface. As one of the world’s agricultural powerhouses, Brazil has an estimated potential to produce 35 million Nm³/d of biomethane in the short term, according to the Brazilian Biogas Association.
Adecoagro, for example, is building two new biodigesters that will increase its biomethane production in 2027 to 30,000 Nm3/d, which is equivalent to 10 million liters (2.64 million gallons) of diesel annually. That is a five-fold increase from current levels. The company is working on projects that would increase capacity still further, to approximately 50,000 Nm³/d.
Today, Adecoagro’s 114 light vehicles, 26 trucks and one tractor operate on biomethane that is available at company-owned filling stations on site. But De Santis says there are opportunities to broaden the use of biomethane farm equipment.
“We see great potential for expanding this technology to other categories of agricultural machinery and New Holland plays an important role because it brings to market new biomethane technologies,” he says. “The larger the ecosystem of equipment capable of operating on biomethane, the greater the opportunity to use renewable fuel produced on the farm itself.”
Adecoagro is also completing an industrial-scale liquefied biomethane plant at Ivinhema. Converting biomethane into bio-LNG (Liquefied Natural Gas) reduces its volume, making it easier to transport without pipelines and potentially extending its use to long-distance heavy transport. “We believe that biomethane will play an increasingly important role in the energy transition, combining competitiveness, energy security and decarbonization,” says De Santis.
By combining Adecoagro’s circular production model with New Holland’s Energy Independent Farm approach, the Ivinhema project shows how on-site biomethane and methane-powered machinery can create a practical, cost-effective and more sustainable energy cycle for farmers—turning agricultural byproducts into fuel while lowering emissions.
Adecoagro is also completing an industrial-scale liquefied biomethane plant at Ivinhema. Converting biomethane into bio-LNG (Liquefied Natural Gas) reduces its volume, making it easier to transport without pipelines and potentially extending its use to long-distance heavy transport.
Digital visualization of how the RoofX portable intelligence works.
