Brazil's biomethane industry is poised for significant growth, driven by increasing decarbonization pressures and recent regulatory advancements, particularly in the state of Minas Gerais. The renewable gas, produced from organic waste, is emerging as a strategic asset in the country's industrial decarbonization efforts, offering a pragmatic solution for sectors heavily reliant on fossil natural gas.
Biomethane's compatibility with existing gas infrastructure presents a decisive advantage for hard-to-electrify industries such as ceramics, glass, food processing, paper, and chemicals, allowing them to cut emissions without immediate equipment replacement.
Several factors are accelerating the biomethane market in Brazil, including growing pressure for decarbonization targets, rising demand for circular economy solutions, energy security concerns, and the volatility and higher costs of fossil gas. Unlike other clean energy alternatives, biomethane can often be injected directly into existing gas grids, reducing transition costs and operational disruption.
Brazil possesses significant structural advantages for biomethane production, combining large-scale agribusiness, a robust sugarcane industry, extensive urban waste generation, and an expanding gas market. Feedstocks like vinasse, filter cake from sugar-energy operations, livestock waste, industrial effluents, and municipal solid waste offer substantial technical potential, though current production remains below estimated capacity.
Despite a growing pipeline of projects, the sector faces challenges, including limited connection to gas distribution networks in some producing regions, high upgrading and purification costs for small-scale plants, and the need for long-term supply contracts to ensure price predictability. Regulatory fragmentation at the state level also poses a hurdle, risking isolated development rather than systemic scale.
A major step forward occurred on February 9, 2026, with the publication of Decree No. 49,172 by the Minas Gerais government. This regulation establishes operational guidelines for biogas, biomethane, and low-carbon hydrogen policies, alongside rules for sharing and integrating gas infrastructure. The decree implements State Laws 24,396/2023 and 24,940/2024, providing clearer frameworks for licensing, commercialization, certification, environmental standards, and economic incentives.
Minas Gerais currently boasts 453 million Nm³ per year of installed biogas capacity across 359 operational facilities, representing approximately 10% of national production. In 2025, the state inaugurated its first biomethane plant, operated by Zeg Biogás in Tupaciguara, with an investment of BRL 78.6 million. Two additional biomethane units are under authorization in Sabará, with a combined capacity of 108,000 Nm³ per day.
The decree also advances low-carbon hydrogen policy, detailing technical standards, certification mechanisms, and economic incentives to expand hydrogen's role in heavy industry, mobility, and energy storage.
Industrial investment is also expanding. MAT, a Brazilian manufacturer of gas cylinders and trailers, reported record revenues exceeding BRL 30 million last year from compression systems and accessories. Approximately 70% of the equipment sold in 2025 was for biomethane compression, storage, and transport. According to data from the International Center for Renewable Energy (CIBiogás), Brazil had 79 biomethane plants in 2025 (54 operational, 25 under implementation), with biomethane supply expanding 107% during the year.
MAT is now considering local production of compressors, currently imported from Italy, which could facilitate financing through Brazil’s Finame machinery credit program.
Biomethane's appeal in Brazil rests on three strategic pillars: immediate emissions reductions using available technology, valorization of environmental liabilities through waste recovery, and lower operational disruption compared to alternative decarbonization pathways. If infrastructure gaps and regulatory harmonization challenges are addressed, Brazil could become a global leader in renewable gas production. The market's maturation speed will be crucial, but the convergence of industrial competitiveness, circular economy, and energy transition suggests that renewable gas is moving to the core of Brazil’s low-carbon strategy.
No comments:
Post a Comment