The new Brazilian rules for biomethane implementation which various industries now use as a replacement for natural gas fossil fuels will drive both energy transition progress and business carbon reduction activities.
The Brazilian federal government completed its biomethane policy regulations through the Fuel of the Future program in September 2025, which will enable the country to increase its renewable gas production for domestic use. The policy establishes an initial requirement for 1% biomethane blending in 2026, which can increase to 10% through future regulations that will apply to both natural gas producers and importers.
Biomethane is a renewable energy produced from organic waste such as agricultural residues, food waste and animal manure. The materials are processed through anaerobic digestion, in which microorganisms break down organic matter in oxygen-free tanks, generating biogas composed mainly of methane and carbon dioxide. This biogas is then purified, or upgraded, to produce biomethane suitable for energy use.
It produces energy with the same efficiency as natural gas while emitting virtually no carbon emissions because its combustion emissions get canceled out by the carbon dioxide which plants capture during photosynthesis.
With this new regulatory framework, Brazil will establish yearly decarbonization benchmarks which will transform the country energy system by increasing renewable gas usage throughout transportation systems industrial operations and electricity production sectors.
One example of thar is the Brazilian cosmetics company Natura (NATU3) which opened a biomethane refueling station at its Cajamar industrial site located near São Paulo through its collaboration with Ultragaz. The project aims to cut logistics-related emissions, particularly Scope 3 emissions generated by outsourced transport operations.
The initiative operates 28 trucks that move goods between the Cajamar plant which generates 90 percent of Natura's domestic production and regional distribution centers using only biomethane as fuel. The fleet is operated by logistics companies Coopercarga and Reiterlog.
Natura plans to achieve a 42 percent reduction of its Scope 3 emissions by the year 2030. The biomethane system operates at a refueling rate of 2,000 cubic meters per hour. The company plans to receive returns on its investment within two years although it has not released specific investment amounts.
Ultragaz will supply 3.5 million cubic meters of biomethane per year to Natura, enough to power roughly 17,500 households. The project benefits the environment by decreasing the company carbon emissions which leads to lower business expenses according to Angela Pinhati who is the sustainability director at Natura.
The initiative has the potential to motivate companies to start investing in biomethane although the absence of a national distribution system which connects production areas to customers presents infrastructure problems.
The biomethane which Natura receives comes from the Caieiras landfill, which stands as the biggest landfill in Latin America because it receives organic material from the Cajamar waste processing center. The facility generates approximately 350,000 cubic meters of biomethane each day, with Ultragaz distributing 67,000 cubic meters of this total daily.
The current production of biomethane in São Paulo state results in 16% of its total output coming from landfills according to state authorities, which demonstrates how this fuel supports circular economy systems while helping to decrease greenhouse gas emissions throughout Brazil.
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