After the Brazilian federal government published on May 6 the Resolution 4/2026 of the National Energy Policy Council (CNPE), which sets an annual targets for greenhouse gas (GHG) emissions, the state of São Paulo is on track to reach a record installed production capacity of 1 million cubic meters of biomethane per day by the end of 2026, enough to supply all 2.8 million residential gas connections in the state, officials said.
The volume, equivalent to replacing approximately 4,000 diesel-powered urban buses, marks a major milestone in Brazil’s energy transition. São Paulo currently hosts nine of the 19 biomethane plants operating nationwide, with another 11 units awaiting authorization.
"We are preparing to reach the record mark of approximately one million cubic meters per day by December," Marisa Barros, Undersecretary for Energy and Mining at the State Secretariat for Environment, Infrastructure, and Logistics (Semil), told an industry event last week.
DECARBONIZING LOGISTICS
The surge in biomethane — a renewable gas produced from agricultural and landfill waste — is central to São Paulo’s strategy to hit net-zero emissions by 2050. Heavy vehicles, such as trucks and buses, are primary targets for conversion to the renewable fuel, which can reduce greenhouse gas emissions by up to 99% compared to diesel.
In the city of São Paulo, the "BioSP" program is already testing biomethane-powered buses to bypass infrastructure bottlenecks currently hindering electric vehicle adoption.
CORPORATE ADOPTION
Major industries are already integrating the fuel into their operations:
- Natura: The cosmetics giant uses biomethane to power 45% of its industrial processes and 100% of its logistics fleet between its Cajamar factory and Greater São Paulo.
- Aviation Sector: Projects are underway to produce Sustainable Aviation Fuel (SAF) from biogas derived from sugarcane waste, supported by international partnerships with institutions like Sweden’s Swedfund.
REGULATORY MOMENTUM
The National Petroleum Agency (ANP) has streamlined authorization processes to align with Brazil’s "Fuel of the Future" law. "We noticed a significant increase in requests for new industrial plants, driven by recent federal and state incentives," said Marcos Werner, a superintendent at the ANP.
Beyond São Paulo, other states are also advancing:
- Santa Catarina: H2A Bioenergia recently received authorization for the country’s first biomethane plant using swine waste.
- Rio Grande do Sul: State distributor Sulgás launched the "BioHub" to connect remote producers to the existing gas grid, aiming to diversify the state’s energy portfolio and reduce reliance on external sources like Bolivia or offshore pre-salt gas.
CIRCULAR ECONOMY
The expansion of biomethane is being framed as an economic opportunity for small farmers and agribusinesses to monetize organic waste. State environmental agency Cetesb has modernized its licensing procedures, reducing approval times to as little as 60 days to accelerate the transition.
"Biomethane is a strategic pillar in decarbonization," said Allan Cellim da Silva of Cetesb. "It integrates the biofuel into the circular economy while ensuring a secure and agile transition for the industry."
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