Beyond Fuel: How Brazil Plans to Export Biomethane Technology to the Global South

A study made for Instituto MBCBrasil says Brazil may sell biomethane know-how to other countries. It points to growing world demand for cleaner transport fuels. The work was done by teams from the University of São Paulo, the Federal University of Itajubá, the Agronomic Institute of Campinas, and Mauá Institute of Technology.

The report also looks past fuel output. It says Brazilian firms could provide more than one kind of service and product. That includes biodigesters, gas cleaning units, and ways to move liquid biomethane. It also mentions linked solutions that tie renewable gas production to making low-carbon fertilizer.

The study highlights the sugar and ethanol industry as a key base. It estimates a biomethane production potential of 41.4 billion cubic meters each year. That number is put at more than 41 billion liters of diesel. Still, the report says under 2% of this potential is used today.

Glaucia Mendes Souza, a professor at USP, helped lead the study. She is also linked to IEA Bioenergy Task 39. In the report, she says Brazil’s chance is not only to make the fuel. She adds that Brazil can also take the role of supplier of technology, equipment, engineering work, and connected solutions for other places trying to cut emissions.

The study said this know how could be shipped to Latin America, parts of Asia, and parts of Africa. Those places have a lot of farm waste. They also do not have enough biodigestion systems. It noted that Brazilian firms such as Cocal, Raizen, Sao Martinho, and Adecoagro have already built biomethane plans. They use vinasse and sugar cane leftovers. For the 2024/25 crop season, Brazil handled about 680 million tonnes of sugar cane. The study put vinasse output at about 380 billion liters.

Biomethane is made after biogas is cleaned up. The biogas starts when organic material breaks down. In Brazil, the biggest inputs include landfill material and farm waste. That includes waste from livestock, vinasse, and filter cake from sugar and ethanol mills. After cleanup, the fuel acts much like fossil natural gas. It can be used for heat, for factory use, and for transport. It can also be put into existing gas lines.

The report also said the world market can grow more. It said biomethane is made in around 40 countries. It is also used for transport in close to 30 markets. It estimated global sustainable biogas and biomethane at about 1 trillion cubic meters each year. That is about a quarter of today’s natural gas use worldwide. It added that the European Union wants 35 billion cubic meters of biomethane per year by 2030. It said this is supported by plans for about 37 billion euros in investment.

Switching diesel to biomethane can lower well to wheel carbon dioxide equivalent output by about 45% to 75%, based on the study. In certain waste and manure setups, the result can look even lower than zero. It may show a negative 246% gap versus diesel once methane leaks that would have happened are factored in.

The fuel might also hold up on price for large trucks and fleets. In total cost of ownership runs, compressed natural gas or biomethane came out to $1.73 per km. Diesel was $1.87 per km. The study also noted that in Brazil, biomethane could be roughly 30% cheaper than diesel in one case, or about 25% more expensive in another.

Comgás targets small and medium-sized customers

Comgás has rolled out a new biomethane option for smaller and mid-sized firms in Sao Paulo state. It is offered under a regulated structure. The name of the program is Mercado Cativo Verde.

At the start, the deal includes 2,673 cubic meters of biomethane each day. Over time, it can rise up to 50,000 cubic meters per day. That depends on how demand grows and how supply and rules play out.

The Sao Paulo Public Services Regulatory Agency approved the plan. Before this, getting biomethane from the distributor mainly worked for big industrial users. Those customers were in the state’s free gas market. That free market makes up roughly 80% of Comgás sales volume.

Now the focus is on other types of buyers. The list includes smaller factories. It also includes refrigeration operators, cogeneration projects, and mobility users. Examples are commercial fleets and compressed natural-gas stations.

Comgás says it will put about 10 billion reais into the effort through 2029. The spending is meant for things like expanding the network. It also covers resilience work and new links between biomethane producers and end users. The company also expects more room for its buyers in the free gas market in 2029. It also expects higher demand tied to decarbonization in commercial fleets.

Henrique Sonja, the supply director at Comgás, said the program is meant for customers who want biomethane as part of their sustainability work. He added that they also want the steadiness of a regulated market, without extra complexity.

Buyers are not asked to take the exact physical molecule made by a supplier. What they do must still be checked. The system requires that an equal volume be proven to be made, fed into the network, and then bought. After that, each volume’s environmental claim is logged in a tracking tool. When the purchase is completed, that entry is closed. This is meant to stop the same claim from being used again or resold.

The setup also relies on Biomethane Guarantees of Origin. These were made under Brazil’s Fuel of the Future law. Their job is to show the fuel’s renewable source and keep a clear trace. Comgás intends to charge for the biomethane and the environmental claim in one bill. The charge will follow the regulated market tariff rules.

In 2025, Brazil made 1.06 million cubic meters of biomethane each day. That is against a figure of 120 million cubic meters per day for technical potential. ABiogás, an industry group, set that estimate. ABiogás also says the biogas and biomethane chain could pull in 246 billion reais in investment. It could also create 110,000 jobs by 2035.

By June 2026, Brazil had 21 plants that were allowed by the National Agency of Petroleum, Natural Gas and Biofuels. Those plants had a combined installed capacity of 1.33 million cubic meters per day. At the same time, 48 more plants were in the approval process. If that work stays on track, total national capacity could reach 3.37 million cubic meters per day by 2028.

Brazil Uses Biomethane Trucks to Move Sugar to Santos Port

Brazilian sugar producer Bioenergética Aroeira S. A. and its logistics partners have started a low carbon route to move sugar from Minas Gerais toward the Port of Santos, using trucks fuelled by biomethane made from sugarcane industry waste, before the cargo gets shifted to rail.

This pilot is a bit of a mix between Aroeira, Gasgrid, ZEG Biogás, Aguetoni Transportes and VLI Logística. The biomethane powered trucks take the sugar to VLI’s Uberaba Intermodal Terminal, and from there the load travels along the Centro-Atlântica rail line to Santos for export, more or less straight.

In the initial phase they expect the movement to reach around 12,000 tonnes of sugar each month, with the figures possibly climbing later this year. The partners are also looking at something near 200,000 tonnes carried in 2027.

The biomethane is being made by processing industrial sugarcane leftovers, through biodigestion and then purification, at a plant that was built by Aroeira and Gasgrid/ZEG Biogás. The setup is meant to turn a sugar and ethanol industry side-product into fuel for the very first stretch of the commodity’s export travel.  

VLI said that rail transport can emit up to 75% less carbon dioxide per tonne moved than trucks that use fossil fuels, but the company didn’t share any estimate that was specific to the project. Still, the mix of renewable-gas trucking and rail haulage is supposed to lower the carbon intensity of one of Brazil’s big agricultural export routes.  

This project also joins a broader momentum within Brazil’s sugar and bioenergy sector to use biomethane as a substitute for diesel in heavy transport. Firms have pointed to the fuel’s potential, for cutting emissions, diversifying energy supply and extracting more value from organic waste. But wider use will hinge on investing in production units, distribution channels and refuelling infrastructure.

Brazil’s biogas association ABiogás said the sector could pull in around 216 billion reais in private capital by 2035, provided the country expands renewable-gas production and use. The group also forecast 57 billion reais in added annual revenue, more than 251,000 jobs , and over 40,000 biomethane-powered trucks, but noted that these targets rely on fresh infrastructure, regulatory measures and consistent fuel demand.  

Biomethane is starting to look like a realistic diesel alternative for Brazil’s heavy-duty transport, where battery range, charging time, and the whole infrastructure picture are still kind of limiting electrification. Made from agricultural and sugarcane waste, the renewable gas could cut logistics emissions, and also ease off diesel dependence. Still, wider uptake will likely need new production plants, refuelling networks, plus regulatory backing, because otherwise it is hard to scale.

Why Biomethane matters in Brazil

Biomethane is starting to look like an alternative fuel for Brazil’s heavy transport sector, kinda because it can be made from agricultural leftovers plus industrial waste, so it’s not just theory. This fuel is especially relevant to Brazil’s sugar and ethanol industry, since that sector produces huge amounts of organic residues which otherwise can turn into a problem.

Brazil Has the Potential to Lead the Global Biomethane Industry, ABiogás President Says

Brazil is uniquely positioned to become a global reference in the biogas and biomethane markets, leveraging its massive agribusiness waste and urban residues to bolster energy security and decarbonization, according to the new head of the country's leading industry association.

Josiani Napolitano, an electrical engineer with over 30 years of experience in the Brazilian energy sector, assumed the presidency of the Brazilian Biogas and Biomethane Association (ABiogás) in early May. Her mandate focuses on institutional strengthening and regulatory predictability for a sector at a critical tipping point.

"Brazil possesses unique characteristics: a strong agro-industrial base, massive urban and agricultural waste production, and an increasingly renewable energy matrix," Napolitano said in an interview with Além da Energia.

TRANSFORMING WASTE INTO ASSETS

A key differentiator for biomethane is its ability to transform environmental liabilities into energy assets. By capturing methane — a greenhouse gas significantly more potent than CO2 — and converting it into fuel, the sector plays a dual role in climate action and industrial competitiveness.

Biomethane is chemically equivalent to conventional natural gas, allowing it to be injected into existing pipelines or used to replace diesel in heavy-duty transport and industrial thermal processes.

BRIDGING THE ENERGY GAP

While Brazil has a long tradition of hydroelectric power and rapidly expanding wind and solar capacity, Napolitano emphasizes that biogas and biomethane offer complementary attributes:

• Operational Flexibility: Unlike intermittent wind and solar, biogas provides controllable generation.
• Storage Capacity: The ability to store the fuel enhances grid stability and energy security.
• Decarbonizing "Hard-to-Abate" Sectors: Biomethane is a strategic alternative for heavy transport and high-heat industrial processes that are difficult to electrify.

INFRASTRUCTURE AND REGULATORY HURDLES

Despite the positive outlook, significant challenges remain. "There are still important hurdles related to regulation, infrastructure, financing, and logistics integration," Napolitano noted.

The expansion of the consumer market depends on increasing the reach of gas transportation and distribution networks, which are currently limited in several regions. Industry leaders are calling for stable regulatory frameworks and economic signals that provide long-term predictability for investors.

GLOBAL CONTEXT

With the European Commission targeting 35 billion cubic meters of biogas and biomethane per year by 2030, the global race for renewable gases is intensifying. Napolitano believes Brazil has the potential to match or exceed international benchmarks.

"The challenge will be to transform this enormous potential into structured, sustainable, and competitive growth," she concluded. "But the prospects are highly promising."

Brazil's Biomethane Boom: A Green Energy Revolution on the Horizon

Brazil is about to make major progress in its green energy transition because the biomethane industry will draw investments that reach R$348 billion which equals US$68 billion and will build production facilities that exceed current capacity by more than 100 times. The Brazilian Association of Biogas (Abiogás) made this ambitious estimate which shows that Brazil can turn organic waste into renewable energy resources because of its extensive organic waste resources.

A new regulatory system drives this expanding sector forward through its implementation of a resolution approved by the National Energy Policy Council (CNPE) which serves as its foundation. The regulation requires natural gas producers and importers to achieve emissions reductions of 0.5 percent through their biomethane usage in operational activities. Maria Clara Pontelli who works as a technical and regulatory analyst at Abiogás considers this target to be essential for the mission of her organization.

According to Pontelli, the new measures are vital because technical studies from Abiogás determined that the existing 0.25% target did not reflect current biomethane development in Brazilian industry. She explained that the 0.5% target better represents industry operations because it can be achieved with current resources and ongoing projects. The industry considers this regulatory progress to be an important achievement because it proves that Brazil has reached a stage where biomethane production has become established and it delivers clear economic signals which will attract future investments.

The policy establishes the Certificate of Origin Guarantee for Biomethane (CGOB) which will help create financial value for the environmental benefits associated with biomethane. This allows for the separation of the biomethane molecule's commercialization from its environmental attribute, broadening market reach and attracting diverse demand profiles, from industrial consumers to companies seeking to decarbonize their supply chains.

Overcoming Infrastructure Hurdles

The industry operations show great potential but face multiple difficulties that primarily stem from infrastructure needs. Biomethane production in Brazil operates as a decentralized system which establishes production sites near agro-industrial facilities and agricultural land and urban waste disposal points throughout the country. The natural gas pipeline system in Brazil only extends to coastal areas which creates difficulties for moving biomethane through the country.

"The situation requires new logistical models which include CNG truck road transport and decentralized consumption systems that work near production facilities," Pontelli explained. The CGOB will enable the organization to address a historical problem because it provides a dedicated tool which allows the assessment of biomethane's environmental value for fair competition with fossil fuels.

Current Landscape and Future Projections

Currently, Brazil boasts 19 ANP-authorized plants producing and commercializing biomethane, with a combined installed capacity exceeding 1.19 million cubic meters per day (Mm³/d). This figure doesn't include numerous units producing biomethane for self-consumption, particularly in rural and agro-industrial areas, suggesting the actual production volume is higher.

The growth trajectory is robust. The ANP reports 44 plants in the authorization process, projected to add approximately 1.77 Mm³/d by 2028. Looking further ahead, Abiogás estimates Brazil could reach 8 Mm³/d by 2032, with around 200 plants in operation. The theoretical potential, considering all organic waste, could even reach 120 Mm³/d.

Investments are expected to follow this growth, with the R$348 billion figure reflecting the long-term potential. The 0.5% target is crucial in reducing demand risk, making projects more bankable and aligning them with decarbonization strategies.

Key Projects and Financing

Biomethane production projects are predominantly concentrated in landfills, utilizing biogas for energy recovery, and in agro-industrial waste, particularly from the sugar-energy sector and animal waste. The sugar-energy sector, especially in the Southeast region, is anticipated to drive much of the future growth.

Financing for these projects is increasingly available, with the new regulatory target expected to further boost interest. Brazil's financial landscape offers a wide array of instruments, including the Climate Fund, Finame Low Carbon, Finem, RenovAgro, Inovagro, and Prodecoop, operated by the BNDES, alongside support from Finep and regional development banks.

Technological Advancements and Global Ambitions

Manuela Caiate, President of the Board of Directors at MDC Energia, highlighted the role of technology in the sector's evolution. "The possibility of always seeking the best technology, nationalizing equipment, has always been a concern, always seeking cost efficiency and, obviously, safety in the production process," Caiate noted. She also pointed to advancements in biomethane purification technologies and the increasing availability of gas-powered trucks and buses, which can run on both natural gas and biomethane.

Brazil is also looking beyond its borders, exploring the potential for biomethane exports, particularly in the maritime sector. Discussions within the International Maritime Organization (IMO) about low-carbon fuels for shipping present a significant opportunity. Caiate emphasized the efforts to position biomethane in this global market, working with associations in the US, Europe, and Canada.

"This creates a biomethane market more akin to a global commodity, integrating this market," Caiate stated, acknowledging it's a long-term plan. The country's commitment to sustainable fuels was also evident at COP30, where Brazilian entities advocated for a significant increase in renewable fuel production by 2035.

While the transition away from fossil fuels will be a gradual process, Brazil, with its 90% renewable electricity matrix, is focusing on decarbonizing other energy sectors. Biomethane, alongside ethanol and biodiesel, is seen as a crucial component of a diversified biofuel mix that will drive the country's energy transition, especially given the climate of insecurity produced by the war between the US and Iran and the closure of the Strait of Hormuz. The recent regulatory developments and the vast untapped potential position Brazil as a key player in the global biomethane landscape, offering a compelling model for circular economy and sustainable development.

Comgás (CGAS5) Opens Call for Biomethane Plants as Brazil Eyes Major Gas Market Expansion

The Brazilian gas distributor Comgás announced that it has opened its public proposal period for connecting biomethane plants to its distribution network. 

Comgás will accept commercial proposals until March 30 for businesses that want to connect their biomethane plants to its distribution system. 

The public call was launched by the concessionaire located in São Paulo after Arsesp established the interconnection rules which determine how biomethane plants must connect to distribution networks. The agency also established aTusd-Verde distribution tariff system which allows producers to access a dedicated distribution rate. 

Comgás will present Arsesp with a business plan for plant interconnections in São Paulo state which they will complete by the end of June this year. 

The Usina Costa Pinto plant in Piracicaba and the Paulínia landfill currently maintain active connections to the Comgás distribution network. These two plants together supply the Comgás network with around 300.000 cubic meters of biomethane every day. 

The Brazilian Association of Biogas and Biomethane ABIOGÁS reports that Brazil produces 2 million cubic meters of daily biomethane. The organization ABIOGÁS believes that Brazil can raise its current output to 8 million cubic meters per day by the start of the next decade. Brazil has the ability to reach a production capacity of 120 million cubic meters per day by 2040 through appropriate investment strategies.

If this scenario materializes, Brazil could not only meet its domestic market demand but also export biomethane. This would allow the country to replace all currently imported Liquefied Petroleum Gas (LPG) in less than two decades and reduce diesel purchases by approximately 70% if biomethane is properly introduced into the transport sector, especially for heavy vehicles such as trucks and buses.

A study titled "Structuring Initiatives and Challenges to Boost Low-Carbon Mobility in Brazil by 2040," (Iniciativas e Desafios Estruturantes para impulsionar a mobilidade de baixo carbono no Brasil até 2040) conducted by LCA Consultores at the request of the MBCBrasil Institute, identifies biomethane as a key component in the decarbonization of heavy transport in Brazil, potentially leading to a new economic surge for the country.