Brazil’s Biogas and Biomethane Market Accelerates with New Power Plants, Billion-Real Investments and SAF Projects

From Landfill to Low-Carbon Jet Fuel: How Brazil's Biomethane Policy is Redefining the Circular Economy and Global Climate Fight

Brazil is rapidly emerging as a global laboratory for the circular economy and a key player in the fight against climate change, driven by an accelerating market for biogas and biomethane. This energy revolution is not merely a matter of market growth; it is a systemic policy shift that transforms waste management into a high-value, low-carbon energy source, positioning the nation at the forefront of responsible fuel production and decarbonization efforts.

The expansion is marked by significant private investment, new power generation capacity, and pioneering projects in Sustainable Aviation Fuel (SAF), reinforcing Brazil’s commitment to a cleaner energy matrix and its global climate pledges.

The Policy Pivot: Biomethane as a Decarbonization Bridge

While Brazil already boasts one of the world's cleanest energy matrices, largely thanks to hydro, wind, and solar power, the challenge of decarbonizing transport and industry remains. Biomethane, a renewable natural gas derived from organic waste, is increasingly viewed as the essential "bridge fuel" for this transition — Brazil's light-duty vehicle fleet, predominantly composed of flex-fuel vehicles (approx. 85%), utilizes ethanol in two main ways: as a mandatory blend in gasoline (E30, with 27-30% ethanol content) and as pure hydrous ethanol, chosen by the driver at the pump. 

Added to all of this, the market is responding with massive scale-up. Gás Verde, a major player, is strategically converting its biogas power plants into biomethane production units. This pivot is ambitious, targeting a quadrupling of output from 160,000 cubic meters per day (m³/d) to 650,000 m³/d over the next three years. This shift reflects a broader trend where biomethane is replacing fossil natural gas in critical sectors, from heavy transport to industrial heat.

This growth is underpinned by robust policy and investment signals. According to the Brazilian Association of Waste and Environment (Abrema), biomethane production is projected to double by the end of 2026, with new plants scheduled through 2029 representing approximately BRL 8.5 billion in committed investments.

Policy Innovation: Recognizing "Bioenergy Recycling"

A critical policy debate is crystallizing the role of biomethane within the national climate strategy. Pedro Maranhão, president of Abrema, highlights the need to formally recognize biomethane production as a form of recycling. This policy recognition is not semantic; it is a powerful mechanism for strengthening Brazil’s waste management strategy and enhancing its circular economy metrics.

Abrema’s concept of "bioenergy recycling" incorporates waste-to-energy processes into official recycling statistics. This has already yielded dramatic results: after including informal waste pickers in national statistics, the recycling rate jumped from 3% to 8%. With the inclusion of energy and fuel generation from waste, the rate has now surpassed 20%. This demonstrates the profound impact of policy-driven resource valorization.

Furthermore, COP30 commitments have spurred concrete action, with Abrema facilitating agreements between municipalities and private companies to expand biomethane-powered fleets and scale up infrastructure investments. The message is clear: the diagnostic phase is over; the time for implementation is now.

SAF Breakthrough: The Circular Economy Takes Flight

The global aviation sector, a hard-to-abate industry, is also looking to Brazil for a sustainable solution. The country’s race to produce Sustainable Aviation Fuel (SAF) has gained a significant contender in Geo bio gas&carbon, which is pioneering a closed-loop system using agricultural residues, specifically vinasse and filter cake from sugarcane, rather than vegetable oils.

This approach is designed to produce a highly competitive SAF with one of the lowest carbon footprints globally. Developed in partnership with Germany’s GIZ, the project involves integrating a new SAF plant with an existing biogas unit in São Paulo. The process is inherently circular: residues are converted into biogas, which is then used to produce SAF. Crucially, the CO₂ utilized in the process is biogenic, ensuring a significantly reduced lifecycle emission profile.

The project, backed by an estimated €7.8 million investment and included in Brazil’s Growth Acceleration Program (PAC), is starting as an industrial-scale pilot with a capacity of 100,000 to 150,000 liters per year.

Global Policy Acceptance: The Corsia Advantage

For SAF to be viable, it must meet stringent international carbon accounting standards. Geo’s sugarcane residue-based route has recently secured approval from Corsia (Carbon Offsetting and Reduction Scheme for International Aviation), the global aviation carbon offsetting scheme.

This certification is a major policy victory, placing the fuel in Corsia’s lowest carbon intensity bracket. As Geo’s Technology Director, Allyson de Oliveira, noted, this ensures maximum economic benefits and global market acceptance, potentially making it the most competitive SAF in the world.

Market Consolidation and Public Support

The momentum is further amplified by market consolidation and public sector support. The strategic, cashless share swap between Orizon Waste Valorization and Vital has created Brazil’s largest waste management company, increasing the waste under management to 14.2 million tons per year, nearly 40% of all waste generated in the country. This consolidation significantly boosts the capacity for large-scale investment in biogas, biomethane, and carbon credit projects.

Simultaneously, the GEF Biogas Brazil Project, a collaboration between the Ministry of Science, Technology and Innovation (MCTI), UNIDO, and the Global Environment Facility (GEF), has provided crucial foundational support. Mobilizing over US$ 270 million in funding and co-financing, the project has trained thousands of professionals and helped shape the public policies that now govern the sector.

As officials highlighted at the project’s closing workshop, biogas is a mature, scalable, and strategic solution for Brazil’s decarbonization goals. Looking ahead, the potential is vast: Paraná’s energy plan suggests that biomethane and biogas could supply up to 38% of the state’s energy matrix by 2050 under favorable conditions, underscoring the profound, long-term impact of today’s policy and investment decisions on the future of responsible energy production.

Santa Catarina Concludes Biogas Pilot Project, Paving the Way for Swine Manure-to-Energy Replication in Brazil

State initiative confirms technical, economic and environmental viability of biogas and biomethane, paving the way for large-scale replication in the swine industry

FLORIANÓPOLIS, SANTA CATARINA — Santa Catarina, one of the world’s most important swine-producing regions in Brazil, has reached a major milestone in its clean-energy transition. The state officially concluded the presentation phase of its pioneering Biogas Pilot Project, confirming the feasibility of transforming swine manure into renewable energy and setting the stage for replication across the country.

The initiative, developed over two years by the Federation of Industries of the State of Santa Catarina (FIESC) through its Decarbonization Hub, in partnership with the SENAI Institute of Technology, CIBiogás, BRDE, Sicoob, Sindicarne and ACAV, evaluated the potential of converting pig waste into electricity, thermal energy and biomethane. The program analyzed 50 farms linked to major agro-industrial companies Aurora Coop, Master and Seara.

Pilot Confirms Strong Emission Reductions and Large-Scale Potential

The study reaffirms the technical, economic and environmental viability of biodigesters as a strategic tool for agricultural decarbonization. The results reveal direct emission reductions exceeding 20% in nursery units and strong performance in finishing farms and production units.

“These numbers confirm the strategic role of biogas in advancing decarbonization,” says Charles Leber, leader of the FIESC Decarbonization Hub.

Santa Catarina’s swine sector underscores the importance of the findings. The state accounts for 8% of global pork exports and holds 33% of Brazil’s national herd, representing over R$10 billion (US$1.8 billion) in economic activity and supporting more than 480,000 direct and indirect jobs. The expansion of biogas solutions is viewed as an economic catalyst for rural competitiveness, regional industry and sustainable development.

A Foundation for Replication Across All Swine Farms

According to FIESC, the pilot is just the beginning. The project generated a comprehensive database, mapping participating properties and producing a detailed profile of Santa Catarina’s swine industry, information that now guides future policy and scaling decisions.

Now the project show where the bottlenecks and advances are, and it doesn’t end here. Armed with data and real experience, the project can make decisions with far greater security, according to Charles Leber, a specialist from the SENAI Institute of Environmental Technology.

The long-term goal is to replicate the use of biodigesters, biogas and biomethane across all swine farms in the state. BRDE, a key financial partner, reinforced that the initiative aligns with its institutional focus on decarbonization and greenhouse gas mitigation.

Santa Catarina Well-Positioned for Biogas Expansion

The findings confirm that the state’s productive density, territorial structure and strong agro-industrial sector make it one of Brazil’s most promising regions for biogas growth. The West and Mid-West regions are especially suited for large-scale deployment.

Biodigesters already in operation demonstrate clear benefits, emission reductions, improved waste management, lower energy costs and enhanced sustainability. With industry support from Sindicarne and ACAV, and financial backing from BRDE and Sicoob, the project is expected to gain momentum as it enters its next phase.

A Scalable Model for Brazil’s Energy Transition

By proving that swine manure can be converted into clean, economically viable energy, Santa Catarina’s pilot positions the state as a national reference for rural decarbonization. The data-driven approach provides a secure foundation for expanding biogas infrastructure and enabling a new, sustainable energy frontier for Brazilian agribusiness.

Biogas in Brazil: How Small and Medium Farmers Can Cut Costs and Boost Sustainability

Did you know that animal manure and leftover crop residues, materials often discarded in rural properties, can be turned into clean, renewable energy? This is the premise behind biogas, a technology that can significantly reduce fuel and electricity costs for Brazilian farmers.

In a recent episode of Ganhando o Futuro, host Luciane Iur interviewed Yuri Queiroz, president of ABREM (the Brazilian Association for Waste-to-Energy Recovery), to explain how biogas works, why Brazil uses only 3% of its potential, and how small and medium farmers can benefit financially from this growing market.

What Is Biogas and How Is It Produced?

Biogas is generated from the anaerobic decomposition of organic waste, such as animal manure, agricultural residues, and urban organic waste, inside biodigesters. During this process, microorganisms break down the material without oxygen, producing a gas composed of roughly:

• 60% methane (biomethane)

• 40% carbon dioxide

After purification systems such as membranes, PSA, or washing units remove CO₂, the resulting biomethane has nearly the same chemical composition as natural gas. It can be injected into the gas grid, used to power tractors and trucks, or converted into electricity directly on the farm.

"Biomethane is already fully regulated in Brazil and can be mixed in any proportion with natural gas," explains Yuri.

How Small and Medium Farmers Can Adopt Biogas

Producers can use residues from:

• Swine, poultry, and cattle operations

• Sugarcane processing (vinasse and filter cake)

• Crop biomass and other organic waste

By installing a biodigester, either on their own or through partnerships, they can generate electricity or vehicle fuel, lowering operating costs and reducing dependence on external suppliers.

For small and medium farmers, the path often involves cooperatives to gain scale, pool resources, and negotiate contracts with investors and biogas companies.

Why Does Brazil Use Only 3% of Its Biogas Potential?

Despite being one of the world’s largest agricultural producers, Brazil taps into only a fraction of its biogas capacity. According to ABREM:

• 75% of the country's biogas today comes from landfills, and

• up to 70% of that gas is still lost to the atmosphere, contributing to greenhouse-gas emissions.

Yet 92% of Brazil’s total theoretical biogas potential comes from agricultural waste, a sector that remains largely unexplored.

“The biggest barrier is information,” says Yuri. “Producers need to know that this waste has value.”

Government Incentives for Biogas and Biomethane

Brazil has implemented several policies to accelerate the sector:

1. Certificate of Origin (Combustível do Futuro) – 2027 Onward

Starting in 2027, natural gas distributors must blend 1% biomethane into the national gas network. Producers will receive certificates of origin to compensate for the price difference.

2. RenovaBio (Decarbonization Credits – CBIOs)

Biomethane producers can earn and sell CBIOs on the B3 exchange, generating additional revenue tied to emissions reductions.

3. PATM – Energy Transition Acceleration Program

Allows rural producers to use tax credits as guarantees for financing biogas installations.

“These are market-based incentives that bring direct financial benefits to rural producers,” notes Yuri.

Biogas as a Tool for Sustainability and Soil Health

Beyond energy generation, anaerobic digestion produces two valuable by-products:

• Biofertilizer (liquid or in flakes after drying)

• Organic compost (digestate)

Both can replace imported chemical fertilizers, more than 90% of which Brazil currently imports.

This makes biogas a powerful driver for:

• Lower production costs

• Better soil quality

• Reduced methane emissions (11–15 times more effective than other mitigation methods)

• Environmental compliance and easier licensing

Success Stories: Cooperatives Leading the Way

Yuri highlights the case of H2A, a company that partnered with small swine farmers in western Paraná:

• Farmers formed cooperatives

• Their manure feeds local biomethane plants

• Plants generate renewable gas, biofertilizer, and purified biogenic CO₂ used in beverages

With more than R$ 1.2 billion in planned investments, this model demonstrates how small producers can participate in large-scale energy projects.

Training, Support, and How to Get Started

Producers interested in biogas can access training from:

• ABREM

• CIBiogás

• Biogás Brasil (UN project)

• Portal Biogás

• Industry events like the Brazilian South Biogas Forum and ABREM’s Waste-to-Energy Congress

“Today, knowledge is not the problem,” Yuri emphasizes. “Producers need to organize, form cooperatives, and seek partnerships.”

A Growing Market with Untapped Potential

With more than 900 operational plants in Brazil, mainly in Paraná, São Paulo, and Minas Gerais, biogas is becoming a key part of the country’s energy transition. As agricultural waste accumulates and sustainability becomes central to farming, the biogas sector represents both an economic opportunity and an environmental necessity.

For small and medium rural producers, biogas offers a clear path to:

• Reduce energy and fuel costs

• Generate new revenue streams

• Improve soil quality

• Meet environmental requirements

• Participate in Brazil’s expanding renewable-energy market

Biogas vs. Biomethane: Key Differences and Why They Matter for Brazil’s Clean Energy Future

Biogas and biomethane, are you familiar with them? They are not identical products, though their names are quite alike. Nonetheless, by these means the waste of daily life could be transformed into energy that is both clean and renewable.

In Brazil, organic waste is a problem that is often associated with environment. Yet this very material can turn out to be one of the major energy solutions of the country.

What Is Biogas?

Biogas is produced naturally when organic matter decomposes in environments without oxygen. This includes food scraps, animal manure, agricultural waste, vinasse from ethanol production, and the organic fraction of urban waste that ends up in landfills.

During decomposition, microorganisms break down this material and release biogas, a mixture primarily composed of carbon dioxide (CO₂) and methane (CH₄).

And here’s the key point:

Methane is a greenhouse gas about 25 times more powerful than CO₂.

If released into the atmosphere, it accelerates global warming. But when captured and treated, methane becomes a renewable energy source with significant environmental and economic value.

Today, biogas is widely used around the world to produce electricity, heat, and fuel. In Europe, industrial plants convert agricultural waste into energy capable of supplying entire communities.

Brazil’s Untapped Potential

With a strong agricultural sector and a high volume of urban waste, Brazil has one of the world’s largest potentials for biogas and biomethane production.

Because the country already has a predominantly clean electricity mix, the greatest opportunity lies in upgrading biogas to biomethane.

What Is Biomethane?

To produce biomethane, biogas undergoes purification. During this process, impurities are removed, humidity is eliminated, and CO₂ and nitrogen are separated.

The result is biomethane, a gas containing around 95% methane, with high calorific value and performance comparable to natural gas. In other words, a 100% renewable fuel capable of replacing fossil fuels in industry and transportation.

Biomethane can:

• Supply boilers, furnaces, burners, and other industrial equipment
• Fuel light and heavy vehicle fleets, including buses and trucks
• Reduce dependence on diesel and natural gas
• Lower emissions and improve energy efficiency
• Double Environmental Benefit
• Using biomethane offers two major environmental gains:
• It prevents methane from waste from reaching the atmosphere.
• It replaces fossil fuels, significantly reducing greenhouse gas emissions.

Replacing the diesel used by a single truck is comparable to planting more than 100 trees per year, showing how large-scale adoption can generate massive climate benefits.

Driving Local Development

Produced in Brazil, biomethane strengthens the local economy, creates green jobs, and stimulates new value chains. Every ton of CO₂ avoided contributes directly to national decarbonization and the global energy transition.

Biogas + Biomethane: A Circular Economy Solution

To sum up:

Biogas is generated from the decomposition of organic waste.

Biomethane is the upgraded, purified version of biogas, a high-efficiency, 100% renewable fuel capable of replacing fossil sources in industry and transportation.

This technology brings together circular economy principles, sustainability, and innovation, positioning Brazil as a global leader in clean energy.

Unioeste Boosts Renewable Energy Innovation in Western Paraná

Unioeste (Toledo campus) is emerging as a key research center for renewable energy in western Paraná, in the southern region of Brazil, a region dominated by agroindustry and high waste production. Led by professor Carlos Eduardo Borba, the university is developing advanced technologies to convert locally abundant biogas into biomethane and hydrogen, clean fuels essential for Brazil’s energy transition.

The team focuses on two core areas:

Biomethane production through selective adsorption that removes CO₂ and H₂S, creating a renewable fuel comparable to natural gas.

Hydrogen-rich syngas generation using dry reforming and shift reactions to transform methane and CO₂ into high-value industrial gases.

The research integrates major innovation networks such as NAPI-H2 and NAPI-Biogás and uses advanced mathematical models to determine the most efficient and economical use of biogas in each scenario.

These technologies help reduce methane emissions, convert agricultural waste into energy, and support cleaner transportation and industrial processes. Unioeste strengthens the regional circular economy by turning scientific research into real-world sustainable solutions.

Brazil’s Biogas Sector Accelerates, With Biomethane Set to Surge by 2032

National policies for transforming waste into energy were a highlight of the roundtable “Applications of Biogas in the Brazilian Agro-Industry,” held in Belém (PA) this month. The discussion took place at the House of Science, a space hosted by the Ministry of Science, Technology and Innovation (MCTI) at the United Nations Climate Change Conference (COP30).

In recent years, Brazil has been undergoing a true revolution with regard to biogas and bioethanol. The former is a renewable energy source generated from the decomposition of organic waste produced in different economic activities. The latter is a flammable biofuel produced from the fermentation of plant biomass, such as sugarcane, corn, and beet, and their residues, such as bagasse.

Brazil's biogas industry will experience a period of quick growth according to the 2024 Biogas Outlook from SEI Biogás. The report shows that the country operates 1,633 biogas plants which represents an 18% increase in renewable gas production comparing to 2023. 

Therefore Brazil's renewable energy landscape is undergoing a significant transformation, driven by the burgeoning potential of biogas, biomethane, and waste-derived fuels. Recent policy discussions and market data underscore the country's ambition to leverage organic waste and residues to enhance energy security, reduce reliance on fossil fuels, and meet environmental sustainability goals. This report synthesizes the current state, future projections, and key regulatory dynamics shaping Brazil's waste-to-energy sector.

The Biogas and Biomethane Revolution

Biogas, a renewable energy source generated from the decomposition of organic waste, and bioethanol, a flammable biofuel produced from plant biomass, are at the forefront of this energy shift. Brazil's biogas industry is poised for a period of rapid expansion, fueled by improved regulations, favorable economic conditions, and the growth of integrated waste management systems.

According to the 2024 Biogas Outlook from SEI Biogás, the country currently operates 1,633 biogas plants, representing an 18% increase in renewable gas production compared to 2023. This growth is a direct result of three primary factors:

1. Improved Regulatory Frameworks: Creating a more predictable and attractive investment environment;

2. Favorable Economic Conditions: Making biogas projects increasingly competitive;

3. Integrated Waste Management: Expanding the availability of feedstock for biogas production.

Looking ahead, specialists project a profound energy transformation. Talyta Viana, Regulatory Technical Coordinator at ABIOGÁS, projected that Brazil could reach 200 biomethane plants by 2032. These facilities would be capable of generating 7.92 million cubic meters of biomethane per day, which is enough to supply over 10% of the nation’s 2024 natural gas demand.

The sugar-energy sector is expected to be a crucial anchor for this growth, with Viana noting that "More than 52% of upcoming projects will rely on sugarcane residues such as vinasse, filter cake, and potentially bagasse and straw, which are under technological assessment." With strong feedstock availability and a favorable regulatory landscape, analysts predict that biomethane production could triple by 2026, positioning Brazil as a global leader in renewable gas.

Regulatory Momentum and Industry Leadership

The sector's positive trajectory was a key highlight at the roundtable “Applications of Biogas in the Brazilian Agro-Industry,” held in Belém (PA) during the United Nations Climate Change Conference (COP30).

The Brazilian Association of Waste-to-Energy (BREM) is playing a central role in advocating for and shaping the regulatory environment. A discussion hosted by Gás Orgânico, featuring CEO Giovane Rosa and BREM President Yuri Schmitke, demonstrated the positive sector trends resulting from recent regulatory changes.

A crucial turning point for the industry was the federal government's approval of the “Fuel of the Future” law, which BREM actively supported. Following this legislative success, BREM is now working to establish the National Biomethane Zero Program and a biogas electricity certification system to ensure these resources are properly valued.

BREM's efforts extend to integrating biogas into the broader energy matrix. Schmitke highlighted how biogas systems can complement distributed solar power by using gasometers to store biogas when solar generation is high and release it when solar power decreases, thereby stabilizing the grid.

Furthermore, BREM has made an extensive contribution to the development of Brazil’s sustainable finance taxonomy. The association submitted a 45-page report, created with the support of the European Union Climate UCD project, which studied successful European regulatory models. The example of Denmark, which already supplies 30% renewable gas to its grid and aims for 100% by 2030 through certificates of origin, serves as a model for Brazil. To support further technical and regulatory progress, BREM has signed cooperation agreements with both the Brazilian Electricity Commercialization Chamber (CCE) and the European Biogas Association.

Untapped Potential and Remaining Regulatory Gaps

Despite the strong momentum in biogas, the broader waste-derived fuels sector still faces regulatory challenges.

Refuse-Derived Fuel (CDR)

Brazil is already utilizing Refuse-Derived Fuel (CDR), wich is a blend of industrial and urban waste, to replace fossil fuels in cement production. Currently, the country replaces 30% of the fuel used in cement production with CDR, substituting petroleum coke in clinker manufacturing. Experts believe this substitution rate could climb to 50-80%, matching European levels, provided there is investment in cement-plant upgrades and new blending facilities.

However, the CDR sector currently operates without official targets or a dedicated regulatory agency, relying only on voluntary standards issued by ABNT.

Biogas and Biomethane Potential

The biogas landscape reveals an even larger untapped opportunity. Brazil currently exploits just 3.4% of its biogas potential and 1.4% of its biomethane potential, representing what analysts describe as a R$ 300 billion market still in its infancy.

A major regulatory shift is anticipated in 2026, when a mandatory 1% biomethane blending requirement comes into force, increasing by one percentage point annually until 2036. This rule is expected to enable renewable gas to supply up to 10% of Brazil’s total natural gas demand.

Biogas also holds vast potential for electricity generation, theoretically capable of supplying 40% of national electricity consumption and offsetting up to 70% of diesel use. While full utilization is constrained by technical and economic factors, biogas is seen as a key complementary source for stabilizing an increasingly intermittent grid dominated by solar and wind power.

Industry representatives emphasize that the ongoing electricity-sector reform must properly account for the value of dispatchable renewable sources. Without clear rules for compensating biogas plants for ancillary services, such as grid stability and load balancing, the market's growth may be hindered.

Brazil's waste-to-energy sector is at a critical juncture. The combination of ambitious industry projections, supportive legislation like the "Fuel of the Future" law, and the efforts of organizations like BREM are creating a robust foundation for growth. However, unlocking the full potential of this R$ 300 billion market, particularly in CDR and electricity generation, will require strengthening the regulatory framework to provide clear targets, compensation mechanisms for grid services, and dedicated oversight. Stakeholders agree that a fresh policy framework is essential to drive new investments, create higher earnings, and ensure better environmental protection.

Brazil to Host World's Largest Biogas Plant, Pioneering Sustainable Energy

The Louis Dreyfus Company (LDC) marks construction commencement of the world's largest biogas plant from citrus effluents, which is located in Bebedouro, São Paulo, Brazil. Covering an area of 195,000 square meters, the unit will be able to process 400 m³/h in effluents, create more than 50,000 Nm³ of biogas, and reduce CO₂ emissions at the local level by over 20%.

With this innovative technology from LDC, 100% reuse of treated water will be ensured while replacing fossil fuels. In the first half of 2026, the plant is expected to be in operation.

It is a measure through which LDC strengthens the commitment to decarbonize the supply chain and undertake sustainable development. The pilot project has already shown that that target was exceeded by 15 percent.

As one of the largest citrus juice processors and exporters, LDC goes on investing in green solutions for increasing efficiency and sustainability in the operations while minimizing environmental impacts and optimizing natural resource use.

Urca Group

The largest biomethane plant in Latin America is Gás Verde, a member of the Urca Group, in Seropédica, Rio de Janeiro. In this way, Brazil progresses toward becoming an increasingly important global player in the green economy.

The Seropédica plant refines biogas to produce biomethane, a fuel similar to natural gas derived from petroleum but with 80% lower emissions.