Copa Energia Eyes Biomethane and Natural Gas to Fuel Brazil’s Booming Data Centers

Brazil plans to add biomethane to its yearly greenhouse gas goal for the natural gas sector starting in 2027. This could open doors for renewable gas producers. At the same time, it may raise doubts about how plants will be verified.

The idea comes from a draft rule from the Ministry of Mines and Energy. Firms that fall under the federal program for natural gas decarbonization would reach the goal by using biomethane when they consume natural gas.

The draft sets a first step of 1% for 2027. That would mean buying around 3.63 million Certificates of Guarantee of Origin for Biomethane, or CGOBs. That figure points to about 363.2 million cubic meters of biomethane. After that, the draft shows a gradual rise to 3% in 2028. It then moves to 4% in 2029 and 5% in 2030.

The plan may raise demand for renewable gas made from waste tied to Brazil’s bioenergy sector.

Abiogás, the Brazilian Biogas and Biomethane Association, says makers are running out of time. They must get their plants certified through Brazil’s National Agency of Petroleum, Natural Gas and Biofuels, known as ANP.

In the draft rules, producers that finish certification by late 2026 can rely on invoices dated from Jan. 1. That would be used to set the ground for CGOBs.

ABiogás also noted that the calendar is tight. It said that because the year is almost over and the regulatory guidance was only recently released, the audit work and approval steps may not finish in time.

“If the plant certification is finished only in 2027, biomethane sold in 2026 might not lead to CGOBs,” said ABiogás CEO Josiani Napolitano in a statement.

She added that this could squeeze producers' income. It may also lower the first wave of certificate supply. Napolitano said the group is talking with the ANP about the matter.

The timing of the first CGOBs will also hinge on a digital system. The ANP is building this tool with Serpro, a federal data processing firm. The platform will bring in data from market players. It will check the production details that must be in place before certificates can be issued and traded.

Data centers

Brazilian energy firms are looking at new ways to fuel the country’s data centers, and biomethane is part of that push. The sector is growing fast, so cleaner options matter.

Copa Energia, which is the biggest liquefied petroleum gas bottler, marketer, and distributor in Latin America, is now looking at biomethane and also natural gas for use in Brazilian data centers. Chief Information Officer Claudia Marquesani said this.

Right now, about 90% of Copa Energia’s income comes from LPG. The product is sold under the Copagaz and Liquigás brands.

Even so, the firm is trying to shift more attention toward energy-transition plans. It is also checking possible projects linked to ReData, a federal tax incentive program for data centers.

Marquesani added that the company has already spotted several options to pursue. Still, a lot of the finer points are not set yet.

The program’s rules on low emission power are still under review. Officials are expected to spell out which energy sources can be used by data centers to get tax breaks.

At the Data Center World Brazil event in São Paulo, Marquesani said, “Data centers are the biggest orchestration task I have seen. You cannot focus on only one step. You have to check the whole chain.”

She also noted problems in Brazil’s power network. In a few areas, electricity supply is strong, but power lines and related transmission systems are not built out enough.

New businesses

Copa Energia set up a new unit for alternative energy goods. The plan covers biomethane. It may also reach other areas, like data centers.

Marquesani said the firm is working on 38 AI efforts. They run from agentic AI work to orchestration tools.

In April 2024, Copa grew its natural gas side. It bought Companhia de Transporte de Gás, known as CTG. CTG is a compressed natural gas distributor that started in 2002. CTG serves places that do not have regular pipeline access. It does this with a “virtual pipeline” setup. The deal price was not shared.

Then, in June 2025, Copa bought a 36% share in GNLink. GNLink makes liquefied natural gas. It has liquefaction plants in Barra Bonita in Paraná state and in Itabuna in Bahia. It is also building a third plant in Carnaúba, in Rio Grande do Norte. Lorinvest, run by the Lorentzen family, still holds 64%.

From Farm Waste to Fuel: Brazil’s Sugar Industry Pushes Biomethane Expansion

Brazil’s sugar and ethanol sector is testing biomethane made from farm and factory leftovers. The goal is to find another low carbon fuel option for trucks, cars, and industry.

Some call this idea a “home grown pre-salt” path. The biomethane can be built using vinasse and filter cake, which come out of sugar and ethanol production. If it expands, mills could add new lines of income. It could also grow renewable power use in Brazil’s interior. Even so, new projects still need customers, better links for delivery, and business plans that can last.

Brazil could reach about 120 million cubic meters of biomethane each day, using several types of inputs, ABiogás says. The group added that 21 plants are already cleared to run. It also said 47 more facilities are waiting for sign off. This wait is with the National Petroleum, Natural Gas and Biofuels Agency (ANP). Josiani Napolitano, president of ABiogás, shared these points at the Nova Cana conference.

Biomethane starts with bacteria that digest plant and waste materials in the absence of oxygen. That process produces biogas. Biogas contains mostly methane and carbon dioxide. Next, the gas is cleaned to raise the methane level. After purification, it can be used instead of natural gas in multiple settings.

Sugar and ethanol makers can use leftovers from their own plants. That same waste can be turned into biogas. Some producers can then run power systems with that biogas right away. They do not need to upgrade it into biomethane first.

Napolitano noted that heavy trucks and city travel are already places where biomethane can hold its own versus diesel. He also said some factories are buying compressed biomethane. The goal is to swap out oil-based fuels on site. In the longer run, ships and planes may add more demand too. This would depend on better production paths and new infrastructure.

Growing the business will take joint work across several areas. That includes feedstock supply, plant output, delivery networks, deals, and checks for environmental rules. A central issue is how to price the cuts in emissions from the renewable fuel. This matters because biomethane often costs more than fossil options.

Brazil’s Future Fuel Law is likely to help boost demand. For 2026, the National Energy Policy Council wants producers and importers in the natural gas market to cut greenhouse gas output by 0.5% via biomethane use.  

This goal sits under the legal minimum of 1%. The council linked that choice to today’s supply and demand situation.  

Still, the target can be reached in two ways. One option is to buy biomethane, with Biomethane Guarantee of Origin Certificates as part of the plan. Another option is to buy only the certificates. 

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."