Brazil could slash its diesel imports by 50% within the next ten years by scaling up biomethane production for heavy transport, the head of sugar and ethanol giant Copersucar said on Wednesday.
Speaking at the launch of the "BioRota" project in the Port of Santos, Copersucar President Tomás Manzano stated that the integration of biomethane — a renewable gas produced from organic waste like sugarcane vinasse — is an "irreversible path" for the country's energy matrix.
"The vinasse is already there at the ethanol mills; it is only a matter of time before the mills start producing [biomethane]," Manzano told reporters. "In time, we have no doubt that every mill in Brazil will have a biomethane plant."
Brazil currently imports approximately 20% of the diesel it consumes. Domestic energy security has become a heightened priority for both the government and the private sector as geopolitical tensions created by the war between Iran and US, which had threatened global oil supply routes and price stability.
LOGISTICAL SHIFT
Unlike conventional fossil gas extraction, Brazil’s biomethane industry is built around agricultural waste, landfill residues and animal manure — a decentralised model that industry executives argue creates both environmental and economic benefits.
The expansion has also begun attracting attention from traditional oil and gas companies. Across Europe, majors including Shell and TotalEnergies have already increased investments in biomethane infrastructure, viewing renewable gas as a strategic complement to fossil fuel operations.
Brazil may follow a similar trajectory, analysts say, though domestic oil companies remain heavily focused on pre-salt offshore reserves and conventional gas exploration.
Copersucar, a global leader in sugar and ethanol trading which sold 15.6 million tonnes of sugar in the 2024/25 season, is leading the charge with its BioRota initiative. The project has already replaced 15% of the company's diesel truck fleet with vehicles powered by biomethane derived from sugarcane waste.
The sustainable route connects mills in the interior of São Paulo state to export terminals in Santos. According to company data, switching from diesel to biomethane can reduce greenhouse gas emissions by up to 90% while lowering logistical costs. Copersucar estimates the project already replace 5 million liters of diesel between April of 2024 and March of 2026, avoiding over 8,000 tonnes of CO2 emissions.
REGULATORY MOMENTUM
Brazil currently has 19 authorized biomethane plants, with another 50 awaiting approval. ABiogás internal studies suggest the country could see more than 100 new plants by the end of the decade.
Anhother major factor shaping the industry’s outlook is Brazil’s sweeping tax reform, due to take effect from 2027. Under the proposed framework, renewable fuels such as biomethane are expected to receive substantial tax advantages compared with fossil fuels.
Industry executives say the reforms could reduce tax rates on biomethane by up to 90% relative to fossil gas, significantly improving project economics and accelerating investment decisions.
Furthermore, biogas is democratic, because it allows small and medium-sized businesses to participate in energy production in a way that was never possible in the traditional oil and gas industry. This, for an industry that only a few years ago struggled for mainstream recognition, points to the scale of today’s ambitions marks and to a dramatic shift in Brazil.
BILLION-DOLLAR INVESTMENTS
Environmental licenses for biogas and biomethane projects more than triple in São Paulo state. The number increased by 235% between 2024 and 2025, according to a survey obtained exclusively by Broadcast.
The Atvos project aims to produce 500 million liters of corn ethanol annually across the two new sites, while the biomethane plant will utilize vinasse and filter cake to generate renewable gas, strengthening the circular economy model in Brazil's agricultural heartland.
