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:
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60% methane (biomethane)
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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:
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Swine, poultry, and cattle operations
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Sugarcane processing (vinasse and filter cake)
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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:
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75% of the country's biogas today comes from landfills, and
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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:
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Biofertilizer (liquid or in flakes after drying)
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Organic compost (digestate)
Both can replace imported chemical fertilizers, more than 90% of which Brazil currently imports.
This makes biogas a powerful driver for:
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Lower production costs
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Better soil quality
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Reduced methane emissions (11–15 times more effective than other mitigation methods)
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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:
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Farmers formed cooperatives
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Their manure feeds local biomethane plants
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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:
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ABREM
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CIBiogás
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Biogás Brasil (UN project)
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Portal Biogás
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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:
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Reduce energy and fuel costs
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Generate new revenue streams
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Improve soil quality
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Meet environmental requirements
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Participate in Brazil’s expanding renewable-energy market
