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.

What Is SEGOB? How Brazil’s New Biomethane Certificate Market Will Work in 2026

Brazil’s new SEGOB system is set to reshape the biomethane market in 2026, creating a regulated pathway for producers to generate and sell environmental certificates tied to biomethane production. Today, much of the biomethane used for self-consumption is not registered with ANP because producers do not need to meet strict fuel-quality standards when using the gas internally. With SEGOB, however, internal users can monetize environmental attributes, as long as their plants comply with ANP specifications and certification rules.

This change in regulations has made it very significant for the biogas professional. The installations will have to purchase chromatographs, have lab reports, and install monitoring systems (all these upgrades could together cost up to R$ 2 million). The large producers will be able to adapt without much of a problem, but the small ones might find it hard to bear the compliance costs.

One of the main doubts is whether double counting will happen or not. The ANP has to decide whether SEGOB can be used alongside other environmental certificates, for example, Guarantees of Origin or RenovaBio CBIOs. The matter is very crucial for landfill-based biomethane as theoretically the same molecule could give rise to two different certificates.

The first mandatory target of 240,000 m³/day of biomethane is seen as small and not creating a new wave of projects. Biomethane-producing facilities are constructed because the buyers need the molecule and not just the certificate. In any case, the mandate can prove advantageous for financing as it allows for long-term contracts with gas distributors having high credit ratings.

In 2026, the SEGOB market will enter a learning phase. Producers, certifiers, and registrars will need to adapt quickly, and the system’s evolution will depend on ANP’s final definitions, especially on validity rules, autoconsumption verification, environmental claims, and double-counting prevention. Broader discussion is expected throughout 2026, including at industry events such as IRC Day, when the regulatory framework and market behavior will be clearer.

Apart from that, the new provisions explicitly state that it is not sufficient for environmental declarations to merely procure physical biomethane. Along with it, the companies have to acquire the respective origin certificate as well. This move not only aligns with the Greenhouse Gas (GHG) protocol but also empowers the voluntary market by giving corporations the authority to retire the certificates as part of their decarbonization plans.

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.