Raízen’s Vision for SAF Could Transform Brazil into an Aviation Fuel Superpower

In the 1970s, reeling from a global oil crisis, Brazil launched Pro-Álcool, a pioneering program that turned sugarcane into a national fuel staple. Today, as the world faces a dual crisis of geopolitical instability and climate breakdown, Brazil is dusting off its energy-sovereignty playbook for a new, high-stakes arena: the skies.

Sustainable Aviation Fuel (SAF) is no longer a distant green dream; it is becoming a geopolitical and economic imperative. As airlines grapple with the volatility of jet fuel prices, recently underscored by the bankruptcy filing of US-based Spirit Airlines, and stringent new mandates from the EU and UK, the search for a scalable, low-carbon alternative has reached a fever pitch.

A Sleeping Energy Giant

"We often suffer from 'stray dog syndrome' in Brazil," says Raphaella Gomes, CEO of Raízen-Geo Biogás S.A. and one of the country's most influential voices in energy. "We talk too little about our strengths. We treat biofuels as a 'green agenda' item, but it is actually a strategic pillar for industrial development and international trade."

Gomes argues that Brazil is uniquely positioned to fill a massive global supply gap. By 2035, global demand for SAF is expected to hit 50 billion liters. While the US market is likely to be served by domestic production incentivized by protectionist policies, the European and Asian markets are looking for suppliers. Experts predict a 15-billion-liter shortfall in a decade, a gap Brazil is eager to close.

Why Brazil?

The secret lies in what Gomes calls an "integrated agro-energy chain." Brazil isn't just producing fuel; it’s producing it with a carbon intensity that is hard to beat. Brazilian sugarcane ethanol, for instance, has a carbon footprint significantly lower than its international competitors.

But the revolution goes beyond sugarcane. The state of São Paulo has seen its biomethane production skyrocket, reaching 42.7 million cubic meters in 2025—a third of the national total. This "green gas," derived from agricultural waste and urban landfills, can be converted into SAF via "power-to-liquid" pathways.

"Aviation accounts for 2.5% of global CO2 emissions," Gomes explains. "Unlike cars, you can’t easily put a heavy battery on a plane. SAF is the only viable alternative for long-haul flights."

From Necessity to Opportunity

Brazil’s energy journey has always been driven by necessity. Today, the country still imports nearly 90% of its fertilizers and a significant portion of its diesel and liquefied natural gas (LNG). Recent disruptions produced by the US-Iran War and attacks on refineries in Qatar have only highlighted this vulnerability.

However, the same agricultural prowess that makes Brazil dependent on imported fertilizers also provides the "feedstock" for the future. From corn ethanol in the Mato Grosso heartland to biomethane in the outskirts of Campinas, the raw materials for a cleaner sky are already being harvested.

As the Pro-BioQAV (Programa Nacional de Combustível Sustentável de Aviação, in english "National Sustainable Aviation Fuel Program") mandate kicks in 2027, requiring a 1% reduction in aviation emissions, Brazil is moving from intention to action. The goal is to produce 2 billion liters of SAF by 2030. In a world hungry for energy security and decarbonization, Brazil’s "green pre-salt" might just be the fuel that keeps the global economy aloft.

Volkswagen also bets on Brazilian biomethane 

Ricardo Alouche, Vice President of Sales at Volkswagen Trucks and Buses, believes Brazil’s truck market will remain resilient throughout 2026 despite high interest rates, restricted credit conditions, and broader economic uncertainties.

According to Alouche, the federal government's Move Brasil financing program has been a key factor supporting truck sales. 

Looking ahead, Volkswagen is preparing several product launches for Fenatran 2026, Brazil’s largest commercial vehicle exhibition. The company also expects the event to focus more on technology, products, and customer relationships than on discounts and sales promotions, as many buyers are already bringing forward purchasing decisions due to favorable financing conditions.

On alternative propulsion technologies, Alouche highlighted growing interest in electric trucks, biomethane-powered vehicles, and hybrid solutions. All of this is an effort by the automaker to try to find solutions for the fluctuations in the fuel market, which affect those who work in the transportation sector. However, Alouche emphasized that adoption will occur gradually due to infrastructure limitations and cost considerations. Volkswagen is currently testing biomethane trucks in urban sanitation operations and advancing development of its hybrid Meteor truck, which is undergoing advanced testing.

São Paulo Set for Record Biomethane Production, Targeting 1 Million Cubic Meters Daily

After the Brazilian federal government published on May 6 the Resolution 4/2026 of the National Energy Policy Council (CNPE), which sets an annual targets for greenhouse gas (GHG) emissions, the state of São Paulo is on track to reach a record installed production capacity of 1 million cubic meters of biomethane per day by the end of 2026, enough to supply all 2.8 million residential gas connections in the state, officials said.

The volume, equivalent to replacing approximately 4,000 diesel-powered urban buses, marks a major milestone in Brazil’s energy transition. São Paulo currently hosts nine of the 19 biomethane plants operating nationwide, with another 11 units awaiting authorization.

"We are preparing to reach the record mark of approximately one million cubic meters per day by December," Marisa Barros, Undersecretary for Energy and Mining at the State Secretariat for Environment, Infrastructure, and Logistics (Semil), told an industry event last week.

DECARBONIZING LOGISTICS

The surge in biomethane — a renewable gas produced from agricultural and landfill waste — is central to São Paulo’s strategy to hit net-zero emissions by 2050. Heavy vehicles, such as trucks and buses, are primary targets for conversion to the renewable fuel, which can reduce greenhouse gas emissions by up to 99% compared to diesel.

In the city of São Paulo, the "BioSP" program is already testing biomethane-powered buses to bypass infrastructure bottlenecks currently hindering electric vehicle adoption.

CORPORATE ADOPTION

Major industries are already integrating the fuel into their operations:

• Natura: The cosmetics giant uses biomethane to power 45% of its industrial processes and 100% of its logistics fleet between its Cajamar factory and Greater São Paulo.
• Aviation Sector: Projects are underway to produce Sustainable Aviation Fuel (SAF) from biogas derived from sugarcane waste, supported by international partnerships with institutions like Sweden’s Swedfund.

REGULATORY MOMENTUM

The National Petroleum Agency (ANP) has streamlined authorization processes to align with Brazil’s "Fuel of the Future" law. "We noticed a significant increase in requests for new industrial plants, driven by recent federal and state incentives," said Marcos Werner, a superintendent at the ANP.

Beyond São Paulo, other states are also advancing:

• Santa Catarina: H2A Bioenergia recently received authorization for the country’s first biomethane plant using swine waste.
• Rio Grande do Sul: State distributor Sulgás launched the "BioHub" to connect remote producers to the existing gas grid, aiming to diversify the state’s energy portfolio and reduce reliance on external sources like Bolivia or offshore pre-salt gas.

CIRCULAR ECONOMY

The expansion of biomethane is being framed as an economic opportunity for small farmers and agribusinesses to monetize organic waste. State environmental agency Cetesb has modernized its licensing procedures, reducing approval times to as little as 60 days to accelerate the transition.

"Biomethane is a strategic pillar in decarbonization," said Allan Cellim da Silva of Cetesb. "It integrates the biofuel into the circular economy while ensuring a secure and agile transition for the industry."

Brazil Accelerates Biomethane Investments as Diesel Imports and Oil Risks Rise

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

The industry's optimism follows recent regulatory steps by Brazil’s National Energy Policy Council (CNPE), which established a formal mandate for emissions reductions in the natural gas market.

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.

Adding to the momentum, bioenergy firm Atvos announced a 2.36 billion reais ($410 million) investment to build three new industrial units in Mato Grosso do Sul. The plan includes two corn ethanol plants and what is projected to be one of the world's largest biomethane facilities.

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.

Natural Gas as a Pillar of Brazil’s Energy Security: Insights from Gas Week 2026

A comprehensive panel discussion on the impact of Brazil's Capacity Reserve Auction (LRCAP) on the natural gas market, recorded on the second day of the Gas Week 2026, organized by Eixos, highlighted the pivotal role of natural gas in the nation's energy matrix. With 90 projects and 15 GW of gas thermal plants contracted, the panel brought together key players including Eneva, Petrobras, Origem Energia, Cocal, and ED, alongside regulators EPE and ANP, to debate critical issues such as tariffs, LNG, storage, biomethane, and the future steps for the post-auction gas market.

Brazil’s recent capacity reserve auction has solidified the role of natural gas as a critical pillar for the country’s energy security, with major industry players securing key contracts to provide dispatchable power to a grid increasingly reliant on intermittent renewable sources.

The auction, held in March and conducted by ANEEL, MME, and CCEE, successfully contracted 18.97 GW of capacity — primarily from gas-fired thermal plants. The projects represent R$ 64.5 billion in total investments with delivery dates ranging from 2026 to 2031. The auction achieved a 5.52% discount, resulting in estimated savings of R$ 33.64 billion.

The results were the focus of intense discussion at the Gas Week 2026 conference in Brasília, where executives and regulators analyzed the long-term impacts on the nation’s energy and gas markets.

Eneva and Petrobras Secure Dominance

Eneva, the largest private natural gas producer in Brazil, emerged as a protagonist in the auction. Despite legal challenges and scrutiny from the Federal Audit Court (TCU), Executive Director of Marketing, Sales and New Business at Eneva, Marcelo Lopes, expressed confidence in the process.

"The auction was not designed to favor specific agents, but to contract the energy security the system needs," Marcelo stated during a panel. He noted that national energy planners (EPE) and the grid operator (ONS) have signaled the need for dispatchable power since 2021.

State-run oil giant Petrobras also secured significant re-contracting for its existing thermal fleet. Leonardo Santos Ferreira, a Petrobras Gas and Energy Marketing Manager, highlighted that the new contracts provide the fixed revenue necessary for infrastructure investments, with a renewed focus on "operational flexibility." This allows plants to be dispatched up to twice a day to balance the grid.

Market Volatility and New Frontiers

The auction is expected to transform the Brazilian gas market by treating gas as a "flexibility fuel." Flávia Barros, director of Origem Energia, noted that the intermittent demand from thermal plants would likely increase short-term price volatility, creating both risks and opportunities for traders.

"The winners in the post-auction market will be those capable of coordinating infrastructure and operating in a regionally fragmented environment," Flávia said, highlighting Origem’s strategy of integrating upstream production with strategic gas storage.

In a first for Brazil’s capacity auctions, Cocal successfully negotiated thermal projects powered by biomethane, signaling a shift toward replacing fossil fuels with renewable gas in the industrial and power sectors.

Regulatory and Infrastructure Outlook

The National Petroleum Agency (ANP) estimates that the auction results could lead to the contracting of 49 million cubic meters of gas per day. Pietro Mendes, an ANP director, emphasized that this volume is crucial for maintaining the financial health of the gas transport system and could help lower transport tariffs in the long run.

Heloisa Borges, Director at the Energy Research Office (EPE), concluded that the Brazilian gas industry has reached a level of maturity capable of delivering diversified solutions, including LNG, domestic gas, and pipeline imports.

"We saw a robust industry capable of responding to the different needs of various actors," Borges said, pointing to the upcoming Integrated National Infrastructure Plan as the next step in supporting Brazil's growing gas production.

BNDES Approves R$384.9 Million to Boost Brazil’s Biomethane Infrastructure and Green Logistics

Brazil's National Bank for Economic and Social Development (BNDES) has approved two significant financing packages which total R$384.9 million ($74.5 million) for the development of biomethane infrastructure and the decarbonization of the logistics sector in Brazil. The projects will establish a green corridor system in São Paulo and create a new biomethane production facility in the state of Goiás.

The BNDES approved R$140 million for TransJordano a road transport company to implement a green corridor in São Paulo state. The project will use the funds to purchase 100 biomethane-powered trucks and build three biomethane fueling stations which will be located in Sumaré and Cubatão and Ribeirão Preto. The project financing will be funded through R$98 million from the Climate Fund (Fundo Clima) and R$42 million from the BNDES Machinery and Services line which together fund 92% of the total project costs. The biomethane stations will use Ultragaz as their fuel supplier while also permitting access to other transport companies.

Aloizio Mercadante, President of BNDES, declared that the project supports President Lula's energy transition policy because it provides sustainable cargo transport solutions to Brazil. "With this project, developed in São Paulo, we will see a reduction in the emission of 6.5 tons of equivalent CO2 in the first year of operation just with the biomethane-fueled fleet," Mercadante said.

João Bessa, President of TransJordano, showed how the company makes decarbonization its main priority. "This is an investment that goes beyond operations – it's a real commitment to the decarbonization of road transport and the future of the country," Bessa commented.

BNDES also approved R$244.9 million in funding to bp bioenergy for building a biomethane plant which will be located in Edéia, Goiás, next to the Usina Tropical mill. The financing package consists of R$193.4 million which comes from the Climate Fund and R$51.4 million which comes from Finem. The plant will generate 67,000 cubic meters of daily biomethane through biodigestion of vinasse which is produced during sugarcane ethanol production. The project has a total investment of R$275.8 million and is scheduled to finish development by 2027 while generating 300 employment opportunities through direct and indirect work.

Andres Guevara de la Vega, CEO of bp bioenergy, expressed enthusiasm for the project. "This project brings together technology, circularity, and strategic partnerships to transform an ethanol co-product into a new source of renewable energy," he noted. Ultragaz will distribute the biomethane which this unit generates.

TransJordano established its operations in 1998 and currently runs its business from Paulínia in São Paulo to provide sensitive cargo transport services which include fuels and chemical derivatives across the entire country. The company operates with more than 1,000 employees and maintains a fleet that exceeds 1,500 vehicles.

Ultragaz has been providing energy solutions to more than 11 million households and 57000 businesses since its establishment 88 years ago which now operates in 22 Brazilian states and the Federal District. The company operates as a subsidiary of Ultrapar, which stands as one of Brazil's most extensive business conglomerates.

bp bioenergy runs 11 operational facilities throughout five Brazilian regions while serving as a leading ethanol producer who creates substantial quantities of vinasse.

Brazil's Biomethane Boom: A Green Energy Revolution on the Horizon

Brazil is about to make major progress in its green energy transition because the biomethane industry will draw investments that reach R$348 billion which equals US$68 billion and will build production facilities that exceed current capacity by more than 100 times. The Brazilian Association of Biogas (Abiogás) made this ambitious estimate which shows that Brazil can turn organic waste into renewable energy resources because of its extensive organic waste resources.

A new regulatory system drives this expanding sector forward through its implementation of a resolution approved by the National Energy Policy Council (CNPE) which serves as its foundation. The regulation requires natural gas producers and importers to achieve emissions reductions of 0.5 percent through their biomethane usage in operational activities. Maria Clara Pontelli who works as a technical and regulatory analyst at Abiogás considers this target to be essential for the mission of her organization.

According to Pontelli, the new measures are vital because technical studies from Abiogás determined that the existing 0.25% target did not reflect current biomethane development in Brazilian industry. She explained that the 0.5% target better represents industry operations because it can be achieved with current resources and ongoing projects. The industry considers this regulatory progress to be an important achievement because it proves that Brazil has reached a stage where biomethane production has become established and it delivers clear economic signals which will attract future investments.

The policy establishes the Certificate of Origin Guarantee for Biomethane (CGOB) which will help create financial value for the environmental benefits associated with biomethane. This allows for the separation of the biomethane molecule's commercialization from its environmental attribute, broadening market reach and attracting diverse demand profiles, from industrial consumers to companies seeking to decarbonize their supply chains.

Overcoming Infrastructure Hurdles

The industry operations show great potential but face multiple difficulties that primarily stem from infrastructure needs. Biomethane production in Brazil operates as a decentralized system which establishes production sites near agro-industrial facilities and agricultural land and urban waste disposal points throughout the country. The natural gas pipeline system in Brazil only extends to coastal areas which creates difficulties for moving biomethane through the country.

"The situation requires new logistical models which include CNG truck road transport and decentralized consumption systems that work near production facilities," Pontelli explained. The CGOB will enable the organization to address a historical problem because it provides a dedicated tool which allows the assessment of biomethane's environmental value for fair competition with fossil fuels.

Current Landscape and Future Projections

Currently, Brazil boasts 19 ANP-authorized plants producing and commercializing biomethane, with a combined installed capacity exceeding 1.19 million cubic meters per day (Mm³/d). This figure doesn't include numerous units producing biomethane for self-consumption, particularly in rural and agro-industrial areas, suggesting the actual production volume is higher.

The growth trajectory is robust. The ANP reports 44 plants in the authorization process, projected to add approximately 1.77 Mm³/d by 2028. Looking further ahead, Abiogás estimates Brazil could reach 8 Mm³/d by 2032, with around 200 plants in operation. The theoretical potential, considering all organic waste, could even reach 120 Mm³/d.

Investments are expected to follow this growth, with the R$348 billion figure reflecting the long-term potential. The 0.5% target is crucial in reducing demand risk, making projects more bankable and aligning them with decarbonization strategies.

Key Projects and Financing

Biomethane production projects are predominantly concentrated in landfills, utilizing biogas for energy recovery, and in agro-industrial waste, particularly from the sugar-energy sector and animal waste. The sugar-energy sector, especially in the Southeast region, is anticipated to drive much of the future growth.

Financing for these projects is increasingly available, with the new regulatory target expected to further boost interest. Brazil's financial landscape offers a wide array of instruments, including the Climate Fund, Finame Low Carbon, Finem, RenovAgro, Inovagro, and Prodecoop, operated by the BNDES, alongside support from Finep and regional development banks.

Technological Advancements and Global Ambitions

Manuela Caiate, President of the Board of Directors at MDC Energia, highlighted the role of technology in the sector's evolution. "The possibility of always seeking the best technology, nationalizing equipment, has always been a concern, always seeking cost efficiency and, obviously, safety in the production process," Caiate noted. She also pointed to advancements in biomethane purification technologies and the increasing availability of gas-powered trucks and buses, which can run on both natural gas and biomethane.

Brazil is also looking beyond its borders, exploring the potential for biomethane exports, particularly in the maritime sector. Discussions within the International Maritime Organization (IMO) about low-carbon fuels for shipping present a significant opportunity. Caiate emphasized the efforts to position biomethane in this global market, working with associations in the US, Europe, and Canada.

"This creates a biomethane market more akin to a global commodity, integrating this market," Caiate stated, acknowledging it's a long-term plan. The country's commitment to sustainable fuels was also evident at COP30, where Brazilian entities advocated for a significant increase in renewable fuel production by 2035.

While the transition away from fossil fuels will be a gradual process, Brazil, with its 90% renewable electricity matrix, is focusing on decarbonizing other energy sectors. Biomethane, alongside ethanol and biodiesel, is seen as a crucial component of a diversified biofuel mix that will drive the country's energy transition, especially given the climate of insecurity produced by the war between the US and Iran and the closure of the Strait of Hormuz. The recent regulatory developments and the vast untapped potential position Brazil as a key player in the global biomethane landscape, offering a compelling model for circular economy and sustainable development.

From Trash to Fuel: Orizon (ORVR3) Unveils Massive Biomethane Project Serving 2.5 Million Brazilians

Brazilian waste management company Orizon dedicated a new biomethane plant at its Ecoparque Jaboatão facility located in Greater Recife Pernambuco through a financial commitment of 258 million reais which equals 51.6 million dollars. The facility transforms organic waste into biomethane which the company then supplies through its pipeline system to serve residential and industrial customers.

The plant began its construction process during May 2024 and finished building work by December 2025. The facility operates at a daily renewable gas output capacity of 108.000 cubic meters. Orizon CEO Milton Pilão reported that the company currently produces between 70.000 and 80.000 cubic meters of gas but plans to increase this output to 130000 cubic meters within one year and 150.000 cubic meters after two years.

The project handles 3.500 tons of waste material every day because it serves 2.5 million residents from Recife and adjacent municipalities. According to Priscila Krause who serves as Pernambuco's Vice-Governor and attended the inauguration ceremony Copergás will receive 5 of its entire gas distribution total from the biomethane which will be injected into the Copergás network. Copergás allocated 25 million reais to develop its pipeline system connecting to the Orizon facility.

Pilão also announced plans for three additional biomethane plants in Brazil's Northeast, specifically in Maceió (Alagoas), Aracaju (Sergipe), and João Pessoa (Paraíba), where Orizon operates landfills. Each of these future plants is estimated to require an investment of around 150 million reais, totaling approximately 450 million reais ($90 million), and are expected to become operational within the next two years.

The Ecoparque Jaboatão, which has been operating as a landfill for many years, received financing for the biomethane plant from Banco do Nordeste (BNB). The facility holds authorization from the National Agency of Petroleum, Natural Gas and Biofuels (ANP) to produce and commercialize biomethane since 2025. The ecopark spans 1.1 million square meters, receives over 550 trucks daily, and features Latin America's largest Mechanized Sorting Unit (UTM) and a 28.5 MW thermoelectric plant that converts biogas into electricity.

Orizon establishes itself as a major waste management company which operates 18 ecoparks throughout 12 Brazilian states to create waste valorization solutions that produce biomethane, biogas, recyclables, organic fertilizers, and carbon credits. Pilão explained that the "fuel of the future" laws which require natural gas pipelines to contain 10% biomethane create a market demand for biofuels which need governmental backing.

Renato Dutra, National Secretary of Oil, Natural Gas and Biofuels, representing Minister of Mines and Energy Alexandre Silveira, explained that the market would control how fast biomethane became more widely used. Orizon plans to develop liquefaction systems which will enable them to provide service to customers who lack access to their current gas pipeline system as part of their strategy to extend biomethane distribution across the entire country.

Brazil’s Major Cities Pivot to Biomethane to Decarbonize Public Transport

Brazilian municipalities are accelerating the adoption of biomethane-powered buses as a strategic alternative to diesel, citing lower costs and easier infrastructure integration compared to electric vehicle (EV) programs.

In Londrina, the Municipal Transit and Urbanization Company (CMTU) launched a 30-day trial of a 100% biomethane-powered bus on nine urban routes. The vehicle, a Marcopolo Volare Fly 10, will be tested for performance, fuel autonomy, and passenger comfort. Mayor Tiago Amaral noted that the initiative aligns with a broader plan to transform urban waste into fuel, creating a circular economy that benefits both the environment and local industry.

"We are starting a study to transform waste into gas," Amaral said. "It is better for nature and provides a cheaper fuel for our fleets and industries."

The shift comes as city officials face mounting pressure from volatile global diesel prices and the technical hurdles of electrification. In São Paulo, South America’s largest metropolis, Mayor Ricardo Nunes indicated that biomethane is now a key pillar of the city's decarbonization goals. The move follows significant delays in the city’s electric bus rollout, which has been hampered by a lack of charging infrastructure and disputes with power utility Enel.

According to city estimates, replacing diesel with biomethane could halve the annual R$3 billion (approx. $530 million) operating costs of São Paulo’s bus fleet. The city plans to leverage biomethane produced at local landfills, such as the East Waste Treatment Center (CTL), which processes 7,000 tons of household waste daily.

Industry experts argue that biomethane offers a more immediate solution than electricity. Marcelo Mendonça, Technical-Commercial Director at the Brazilian Association of Piped Gas Distributors (Abegás), pointed out that over 90% of São Paulo’s bus garages are already within one kilometer of existing gas distribution networks.

"The gas infrastructure is already there to allow for immediate use," Mendonça said.

In the state of Goiás, the capital Goiânia has embarked on an even more ambitious "New Metropolitan Public Transport Network" (Nova RMTC). The program aims to deploy 500 biomethane buses by the end of next year, with an initial investment of R$569.2 million ($100 million) shared between state and local governments. While biomethane vehicles have roughly 10% less autonomy than diesel counterparts, the fuel is approximately 15% cheaper per unit, and the acquisition cost of the buses is three times lower than that of electric models.

To support the transition, the Goiás state government has implemented tax incentives, including ICMS tax credits of up to 90% for biomethane producers and distributors, further cementing the fuel's role in Brazil's energy transition.

Summary of Key Developments:

• Londrina: 30-day trial of biomethane buses on nine routes; focus on waste-to-energy circular economy.
• São Paulo: Biomethane adopted as a pragmatic alternative to stalled electric bus expansion; potential to cut fleet costs by 50%.
• Goiânia: Goal of 500 biomethane buses by late 2025; R$569 million investment supported by state tax incentives.
• Environmental Impact: Biomethane reduces CO2 emissions by up to 95% and nitrogen oxide (NOx) by 85% compared to diesel.

Brazil Bets Big on Biomethane: Atvos Plans 7 New Plants to Slash Diesel Use by 88%

Brazilian energy company Atvos announced ambitious plans to construct seven new biomethane production plants across the country, which will enable the company to expand its renewable fuel portfolio while decreasing diesel consumption. The initiative shows Brazil's increasing dedication to energy transition which occurs during unpredictable international market conditions.

The first of these facilities, located in Mato Grosso do Sul, has already commenced industrial operations. The facility will create about 28 million cubic meters of biomethane during each harvest period by processing sugarcane waste. Atvos will use this renewable fuel to operate its own fleet which aims to achieve 100 percent diesel replacement for all operations within the next few years. Atvos will achieve production capabilities of 137 million cubic meters through the seven plants, which will result in more than 88 percent reduction of diesel emissions.

Governor Eduardo Riedel of Mato Grosso do Sul highlighted the project's alignment with the state's decarbonization and sustainable development strategies. Secretary Jaime Verruck emphasized biomethane's importance to the state's bioenergy policy and its 2030 carbon-neutral target. The project involved an investment exceeding R$350 million in Nova Alvorada do Sul, which serves as a critical milestone for diversifying the state's energy sources while boosting the competitiveness of its sugar-energy industry.

The Brazilian agricultural sector undergoes its second major advancement after biomethane expansion. The global cotton market is experiencing pressure from commodity price fluctuations which result in higher demand for less expensive synthetic fibers. An executive from Abra stated that global logistics systems face operational disruptions because the Strait of Hormuz remains blocked which adds to production expenses and creates medium-term price declines for cotton.

The results from commodity markets displayed different performance patterns. Chicago corn prices increased by 0.4% to reach $4.70 per bushel for the May contract because of rising oil prices. The price of corn has increased by 8.26% during the last month. The New York exchange experienced a 0.7% decline in raw sugar prices while cocoa registered a 0.3% increase. The rising oil prices will shift Brazilian sugarcane production toward ethanol production which will decrease global sugar availability. Brazil will produce approximately 4 billion liters more of ethanol during the 2026/2027 harvest which will create a new record for the country which holds the title of largest sugarcane producer: 36,66 billion liters.

The National Monetary Council approved a R$7.4 billion allocation for FUNCAF in 2026 which will support coffee supply chain processes from cultivation to commercialization and damaged crop recovery. The national budget already includes this funding. A court in Paraná confirmed its earlier decision which prevents Bela Agrícola from merging its R$2.2 billion unsecured debts into one extrajudicial recovery plan. The Chinese-controlled group needs to modify its approach.

Biomethane: Production and Applications

Biomethane (also referred to as renewable natural gas or RNG) is a sustainable, high-energy biofuel derived from the purification of biogas. Chemically nearly identical to conventional natural gas, it consists primarily of methane (CH₄) with a concentration typically exceeding 90–95%. As a renewable energy source, biomethane plays a pivotal role in the global transition toward a circular economy and the decarbonization of energy matrices, particularly in sectors such as heavy transportation and industrial manufacturing.

Production Process

The generation of biomethane is a multi-stage industrial process that begins with the production of raw biogas and concludes with advanced refining techniques.

Anaerobic Digestion

The primary source of biomethane is biogas, which is produced through the anaerobic digestion (decomposition in the absence of oxygen) of organic matter. Common feedstocks include:

• Agricultural Residues: Livestock manure and crop remains;
• Urban Waste: Organic fractions of municipal solid waste and sewage sludge;
• Industrial Byproducts: Waste from food and beverage processing.

This decomposition typically occurs in controlled environments known as biodigesters or naturally within sanitary landfills. Raw biogas generally contains 50–70% methane, with the remainder being carbon dioxide (CO₂) and trace amounts of nitrogen, hydrogen sulfide (H₂S), and moisture.

Purification and Upgrading

To transform biogas into biomethane, it must undergo a process known as upgrading. This involves three critical removal steps:

1. Desulfurization: The removal of hydrogen sulfide (H₂S) to prevent corrosion of metallic components and engines.
2. Dehumidification: The elimination of moisture (water vapor) to ensure stable combustion and prevent internal freezing or corrosion.
3. CO₂ Separation: The extraction of carbon dioxide to increase the energy density (calorific value) of the gas.

Various technologies are employed for CO₂ separation, including membrane separation, water scrubbing, and pressure swing adsorption (PSA). Once the methane concentration meets regulatory standards — such as those set by the National Agency of Petroleum, Natural Gas and Biofuels (ANP) in Brazil — the gas is classified as biomethane.

Economic and Environmental Significance

Biomethane is distinguished from other renewables by its interchangeability with fossil-derived natural gas. This allows it to utilize existing infrastructure, such as pipelines and Compressed Natural Gas (CNG) vehicles, without requiring specialized modifications.

Environmental Impact

By capturing methane — a potent greenhouse gas — from organic waste that would otherwise decompose in the open, biomethane production significantly reduces atmospheric pollution. When used as a substitute for diesel or gasoline, it can reduce greenhouse gas emissions by up to 99%. Furthermore, the byproduct of the digestion process, known as digestate, serves as a high-quality organic fertilizer, closing the nutrient loop in agricultural systems.

Energy Security and Circular Economy

Unlike fossil fuels, biomethane is produced locally from domestic waste streams, shielding national economies from international oil price volatility and exchange rate fluctuations. It embodies the principles of the circular economy by transforming an environmental liability (waste) into a strategic energy asset.

Market Outlook and Challenges

The adoption of biomethane is accelerating globally, supported by legislative frameworks such as "Future Fuel" mandates that require major gas importers and producers to integrate renewable molecules into their portfolios. However, several challenges persist:

• Complexity and Scale: Biomethane plants require higher capital investment (CAPEX) and operational expertise compared to simple electricity generation from biogas;
• Regulatory Compliance: Meeting stringent purity standards for injection into national grids requires continuous monitoring and sophisticated instrumentation, such as online chromatographs;
• Contractual Rigidity: Due to the necessity of constant supply for industrial clients, "take-or-pay" or "delivery-or-pay" contracts are common, increasing the legal and financial complexity for project developers.

As technology matures and carbon markets expand, biomethane is expected to remain a cornerstone of sustainable development, providing a versatile bridge to a low-carbon future.