Beyond Fuel: How Brazil Plans to Export Biomethane Technology to the Global South

A study made for Instituto MBCBrasil says Brazil may sell biomethane know-how to other countries. It points to growing world demand for cleaner transport fuels. The work was done by teams from the University of São Paulo, the Federal University of Itajubá, the Agronomic Institute of Campinas, and Mauá Institute of Technology.

The report also looks past fuel output. It says Brazilian firms could provide more than one kind of service and product. That includes biodigesters, gas cleaning units, and ways to move liquid biomethane. It also mentions linked solutions that tie renewable gas production to making low-carbon fertilizer.

The study highlights the sugar and ethanol industry as a key base. It estimates a biomethane production potential of 41.4 billion cubic meters each year. That number is put at more than 41 billion liters of diesel. Still, the report says under 2% of this potential is used today.

Glaucia Mendes Souza, a professor at USP, helped lead the study. She is also linked to IEA Bioenergy Task 39. In the report, she says Brazil’s chance is not only to make the fuel. She adds that Brazil can also take the role of supplier of technology, equipment, engineering work, and connected solutions for other places trying to cut emissions.

The study said this know how could be shipped to Latin America, parts of Asia, and parts of Africa. Those places have a lot of farm waste. They also do not have enough biodigestion systems. It noted that Brazilian firms such as Cocal, Raizen, Sao Martinho, and Adecoagro have already built biomethane plans. They use vinasse and sugar cane leftovers. For the 2024/25 crop season, Brazil handled about 680 million tonnes of sugar cane. The study put vinasse output at about 380 billion liters.

Biomethane is made after biogas is cleaned up. The biogas starts when organic material breaks down. In Brazil, the biggest inputs include landfill material and farm waste. That includes waste from livestock, vinasse, and filter cake from sugar and ethanol mills. After cleanup, the fuel acts much like fossil natural gas. It can be used for heat, for factory use, and for transport. It can also be put into existing gas lines.

The report also said the world market can grow more. It said biomethane is made in around 40 countries. It is also used for transport in close to 30 markets. It estimated global sustainable biogas and biomethane at about 1 trillion cubic meters each year. That is about a quarter of today’s natural gas use worldwide. It added that the European Union wants 35 billion cubic meters of biomethane per year by 2030. It said this is supported by plans for about 37 billion euros in investment.

Switching diesel to biomethane can lower well to wheel carbon dioxide equivalent output by about 45% to 75%, based on the study. In certain waste and manure setups, the result can look even lower than zero. It may show a negative 246% gap versus diesel once methane leaks that would have happened are factored in.

The fuel might also hold up on price for large trucks and fleets. In total cost of ownership runs, compressed natural gas or biomethane came out to $1.73 per km. Diesel was $1.87 per km. The study also noted that in Brazil, biomethane could be roughly 30% cheaper than diesel in one case, or about 25% more expensive in another.

Comgás targets small and medium-sized customers

Comgás has rolled out a new biomethane option for smaller and mid-sized firms in Sao Paulo state. It is offered under a regulated structure. The name of the program is Mercado Cativo Verde.

At the start, the deal includes 2,673 cubic meters of biomethane each day. Over time, it can rise up to 50,000 cubic meters per day. That depends on how demand grows and how supply and rules play out.

The Sao Paulo Public Services Regulatory Agency approved the plan. Before this, getting biomethane from the distributor mainly worked for big industrial users. Those customers were in the state’s free gas market. That free market makes up roughly 80% of Comgás sales volume.

Now the focus is on other types of buyers. The list includes smaller factories. It also includes refrigeration operators, cogeneration projects, and mobility users. Examples are commercial fleets and compressed natural-gas stations.

Comgás says it will put about 10 billion reais into the effort through 2029. The spending is meant for things like expanding the network. It also covers resilience work and new links between biomethane producers and end users. The company also expects more room for its buyers in the free gas market in 2029. It also expects higher demand tied to decarbonization in commercial fleets.

Henrique Sonja, the supply director at Comgás, said the program is meant for customers who want biomethane as part of their sustainability work. He added that they also want the steadiness of a regulated market, without extra complexity.

Buyers are not asked to take the exact physical molecule made by a supplier. What they do must still be checked. The system requires that an equal volume be proven to be made, fed into the network, and then bought. After that, each volume’s environmental claim is logged in a tracking tool. When the purchase is completed, that entry is closed. This is meant to stop the same claim from being used again or resold.

The setup also relies on Biomethane Guarantees of Origin. These were made under Brazil’s Fuel of the Future law. Their job is to show the fuel’s renewable source and keep a clear trace. Comgás intends to charge for the biomethane and the environmental claim in one bill. The charge will follow the regulated market tariff rules.

In 2025, Brazil made 1.06 million cubic meters of biomethane each day. That is against a figure of 120 million cubic meters per day for technical potential. ABiogás, an industry group, set that estimate. ABiogás also says the biogas and biomethane chain could pull in 246 billion reais in investment. It could also create 110,000 jobs by 2035.

By June 2026, Brazil had 21 plants that were allowed by the National Agency of Petroleum, Natural Gas and Biofuels. Those plants had a combined installed capacity of 1.33 million cubic meters per day. At the same time, 48 more plants were in the approval process. If that work stays on track, total national capacity could reach 3.37 million cubic meters per day by 2028.

Brazil Uses Biomethane Trucks to Move Sugar to Santos Port

Brazilian sugar producer Bioenergética Aroeira S. A. and its logistics partners have started a low carbon route to move sugar from Minas Gerais toward the Port of Santos, using trucks fuelled by biomethane made from sugarcane industry waste, before the cargo gets shifted to rail.

This pilot is a bit of a mix between Aroeira, Gasgrid, ZEG Biogás, Aguetoni Transportes and VLI Logística. The biomethane powered trucks take the sugar to VLI’s Uberaba Intermodal Terminal, and from there the load travels along the Centro-Atlântica rail line to Santos for export, more or less straight.

In the initial phase they expect the movement to reach around 12,000 tonnes of sugar each month, with the figures possibly climbing later this year. The partners are also looking at something near 200,000 tonnes carried in 2027.

The biomethane is being made by processing industrial sugarcane leftovers, through biodigestion and then purification, at a plant that was built by Aroeira and Gasgrid/ZEG Biogás. The setup is meant to turn a sugar and ethanol industry side-product into fuel for the very first stretch of the commodity’s export travel.  

VLI said that rail transport can emit up to 75% less carbon dioxide per tonne moved than trucks that use fossil fuels, but the company didn’t share any estimate that was specific to the project. Still, the mix of renewable-gas trucking and rail haulage is supposed to lower the carbon intensity of one of Brazil’s big agricultural export routes.  

This project also joins a broader momentum within Brazil’s sugar and bioenergy sector to use biomethane as a substitute for diesel in heavy transport. Firms have pointed to the fuel’s potential, for cutting emissions, diversifying energy supply and extracting more value from organic waste. But wider use will hinge on investing in production units, distribution channels and refuelling infrastructure.

Brazil’s biogas association ABiogás said the sector could pull in around 216 billion reais in private capital by 2035, provided the country expands renewable-gas production and use. The group also forecast 57 billion reais in added annual revenue, more than 251,000 jobs , and over 40,000 biomethane-powered trucks, but noted that these targets rely on fresh infrastructure, regulatory measures and consistent fuel demand.  

Biomethane is starting to look like a realistic diesel alternative for Brazil’s heavy-duty transport, where battery range, charging time, and the whole infrastructure picture are still kind of limiting electrification. Made from agricultural and sugarcane waste, the renewable gas could cut logistics emissions, and also ease off diesel dependence. Still, wider uptake will likely need new production plants, refuelling networks, plus regulatory backing, because otherwise it is hard to scale.

Why Biomethane matters in Brazil

Biomethane is starting to look like an alternative fuel for Brazil’s heavy transport sector, kinda because it can be made from agricultural leftovers plus industrial waste, so it’s not just theory. This fuel is especially relevant to Brazil’s sugar and ethanol industry, since that sector produces huge amounts of organic residues which otherwise can turn into a problem.

Brazil: J&F Investimentos Expands Biomethane Production to Replace Diesel at Friboi Plants

Brazilian energy firm Âmbar Energia, which is a unit from J&F Investimentos, said Monday that it plans to invest 65 million reais ( $11.5 million ) to enlarge its biomethane output using industrial leftovers at three meat processing facilities.  

Under the plan, the company expects to bring in over 14 million cubic meters of renewable fuel each year into its energy mix, and in the process it will swap fossil fuels for operations run by Friboi, the beef division inside J&F.  

This effort sort of builds on biodigesters already put in place at nine Friboi plants since 2021, meant to catch methane coming from industrial effluent. Before, that methane was essentially burned off or flared to avoid a direct atmospheric release. Now, the biogas will be purified into biomethane so it can line up with national fuel standards.

When we looked at this investment, we kind of saw a chance because Friboi had already put in the biodigesters to cut greenhouse gas emissions, and honestly that part was important. The gas was being burned, and now we can handle it properly, sort of taking care of it by removing the CO₂ and H₂S components, then we transform it into biomethane, said Marcelo Dresch, Âmbar’s sustainability and biogas manager.

The first upgraded unit, Campo Grande II in Mato Grosso do Sul, will add a second production machine in August. The plant, which has had the basic infrastructure in place for around three years, will end up energy self-sufficient, more or less.

“The first machine already supplies about 80% of the plant’s natural gas requirements. With the second, it becomes fully self-sustaining , and we will have a surplus that can be offered and sold to third parties,” Dresch said.

As for timing, the Andradina unit in São Paulo state is set to start operations in January 2027, while the Lins plant, also in São Paulo, is expected to begin production in January 2028.

Âmbar estimates that the annual output will end up replacing about 12 million liters of diesel, and also prevent something like 30,000 tonnes of CO₂ each year.  

The company is additionally looking at using part of the biomethane output for J&F’s logistics work, especially the heavy transport side, and in doing so, tying the fuel to group activities, including Green Cargo. Green Cargo leases and sells natural gas and biomethane powered trucks, and Logás manages fuel logistics in places where pipeline infrastructure isn’t available, or it’s limited.  

“The plan is to build a kind of connected loop, where waste made by industrial activities turns into fuel again inside the own production chain,” Dresch said.  

Âmbar is also examining waste streams from other J&F operations, such as the poultry processor Seara, and the residue coming from cattle feedlots, for future biomethane ventures.

From Waste to Wealth: How Brazil is Turning Pig Manure and City Trash into the 'Fuel of the Future'

Across Brazil there’s a pretty quiet revolution happening, in the pipes and pits of the country’s industrial heartlands. From hog farms down south to the trash heaps in the northeast, waste isn’t just some leftover problem anymore, it’s turning into a kind of strategic energy asset.

In Santa Catarina, a southern state, a milestone has been reached this month. For the first time, biomethane made from swine waste has been injected straight into the state’s piped gas network. What used to be a costly environmental burden for pig farmers, dealing with nitrogen rich runoff that can choke local waterways is now showing up as revenue, helping power industries and stepping in for fossil derived natural gas.

“This is the state of the art,” says a local industry representative. “We went from using biogas for carbon credits, then for electricity, and now we’re purifying it into biomethane. It’s a renewable fuel that’s chemically the same as natural gas, but 100% organic.”

The Urban Frontier: Cleaning Up the Megacities

The revolution isn’t confined to the countryside. In São Paulo, South America’s largest metropolis, the transition is hitting the streets. Volkswagen Truck & Bus recently closed a landmark deal to supply 56 biomethane-powered trucks to Loga, the company responsible for urban waste collection in the city.

The irony is poetic: the very waste collected by these trucks can be processed into the fuel that powers them. These vehicles reduce CO2 emissions by up to 90% compared to diesel, and in a city plagued by noise pollution, their quieter gas engines offer a rare respite for residents.

“The market acceptance is exceeding expectations,” says Ricardo Alouche of Volkswagen. “Our production is already committed through September. The operational savings make the choice easy for clients.”

A Billion-Dollar Race in the Northeast

While the south and southeast lead in immediate application, a high-stakes investment race is heating up in the Northeast. States like Pernambuco, Bahia, and Ceará are positioning themselves as hubs for green fuels, including biomethane, sustainable aviation fuel (SAF), and green hydrogen.

In Ceará, a R$1.4 million project led by the Industrial Technology and Quality Nucleus (NUTEC) is pushing the boundaries of science. Researchers are using microalgae and artificial intelligence to purify biogas from urban sewage and agribusiness waste into commercial-grade biomethane.

The scale of the potential is staggering. The Brazilian Biogas Association estimates that the country could produce 7 million cubic meters of biomethane per day by 2030, attracting R$348 billion in investment and creating nearly 800,000 jobs.

The Infrastructure Bottleneck

However, the path to a green future is not without hurdles. Brazil’s gas pipeline network remains concentrated in coastal regions, leaving vast swaths of the interior — where the biomass is most abundant — isolated. Thousands of landfills still vent methane into the atmosphere, wasting a resource that could be heating homes or powering factories.

For regions like Paraíba, the challenge is to move beyond being a mere supplier of raw biomass. The goal is to build a local industry of engineering, automation, and technology. Therefore, the transition won’t be built solely by large plants, but it will pass through small solutions scattered across the fields and cities.

As Brazil grapples with its climate commitments, the biomethane boom offers a rare win-win: cleaning up the environment while securing energy independence. The "fuel of the future" has arrived, and it smells like opportunity.

The ‘Green Paradox’: Can Brazil Drill for Oil and Lead the Climate Revolution?

As global energy investments hit a record $3 trillion, Brazil finds itself in a unique position, balancing its status as a top-10 oil producer with one of the world's cleanest energy matrices. But as the world races toward 2050, the country faces a difficult question: should it open up the "Equatorial Margin" for oil exploration?

Brazil is often cited as a global outlier in the climate crisis. While the global average for CO₂ emissions from the energy sector stands at a staggering 76%, in Brazil, that figure is just 20%. This is not an accident of history but the result of decades of public policy, from the "Proálcool" program of the 1970s to the massive expansion of hydroelectric and wind power.

However, a new debate is surfacing in Brasília that highlights the pragmatic, and often contradictory, nature of the global energy transition. Even as the country invests heavily in Sustainable Aviation Fuel (SAF) and green hydrogen, it is also eyeing the "Equatorial Margin," a vast offshore area in the north that could hold billions of barrels of oil.

THE PRAGMATIC PATH

"The transition is a compilation of joint actions by environmentalists, economists, and governments," says Dr. Paula Meyer, an energy economics expert at the University of Brasília. "It’s not just about speed; it’s about a complex process of converting entire production chains. Oil and gas will remain essential components of our base during this maturation period."

For Yuri Schmitke, head of the Brazilian Waste Energy Association, the path forward is not about "attacking the system" of fossil fuels but about a gradual, balanced reduction. He argues that Brazil’s true strength lies in its "multiplicity of solutions", like biomass, biogas, and biomethane, which often receive less regulatory attention than solar or wind but offer 10 to 15 times more decarbonization potential.

A GLOBAL REBALANCING

While Brazil navigates its internal dilemmas, the global stage is shifting. China has consolidated its dominance in clean energy supply chains and critical minerals. Meanwhile, the United States is struggling to regain technological ground after years of subsidy cuts, and Europe’s green ambitions are being sidelined by the urgent need for military spending amid regional conflicts.

"Brazil has already done its energy transition decades ago," Schmitke points out, noting that the country's electricity matrix is already 93% renewable, a target Europe is only hoping to reach by 2050.

THE CARBON MARKET FRONTIER

The next great challenge for Brazil is the implementation of a regulated carbon market (SBCE). By aligning with international standards, Brazil aims to turn its environmental preservation and reforestation efforts into a massive financial asset, exporting carbon credits to the "global north" to offset emissions in the US, China, and Europe.

As the world’s energy investment increasingly pivots toward renewables, double the amount spent on fossil fuels, Brazil’s "eclectic" approach serves as a benchmark test for the rest of the world. Can a nation remain a global oil giant while simultaneously leading the charge toward a zero-carbon future? In the halls of power in Brasília, the answer seems to be that it must do both.

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.

Brazil’s Pragmatic Path to Decarbonization: Beyond the Electric Bus Hype

In the global race to decarbonize urban fleets, the narrative is often dominated by a single, sleek solution: the electric bus. From London to Shenzhen, cities are betting billions on batteries. But in the bustling streets of Goiânia and the industrial heartland of São Paulo, a more "eclectic" and distinctly Brazilian revolution is taking hold. It is a story of pragmatism over dogma, where cow manure and sugarcane waste are challenging the supremacy of the charging plug.

At the end of March, Goiânia launched Brazil’s first fleet of articulated buses powered by biomethane, a renewable version of natural gas. Unlike fossil fuels extracted from deep underground, this "green gas" is harvested from urban waste, livestock manure, and vinasse, a pungent byproduct of ethanol production. It is what local industry insiders humorously call the "redneck pre-salt" (pré-sal caipira), a nod to Brazil’s vast offshore oil reserves, but found instead in the country's agricultural interior.

The ‘Real Brazil’ Reality Check

The shift toward biomethane isn't just about environmental idealism; it’s a response to the "Real Brazil." In São Paulo, the city with the country's largest electric fleet, ambitious electrification targets for 2028 are unlikely to be met. The hurdles are stubbornly concrete: an electric bus costs up to three times more than its diesel counterpart, credit for operators is scarce, and the electrical grid, managed by the embattled utility Enel, a company that is suffering from blackouts and a backlog of complaints, which have fueled pressure for the energy company to lose its concession, especially after blackouts affected thousands of people in São Paulo and caused losses in the billions of reais.

While an electric bus can cost 3 million reais, a biomethane version costs about 1.5 million. For cash-strapped operators still reeling from the pandemic’s impact on passenger demand, this price difference is the deciding factor. Furthermore, while an electric bus requires four hours to recharge and offers a reliable range of 200km, a biomethane bus can be refueled in 15 minutes and travel over 400km, more than enough for a full day’s service.

A Circular Revolution in Goiânia

Goiânia’s case is particularly striking. The state of Goiás does not have a single kilometer of natural gas pipeline. Yet, it is home to 30 major ethanol plants and a massive livestock industry.

By partnering with local producers to build a dedicated biomethane plant, the city has created a circular economy. The buses provide the guaranteed demand that makes the plant viable; the plant, in turn, provides the fuel that keeps the city moving.

The goal is to reach 500 biomethane vehicles by 2027, a 2.5-billion-reais investment that signals a major shift in how Brazilian cities view sustainability.

The ‘Eclectic’ Future

The consensus among manufacturers like Scania and Marcopolo, as well as industry bodies like ANFAVEA, is that the future of Brazilian mobility is not a "silver bullet" solution. Instead, it is "eclectic."

"There is no technology that will dominate," says Igor Calvet, president of ANFAVEA. "Brazil is surprisingly competitive because we have an incredibly renewable energy matrix, 90% of our electricity is clean. The ideal is to unite biofuels and electrification."

This hybrid approach allows for regional specialization. In the Amazon, where the grid is weak, biofuels might lead. In dense urban centers with shorter routes, electric buses remain the long-term gold standard due to their lower daily operating costs, roughly 5,000 reais a month in energy versus 25,000 reais for diesel.

The Certification Bridge

For companies that cannot yet physically access biomethane due to logistical gaps, a new market for "Biomethane Guarantee of Origin" certificates is emerging. Similar to carbon credits, these allow firms to neutralize their emissions by proving an equivalent volume of renewable gas was produced elsewhere in the country.

As Brazil navigates its transition, it is proving that decarbonization doesn't have to be a one-size-fits-all story. It is a mosaic of choices made city by city, route by route, and garage by garage. In the land of the "redneck pre-salt," the path to a greener future is being paved with a healthy dose of Brazilian ingenuity and a lot of agricultural waste.

85% Renewable and Rising: Brazil’s Rio Grande do Sul Unveils a Bold Energy Transition Strategy

Rio Grande do Sul, Brazil’s southernmost state, is positioning itself as a vanguard in the global energy transition, leveraging a highly renewable power grid and a strategic focus on domestic green hydrogen consumption to drive industrial decarbonization.

Speaking at the 6th Renewable Energy Forum in Porto Alegre, Rodrigo Huguenim, Energy Director at the State Secretariat for Environment and Infrastructure (SEMA), highlighted that 85% of the state's electricity matrix is already renewable, led by hydro, solar, and wind power.

GREEN HYDROGEN: THE "MISSING LINK"

The state is betting heavily on green hydrogen as a catalyst for sustainable industrial growth. Unlike other regions focusing primarily on exports, Rio Grande do Sul’s strategy centers on establishing a robust domestic market first.

"Our goal isn't just to export hydrogen as a commodity," Huguenim said. "We want to use it to decarbonize our local industry, such as our massive agribusiness and biodiesel sectors, adding value to our products before they reach international markets with a 'green' seal of approval."

In 2025, the state launched a 100 million reais ($17.3 million) tender to support private-sector green hydrogen projects. Four major companies — Be8, Rodoplast, Tramontina, and Âmbar Sul Energia — were selected to spearhead the state’s first production plants.

STRATEGIC PLANNING AND RESILIENCE

Rio Grande do Sul remains the only Brazilian state with comprehensive energy atlas, mapping all its renewable resources, including wind, biomass, solar, and a newly updated hydro-energy atlas released in 2024.

This data-driven approach is coupled with a renewed focus on infrastructure resilience following the catastrophic floods of May 2024. The state has commissioned a specialized study on energy transmission to identify "neuralgic points" and ensure the grid can support the influx of new data centers, battery storage, and hydrogen projects.

"There is no energy transition without transmission," Huguenim emphasized, noting that the state is working closely with federal agencies like the EPE (Energy Research Office) to coordinate long-term grid stability.

BIOMETHANE AND THE "GAS ERA"

The state also sees biomethane as a critical component of its "energy addition" strategy. Rather than simply replacing fossil fuels, Huguenim argues that the world is entering an era of gases where biomethane and hydrogen will complement existing sources to ensure energy security and cost-effectiveness.

With 40% of its GDP tied to agribusiness, Rio Grande do Sul has a ready-made market for green fertilizers produced via hydrogen and biomethane, potentially reducing the state’s dependence on imported methanol and nitrogen-based inputs.

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."