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."

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."