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."

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.

Digital Society, Broken Politics: Brazil’s Governance Crisis Explained

In 1988, as Brazil tentatively stepped out of the shadows of military dictatorship, a political scientist named Sérgio Abranches ublished an article that would indelibly shape the vocabulary of the nation’s nascent democracy. His concept, "presidencialismo de coalizão" (coalition presidentialism), described a unique and often volatile system where Brazilian presidents, typically lacking a clear parliamentary majority, were compelled to forge alliances across a fragmented political landscape. This mechanism, Abranches argued, explained much of both the successes and failures of democratic Brazil.

Nearly four decades later, Abranches observes with a critical eye as his seminal term is invoked daily, frequently as a pejorative, by a political class he now characterizes as "sclerotic" and "disconnected." In a wide-ranging interview, the sociologist, political scientist, and author of works such as A era do imprevisto (The Age of the Unforeseen) and Raízes e evolução do modelo político brasileiro (Roots and Evolution of the Brazilian Political Model), reflects on a nation at a profound structural impasse. Brazil, he contends, is caught between a deeply entrenched colonial past and a rapidly approaching digital future for which its governance structures are woefully unprepared.

According to Celso Rocha de Barros, the concept of coalition presidentialism is dead. Brazil’s political model has come under strain in recent years, with presidents continuing to be elected without a solid parliamentary majority. During a period marked by weaker administrations (Dilma Rousseff, Michel Temer, and Jair Bolsonaro), the     Brazilian Congress accumulated significant power and is now reluctant to return it to President Lula or any future executive leader.

Lawmakers, since Arthur Lira was president of the Chamber of Deputies (2012-2025), are pushing for a larger share of the federal budget to be allocated through parliamentary amendments rather than centralized government programs. This shift weakens the effectiveness of long-term strategic policies and redirects resources toward regional politics, where oversight tends to be more limited.

At the same time, the Brazilian Congress appears increasingly ideological. Lula’s main legislative success has been the fiscal framework, which represents a compromise, less restrictive than conservatives wanted but still requiring concessions from the left. However, the government has faced defeats on issues such as environmental policy, Indigenous rights, and combating misinformation, areas where right-leaning groups resist regulatory constraints.

The ‘Gelatinous’ State and Incidental Rulers

Abranches posits that Brazil’s persistent political instability is not merely a series of isolated incidents but a symptom of a chronic structural condition. He vividly describes the country's party system as "gelatinous" and "amorphous," largely dominated by oligarchies that have skillfully adapted to democratic transitions by embedding themselves within the state apparatus.

"We have a political elite that is completely disconnected from society," Abranches states, highlighting a fundamental schism. This profound disconnect, he argues, has fostered the rise of "governantes incidentais" (incidental rulers). Leaders like Fernando Collor de Melo e Jair Bolsonaro ascend to power not through organic political development but by exploiting moments of crisis, public fear, and widespread social dissatisfaction. These figures capitalize on the "brechas das crises" (breaches of crisis) rather than emerging from a robust, endogenous political construction.

The most glaring manifestation of this systemic decay, according to Abranches, is the emergence and entrenchment of the "Centrão", whichn is a powerful, ideologically fluid bloc within the Brazilian Congress. This group, he explains, prioritizes the extraction and allocation of state resources over any coherent programmatic agenda. The very tools of coalition presidentialism, originally conceived as a pragmatic necessity, have been subverted. "The president has lost his tools because the game is no longer programmatic; it’s pragmatic, depending entirely on budget amendments and appointments," Abranches laments, pointing to the increasing cost and difficulty of governance.

Federalism’s Contradiction and the Oligarchic Grip

A key structural problem, Abranches identifies, lies within Brazil’s federalist system. He describes it as inherently contradictory: states and municipalities possess significant political autonomy, yet remain financially dependent on the federal government. This dependency, a legacy of a "technocratic bias" dating back to the dictatorship, fosters clientelism and incentivizes local political actors to prioritize securing federal funds through parliamentary amendments, rather than developing independent economic bases.

This dynamic, he argues, reinforces local oligarchies and their reliance on a national figure like the president, who can release resources. "This distortion encourages local oligarchization and dependence on a national figure, who will be the one to give us what we need," Abranches explains. This system also contributes to the "amorfo" (amorphous) nature of Brazilian political parties, which struggle to renew leadership or connect with a national electorate.

A Digital Society, An Analogue Democracy

Despite the stagnation and structural challenges within its leadership, Abranches maintains a cautious optimism regarding the Brazilian populace. He observes that while the "industrial patriarchy" of São Paulo and the "old agro-elites" represent significant reactionary forces impeding innovation, the broader society is remarkably dynamic and technologically adept.

"The Brazilian society has no aversion to the new," he notes, citing the rapid adoption of digital banking, electric vehicles, and other technological advancements such as the use of ethanol, biomethane, hydrogen, SAF (Sustainable Agricultural Fuels), and the creation of technical solutions to current problems.

Accordingo to Abranches, "the problem is that you cannot have an analogue democracy in a digital society. They will never marry." He contends that Brazil is currently navigating a "policrise", chich is a confluence of climatic, social, and economic crises that traditional political and economic theories are ill-equipped to address. The path forward, he suggests, demands a profound exercise in "imaginação política" (political imagination).

The ‘Advantage of Backwardness’ and Future Opportunities

From an economic perspective, Abranches identifies a unique, albeit fleeting, opportunity for Brazil to leverage its "vantagem do atraso" (advantage of backwardness). By fully embracing the digital revolution and the burgeoning field of artificial intelligence, the country could potentially bypass traditional developmental stages and emerge as a significant player in the global digital economy.

"The digital revolution restarts the race," he proclaims. "We can build a digital economy focused on AI and cybernetics without waiting for others to define the path." This vision, however, is contingent upon a political will that is currently conspicuously absent. Abranches warns that the "forças reacionárias" (reactionary forces) of the old guard, those who benefit from centralized, bureaucratic control, remain the primary impediments to this transformative potential.

As Brazil approaches its next presidential election in 2026, the message from one of its most insightful political scientists is stark: the old paradigms are crumbling. To navigate the complexities of the 21st century and secure a democratic future, Brazil must transcend the "ghosts of its past" and actively cultivate a future that its dynamic and digitally native population is already, in many ways, inhabiting.

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.