From Landfills to Legislation: The Expansion of Brazil’s Biomethane Market

Brazil’s biomethane industry is gaining momentum as pioneering production projects converge with a new regulatory framework designed to expand the market and attract investment.

One of the sector’s landmark initiatives is located at the Dois Arcos sanitary landfill in São Pedro da Aldeia, Rio de Janeiro state. Operational since 2014, the facility became the first landfill in Brazil authorized to commercialize biomethane, receiving regulatory approval in 2017 from ANP, the National Agency of Petroleum, Natural Gas and Biofuels. Initially designed to produce around 16,000 cubic meters of biomethane per day, the plant has increased capacity to 18,480 m³/day through operational efficiency gains.

The landfill receives roughly 900 tons of municipal waste per day from eight municipalities, generating biogas through the anaerobic decomposition of organic material. The gas is captured through a network of more than 300 wells, about half of which remain active. Technicians continuously monitor methane concentrations and pressure levels to maximize gas recovery.

A key innovation at the site is its hybrid system, which allows biogas to be directed either to biomethane upgrading or to electricity generation. Higher-quality methane streams are routed to the biomethane plant, while lower-grade gas is used to produce power.

Beyond production, Brazil is also developing a regulatory ecosystem to support the biomethane market. Certification company, the Instituto Totum, founded in 2004, operates as a third-party agent providing verification, validation and certification services in various sectors, including biomethane.

A major regulatory milestone is the Fuel of the Future Law, whose discussions began in 2024 and which aims to expand biomethane use through the creation of the Biomethane Origin Guarantee Certificate (CGOB). The certificate separates the physical biomethane molecule from its environmental attribute, allowing producers to sell the fuel locally while trading the environmental credit independently. This mechanism is seen as particularly important in Brazil, where transporting biomethane over long distances can be logistically challenging.

The CGOB differs from the existing Gasc certification program, which primarily serves the voluntary market for biogas and biomethane. While Gasc uses a simpler purchasing process and measures gas in calorific value (millions of BTUs), CGOB focuses on biomethane that meets national fuel standards and measures volumes in cubic meters. The new system also requires buyers to participate directly in the registration and retirement of certificates, reflecting its more regulated structure.

Industry participants expect the new framework to stimulate investment and encourage biomethane production across the country. As the market expands, certification firms such as Toton are preparing to operate within the new system, ensuring transparency and preventing double counting between certification schemes while offering producers greater flexibility in how they commercialize their biomethane and associated environmental attributes.

The biomethane sector in Brazil is now poised for significant growth, driven by new policies aimed at increasing the share of renewable natural gas in the energy matrix. 

Although biomethane has been blended in places like Ceará into the gas network since 2018, the current production from 11 plants (840,000 m³/day) is minimal compared to Brazil's natural gas demand, which is 61 million m³/day. 

The main consumers include thermoelectric power plants, industrial users, and residential networks. The sector is expected to experience significant growth after 2026, when the Future Fuel Act will require gas distributors to blend biomethane with natural gas, starting at 1% this year and reaching 10% by 2035, with the goal of reducing fossil fuel consumption and greenhouse gas emissions.

Thus, under Brazil’s new regulatory framework, demand for biomethane is expected to rise sharply. Petrobras alone may require around 700,000 cubic meters of biomethane per day to comfortably meet its mandated blending quota, an amount that is nearly equal to the country’s current total biomethane production capacity.

Other distributors are also increasing their use of the renewable gas. São Paulo-based distributor Comgás already injects about 71,000 cubic meters of biomethane per day into its network, primarily supplied by a project in the city of Piracicaba. The company is now pursuing additional supply agreements as it prepares to expand biomethane use under the new regulations.

Biogas vs. Biomethane: Key Differences and Why They Matter for Brazil’s Clean Energy Future

Biogas and biomethane, are you familiar with them? They are not identical products, though their names are quite alike. Nonetheless, by these means the waste of daily life could be transformed into energy that is both clean and renewable.

In Brazil, organic waste is a problem that is often associated with environment. Yet this very material can turn out to be one of the major energy solutions of the country.

What Is Biogas?

Biogas is produced naturally when organic matter decomposes in environments without oxygen. This includes food scraps, animal manure, agricultural waste, vinasse from ethanol production, and the organic fraction of urban waste that ends up in landfills.

During decomposition, microorganisms break down this material and release biogas, a mixture primarily composed of carbon dioxide (CO₂) and methane (CH₄).

And here’s the key point:

Methane is a greenhouse gas about 25 times more powerful than CO₂.

If released into the atmosphere, it accelerates global warming. But when captured and treated, methane becomes a renewable energy source with significant environmental and economic value.

Today, biogas is widely used around the world to produce electricity, heat, and fuel. In Europe, industrial plants convert agricultural waste into energy capable of supplying entire communities.

Brazil’s Untapped Potential

With a strong agricultural sector and a high volume of urban waste, Brazil has one of the world’s largest potentials for biogas and biomethane production.

Because the country already has a predominantly clean electricity mix, the greatest opportunity lies in upgrading biogas to biomethane.

What Is Biomethane?

To produce biomethane, biogas undergoes purification. During this process, impurities are removed, humidity is eliminated, and CO₂ and nitrogen are separated.

The result is biomethane, a gas containing around 95% methane, with high calorific value and performance comparable to natural gas. In other words, a 100% renewable fuel capable of replacing fossil fuels in industry and transportation.

Biomethane can:

• Supply boilers, furnaces, burners, and other industrial equipment
• Fuel light and heavy vehicle fleets, including buses and trucks
• Reduce dependence on diesel and natural gas
• Lower emissions and improve energy efficiency
• Double Environmental Benefit
• Using biomethane offers two major environmental gains:
• It prevents methane from waste from reaching the atmosphere.
• It replaces fossil fuels, significantly reducing greenhouse gas emissions.

Replacing the diesel used by a single truck is comparable to planting more than 100 trees per year, showing how large-scale adoption can generate massive climate benefits.

Driving Local Development

Produced in Brazil, biomethane strengthens the local economy, creates green jobs, and stimulates new value chains. Every ton of CO₂ avoided contributes directly to national decarbonization and the global energy transition.

Biogas + Biomethane: A Circular Economy Solution

To sum up:

Biogas is generated from the decomposition of organic waste.

Biomethane is the upgraded, purified version of biogas, a high-efficiency, 100% renewable fuel capable of replacing fossil sources in industry and transportation.

This technology brings together circular economy principles, sustainability, and innovation, positioning Brazil as a global leader in clean energy.

Unioeste Boosts Renewable Energy Innovation in Western Paraná

Unioeste (Toledo campus) is emerging as a key research center for renewable energy in western Paraná, in the southern region of Brazil, a region dominated by agroindustry and high waste production. Led by professor Carlos Eduardo Borba, the university is developing advanced technologies to convert locally abundant biogas into biomethane and hydrogen, clean fuels essential for Brazil’s energy transition.

The team focuses on two core areas:

Biomethane production through selective adsorption that removes CO₂ and H₂S, creating a renewable fuel comparable to natural gas.

Hydrogen-rich syngas generation using dry reforming and shift reactions to transform methane and CO₂ into high-value industrial gases.

The research integrates major innovation networks such as NAPI-H2 and NAPI-Biogás and uses advanced mathematical models to determine the most efficient and economical use of biogas in each scenario.

These technologies help reduce methane emissions, convert agricultural waste into energy, and support cleaner transportation and industrial processes. Unioeste strengthens the regional circular economy by turning scientific research into real-world sustainable solutions.

Energy Transition: Natura (NATU3) Embraces Biomethane Amidst Brazil's New Regulations

The new Brazilian rules for biomethane implementation which various industries now use as a replacement for natural gas fossil fuels will drive both energy transition progress and business carbon reduction activities.

The Brazilian federal government completed its biomethane policy regulations through the Fuel of the Future program in September 2025, which will enable the country to increase its renewable gas production for domestic use. The policy establishes an initial requirement for 1% biomethane blending in 2026, which can increase to 10% through future regulations that will apply to both natural gas producers and importers. 

Biomethane is a renewable energy produced from organic waste such as agricultural residues, food waste and animal manure. The materials are processed through anaerobic digestion, in which microorganisms break down organic matter in oxygen-free tanks, generating biogas composed mainly of methane and carbon dioxide. This biogas is then purified, or upgraded, to produce biomethane suitable for energy use.

It produces energy with the same efficiency as natural gas while emitting virtually no carbon emissions because its combustion emissions get canceled out by the carbon dioxide which plants capture during photosynthesis.

With this new regulatory framework, Brazil will establish yearly decarbonization benchmarks which will transform the country energy system by increasing renewable gas usage throughout transportation systems industrial operations and electricity production sectors.

One example of thar is the Brazilian cosmetics company Natura (NATU3) which opened a biomethane refueling station at its Cajamar industrial site located near São Paulo through its collaboration with Ultragaz. The project aims to cut logistics-related emissions, particularly Scope 3 emissions generated by outsourced transport operations.

The initiative operates 28 trucks that move goods between the Cajamar plant which generates 90 percent of Natura's domestic production and regional distribution centers using only biomethane as fuel. The fleet is operated by logistics companies Coopercarga and Reiterlog.

Natura plans to achieve a 42 percent reduction of its Scope 3 emissions by the year 2030. The biomethane system operates at a refueling rate of 2,000 cubic meters per hour. The company plans to receive returns on its investment within two years although it has not released specific investment amounts.

Ultragaz will supply 3.5 million cubic meters of biomethane per year to Natura, enough to power roughly 17,500 households. The project benefits the environment by decreasing the company carbon emissions which leads to lower business expenses according to Angela Pinhati who is the sustainability director at Natura.

The initiative has the potential to motivate companies to start investing in biomethane although the absence of a national distribution system which connects production areas to customers presents infrastructure problems.

The biomethane which Natura receives comes from the Caieiras landfill, which stands as the biggest landfill in Latin America because it receives organic material from the Cajamar waste processing center. The facility generates approximately 350,000 cubic meters of biomethane each day, with Ultragaz distributing 67,000 cubic meters of this total daily.

The current production of biomethane in São Paulo state results in 16% of its total output coming from landfills according to state authorities, which demonstrates how this fuel supports circular economy systems while helping to decrease greenhouse gas emissions throughout Brazil.

Brazil Expands Biomethane Trucks as Renewable Gas Production Surges

Brazil is rapidly expanding its biomethane-powered heavy-duty vehicle fleet and production capacity, positioning the renewable gas as a key component in its energy transition and transport decarbonization strategy.

Biomethane output in São Paulo state alone is projected to surge by 50% in 2026 with the launch of seven new biogas plants, according to industry projections. This expansion is bolstering Brazil's renewable natural gas (RNG) infrastructure and aims to reduce reliance on diesel in freight transportation.

Swedish manufacturer Scania, an early entrant, is now facing competition from Chinese automaker JAC Motors, which is introducing new gas-powered heavy trucks. Brazilian logistics firm Green Cargo plans to deploy between 150 and 200 biomethane trucks over the next 12 months, partnering with major corporations including JBS, Suzano, Veracel, and Eldorado for vehicle validation.

Volkswagen Caminhões e Ônibus is also contributing, with its new Constellation Biomethane model joining the fleet of EcoUrbis, a São Paulo waste management concessionaire. The vehicle, customized for solid waste collection, can cut CO2 emissions by up to 90% compared to diesel models, the manufacturer stated.

In a significant investment, Brazilian engine maker MWM and Vamos Group, a leading truck and machinery rental company, are jointly investing 150 million Brazilian reais ($30 million) in a project to convert diesel trucks to operate on biogas. Vamos plans to deliver the first 100 converted units to Rio de Janeiro's municipal sanitation company, Comlurb, in the first quarter.

Experts highlight biomethane's strategic role in energy security, as it is domestically produced from local waste streams, offering stability against geopolitical factors affecting fossil natural gas. Academic research is focusing on upgrading biogas to biomethane and integrating plants into circular bio-refineries, further supporting technological development and sustainability standards.

Strategic Benefits of Biomethane

• Energy Security: Biomethane is domestically produced from local waste, reducing dependence on imports and geopolitical factors
• Economic Impact: Stabilizes energy prices, supports rural development, and creates qualified jobs
• Environmental: Reduces nitrate pollution, minimizes odors, and provides biofertilizer from digestate

Scale Considerations: Medium-sized biomethane plants offer the optimal balance between efficiency and environmental management. Small plants in small cities sometimes lack technical expertise or lack of qualified professionals in Brazil, while very large facilities face logistical challenges.

Transportation Applications: Biomethane trucks reduce greenhouse gas emissions while maintaining performance comparable to diesel vehicles. When produced at scale, biomethane can be price-competitive with fossil natural gas.

Brazil's Strategy

As Brazil expands biomethane production, renewable gas is becoming central to the country's decarbonization strategy, connecting waste management, energy independence, and sustainable freight transport.

Brazil and Biomethane: Renewable Gas Gains Strategic Ground as Minas Gerais Advances Regulation and Industry Scales Up

Brazil's biomethane industry is poised for significant growth, driven by increasing decarbonization pressures and recent regulatory advancements, particularly in the state of Minas Gerais. The renewable gas, produced from organic waste, is emerging as a strategic asset in the country's industrial decarbonization efforts, offering a pragmatic solution for sectors heavily reliant on fossil natural gas.

Biomethane's compatibility with existing gas infrastructure presents a decisive advantage for hard-to-electrify industries such as ceramics, glass, food processing, paper, and chemicals, allowing them to cut emissions without immediate equipment replacement.

Several factors are accelerating the biomethane market in Brazil, including growing pressure for decarbonization targets, rising demand for circular economy solutions, energy security concerns, and the volatility and higher costs of fossil gas. Unlike other clean energy alternatives, biomethane can often be injected directly into existing gas grids, reducing transition costs and operational disruption.

Brazil possesses significant structural advantages for biomethane production, combining large-scale agribusiness, a robust sugarcane industry, extensive urban waste generation, and an expanding gas market. Feedstocks like vinasse, filter cake from sugar-energy operations, livestock waste, industrial effluents, and municipal solid waste offer substantial technical potential, though current production remains below estimated capacity.

Despite a growing pipeline of projects, the sector faces challenges, including limited connection to gas distribution networks in some producing regions, high upgrading and purification costs for small-scale plants, and the need for long-term supply contracts to ensure price predictability. Regulatory fragmentation at the state level also poses a hurdle, risking isolated development rather than systemic scale.

A major step forward occurred on February 9, 2026, with the publication of Decree No. 49,172 by the Minas Gerais government. This regulation establishes operational guidelines for biogas, biomethane, and low-carbon hydrogen policies, alongside rules for sharing and integrating gas infrastructure. The decree implements State Laws 24,396/2023 and 24,940/2024, providing clearer frameworks for licensing, commercialization, certification, environmental standards, and economic incentives.

Minas Gerais currently boasts 453 million Nm³ per year of installed biogas capacity across 359 operational facilities, representing approximately 10% of national production. In 2025, the state inaugurated its first biomethane plant, operated by Zeg Biogás in Tupaciguara, with an investment of BRL 78.6 million. Two additional biomethane units are under authorization in Sabará, with a combined capacity of 108,000 Nm³ per day.

The decree also advances low-carbon hydrogen policy, detailing technical standards, certification mechanisms, and economic incentives to expand hydrogen's role in heavy industry, mobility, and energy storage.

Industrial investment is also expanding. MAT, a Brazilian manufacturer of gas cylinders and trailers, reported record revenues exceeding BRL 30 million last year from compression systems and accessories. Approximately 70% of the equipment sold in 2025 was for biomethane compression, storage, and transport. According to data from the International Center for Renewable Energy (CIBiogás), Brazil had 79 biomethane plants in 2025 (54 operational, 25 under implementation), with biomethane supply expanding 107% during the year.

MAT is now considering local production of compressors, currently imported from Italy, which could facilitate financing through Brazil’s Finame machinery credit program.

Biomethane's appeal in Brazil rests on three strategic pillars: immediate emissions reductions using available technology, valorization of environmental liabilities through waste recovery, and lower operational disruption compared to alternative decarbonization pathways. If infrastructure gaps and regulatory harmonization challenges are addressed, Brazil could become a global leader in renewable gas production. The market's maturation speed will be crucial, but the convergence of industrial competitiveness, circular economy, and energy transition suggests that renewable gas is moving to the core of Brazil’s low-carbon strategy.

Brazil’s Biogas and Biomethane Market Accelerates with New Power Plants, Billion-Real Investments and SAF Projects

From Landfill to Low-Carbon Jet Fuel: How Brazil's Biomethane Policy is Redefining the Circular Economy and Global Climate Fight

Brazil is rapidly emerging as a global laboratory for the circular economy and a key player in the fight against climate change, driven by an accelerating market for biogas and biomethane. This energy revolution is not merely a matter of market growth; it is a systemic policy shift that transforms waste management into a high-value, low-carbon energy source, positioning the nation at the forefront of responsible fuel production and decarbonization efforts.

The expansion is marked by significant private investment, new power generation capacity, and pioneering projects in Sustainable Aviation Fuel (SAF), reinforcing Brazil’s commitment to a cleaner energy matrix and its global climate pledges.

The Policy Pivot: Biomethane as a Decarbonization Bridge

While Brazil already boasts one of the world's cleanest energy matrices, largely thanks to hydro, wind, and solar power, the challenge of decarbonizing transport and industry remains. Biomethane, a renewable natural gas derived from organic waste, is increasingly viewed as the essential "bridge fuel" for this transition — Brazil's light-duty vehicle fleet, predominantly composed of flex-fuel vehicles (approx. 85%), utilizes ethanol in two main ways: as a mandatory blend in gasoline (E30, with 27-30% ethanol content) and as pure hydrous ethanol, chosen by the driver at the pump. 

Added to all of this, the market is responding with massive scale-up. Gás Verde, a major player, is strategically converting its biogas power plants into biomethane production units. This pivot is ambitious, targeting a quadrupling of output from 160,000 cubic meters per day (m³/d) to 650,000 m³/d over the next three years. This shift reflects a broader trend where biomethane is replacing fossil natural gas in critical sectors, from heavy transport to industrial heat.

This growth is underpinned by robust policy and investment signals. According to the Brazilian Association of Waste and Environment (Abrema), biomethane production is projected to double by the end of 2026, with new plants scheduled through 2029 representing approximately BRL 8.5 billion in committed investments.

Policy Innovation: Recognizing "Bioenergy Recycling"

A critical policy debate is crystallizing the role of biomethane within the national climate strategy. Pedro Maranhão, president of Abrema, highlights the need to formally recognize biomethane production as a form of recycling. This policy recognition is not semantic; it is a powerful mechanism for strengthening Brazil’s waste management strategy and enhancing its circular economy metrics.

Abrema’s concept of "bioenergy recycling" incorporates waste-to-energy processes into official recycling statistics. This has already yielded dramatic results: after including informal waste pickers in national statistics, the recycling rate jumped from 3% to 8%. With the inclusion of energy and fuel generation from waste, the rate has now surpassed 20%. This demonstrates the profound impact of policy-driven resource valorization.

Furthermore, COP30 commitments have spurred concrete action, with Abrema facilitating agreements between municipalities and private companies to expand biomethane-powered fleets and scale up infrastructure investments. The message is clear: the diagnostic phase is over; the time for implementation is now.

SAF Breakthrough: The Circular Economy Takes Flight

The global aviation sector, a hard-to-abate industry, is also looking to Brazil for a sustainable solution. The country’s race to produce Sustainable Aviation Fuel (SAF) has gained a significant contender in Geo bio gas&carbon, which is pioneering a closed-loop system using agricultural residues, specifically vinasse and filter cake from sugarcane, rather than vegetable oils.

This approach is designed to produce a highly competitive SAF with one of the lowest carbon footprints globally. Developed in partnership with Germany’s GIZ, the project involves integrating a new SAF plant with an existing biogas unit in São Paulo. The process is inherently circular: residues are converted into biogas, which is then used to produce SAF. Crucially, the CO₂ utilized in the process is biogenic, ensuring a significantly reduced lifecycle emission profile.

The project, backed by an estimated €7.8 million investment and included in Brazil’s Growth Acceleration Program (PAC), is starting as an industrial-scale pilot with a capacity of 100,000 to 150,000 liters per year.

Global Policy Acceptance: The Corsia Advantage

For SAF to be viable, it must meet stringent international carbon accounting standards. Geo’s sugarcane residue-based route has recently secured approval from Corsia (Carbon Offsetting and Reduction Scheme for International Aviation), the global aviation carbon offsetting scheme.

This certification is a major policy victory, placing the fuel in Corsia’s lowest carbon intensity bracket. As Geo’s Technology Director, Allyson de Oliveira, noted, this ensures maximum economic benefits and global market acceptance, potentially making it the most competitive SAF in the world.

Market Consolidation and Public Support

The momentum is further amplified by market consolidation and public sector support. The strategic, cashless share swap between Orizon Waste Valorization and Vital has created Brazil’s largest waste management company, increasing the waste under management to 14.2 million tons per year, nearly 40% of all waste generated in the country. This consolidation significantly boosts the capacity for large-scale investment in biogas, biomethane, and carbon credit projects.

Simultaneously, the GEF Biogas Brazil Project, a collaboration between the Ministry of Science, Technology and Innovation (MCTI), UNIDO, and the Global Environment Facility (GEF), has provided crucial foundational support. Mobilizing over US$ 270 million in funding and co-financing, the project has trained thousands of professionals and helped shape the public policies that now govern the sector.

As officials highlighted at the project’s closing workshop, biogas is a mature, scalable, and strategic solution for Brazil’s decarbonization goals. Looking ahead, the potential is vast: Paraná’s energy plan suggests that biomethane and biogas could supply up to 38% of the state’s energy matrix by 2050 under favorable conditions, underscoring the profound, long-term impact of today’s policy and investment decisions on the future of responsible energy production.

Edge and Orizon Open Brazil’s Largest Biomethane Facility to Supply Industry and Transport

The biomethane plant, which Edge and Orizon opened last Saturday, serves as the company's largest facility and helps Brazil reach its energy transition goals while producing sustainable fuel. The facility, which operates in Paulínia, São Paulo state, located in southeastern Brazil, achieves a daily output of 225,000 cubic meters (m³/day), which supports the fuel needs of more than 1,000 urban buses.

The OneBio plant operates within an Ecopark that Edge (51%) and Orizon Valorização de Resíduos (49%) established as a joint project. The plant generates biomethane through its biogas treatment process, which extracts gas from urban solid waste streams. The plant operates its gas distribution system through existing pipeline connections while Edge manages its sales operations. Unilever has established a biomethane provision contract with Edge to support decarbonization efforts at its soap production facility located in Valinhos, São Paulo.

São Paulo leads Brazil in biomethane production, accounting for approximately half of the national capacity with nine operational units. The state currently has a production capacity of around 700,000 m³/day and expects to exceed 800,000 m³/day by December 2026, with a potential of 6.4 million m³/day.

The state expansion of natural gas and biomethane vehicle adoption proceeds through three policies which include environmental licensing simplification, natural gas and biomethane vehicle tax exemptions, and the "Conecta Biometano SP" platform. A 2025 regulation by ARSESP facilitates plant interconnection to the gas network, with costs covered by suppliers, aligning with the State Climate Change Policy (PEMC) and State Energy Plan (PEE 2050).

Biomethane functions as an industrial material which substitutes natural gas for two purposes. The FIESP study indicates that over 80% of São Paulo's biomethane potential lies in the sugar-energy sector which processes vinasse and filter cake and bagasse and straw.

Grupo Marquise in Ceará plans to spend R$100 million which equals $20 million USD for a new project that will create biomethane through solid waste processing at their Aquiraz landfill site. The GNR Fortaleza plant in Caucaia operates as the biggest facility of its type in North and Northeast regions because it produces 110000 m³ of output daily through its collaboration between Marquise Ambiental and Ecometano.

Cummins Brasil has begun field testing its B6.7N Otto cycle engine which represents the company's first medium engine designed for urban use that operates on natural gas and biomethane. This initiative supports Cummins' global "Destination Zero" strategy and provides an urban transport solution which operates more quietly and efficiently while meeting Euro VI and Proconve P8 standards through its dedicated system for continuous performance improvement.

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

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

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

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

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

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

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

Brazil’s Biogas Sector Accelerates, With Biomethane Set to Surge by 2032

National policies for transforming waste into energy were a highlight of the roundtable “Applications of Biogas in the Brazilian Agro-Industry,” held in Belém (PA) this month. The discussion took place at the House of Science, a space hosted by the Ministry of Science, Technology and Innovation (MCTI) at the United Nations Climate Change Conference (COP30).

In recent years, Brazil has been undergoing a true revolution with regard to biogas and bioethanol. The former is a renewable energy source generated from the decomposition of organic waste produced in different economic activities. The latter is a flammable biofuel produced from the fermentation of plant biomass, such as sugarcane, corn, and beet, and their residues, such as bagasse.

Brazil's biogas industry will experience a period of quick growth according to the 2024 Biogas Outlook from SEI Biogás. The report shows that the country operates 1,633 biogas plants which represents an 18% increase in renewable gas production comparing to 2023. 

Therefore Brazil's renewable energy landscape is undergoing a significant transformation, driven by the burgeoning potential of biogas, biomethane, and waste-derived fuels. Recent policy discussions and market data underscore the country's ambition to leverage organic waste and residues to enhance energy security, reduce reliance on fossil fuels, and meet environmental sustainability goals. This report synthesizes the current state, future projections, and key regulatory dynamics shaping Brazil's waste-to-energy sector.

The Biogas and Biomethane Revolution

Biogas, a renewable energy source generated from the decomposition of organic waste, and bioethanol, a flammable biofuel produced from plant biomass, are at the forefront of this energy shift. Brazil's biogas industry is poised for a period of rapid expansion, fueled by improved regulations, favorable economic conditions, and the growth of integrated waste management systems.

According to the 2024 Biogas Outlook from SEI Biogás, the country currently operates 1,633 biogas plants, representing an 18% increase in renewable gas production compared to 2023. This growth is a direct result of three primary factors:

1. Improved Regulatory Frameworks: Creating a more predictable and attractive investment environment;

2. Favorable Economic Conditions: Making biogas projects increasingly competitive;

3. Integrated Waste Management: Expanding the availability of feedstock for biogas production.

Looking ahead, specialists project a profound energy transformation. Talyta Viana, Regulatory Technical Coordinator at ABIOGÁS, projected that Brazil could reach 200 biomethane plants by 2032. These facilities would be capable of generating 7.92 million cubic meters of biomethane per day, which is enough to supply over 10% of the nation’s 2024 natural gas demand.

The sugar-energy sector is expected to be a crucial anchor for this growth, with Viana noting that "More than 52% of upcoming projects will rely on sugarcane residues such as vinasse, filter cake, and potentially bagasse and straw, which are under technological assessment." With strong feedstock availability and a favorable regulatory landscape, analysts predict that biomethane production could triple by 2026, positioning Brazil as a global leader in renewable gas.

Regulatory Momentum and Industry Leadership

The sector's positive trajectory was a key highlight at the roundtable “Applications of Biogas in the Brazilian Agro-Industry,” held in Belém (PA) during the United Nations Climate Change Conference (COP30).

The Brazilian Association of Waste-to-Energy (BREM) is playing a central role in advocating for and shaping the regulatory environment. A discussion hosted by Gás Orgânico, featuring CEO Giovane Rosa and BREM President Yuri Schmitke, demonstrated the positive sector trends resulting from recent regulatory changes.

A crucial turning point for the industry was the federal government's approval of the “Fuel of the Future” law, which BREM actively supported. Following this legislative success, BREM is now working to establish the National Biomethane Zero Program and a biogas electricity certification system to ensure these resources are properly valued.

BREM's efforts extend to integrating biogas into the broader energy matrix. Schmitke highlighted how biogas systems can complement distributed solar power by using gasometers to store biogas when solar generation is high and release it when solar power decreases, thereby stabilizing the grid.

Furthermore, BREM has made an extensive contribution to the development of Brazil’s sustainable finance taxonomy. The association submitted a 45-page report, created with the support of the European Union Climate UCD project, which studied successful European regulatory models. The example of Denmark, which already supplies 30% renewable gas to its grid and aims for 100% by 2030 through certificates of origin, serves as a model for Brazil. To support further technical and regulatory progress, BREM has signed cooperation agreements with both the Brazilian Electricity Commercialization Chamber (CCE) and the European Biogas Association.

Untapped Potential and Remaining Regulatory Gaps

Despite the strong momentum in biogas, the broader waste-derived fuels sector still faces regulatory challenges.

Refuse-Derived Fuel (CDR)

Brazil is already utilizing Refuse-Derived Fuel (CDR), wich is a blend of industrial and urban waste, to replace fossil fuels in cement production. Currently, the country replaces 30% of the fuel used in cement production with CDR, substituting petroleum coke in clinker manufacturing. Experts believe this substitution rate could climb to 50-80%, matching European levels, provided there is investment in cement-plant upgrades and new blending facilities.

However, the CDR sector currently operates without official targets or a dedicated regulatory agency, relying only on voluntary standards issued by ABNT.

Biogas and Biomethane Potential

The biogas landscape reveals an even larger untapped opportunity. Brazil currently exploits just 3.4% of its biogas potential and 1.4% of its biomethane potential, representing what analysts describe as a R$ 300 billion market still in its infancy.

A major regulatory shift is anticipated in 2026, when a mandatory 1% biomethane blending requirement comes into force, increasing by one percentage point annually until 2036. This rule is expected to enable renewable gas to supply up to 10% of Brazil’s total natural gas demand.

Biogas also holds vast potential for electricity generation, theoretically capable of supplying 40% of national electricity consumption and offsetting up to 70% of diesel use. While full utilization is constrained by technical and economic factors, biogas is seen as a key complementary source for stabilizing an increasingly intermittent grid dominated by solar and wind power.

Industry representatives emphasize that the ongoing electricity-sector reform must properly account for the value of dispatchable renewable sources. Without clear rules for compensating biogas plants for ancillary services, such as grid stability and load balancing, the market's growth may be hindered.

Brazil's waste-to-energy sector is at a critical juncture. The combination of ambitious industry projections, supportive legislation like the "Fuel of the Future" law, and the efforts of organizations like BREM are creating a robust foundation for growth. However, unlocking the full potential of this R$ 300 billion market, particularly in CDR and electricity generation, will require strengthening the regulatory framework to provide clear targets, compensation mechanisms for grid services, and dedicated oversight. Stakeholders agree that a fresh policy framework is essential to drive new investments, create higher earnings, and ensure better environmental protection.

Biogas in Brazil: How Small and Medium Farmers Can Cut Costs and Boost Sustainability

Did you know that animal manure and leftover crop residues, materials often discarded in rural properties, can be turned into clean, renewable energy? This is the premise behind biogas, a technology that can significantly reduce fuel and electricity costs for Brazilian farmers.

In a recent episode of Ganhando o Futuro, host Luciane Iur interviewed Yuri Queiroz, president of ABREM (the Brazilian Association for Waste-to-Energy Recovery), to explain how biogas works, why Brazil uses only 3% of its potential, and how small and medium farmers can benefit financially from this growing market.

What Is Biogas and How Is It Produced?

Biogas is generated from the anaerobic decomposition of organic waste, such as animal manure, agricultural residues, and urban organic waste, inside biodigesters. During this process, microorganisms break down the material without oxygen, producing a gas composed of roughly:

• 60% methane (biomethane)

• 40% carbon dioxide

After purification systems such as membranes, PSA, or washing units remove CO₂, the resulting biomethane has nearly the same chemical composition as natural gas. It can be injected into the gas grid, used to power tractors and trucks, or converted into electricity directly on the farm.

"Biomethane is already fully regulated in Brazil and can be mixed in any proportion with natural gas," explains Yuri.

How Small and Medium Farmers Can Adopt Biogas

Producers can use residues from:

• Swine, poultry, and cattle operations

• Sugarcane processing (vinasse and filter cake)

• Crop biomass and other organic waste

By installing a biodigester, either on their own or through partnerships, they can generate electricity or vehicle fuel, lowering operating costs and reducing dependence on external suppliers.

For small and medium farmers, the path often involves cooperatives to gain scale, pool resources, and negotiate contracts with investors and biogas companies.

Why Does Brazil Use Only 3% of Its Biogas Potential?

Despite being one of the world’s largest agricultural producers, Brazil taps into only a fraction of its biogas capacity. According to ABREM:

• 75% of the country's biogas today comes from landfills, and

• up to 70% of that gas is still lost to the atmosphere, contributing to greenhouse-gas emissions.

Yet 92% of Brazil’s total theoretical biogas potential comes from agricultural waste, a sector that remains largely unexplored.

“The biggest barrier is information,” says Yuri. “Producers need to know that this waste has value.”

Government Incentives for Biogas and Biomethane

Brazil has implemented several policies to accelerate the sector:

1. Certificate of Origin (Combustível do Futuro) – 2027 Onward

Starting in 2027, natural gas distributors must blend 1% biomethane into the national gas network. Producers will receive certificates of origin to compensate for the price difference.

2. RenovaBio (Decarbonization Credits – CBIOs)

Biomethane producers can earn and sell CBIOs on the B3 exchange, generating additional revenue tied to emissions reductions.

3. PATM – Energy Transition Acceleration Program

Allows rural producers to use tax credits as guarantees for financing biogas installations.

“These are market-based incentives that bring direct financial benefits to rural producers,” notes Yuri.

Biogas as a Tool for Sustainability and Soil Health

Beyond energy generation, anaerobic digestion produces two valuable by-products:

• Biofertilizer (liquid or in flakes after drying)

• Organic compost (digestate)

Both can replace imported chemical fertilizers, more than 90% of which Brazil currently imports.

This makes biogas a powerful driver for:

• Lower production costs

• Better soil quality

• Reduced methane emissions (11–15 times more effective than other mitigation methods)

• Environmental compliance and easier licensing

Success Stories: Cooperatives Leading the Way

Yuri highlights the case of H2A, a company that partnered with small swine farmers in western Paraná:

• Farmers formed cooperatives

• Their manure feeds local biomethane plants

• Plants generate renewable gas, biofertilizer, and purified biogenic CO₂ used in beverages

With more than R$ 1.2 billion in planned investments, this model demonstrates how small producers can participate in large-scale energy projects.

Training, Support, and How to Get Started

Producers interested in biogas can access training from:

• ABREM

• CIBiogás

• Biogás Brasil (UN project)

• Portal Biogás

• Industry events like the Brazilian South Biogas Forum and ABREM’s Waste-to-Energy Congress

“Today, knowledge is not the problem,” Yuri emphasizes. “Producers need to organize, form cooperatives, and seek partnerships.”

A Growing Market with Untapped Potential

With more than 900 operational plants in Brazil, mainly in Paraná, São Paulo, and Minas Gerais, biogas is becoming a key part of the country’s energy transition. As agricultural waste accumulates and sustainability becomes central to farming, the biogas sector represents both an economic opportunity and an environmental necessity.

For small and medium rural producers, biogas offers a clear path to:

• Reduce energy and fuel costs

• Generate new revenue streams

• Improve soil quality

• Meet environmental requirements

• Participate in Brazil’s expanding renewable-energy market

Regera Aims to Transform Brazil's Agribusiness With “Renewable Fertilizer” and High-Value Biomethane Strategy

Regera, a Brazilian company specializing in biogas and biomethane, is solidifying its position as a strategic force in the agribusiness and energy-transition sectors by producing high-value biofertilizers derived from organic waste. Cofounder André Holzhacker explains that the company’s mission is rooted in the concept of “renewable fertilizer,” a proposal aimed at reducing Brazil’s heavy dependence on imported agricultural inputs.

Hacker, an environmental engineer active in the sector since 2009, points to a fundamental paradox: although Brazil is a global agricultural powerhouse, it still imports 80% to 85% of the NPK (Nitrogen, Phosphorus, and Potassium) it consumes, even as large quantities of these nutrients are discarded in organic waste. Regera’s model converts this environmental burden into valuable outputs such as biomethane, electricity, and high-performance biofertilizers.

Integrated Business Model Drives Competitiveness

A core pillar of Regera’s strategy is its fully integrated business model, in which the company owns and operates its plants, a structure that covers 95% of its portfolio. By keeping ownership and operational control in-house, Regera safeguards its technological know-how and manages every stage of the process, from waste sourcing to digestate recovery. This mitigates risk, optimizes project structuring, and strengthens the company’s ability to scale efficiently.

The company currently operates three proprietary plants, two in Minas Gerais and one in Paraná, and expects to produce 8,000 to 10,000 tons of biofertilizer in 2025. Central to Regera’s competitive edge is the valorization of digestate, which is transformed into high-value renewable fertilizer. This approach generates an additional revenue stream while aligning the business with principles of regenerative agriculture and the circular economy.

Capital Backing Fuels Expansion

Regera’s rebranding from Alma Energia was accompanied by a key capital raise: investment funds Shift Capital and Risa Asset acquired equity stakes, supplying the resources needed to execute the company’s robust project pipeline. This financial backing enables Regera to overcome one of the sector’s most significant structural bottlenecks, like limited availability of growth capital, and accelerates its expansion trajectory.

Biomethane at the Center of a Growing Market

The company is fully focused on biomethane, a high-value product experiencing rising demand amid the global energy transition. Regera aims to reach an ambitious production milestone of 500,000 m³ of biomethane per day by 2030, a goal that requires navigating complex logistical and regulatory hurdles. Still, its integrated model, strong capital base, and expertise in scaling biogas operations position it favorably to achieve this target.

Strategic Partnerships Strengthen Long-Term Vision

Regera places strong emphasis on long-term partnerships and “win-win” relationships, a strategic necessity in a sector that depends on cooperation, reliable waste supply, and long-term off-take agreements. These partnerships reinforce the company’s ability to expand sustainably while aligning stakeholders around shared environmental and economic gains.

With a robust business model, a clear focus on biomethane, and a strategy that monetizes every byproduct of the biogas chain, Regera is emerging as a key player in Brazil’s circular bioeconomy. Its approach positions the company to reduce fertilizer dependency, support regenerative agriculture, and help drive the country’s transition toward cleaner and more resilient energy systems.

Brazil's Green Leap: Volare Launches Biomethane & Natural Gas Microbus for Sustainable Public Transport

The launch of the Volare Fly 10 GV microbus which operates on compressed natural gas and biomethane establishes a new sustainable mobility system in Brazil according to public transport specialists. The vehicle which Marcopolo S.A. (POMO3, POMO4), a Brazilian bus, coach and rail manufacturer produces at its São Cristóvão facility in Caxias do Sul, in the state of Rio Grande do Sul, represents multiple years of financial support for Brazilian engineering while providing an environmentally friendly option to replace diesel buses that still meet operational demands and flexible usage needs.

The microbus operates with an FPT Industrial N60 CNG engine which belongs to the Iveco Group and produces 200 horsepower together with 750 Nm of torque. The engine serves as a dedicated gas engine because it was not converted from diesel while delivering quieter operation and less need for maintenance and extending oil change intervals beyond standard diesel engine specifications.

The Volare Fly 10 GV can operate between 250 and 400 kilometers because its range depends on how people use it and the quality of the gas. The gas storage system of the vehicle has a capacity of 490 liters which it distributes across its four cylinders to provide enough operating time for urban and school and charter transport services. The vehicle has a gross vehicle weight of 10,700 kg and can carry up to 24 passengers in urban configurations or up to 54 students in school transport versions.

The microbus offers its main benefit because it uses biomethane as a sustainable fuel which comes from purified biogas that originates from the breakdown of organic material that includes agricultural waste and sewage and landfill waste. Biomethane power systems achieve substantial emission reductions because they produce 96 percent less particulate matter and 84 percent fewer greenhouse gases than diesel systems.

The vehicle features refueling speeds which match diesel bus refueling speeds and it contains certified high-pressure cylinders which have a 20-year operational lifespan because they adhere to strict safety requirements.

Volare, part of the Marcopolo Group and a leader in Brazil’s microbus segment for over 27 years, developed the Fly 10 GV after four years of testing and refinement. The company advocates this model as a bridging technology which connects traditional diesel buses with complete electric bus systems because it enables organizations to decrease emissions immediately without needing to construct new infrastructure.

The launch comes as Brazil expands its biomethane production capacity and seeks to integrate renewable fuels into its transportation sector. The Volare Fly 10 GV enables operators to use CNG and biomethane interchangeably which results in operational flexibility and lower carbon emissions and decreased fuel expenses and enhanced air quality.

The executives from the industry stated that their tested model has obtained positive results across different regions which included areas that have existing natural gas systems. The Brazilian microbus will operate urban transit systems and school transport programs while it will also serve charter fleets to support the country's development of renewable fuel-based transportation solutions.

The introduction of the Volare Fly 10 GV signals Brazil's increasing commitment to developing sustainable transportation solutions through the use of biomethane as a core element of its energy transition process.