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.

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.

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.

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

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

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

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

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

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

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

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

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

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

Summary of Key Developments:

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

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.

Biomethane: Production and Applications

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

Production Process

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

Anaerobic Digestion

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

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

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

Purification and Upgrading

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

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

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

Economic and Environmental Significance

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

Environmental Impact

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

Energy Security and Circular Economy

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

Market Outlook and Challenges

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

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

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

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.

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

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

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

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

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

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

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

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

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.

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.