Across the vast plains of agribusiness, in the landfills surrounding our major cities, and within sewage treatment plants, a silent energy revolution is underway. Brazil — a natural giant — is finally awakening to the immense potential of biogas and its noble derivative, biomethane. Driven by a new regulatory framework, technological innovation, and global decarbonization pressure, the sector is advancing rapidly, turning what was once seen as waste and environmental burden into a source of clean, renewable, and strategically vital energy for the country’s future.
The timing could not be better. As Brazil prepares to host the COP30 in Belém, the world’s climate showcase, “green” solutions are taking center stage. Here, biomethane emerges as a true plug-and-play answer to decarbonization, particularly in hard-to-abate sectors such as heavy transport and industry.
If biogas is the foundation of the pyramid, biomethane is its pinnacle. This gas, obtained by purifying biogas to remove carbon dioxide and other impurities, has an almost identical composition to fossil natural gas. That makes it a direct “drop-in” substitute that can be injected into existing pipeline networks and used in industry and heavy vehicles without modification.
The potential of biomethane for decarbonization is vast — a fact recognized by bodies such as the Intergovernmental Panel on Climate Change (IPCC) and the International Renewable Energy Agency (IRENA). For Brazil, where diesel powers most of the road transport sector, biomethane offers an immediate and viable path to cutting emissions.
In this context, companies like Gás Verde are emblematic. Specializing in capturing biogas from large urban landfills and purifying it into biomethane at industrial scale, the company sells this “green gas” to industries seeking to replace fossil natural gas and reduce their carbon footprint. It is a business model that tackles one of the greatest urban environmental challenges — landfills — and turns it into both a climate and energy solution.
The Regulatory Push the Market Was Waiting For
The turning point for the sector came with the federal government’s recent definition of new rules and targets for biomethane integration into Brazil’s gas matrix. Starting in 2026, the country will have clear goals for the use of so-called “renewable gas” — a measure that finally brings the long-awaited predictability and legal certainty investors have been demanding. According to the Brazilian Biogas Association (ABiogás), Brazil’s biomethane production potential is 120 million cubic meters per day — enough to replace about 70% of the country’s diesel consumption.
“We had been waiting for a clear signal. Now we have a direction,” says an executive at a major sugar-energy company investing in new plants. “With these targets, we can unlock shelved projects, accelerate fundraising, and finally put biomethane on the path to exponential growth.”
This perception is reinforced by projects already coming to life. In São Paulo, the first dedicated pipeline to transport biomethane from sugarcane residues is a milestone for the industry. The initiative not only creates value from by-products such as vinasse and filter cake, but also establishes a new and profitable revenue stream — bringing circular economy principles into practice.
Innovation in the Countryside and the Cities
The driving force behind this expansion is technology. Researchers and companies have developed innovative solutions to optimize production. A new system developed by Embrapa, designed to increase biogas yields from fruit and vegetable waste, is a case in point. This breakthrough opens new opportunities for agricultural cooperatives and wholesale markets to transform their organic waste into electricity, heat, and fuel.
The technical and business debate is hotter than ever, as demonstrated at the 7th Southern Brazil Biogas and Biomethane Forum, which brought together more than 700 specialists and market players in Bento Gonçalves, Rio Grande do Sul, in April. The event, now established as the country’s premier stage for sector discussions, made it clear that the future of biogas is intrinsically linked to climate resilience and a low-carbon economy.
Discussions were intense and focused on practical solutions. Panels covered nutrient recovery, biogas upgrading for green hydrogen and other high-value products, and the creation of environmental assets and green certificates — showing a sector quickly evolving beyond simple energy generation. One central theme was integrating biogas with other energy sources and building strategies for distribution and regional deployment of biomethane, consolidating its role as a direct substitute for fossil natural gas and diesel.
More than just a technical meeting, the Forum served as a powerful business platform, connecting producers, investors, scientists, and policymakers. It highlighted the collective effort to overcome bottlenecks — from biodigester performance to global biogas agendas — aligning Brazil’s practices with international trends and paving the way to accelerate new projects nationwide. The event acted as a market thermometer, and the temperature for biogas is, without doubt, running high.
Yet, challenges remain. Data from the Renewable Energy Center (CIBiogás) show that Brazil still taps only a fraction of its potential. Logistics for biomethane distribution, expansion of the pipeline network, and the creation of green corridors to fuel truck and bus fleets are barriers yet to be overcome. “It’s no use producing if we can’t get the gas to the end consumer at a competitive price,” notes a market analyst.
A Strategic Agenda for the Future
The advance of biogas and biomethane is more than an energy agenda; it is a strategic agenda for Brazil. It directly supports the sustainability of agribusiness by offering a solution for animal waste and crop residues. It contributes to urban solid waste management, one of the greatest environmental challenges facing Brazilian cities. And, crucially, it creates skilled jobs and income in rural regions, driving regional development.
By turning an environmental liability into a valuable energy asset, Brazil is not only moving closer to meeting its climate goals but is also strengthening energy security with a dispatchable, renewable source produced entirely within its own territory.
