Brazil is undergoing rapid expansion in the production of biomethane, a renewable fuel derived from the decomposition of organic waste. With favorable public policies and increasing private investments, the country is aiming to turn its vast potential into an energy reality. However, regulatory and logistical hurdles still need to be overcome for biomethane to become a key component of the national energy matrix.
Growth and Production Potential
Currently, Brazil produces around 820,000 cubic meters of biomethane per day, sourced from 11 plants mainly installed in landfills and the agribusiness sector. With 32 additional plants awaiting authorization to begin operations, daily production could increase by 1.4 million cubic meters. It is expected that by 2030, production will reach 8 million cubic meters per day, tapping into an estimated potential of 120 million cubic meters daily—more than twice the current natural gas consumption in the country.
Agribusiness is emerging as the new frontier for biomethane production, particularly through the use of waste from sugar and ethanol production, as well as animal manure. Projects mapped by the Brazilian Biogas Association (ABiogás) indicate that by 2032, installed capacity could reach 8 million cubic meters per day, with a strong emphasis on the Southeast region, which accounts for 65.94% of the planned plants.
Regulatory and Logistical Challenges
Despite the promising outlook, the sector faces challenges related to distribution logistics and the need for regulation under the Fuel of the Future Law, which sets targets for replacing fossil fuels with renewables. Additionally, adjustments to the tax reform are crucial for the sustainable development of the sector.
Infrastructure remains limited, especially in regions far from major urban centers, hindering large-scale distribution and use of biomethane. Competition with other energy sources, such as natural gas and more established renewables, presents an additional barrier to biomethane expansion.
Integration with Natural Gas Infrastructure
The Energy Research Company (EPE) presented a study during OTC 2025, evaluating technical and economic alternatives for transporting biomethane produced from the sugar-energy industry’s waste. The goal is to integrate decentralized biomethane production into the existing gas transportation networks, enhancing the use of infrastructure already in place in the country.
Additionally, the Brazilian Bolivia-Brazil Gas Pipeline Transporter (TBG) announced the development of an innovative project to connect small and medium-sized biomethane producers to its extensive natural gas pipeline network. The initiative, called the “Biomethane Hub,” aims to expand access to gas transportation infrastructure, directly contributing to the diversification of Brazil’s energy matrix.
Brazil has enormous potential to become a leader in biomethane production, turning waste into clean energy and contributing to the decarbonization of the energy matrix. However, to achieve this goal, it is essential to overcome regulatory and logistical challenges and promote investment in infrastructure and technology. Integrating biomethane into the existing natural gas infrastructure and strengthening public policies will be key to establishing the country as a global benchmark in renewable energy.
