Brazil, South America’s largest country, is opening growth potential for biomethane with a new legal framework. Brazil already generates much of its energy consumption from renewable energy resources. The geographical, climate, and agricultural conditions offer outstanding potential to expand environmentally friendly energy generation.

According to the German Federal Office for Economic Cooperation and Development, renewable energies account for 47% of total energy consumption. The share of electricity consumption corresponds to 90%, a top position worldwide. Brazilian policymakers are aiming to decrease greenhouse gas emissions further. At the UN Climate Change Conference, COP 29 in Baku in November 2024, Brazil presented measures to reduce emissions.

New Legal Framework “Lei dos Combustíveis do Futuro”

Related to the reference year 2005, emissions are to be reduced by 59 to 67% by 2025. This equals savings of 850 million to 1.05 billion CO2-equivalent. This paves the way for the long-term goal of climate neutrality by 2050. With „Lei dos Combustíveis do Futuro”, adopted in October 2024, a legal framework was created to accelerate the production and use of biomethane. The act also promotes purchasing and using biomethane-based vehicles and infrastructure projects to connect biomethane plants to natural gas grids. Furthermore, producers and importers of natural gas are obliged to gradually increase the share of biomethane from up to 10% of natural gas consumption.

Market Development for Biomethane in Brazil

The German Brazilian Chamber of Industry and Commerce’s target market analysis, published at the end of 2024, in the context of biogas from sewage treatment plants, landfills, and biowaste impressively highlights the dynamic development opportunities in the national biogas market. Biogas accounts for only 0.12% of the total share of renewable energies. For biogas, the calculated production potential is up to 84.6 billion m³ annually, of which only a share of 4.85% is currently being utilized.

The German Brazilian Chamber of Industry and Commerce’s target market analysis sees potential for biomethane production in the country’s extensive raw material stock. The primary sources identified are agricultural and industrial waste and sanitary wastewater, including solid municipal waste from sewage treatment plants and landfills. According to the Brazilian Confederation of Agriculture and Livestock (CNA), the agribusiness production chain accounts for 23.8% of Brazil’s GDP. This indicates a continuous and extensive supply of raw materials.

The agricultural sector is seen as the largest methane emitter in the country and therefore offers great potential for reducing emissions. Political objectives, raw material potential, and technical expertise will drive significant growth in the Brazilian biogas market. The biogas produced can be used as biomethane in the transportation sector. Additionally, it offers potential for hydrogen and derivative production, such as ammonia and methanol.

Current Challenges

Despite the demonstrable production potential for biogas production, the target market study identifies challenges hindering an effective market ramp-up. These include high production costs caused by a lack of infrastructure, qualified workers, and imported technologies. The high production costs impact competitiveness with ethanol and biodiesel.

Project developers can meet these challenges by setting up the necessary infrastructure in Brazil. Special training programs can impart theoretical and practical knowledge in the operation of biogas plants. The initial outlay is correspondingly high. Implementation is most likely to be worthwhile for plant clusters. In this way, synergies and economies of scale can be used to exploit Brazil’s growth potential for biomethane.

Cooperating with greenValue

Over the past decades, greenValue has successfully contributed to implementing numerous energy projects, such as biogas projects. An excerpt of the references shows the company’s involvement in various projects and illustrates the flexibility and tailoring of services to the customers’ project-related requirements. Moreover, expertise and network are provided in an international context.

The authors are employed by greenValue GmbH. greenValue is a successful service provider in renewable energies with many years of experience and extensive references, including in M&A and project management.

Source: March 24, 2025, www.greenvalue.de