01/30/2025

Brazilian Regulations Drive the Growth of the Biogas and Biomethane Sector

Discover how new regulations in Brazil, such as the Future Fuel Law and the Carbon Market Law, are driving the biogas and biomethane market. Explore lucrative and sustainable opportunities in the sector!

Brazilian regulations, like the Future Fuel Law and the Carbon Market Law, are creating a favorable environment for the growth of biogas and biomethane. Learn how these initiatives can transform the energy sector and open doors for new investments.

Brazil has emerged as a global leader in sustainability-focused initiatives, particularly in the energy sector. Biogas and biomethane are gaining increasing traction, propelled by robust regulations that encourage investment and innovation.

To shed light on the Brazilian context, PlanET Biogás Brasil, in collaboration with PlanET Group, highlights in this article the key laws shaping the market and creating unique opportunities for investors and entrepreneurs.

1) Future Fuel Law (No. 14.993) and Biofuels

The Future Fuel Law (No. 14.993) was enacted to promote sustainable, low-carbon mobility by establishing measures to reduce greenhouse gas (GHG) emissions. This regulation encourages the development of advanced technologies and biofuel production, positioning Brazil as a leader in energy transition. Biogas, produced from organic waste, aligns perfectly with these goals, enabling greater valorization of agro-industrial and urban waste, the expansion of biogas plants, and the development of biomethane-powered vehicles. For investors, biogas offers high profitability, especially due to carbon credits and its use as a biofuel.

2) Carbon Market Law (No. 15.042)

The Carbon Market Law (No. 15.042) is another cornerstone in combating climate change. It established the Brazilian Greenhouse Gas Emission Trading System (SBCE), regulating the buying and selling of carbon credits. Biogas plants benefit directly by capturing and reusing methane, while biomethane use reduces emissions in sectors like transportation and industry. This regulation provides legal security and makes Brazil attractive to global investors interested in carbon credits.

3) Low-Carbon Hydrogen Development Program (Law No. 14.990/2024)

Another highlight is the Low-Carbon Hydrogen Development Program (Law No. 14.990/2024), which positions Brazil to lead the green hydrogen market. With tax incentives from 2028 to 2032, this law promotes a cleaner, more diversified energy matrix. Biogas plays a strategic role, being one of the most viable routes for low-carbon hydrogen production. These incentives attract companies interested in integrating biogas into the green hydrogen production chain, reducing the carbon footprint in heavy industrial sectors.

Why Invest in Brazilian Biogas and Biomethane?

According to the 2023 Biogas Outlook by the International Center for Renewable Energies (CIBIOGÁS), Brazil has significant potential for biogas production, standing out as one of the countries with the greatest capacity to harness this renewable energy source. This potential is supported by the country’s agricultural activity, which generates large volumes of organic waste from the agro-industrial sector and urban waste from landfills and wastewater treatment plants (WWTPs).

In recent years, Brazil’s biogas sector has shown accelerated growth. In 2023, installed capacity surpassed 4 billion Nm³/year for the first time, representing a 21% compound annual growth rate (CAGR) over the past five years. The country’s total theoretical biogas potential is estimated at approximately 84.6 billion Nm³/year, with a short-term potential identified at around 10.8 billion Nm³/year.

The agribusiness sector, one of the main pillars of the Brazilian economy, generates significant waste with high potential for biogas production. The sugar-energy sector, for example, can utilize byproducts such as vinasse, filter cake, straw, and tips to generate energy. This sector alone has a biogas production potential of 5.2 billion Nm³/year, of which only 5% is currently being effectively utilized.

Moreover, municipal solid waste (MSW) and effluents treated in WWTPs play a crucial role in biogas generation. Most of the volume produced in Brazil is associated with the sanitation sector, particularly landfills, which account for 96% of the biogas generated in this segment. This highlights the immense capacity for urban waste reuse in the country.

Brazil has unique conditions to lead the transition to a cleaner energy matrix based on biogas and biomethane. The extensive availability of organic waste in agribusiness and urban centers, coupled with an expanding market and technological advancements, consolidates the country as a protagonist in sustainable development. Brazil offers a unique scenario: favorable regulations, abundant resources, and growing demand for sustainable energy.

PlanET Biogás Brasil Solutions

PlanET Biogás Brasil offers comprehensive solutions for those looking to invest in biogas and biomethane production, covering all stages, from planning to plant construction.

The company provides advanced technology for process optimization with biogas, generating renewable energy and contributing to sustainability. Additionally, PlanET offers biological and technical services, as well as plant repowering.

  • Biological Service

PlanET’s biological service focuses on optimizing biogas production through regular analyses to detect early issues and improve plant efficiency. The service includes continuous monitoring of biological processes and adjustments to ensure maximum yield.

  • Technical Service

PlanET’s technical service ensures the efficient and profitable operation of biogas plants, offering maintenance, repairs, and equipment optimization, such as agitators and pumps. The company also provides spare parts, support for all technical issues, and integrates innovative solutions to enhance system productivity.

  • Repowering

Repowering aims to improve the economic and technical performance of existing biogas plants. The company provides detailed analysis of plant potential, introduces high-quality components, and supports inspections.

With its global expertise and local presence, PlanET Biogás Brasil is ready to help investors and entrepreneurs seize these opportunities efficiently and profitably.

Brazil’s new regulations not only drive the biogas and biomethane market but also position the country as a global leader in transitioning to a low-carbon economy. If you’re interested in learning more about how these laws can impact your business and how to invest in the sector, contact the PlanET Biogás Brasil team for more information.