Geo seeks Brazil RNG market throne by 2026

Market: Natural gas
18/11/24

Brazilian biogas company Geo bio gas&carbon is teaming up with feedstock providers in an attempt to become Brazil's largest biomethane producer by the end of 2026.

In two years, Geo's planned 294,600 m³/d of installed capacity would give it largest share of Brazilian production at almost 16pc, according to data from hydrocarbons regulator ANP.

Geo owns a 27,100 m³/d biomethane plant along with Cocal and a 130,400 m³/d plant with Raizen, two sugar and ethanol producers in Sao Paulo state. In addition, it is waiting for authorization to operate two already-built plants, adding about 50,200 m³/d to its portfolio.

Geo plans to build another three production units by January 2026 with about 80,900 m³/d of capacity, including partnerships with both waste management and sugar and ethanol companies, such as Crivellaro Ambiental and Coopcana. Geo also partnered with sugarcane ethanol producer Copersucar to produce sustainable aviation fuel (SAF) from biomethane.

Urca — currently Brazil's largest biomethane producer — will lose market share as competing plants come on line in the next few years. It owns two plants in Sao Paulo and Rio de Janeiro with a combined total production capacity of 234,000 m³/d, enough for more than 38pc market share. That would fall to 12pc by the end of 2026 if plants awaiting ANP authorization start operations.

Biomethane company MDC would also lose some of its 31pc market share, spread across three plants with different partners. MDC's 193,200 m³/d of combined capacity would represent a little over 10pc of total market share by the end of 2026.

Meanwhile, Brazilian natural gas trading company Edge also is in line to become one of the Brazil's biggest biomethane producers. It holds a majority stake of the pending 225,800 m³/d Biometano Verde Paulinia plant, which would tie it with Urca at 12pc market share at the end of 2026.

By Rebecca Gompertz

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