Brazil's southern Parana state could increase its biomethane supply sixfold in the next two years, according to hydrocarbons regulator ANP, and become a major biogas trading hub.
Government energy research firm EPE has suggested creating a biomethane trading hub in the city of Porecatu, in Parana's countryside, because it is close to ethanol plants. EPE also proposes a second trading hub in Sao Carlos, in southeastern Sao Paulo state, with both connected to gas transport company TBG's natural gas pipeline network.
Parana has 29 ethanol plants, but only one uses its waste as feedstock to produce biomethane.
EPE's hub proposal could unlock biomethane production that is spread out across many small biogas production plants, primarily focused on domestic consumption, with a small surplus that could be used for sale. The hub would facilitate producers' ability to sell small volumes of biomethane.
There are around 490 biogas production plants in the state with the potential to produce marketable biomethane if additional processing is done, biogas company CIBiogas said.
Only 3pc of Brazil's marketable biomethane volumes comes from Parana and only one plant in the state is authorized by ANP to sell biomethane. But the authorized volume could grow to 180,200m³/d from 31,200m³/d by January 2027 once four more plants receive permitting
Of those four plants, only one operates in the sugar and ethanol sector. But other ethanol producers are moving to install biomethane plants, according to Thiago Olinda, coordinator of natural gas and biomethane at Parana state's energy management superintendence. The state provides technical assistance and VAT-like ICMS tax exemptions for the acquisition of biomethane production machinery, Olinda said.
