Brazil RNG growth shows regional contrast
Brazil's biomethane boom is unfolding differently in two regions, each shaped by its own resources, infrastructure and energy strategies.
Brazil's biomethane output could more than triple by 2027, led by southeastern Sao Paulo state's industrial-scale production, according to a study by sugarcane and ethanol producer Copersucar. But while that state consolidates its leadership, a contrasting model is taking shape in the center-west, an agriculture-heavy region where producers are investing in decentralized, agro-industrial projects aimed at energy self-sufficiency.
Copersucar projects national biomethane production will reach 2.3mn m³/d by 2027, up from 656,000 m³/d today. By 2030, Sao Paulo alone could account for 5.5mn m³/d, mostly derived from sugarcane waste such as bagasse and vinasse. The state holds 40pc of Brazil's installed capacity and 34pc of expansion projects, supported by a robust gas distribution network and proximity to industrial consumers.
Including existing and expected projects, Brazil could have 2.4mn m³/d of biomethane capacity by 2027, with the center-west trailing Sao Paulo with about 197,200 m³/d, data from hydrocarbons regulator ANP show. But the center-west's growth trajectory is steep.
Producers in central-western Mato Grosso do Sul state are leveraging agricultural byproducts to power truck fleets and rural operations, often without access to pipeline infrastructure, reflecting a shift toward circular energy models and local supply.
Argentinian food and biofuel company Adecoagro and Brazilian sugar and ethanol producer Atvos are leading the charge in Mato Grosso do Sul. Adecoagro is investing R225mn ($41.3mn) in its Ivinhema plant to start up production of 30,000 m³/d by 2027, replacing diesel in its fleet and cutting emissions. Atvos, with ANP's approval, is building a R350mn facility in Nova Alvorada do Sul city to produce roughly 77,500 m³/d, supplying regional demand via tank truck delivery. Smaller-scale projects are also emerging, such as agriculture and livestock producer SF Agropecuaria's on-farm system in Brasilandia city, which uses swine waste to generate gas for tractors, trucks and electricity.
In more remote areas that lack gas pipelines, biomethane competes more directly with diesel and LPG. In urban regions, the spread between natural gas and biomethane prices is the main driver behind biogas spot deals.
