Prime Highlights:
- Brazilian companies will invest around R$8.5 billion over the next five years to develop biomethane production from municipal waste.
- The move supports Brazil’s Fuel of the Future law, which encourages replacing fossil fuels with renewable gas.
Key Facts:
- Brazil currently has nine biomethane plants, with 15 more projects awaiting approval from the National Petroleum Agency (ANP).
- Full use of landfill infrastructure could produce 5% of Brazil’s daily natural gas demand, showing huge growth potential.
Background:
Brazil is set to boost its renewable energy sector as companies managing municipal solid waste (MSW) and landfills plan to invest approximately R$8.5 billion (€1.6 billion) in biomethane production over the next five years, according to the Brazilian Waste and Environment Association (Abrema).
Currently, the country has nine operational biomethane plants converting landfill waste into renewable gas. Another 15 projects are pending approval from the National Petroleum Agency (ANP).
This investment comes after the 2024 Fuel of the Future law (14.993/2024), which encourages replacing fossil fuels with renewable energy. The legislation requires a yearly replacement of 1% of fossil-based natural gas consumption with renewable gas for the next decade.
Pedro Maranhão, president of Abrema, said, “A market for biomethane has been established that supports decarbonisation, and this marks a major step forward for us.” He noted a shift from biogas plants producing electricity to facilities focused on biomethane.
In 2024, Brazil produced 81.5 million cubic metres of biomethane, an 8.9% increase from 2023. Installed capacity, around 600,000 m³ per day, is enough to fuel 250,000 cars every 15 days or supply 1.2 million gas cylinders per month. In cities like Fortaleza, about 25% of gas already comes from landfills.
Despite generating 81.6 million tonnes of MSW in 2024, only 2.6 million tonnes (3.2%) were used for biomethane production. Abrema estimates that full use of existing landfill infrastructure could cover 5% of Brazil’s daily natural gas demand.
The association is also collaborating with municipalities and authorities to replace open dumps with sanitary landfills equipped with biomethane plants, further increasing production potential. If cities with more than 320,000 residents adopt these facilities, Brazil could produce 2.86 million m³ of biomethane per day, over five times the current authorised capacity.
This initiative could help Brazil become a global leader in renewable gas, using its waste to generate sustainable energy and create new business opportunities.