Brazil steps into global biomethane race

An international study commissioned by Instituto MBCBrasil says Brazil belongs among the fastest-growing biomethane markets as the country looks to turn organic and sugarcane waste into transport fuel. The report ties Brazil’s potential to commercial projects already operating in São Paulo and to new policy incentives that begin in 2026.

Why it matters: - Biomethane could cut transport emissions in Brazil by replacing diesel and fossil gas in freight, fleets and other road uses. - The study says Brazil has a much larger feedstock base than many peer markets, which could speed up scale if infrastructure and policy align. - São Paulo is already a practical test case, with biomethane competitive against diesel and potentially able to replace about half of the fossil fuel used in regional freight transport.

What happened: - Instituto MBCBrasil commissioned the international study “From Waste to Wheels – Turning Organic Waste into Renewable Fuel for Transport.” - The report places Brazil alongside the United States, China, India, Spain, Ireland, Austria and Belgium among fast-growing biomethane markets. - The study maps biomethane development across about 40 countries. - The fuel is already used in transport in nearly 30 markets and has reached commercial scale in more than 12. - The release highlights established markets including Sweden, Germany, Italy, France, the Netherlands, Denmark, Finland, Switzerland, the United Kingdom and Norway, plus California. - In California, biomethane already accounts for 97% of the gaseous fuel used in road transport.

The details: - Europe has 1,678 biomethane plants in operation and more than 100,000 industrial facilities that could be adapted for production. - China has a 260,000-kilometer natural gas network and about 40 million biodigesters. - The United States had 470 biomethane projects in 2023. - India has 7.7 million gas-powered vehicles and a natural gas vehicle market of 7.6 billion m³ per year. - Automakers already offer CNG- and LNG-powered platforms for passenger vehicles, freight transport, municipal fleets and agricultural applications. - Tanker-truck distribution networks, or virtual pipelines, are expanding access in regions without physical pipeline infrastructure. - Europe currently accounts for about 22 billion m³ of biomethane per year. - Under REPowerEU, the European Union is targeting 35 billion m³ by 2030. - The study projects Europe could reach about 132 billion m³ by 2040 and 181 billion to 205 billion m³ per year by 2050. - Brazil has 755 biogas plants and about 345 sugarcane processing facilities in operation. - Less than 2% of the estimated 41.4 billion m³ per year biomethane potential from the sugarcane sector is currently used. - Brazil’s Fuel of the Future Law sets greenhouse gas reduction targets for the natural gas market beginning in 2026 through biomethane incentives. - The 2026 target is 0.5%, with gradual increases possible up to 10%. - Cocal’s Narandiba facility in São Paulo has operated since 2020. - The plant uses vinasse and filter cake from sugarcane processing in vertical biodigesters. - The biodigesters monitor pH and temperature in real time and produce about 50,000 Nm³ of biomethane daily. - The facility appears in a new documentary produced by Instituto MBCBrasil, which also presents the BioRota project.

Between the lines: - The report frames biomethane as a global market already moving from pilot projects to scale, not a future concept. - Brazil’s advantage is not just resource availability but industrial waste streams that can feed projects now. - The comparison with California, China and India suggests Brazil’s challenge is less about proving the technology and more about building policy, logistics and demand. - The documentary and BioRota reference signal an effort to turn technical evidence into public-policy momentum.

What's next: - Brazil’s biomethane market will be shaped by how quickly the 2026 natural gas targets are expanded in later years. - More projects may follow if sugarcane residues and other agro-industrial waste are linked to transport demand at scale. - Instituto MBCBrasil says its next step is to use technical evidence to support policy and broader adoption of sustainable mobility solutions.

The bottom line: - Brazil has the feedstock, early projects and policy scaffolding to become a major biomethane supplier, but the gap between potential and actual use remains wide.