May 2025 marked a turning point for the future of biomethane in Brazil. With the holding of a crucial public hearing and the release of a draft regulatory decree, the federal government signaled a strong push to unlock the potential of this renewable gas, derived from agribusiness residues and landfills. Nicknamed by enthusiasts as the “rural pre-salt,” biomethane is emerging as a central piece in the country’s decarbonization strategy, promising to reduce dependence on fossil fuels, generate income in rural areas, and strengthen national energy security—though cost, scale, and infrastructure challenges still need to be addressed.
Biomethane, essentially biogas purified to reach a methane (CH4) concentration above 90%, has physicochemical characteristics virtually identical to those of fossil-based natural gas. This equivalence allows it to be directly used in the existing gas pipeline network, as vehicle fuel (replacing diesel and fossil CNG), and as an industrial input, without the need for major adaptations. Its production comes from the anaerobic digestion (decomposition by bacteria in the absence of oxygen) of organic matter, such as animal waste, agricultural residues (straw, sugarcane vinasse), and the organic fraction of urban waste deposited in landfills. Brazil’s potential is vast, reflecting the strength of its agribusiness sector and the challenges in waste management.
Recognizing this strategic opportunity, the Brazilian government, through the Ministry of Mines and Energy (MME), has stepped up efforts to create a favorable regulatory environment for sector development. On May 12, 2025, the MME opened public consultation on the draft decree aimed at regulating the National Biomethane Program, within the broader context of the “Fuel of the Future” initiative. The central goal, as stated in the draft, is to lay the foundation for a robust market, encouraging the production and use of renewable gas to replace fossil fuels.
One of the most relevant points of the proposal is the creation of a national mandate for blending biomethane with fossil natural gas, with progressive targets starting in 2026. According to the draft, the National Council for Energy Policy (CNPE) will be responsible for setting these annual targets, intended to ensure firm demand for producers and accelerate the reduction of greenhouse gas (GHG) emissions. The proposal also includes mechanisms for trading Biomethane Guarantee of Origin Certificates (CGOB) and integrating biomethane into the natural gas transport and distribution infrastructure.
To discuss the draft and gather input from society and industry stakeholders, the MME held a public hearing in Brasília on May 21, 2025. The event brought together representatives from the government, the National Agency of Petroleum, Natural Gas and Biofuels (ANP), sectoral associations (such as the Brazilian Association of Piped Gas Distribution Companies – Abegás, and the Brazilian Biogas Association – Abiogás), producers, industrial consumers, and experts. Discussions focused on the feasibility of the proposed targets, the need for additional incentive mechanisms, harmonization with state regulations, and access to pipeline infrastructure.
During the hearing, as reported by the portal Brasil Energia, Abegás advocated prioritizing biomethane use in heavy fleets (trucks and buses) and hard-to-decarbonize industrial sectors, while other entities highlighted the importance of ensuring traceability and sustainability in production. The National Secretary for Energy Transition and Planning at the MME, Pietro Mendes, stated on the occasion that the decree was designed to ensure the mandate begins as early as 2026, aiming to reduce complexities in initial implementation.
In parallel with regulatory progress, technical studies are underway to assess the potential and challenges of biomethane integration. The Energy Research Company (EPE), linked to the MME, presented in early May at the Offshore Technology Conference (OTC) 2025 in Houston (USA), a study on integrating biomethane into the natural gas infrastructure. A few days later, on May 16, the EPE also presented the Integrated Gas and Biomethane Plan during a natural gas seminar. These studies are essential for mapping investment needs in pipelines, compression stations, and monitoring systems to accommodate growing renewable gas production.
Market prospects are encouraging. Estimates released in May 2025, such as those reported by the portal Visão Agro, indicate that Brazil could reach around 200 biomethane production plants by 2032. This production volume could supply more than 10% of the projected national demand for natural gas, representing a significant contribution to energy security and reduced imports.
However, realizing this potential faces considerable challenges. The economic viability of projects is still sensitive to investment costs in biodigesters and purification systems, the logistics of collecting waste (especially agricultural, which is more dispersed), and production scale. Smaller projects may struggle to compete without specific incentives. Moreover, connecting to the existing pipeline network is not always straightforward, requiring investments in connection infrastructure that can burden projects. Securing long-term contracts and properly pricing the environmental attributes of biomethane (such as GHG emission reductions) are also critical factors for attracting investment.
The debate on the competitiveness of natural gas versus biomethane also featured in May’s agenda, with the State Regulatory Agency for Public Services of Mato Grosso do Sul (Agems) participating in national discussions on the topic. How biomethane will be positioned in the market—competing with or complementing fossil natural gas—and how costs will be passed on to end consumers remain open questions pending final regulation.
The advancement of biomethane is intrinsically linked to the ESG (Environmental, Social, and Governance) agenda. By transforming an environmental liability (polluting waste) into a renewable energy asset, biomethane projects directly contribute to climate change mitigation (reducing methane and CO2), the circular economy, and job and income generation in rural areas. For companies, investing in or consuming biomethane becomes a concrete way to meet decarbonization targets and improve ESG indicators, increasingly valued by investors and consumers.
In summary, May 2025 represented a significant step toward consolidating biomethane as a pillar of Brazil’s energy transition. The regulatory developments, evidenced by the public consultation and the hearing on the National Biomethane Program decree, demonstrate the government’s intention to create a solid and predictable market. Growth projections are optimistic, but realizing the potential of the “rural pre-salt” will depend on overcoming technical, logistical, and economic challenges, as well as the effectiveness of public policies in ensuring the sector’s competitiveness and sustainability. The success of this endeavor will not only strengthen the national energy matrix with a clean and local source, but also boost Brazil’s environmental and social agenda on the global stage.
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