Brazil's Biomethane Market Surges with Key Expansion in Rio Grande do Sul

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Brazil's bioenergy market--specifically the biomethane and renewable natural gas (RNG) segment--continues to gain momentum following announcements from companies such as Apolo, Solví, and CYG3, with notable traction in the waste-to-RNG sector.

This growth is largely driven by Brazil's Fuel of the Future Law, which mandates greenhouse gas emission reduction targets for the natural gas market starting in 2026 through biomethane incentives. The initial target is set at 0.5% for 2026, with provision for gradual increases up to a 10% ceiling in subsequent years.

RNG is a pipeline-quality natural gas that serves as an advanced biofuel for transportation and power generation. In waste-to-RNG operations, the fuel is derived by conditioning and upgrading raw landfill biogas produced through the anaerobic digestion of organic municipal and industrial waste. RNG is also increasingly produced from agricultural residues like vinasse and filter cake generated during ethanol production. Illustrating this trend, Usina Uberaba is advancing a US$16 million waste-to-RNG addition at its ethanol complex in Minas Gerais.

Overall investment in Brazil's bioenergy sector remains robust, with 268 active biogas and RNG developments currently tracked by Industrial Info Resources, representing US$4.9 billion in planned capital spending. Reflecting this upward trend, 22 new projects valued at US$350 million have entered the active pipeline since H2 2026.

Solví Participações SA accounts for a substantial portion of these recent developments, committing roughly US$155 million across newly tracked projects. Anchoring this expansion is a US$70 million grassroot waste-to-biogas plant in Alegrete, Rio Grande do Sul, where the company plans to start biogas operations by late 2028 and achieve full RNG production by 2030. Solví is also installing RNG upgrading units across facilities in Minas Gerais, Rio Grande do Norte, Pará, and Rio Grande do Sul to shift waste gas utilization from power generation to higher-value biomethane.

Meanwhile, Apolo Energia Participações Ltda plans to construct five grassroot waste-to-RNG plants worth approximately US$67 million across Santa Catarina and Rio Grande do Sul. Utilizing agricultural waste as feedstock, these assets will add an aggregate capacity of 54,000 m3/day upon completion. While Rio Grande do Sul and Santa Catarina are leading the waste-to-RNG surge in southern Brazil, São Paulo, Goiás, and Mato Grosso remain major epicenters for sugarcane- and livestock-based biomethane expansion.

Subscribers can access details of these and other projects, including construction timelines, key contact details, and equipment and service needs, by clicking here.

As mandatory emissions reduction targets draw near, the commercial rationale for biomethane in Brazil has shifted from voluntary decarbonization to regulatory necessity. Yet, the current surge in investment represents only the beginning of the country's full capability: industry association ABiogás estimates that Brazil currently utilizes less than 5% to 10% of its technical potential, which exceeds 40 billion m3/year driven by sugarcane waste, livestock manure, and municipal refuse. Backed by a growing pipeline of projects across waste-to-energy, agribusiness, and industrial upgrading, Brazil's RNG sector is uniquely positioned to tap this immense resource, diversify the national energy matrix, and meet long-term decarbonization mandates.

---

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).