Brazil’s landfills are gaining attention as key sites for biogas and biomethane projects, with investments projected to reach 8 billion reais (US$1.3 billion) by 2029. Companies like Solví, Orizon, Vital, Marquise, Estre, and Veolia are at the forefront of this green energy shift, according to the Brazilian Association of Waste and Environment Firms (Abrema), reported bnamericas.
Pedro Maranhão, president of Abrema, outlined the drivers behind these investments and the transformative potential of landfill-based renewable energy in an interview with BNamericas.
The recently approved “fuels of the future” law has created a guaranteed market for biomethane gas, Maranhão explained. Starting in January 2026, natural gas providers must include 1% to 10% biomethane in their pipelines.
“This is similar to Brazil’s requirement to mix ethanol with gasoline,” Maranhão said. “The biomethane blends seamlessly with natural gas, allowing it to be used for the same applications, from powering trucks to household cooking.”
He emphasized that replacing fossil fuels with renewable biomethane not only supports decarbonization efforts but also aligns with growing global climate goals.
Abrema’s survey of member companies revealed that the initial five years following the law’s implementation will see approximately 8 billion reais invested in landfill-based biogas and biomethane projects. Seven projects have already received preliminary approval, and one is under active development.
“Companies are moving quickly to organize and plan their projects across Brazil,” Maranhão said, adding that this is only the beginning.
Beyond regulatory requirements, companies are eager to adopt biomethane to meet their decarbonization goals. Some are already using biogas for electricity generation and are planning to transition to biomethane facilities.
“This shift is essential for industries aiming to include renewable energy in their operations and to align with sustainability targets,” Maranhão noted.
The sector is also drawing interest from new investors, including international players. “I’ve had discussions with investors from Singapore, Switzerland, and Japan. They’re not only interested in biomethane but also in carbon credits linked to the solid waste sector,” Maranhão said.
Abrema is collaborating with development banks and regional funds to establish specialized financing lines, while also exploring ways to mitigate exchange rate risks to attract foreign investment.
While optimistic, Maranhão acknowledged regulatory hurdles, including tax issues at the state level, that need resolution. “We’re working to clarify to state governments that the ICMS tax for this sector should differ from traditional fuel taxes,” he explained.
Maranhão concluded on a hopeful note: “The world is moving toward a decarbonized economy, and Brazil’s waste management sector is well-positioned to contribute to this global shift.”
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