Brazil Unveils Incentives to Biomethane Production

March 22, 2022

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by Marieta Cazarré (Agencia Brasil) The renewable fuel can replace natural gas, diesel, and gasoline -- President Jair Bolsonaro today (Mar. 21) attended the launch ceremony of the incentive measures aimed at the production and sustainable use of biomethane. The renewable fuel is obtained by purifying biogas, and may replace natural gas, diesel, and gasoline.

After an interview in the garden of the Alvorada presidential residence, Bolsonaro drove a biomethane-powered tractor to the Planato Palace.

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Brazil’s Environment Minister Joaquim Leite signed a decree creating the National Program for the Reduction of Methane Emissions, also known as Metano Zero (“Methane Zero”), which should help make progress in the generation and use of biomethane derived from urban and rural waste.

“The program treats the waste from the city and the waste from the countryside. They’re residues from poultry, pigs, sugar cane, dairy products, and landfills—all this to generate biogas, which in turn generates energy, and biomethane, which generates fuel for heavy vehicles. We will have the opportunity to ride trucks, tractors, and buses powered by biomethane, slashing fuel costs,” said Leite.

Minister of Mines and Energy Bento Albuquerque signed a decree including investments in biomethane under the country’s Special Regime of Incentives for Infrastructure Development (REIDI), and exempting new projects from PIS/Cofins taxes for the acquisition of machinery, construction materials, and equipment.

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According to the federal government, the inclusion of biomethane should enable the construction of new plants producing the fuel, increasing supply and the installation of green corridors for heavy vehicles, impacting the reduction of greenhouse gas emissions. The total investment planned is upwards of BRL 7 billion, generating at least 6,500 jobs in the construction and operation of the new units. The goal is to build 25 new plants across six states. READ MORE

Brazil launches measures to produce biomethane to power heavy vehicles (NGV Journal)

Federal Government launches METANO ZERO National Program for the treatment of waste destined for biomethane production (Click Petroleo e Gas; inlcudes AUDIO)

Federal Government launches measures to encourage the production and sustainable use of biomethane (Government of Brazil Ministry of the Environment; includes VIDEO)

Brazil to launch program to turn methane into biofuel (Agência Brasil; includes AUDIO)

Excerpt from Click Petroleo e Gas: In order to meet the target established at COP 26, the Federal Government launched a program to encourage the production of biomethane and waste treatment in Brazilian cities and countryside.

Last year, Brazil signed during the climate dome a global commitment to reduce methane emissions into the atmosphere by up to 30%. In order to fulfill this mission, the Federal Government launched on Monday (21), several measures to encourage the production of biomethane through waste treatment. The information came from Joaquim Leite, minister of the environment who was interviewed last Sunday in Brazil on the Agenda.

Biomethane, a renewable biofuel for energy transition, which can replace gasoline, diesel and natural gas

According to the minister, several Federal Government initiatives are already being carried out to carry out the treatment of waste that will be transformed into biomethane, mainly poultry and swine waste, sugar cane and those that come from sanitary landfills. Also according to the minister, the transformation of this waste reduces the amount of methane gas that is generated by this type of waste.

“It is the treatment of waste generating energy and generating fuel”, celebrated Leite. According to Leite, rural properties are transforming this waste into biomethane or biogas and using it in tractors, buses and trucks, so people can use the gas generated in their own homes to reduce the consumption and use of diesel.

Among the measures that will be announced by the Federal Government to encourage the biomethane production and waste treatment there are new lines of financing for the Verde expansion, where R$ 400 billion will be invested in total for this purpose. The minister stated that public policies will be designed by the Federal Government, however, it will be the private sector that must execute them.

Biomethane will be included in Reidi

One of the measures announced by the Federal Government on Monday (21) was the inclusion of biomethane in the special incentive regime for infrastructure development (Reidi), that is, it will result in the suspension of the collection of PIS or Cofins on the purchase of machines, equipment or construction materials for the sector.

The signed decree projects the incentive to the biomethane credit market, promotion of the installation of biodigesters, biogas purification and production and compression systems, in addition to encouraging the production of biomethane and scientific-technological research.

According to the Brazilian Biogas Association (Biogás), Brazil has the capacity to produce up to 120 million cubic meters per day, which corresponds to 70% of the national need for diesel. The entity estimates that investments of R$ 7 billion will be applied over the next five years in new biogas plants, so the current production volume, which is 400 thousand cubic meters, will rise to more than 2 million by 2027.

During the event, with the presence of ministers Bento Albuquerque (MME) and Joaquim Leite (MMA), the President of the Republic, Jair Bolsonaro, signed the Decree establishing the Federal Strategy for Incentive to the Sustainable Use of Biogas and Biomethane, whose objective is to promote programs and actions to reduce methane emissions and encourage the use of biogas and biomethane as renewable sources of energy and fuel.

Hospital waste treatment takes center stage

The increase in the production of hospital waste during the pandemic and the inadequate disposal of waste have been the targets of WHO alerts and are driving several initiatives to reuse materials by leading health institutions in Brazil.

Among the projects are the transformation of food into fertilizer for the manufacture of organic food, bath linen and bedding made and sold by tales and seamstresses from needy communities, among others.

According to a report by abrelpe last year, there was an increase of 15% in the production of hospital waste in 2020, compared to the previous year, generating a total of 290 thousand tons and domestic waste grew by 4% reaching 82.5 million tons. READ MORE; includes AUDIO

Excerpt from Government of Brazil Ministry of the Environment: Strategy promotes market and scientific-technological research on biogas and biomethane. 25 new biofuel plants will be built, with an investment of over R$7 billion and generation of 6,500 jobs --

The Federal Government, through the Ministries of Mines and Energy (MME) and the Environment (MMA), carried out, this Monday (21/03), the launch of measures to encourage the production and sustainable use of biomethane. Renewable fuel is obtained by purifying biogas and can replace fossil fuels.

The initiative meets the commitments made by the country during the 26th United Nations Conference on Climate Change (COP26), including the Methane Agreement. The document, signed by Brazil and more than one hundred countries, foresees a global effort to reduce methane emissions by 30% by 2030 compared to 2020 levels. This is a great opportunity for Brazil, in the context of a new global green economy.

Among the directives of the decree, the incentive to the carbon market, especially the methane credit, the promotion of the implantation of biodigestors and systems of purification of biogas and of production and compression of biomethane, stands out. In addition, the strategy provides for fostering the development of scientific-technological research on biogas and biomethane and encouraging national and international cooperation to implement actions to reduce methane emissions, among others.

Also at the celebration that took place at Palácio do Planalto, the ministers of Mines and Energy and the Environment signed two ordinances in the context of the Federal Strategy for Incentive to the Sustainable Use of Biogas and Biomethane.

MMA Ordinance No. 71, of March 21, 2022, institutes the National Program for the Reduction of Methane Emissions. The initiative concerns the biogas generated from the correct treatment of urban and rural organic waste, from, for example, poultry, swine, sugarcane and sanitary landfills. This biogas is transformed into energy or, if purified, becomes biomethane, which is a cheaper alternative to fuel heavy vehicles, such as trucks, tractors and buses. Biomethane can still be used as a biofertilizer, which is so important at the moment.

Within the scope of the MME, an amendment to Normative Ordinance No. 19/MME/2021 was signed, including investments in biomethane in the Special Incentive Scheme for Infrastructure Development (REIDI). Demand in the sector since 2016, projects included in the REIDI have suspended the collection of PIS/COFINS for the acquisition of machinery, construction materials, equipment, among other components.

The insertion of biomethane in the REIDI will allow the construction of new plants for the production of biomethane, increasing the supply of the product and the installation of green corridors for the supply of heavy vehicles, with impacts on the reduction of greenhouse gas emissions. The total planned investment is over R$ 7 billion, generating 6,500 jobs in the construction and operation of the new units.

With the measure, 25 new plants will be built distributed in São Paulo, Rio Grande do Sul, Santa Catarina, Goiás, Mato Grosso and Mato Grosso do Sul. Production is expected to jump from 400,000 cubic meters a day to 2.3 million cubic meters a day in 2027, enough to supply more than 900,000 light vehicles a year. In addition, emissions of almost 2 million tons of carbon into the atmosphere will be avoided, which corresponds to the planting of 14 million trees in terms of carbon capture.

The economic use of biomethane will be fundamental to increase energy security and promote the internalization of gas, taking clean energy to different locations in our country.