Brazil Energy Biomethane Development
São Paulo is emerging as Brazil’s leading biomethane hub, leveraging state and municipal programs to scale biomethane fuel production, creating opportunities for U.S. technology and infrastructure solutions.
São Paulo is emerging as Brazil’s top biomethane hub, with the potential to replace 32% of natural gas or 24% of diesel consumption in transportation, according to a study by the State of São Paulo Federation of Industries (FIESP)
State Production Potential
The report, released on August 28, 2025, in partnership with sector associations and industry players, identifies a production potential of 6.4 million Nm³/day from 181 plants –primarily from the sugar-energy sector (84%) and landfills (16%). This production could meet roughly 16% of Brazil’s national decarbonization targets.
The study recommends:
1. Developing regional production hubs using existing infrastructure;
2. Integrating logistics to expand supply;
3. Implementing policies across competitive supply, infrastructure, demand stimulation, and innovation.
Municipal Initiatives: BioSP Program
The City of São Paulo has reinforced this momentum through the BioSP Program, signed into law by Mayor Ricardo Nunes on September 2, 2025. The decree sets rules for progressively incorporating biomethane into public transport and waste collection fleets, aiming to replace over 600 diesel trucks by 2027.
Currently, 125 collection trucks run on landfill-produced biomethane, and the city plans to expand procurement from private suppliers. These efforts align with São Paulo’s Climate Change Plan (PlanClima SP), targeting significant emissions reductions by 2028.
Environmental and Economic Benefits
Biomethane is a 100% renewable fuel derived from waste and organic matter, transforming environmental liabilities into energy assets. Together, state and municipal initiatives highlight São Paulo’s leadership in low-carbon urban mobility and the broader national energy transition.
Opportunities for U.S. Companies
U.S. technologies are well-positioned to support São Paulo’s biomethane expansion across production, infrastructure, and decarbonization solutions. Companies can contribute by providing:
• Production technologies: biogas upgrading systems, anaerobic digestion technologies, gas compression equipment;
• Infrastructure solutions: pipeline monitoring, leak detection, virtual pipelines connecting decentralized plants with demand centers;
• Decarbonization and carbon management: carbon capture and storage, integration with biomethane projects, and carbon credit solutions.
By offering efficient, safe, and innovative technologies, U.S. firms can become strategic partners in São Paulo’s adoption of biomethane.
For more information on opportunities for U.S. companies, please contact Igly Serafim igly.serafim@trade.gov, Energy Commercial Specialist, U.S. Commercial Service, São Paulo.