São Paulo, September 2026 — Biomethane has emerged as one of the most immediate, mature and cost-effective solutions for accelerating the decarbonization of road transport worldwide, particularly in the heavy-duty and long-haul segments.

This is one of the key findings of Biomethane for Transport Decarbonization, a new international literature review commissioned by Instituto MBCBrasil and developed by researchers from four leading institutions: Professor Gláucia Mendes Souza, from the University of São Paulo (USP) and leader of IEA Bioenergy Task 39; Luís Augusto H. Nogueira, from the Federal University of Itajubá (UNIFEI); Heitor Cantarella, from the Agronomic Institute of Campinas (IAC); and Clayton Barcelos Zabeu, from the Mauá Institute of Technology.

Developed to foster and guide the deployment of biomethane in road transport globally, the study brings together scientific and economic evidence applicable to both mature and emerging markets across the Americas, Europe, Asia and Africa. It shows that the fuel — produced through the anaerobic digestion of organic residues such as vinasse, animal manure, municipal solid waste and sewage — combines significant greenhouse gas (GHG) emission reductions with energy security and direct benefits for the circular economy and public health.

A Global Movement Gaining Momentum

The transition to biomethane is already an industrial reality worldwide. Biomethane is produced in approximately 40 countries and used in transport in nearly 30 markets.

Globally, the sustainable potential for biogas and biomethane reaches approximately 1 trillion m³ per year — equivalent to around 25% of total global natural gas demand.

Demonstrating the strategic importance of the fuel on the international stage, the European Union has set a target of reaching 35 billion m³ (bcm) of annual biomethane production by 2030 under the REPowerEU plan, with estimated investments of approximately €37 billion. Meanwhile, the United States already has 470 renewable natural gas (RNG) projects, while India has more than 7.7 million gas-powered vehicles in operation.

“We gathered evidence from dozens of international and Brazilian sources to demonstrate how biomethane can drive the energy transition in road transport on a global scale. The picture is consistent: the fuel is a mature and viable solution that can deliver systemic benefits across a wide range of countries. Within this global landscape, Brazil stands out for its scale, but the country’s major opportunity goes beyond producing the fuel itself. Brazil can lead the supply of technology, equipment, engineering and integrated solutions developed domestically to other markets seeking to decarbonize,” says Professor Gláucia Mendes Souza (USP), leader of IEA Bioenergy Task 39 and one of the study’s authors.

The Brazilian Opportunity: Fuel, Technology and the Export of Solutions

While the broader international adoption of biomethane creates demand for clean energy, it represents a twofold opportunity for Brazil.

On the one hand, the country has one of the world’s most abundant supplies of agro-industrial feedstocks. In the sugarcane sector alone, Brazil’s biomethane potential is estimated at 41.4 billion m³ per year — equivalent to more than 41 billion liters of diesel — of which less than 2% is currently utilized.

On the other hand, the consolidation of biomethane markets abroad creates opportunities for Brazil to export technologies and solutions developed across its biomethane value chain. Brazilian industry has accumulated know-how in the manufacture of high-efficiency vertical biodigesters with real-time monitoring, gas purification systems, liquefied biomethane (bio-LNG) transport logistics and integration with low-carbon fertilizer production.

This accumulated expertise in processing complex residues such as vinasse and filter cake from sugarcane mills positions Brazilian industry as a strategic supplier of equipment, services and engineering solutions to countries in Latin America, Asia and Africa that have significant agricultural production but still lack adequate anaerobic digestion infrastructure.

Climate Impact and Lower Freight Costs

From a global climate perspective, replacing diesel with biomethane in heavy-duty transport can reduce well-to-wheel CO₂-equivalent emissions by 45% to 75%.

The study further highlights that, when credits for avoiding fugitive methane emissions from waste are taken into account — particularly relevant given methane’s high short-term global warming potential — manure- and waste-based projects can achieve a net-negative emissions balance, reaching as low as -246% compared with diesel. In these cases, the projects avoid more CO₂-equivalent emissions than they generate.

In addition to environmental and air-quality benefits — including particulate matter and soot emissions up to 10 times lower than those from liquid fossil fuels — biomethane also proves economically competitive.

Total Cost of Ownership (TCO) simulations — incorporating vehicle acquisition, maintenance and operating costs throughout its useful life — for heavy-duty fleets indicate that the cost per kilometer traveled using biomethane in Brazil can range from 30% lower to 25% higher than diesel, depending on the scenario:

Source: Brazilian freight studies cited in the review.

Biomethane is already more cost-effective than diesel in certain heavy-duty freight scenarios, even before additional revenue streams are taken into account.

These revenues are far from negligible. The study shows that, in more mature markets, between 20% and 60% of a biomethane plant’s total revenue can come from sources beyond fuel sales, including waste-treatment services (US$1–6/GJ), the sale of digestate as biofertilizer (US$0.5–4/GJ) and carbon credits (US$1–8/GJ), among others.

This changes the business model: a biomethane plant is not merely a fuel production facility, but a biorefinery producing multiple products and value streams.

Operational Milestones and Regulation

The study highlights that biomethane projects using vinasse and sugarcane residues are already operating successfully in Brazil at facilities including Cocal (Narandiba and Paraguaçu Paulista), Raízen (Guariba), São Martinho (Pradópolis) and Adecoagro (Mato Grosso do Sul).

In the 2024/25 harvest season alone, Brazil processed approximately 680 million tonnes of sugarcane, generating an estimated 380 billion liters of vinasse.

At Cocal’s facility in Narandiba, São Paulo, the biomethane plant has been operating since 2020 and produces approximately 50,000 Nm³ of biomethane per day from vinasse and filter cake. The facility uses vertical biodigesters equipped to monitor pH, temperature and performance in real time — a more advanced technology than conventional covered horizontal lagoons.

The company also operates a second facility in Paraguaçu Paulista, São Paulo, with estimated production of between 30,000 and 40,000 Nm³ per day.

Beyond the sugarcane industry, landfills also play an important role in Brazil’s biomethane landscape. The country’s largest facility was inaugurated in Paulínia, São Paulo, with a nominal capacity of up to 225,000 Nm³ per day.

In Goiânia, Goiás, the municipal government has announced plans to convert the city’s urban bus fleet to biomethane produced from waste, with engine manufacturers committed to supplying the vehicles.

The publication is being launched at a strategically important moment for Brazil’s regulatory framework. The Fuel of the Future Law (Law No. 14,993/2024) established the Biomethane Certificate of Guarantee of Origin (CGOB), enabling compliance with the mandatory greenhouse gas emission-reduction target for natural gas — which begins at 0.5% in 2026 and gradually increases to 10% — by decoupling the physical biomethane molecule from its environmental attribute.

“The study makes it clear that biomethane is neither a future prospect nor an experimental solution, but a global reality that is ready for deployment at scale. By demonstrating the viability of this fuel across different continents, the study can help unlock investment and support the development of public policies around the world. For Brazil, the advancement of this agenda globally reinforces our position not only as a major supplier of clean energy, but also as an exporter of technology and innovation for the energy transition,” says José Eduardo Luzzi, Chairman of the Board of Instituto MBCBrasil.

About Instituto MBCBrasil

Instituto MBCBrasil is a multisectoral organization dedicated to accelerating the decarbonization of mobility in Brazil. Established through the collaboration of companies, industry associations, research institutions and workers, the Institute’s mission is to translate technical evidence into public policy and foster sustainable mobility solutions.

Its work focuses on advancing viable decarbonization pathways, supporting the development of technologies related to bioelectricity and promoting a fair energy transition. Guided by the principle of technology neutrality, Instituto MBCBrasil encourages the integration of biofuels, electrification and new renewable energy sources, strengthening industrial competitiveness and fostering jobs, income and innovation, while positioning Brazil as a global leader in the energy transition.

For more information, visit Instituto MBCBrasil’s website and follow the Institute on LinkedIn and youtube.