Brazil’s Gás Verde to build biomethane supply point

Gás Verde, part of the Urca Energia group, is setting up Brazil's first biomethane refueling point, CEO Marcel Jorand told BNamericas.

The aim is to meet demand from clients Ambev, Ternium, Saint Gobain and L'Oréal, which are converting their vehicle fleets to run on biofuel. 

"Natural gas trucks are already a reality in the country, and the demand for them is huge. As biomethane is interchangeable with natural gas, it can be used in these vehicles, definitively reducing emissions," Jorand said.

Gás Verde is the largest biomethane producer in Latin America, with 130,000m3/d coming from a landfill site in Seropédica, in Rio de Janeiro’s metropolitan region. 

The company plans to exceed output of 500,000m3/d by 2028, with new plants in Rio de Janeiro, São Paulo, Minas Gerais, Bahia, Pernambuco and Maranhão states. 

Biomethane can be used to power industrial processes as well as light and heavy vehicle fleets, and can replace fossil fuels such as fuel oil, liquefied petroleum gas and natural gas.

According to biogas association Abiogás, the country has the potential to produce around 117Mm3/d of biomethane, enough to supply 70% of national demand for diesel. 

Although there is strong demand for biomethane, the gap with natural gas remains a challenge for the expansion of the biofuel market.

"While natural gas is an energy transition fuel, biomethane is 100% renewable and helps companies achieve net zero. So, this price comparison with natural gas is unfair," said Jorand. 

Another challenge concerns financing. Green credit lines would be needed to encourage players in the biofuels sector to accelerate their expansion and production plans, he added.

"We also understand that Brazilian states need to create the legal framework for biomethane, which will enable us to advance in terms of production volume and adherence by various sectors," said Jorand.

As demand for biomethane grows, it will be necessary to invest in infrastructure, such as access to gas pipelines and expansion of land routes. 

"We see the sector as having huge potential for growth and as being strategic for achieving the country's and companies' environmental goals," he said.

NEW PARTNERSHIP

The Urca Group and Orizon Valorização de Resíduos will form two companies to invest in production of biomethane in Rio de Janeiro’s metropolitan region.

The partnership foresees an estimated initial production of 180,000m3/day at the Nova Iguaçu and São Gonçalo landfills.

The agreement is being analyzed by antitrust authority Cade. 

Under the terms of the deal, Orizon Energia e Gás Renovável Limitada (BioE), controlled by Orizon VR, will own 50% of the companies, and GN Verde, which is Urca Comercializadora's non-operational holding, the other half.