Brazil’s Migratio developing biogas power, green hydrogen projects

Brazil’s Migratio group is developing projects to generate electricity from biogas and produce green hydrogen, with a total investment of 190mn reais (US$34.4mn), managing partner Fábio Saldanha told BNamericas. 

In partnership with the ASJA group, Migratio unit Migratio Bioenergia will use waste from landfills belonging to the Ecosolo group in Campina Grande and Guarabira, both in Paraíba state, to generate electricity. 

The partnership foresees investments of 40mn reais to build two biogas plants with a 70% stake held by ASJA and 30% by Migratio Bioenergia. 

The projects will have combined installed capacity of 2.5MW. Together, they will generate around 40GWh/y, equivalent to the consumption of 20,000 households. 

The first project, in Campina Grande, is due to be delivered by the end of the year, while the one in Guarabira is scheduled to be opened in early 2025. 

The operations will be interconnected to Energisa Paraíba's network and have Jenbacher equipment, imported from Austria.

The energy generated will be compensated under the distributed generation model, where electricity is generated close to consumers.

“We were able to classify the project as GD1, which was important for making the project viable,” said Saldanha. GD1 projects are exempt from distribution network usage fees until 2045. 

According to the executive, Energisa has guaranteed the connection of the projects in Campina Grande and Guarabira in October and December, respectively. 

“With that, we've managed to keep to the schedule. The motor-generators are already in Brazil, and the flare will arrive in two weeks,” said Saldanha. 

He highlighted that he is in talks with a regional bank to finance the projects. 

Carbon credits are also part of the financial equation for the two projects. In Campina Grande, the estimate is that generating energy from the landfill is equivalent to 1.4mn carbon credits over 14 years. In the case of Guarabira, the calculation is 600,000 carbon credits.

In Rio Grande do Sul, Begreen Bioenergia e Fertilizantes Sustentáveis, formed from the union between Migratio Participações, Torao Participações and Pharo Participações, has signed an agreement with Oriental Consultants Global do Brasil to enable the development of three plants for the decentralized production and consumption of low-carbon hydrogen and ammonia, as well as the operation and maintenance of the plants.

Fueled by renewable energy, the three units involve total investments of 150mn reais and will produce 8,000t/y of anhydrous ammonia. They will be built in Passo Fundo, Tio Hugo and Condor. 

Last week, Begreen signed an MOU with Rio Grande do Sul so that the plants can, over the next three years, benefit from the incentives of the state's hydrogen production chain development program. 

Saldanha highlighted that almost all nitrogen fertilizer used in Brazil is imported. 

“So, once you have production on a regular basis, there is operational security and security against the variations that occur on the international market,” said the executive. 

In addition to the possible participation of Oriental Consultants Global do Brasil, controlled by Japan’s Oriental Consultants Global, Migratio intends to set up a project finance structure to make the projects viable.  

“We’re negotiating with triple A [rated] offtakers to act as guarantors,” said Saldanha. 

He revealed that Migratio has preliminary understandings with food industries in other states to invest in the local production of green fertilizers.

“We see potential all over Brazil. These industries are interested in producing their own lower-carbon fertilizer, which comes with a bias towards decarbonizing the agribusiness chain,” Saldanha said.

The Migratio group provides marketing and intelligence services in the energy sector for consumers and generators. Formed in 2012, it is based in Limeira, São Paulo, and has stakes in five companies: Migratio Energia (trading company), Migratio Consultoria, Migratio Gás, Migratio Bioenergia and Begreen Bioenergia e Fertilizantes.