Compagas announces investments of 505mn reais and entry into biomethane chain

This is an automated translation of the original release published in Portuguese

By Compagas

June 24, 2024

Companhia Paranaense de Gás (Compagas) will invest 505 million reais over the next five years, between 2024 and 2029. The investment plan was announced this Monday (24) by governor Carlos Massa Ratinho Junior and includes actions and projects to expand the company's operations to other regions of the State, especially to the municipalities of Londrina, Maringá and Lapa, the insertion of biomethane into the piped gas network and the development of sustainable corridors with supply via natural gas and biomethane.

The investments are part of Compagas' new concession contract, which comes into effect in July and sets goals for increasing the supply of natural gas and biomethane and serving new regions in Paraná for the next 30 years.

“Paraná, which is the largest generator of renewable energy in Brazil, could become the Saudi Arabia of biogas and biomethane. We have a very large potential in generation, which is done through animal waste and plant biomass, such as from the sugar and alcohol sector,” explained the governor. “We are organizing the entire ecosystem for the generation of biogas and biomethane in Paraná. Both in the tax and fiscal part of the chain, as well as in the production and flow infrastructure, creating a new development corridor.”

The largest producer of animal protein in Brazil, Paraná also leads the way in the generation of biogas and biomethane. According to a survey by the International Center for Renewable Energy (Cibiogás), the state has 426 plants installed, 67% of all plants in the South region. “We dominate this very important sector, which is also becoming a new source of income for rural producers," highlighted Ratinho Junior.

One of Compagas' plans, explained CEO Rafael Lamastra Junior, is to reach a 15% share of biomethane in the company's distribution volume by 2026. “We are very excited about the announcement we made today. We believe that this new investment will make Paraná advance even further in the energy and infrastructure segment,” he stated. “Natural gas continues to be an important source, but the inclusion of biomethane brings a more sustainable footprint to meet the environmental and customer demands and also the company’s ESG goals.”

“Paraná leads the production potential of biogas in the South of the country. We need to take advantage of Paraná’s potential in biomethane generation to make the State more sustainable and with fewer emissions, as another alternative for the decarbonization of the energy matrix,” commented Lamastra.

FIRST CONTRACT – The first contract for the supply of biomethane for insertion into the gas distribution network in Paraná was signed with the company H2A, which will supply 20,000m³/day from July 2025. The partnership makes it possible to build a plant in Carambeí, in Campos Gerais, for the production of renewable gas in a circular chain, using waste from the dairy complex.

The partnership with H2A is part of Compagas' expansion plan, which foresees new biomethane contracts in the coming months. The 15% planned for distribution by 2026 corresponds to around 100,000 m³/day of renewable gas. “The objective is to integrate the distribution network with the main biomethane producing areas, to enable the flow of renewable fuel through pipelines, expanding the capacity to expand the use of renewable gas,” highlighted Lamastra.

Compagas has been working in recent months to develop biomethane suppliers for injecting renewable gas into its distribution networks. Since 2023, the company has already opened two public calls for the purchase of fuel.

H2A's Administration Director, Carlos Alberto da Silva Souza, highlighted that the company has been seeking new technologies for the production of biomethane, with the Carambeí plant using pig and cattle waste to produce the input. “We are going to take advantage of this waste, which is now treated in a sustainable way, to provide economic viability to producers, who are partners in our project,” he said.

LONDRINA AND MARINGÁ – Within the investment of 505 million reais until 2029, Compagas will invest 100 million reais to expand the piped gas network, aiming to serve the cities of Londrina and Maringá. A total of 60 kilometers of network will be built to serve the industrial, residential, commercial and vehicular segments in the North of Paraná, and the region will be supplied 100% with biomethane.

Eight kilometers of network will be built in Maringá to serve the region's industrial segment. The project also includes the installation of a section of around 19 kilometers connecting the municipalities of Londrina, Cambé and Rolândia to supply the industries installed along the route. Other sections, totaling 34 kilometers, will serve the Gleba Palhano neighborhood, located in the South zone of Londrina and considered one of the most valued regions in the real estate sector and with intense commerce.

ARAUCÁRIA AND LAPA – Compagas also announced the construction of 52 kilometers of gas pipeline between the municipalities of Araucária and Lapa, in the Metropolitan Region of Curitiba. The investment of 108 million reais will serve an important agro-industrial hub in the State and, in particular, the Grupo Potencial Biodiesel factory, in the city of Lapa.

The expectation is to complete the works and begin supplying piped gas to Grupo Potencial in 2026. “Grupo Potencial has been making large investments in the city of Lapa, with the implementation of a soybean crusher that requires greater use of gas. For this, we will have a 'flex boiler', which can use biomass or any type of gas, such as biomethane,” said the vice-president of Grupo Potencial, Carlos Eduardo Hammerschmidt. “This investment made it possible to build the gas pipeline, which will help with the development of the region.”

In addition to the gas pipeline, a term of commitment was also signed between the State Government and Potencial for the implementation of two biofuel pipelines between Araucária and Lapa. The company's investment in the project will be around 200 million reais.

One of the pipelines will be dedicated to transporting biodiesel and soybean oil, while the other will be executed in a versatile manner, according to the group's projects. The structure will be approximately 50 kilometers long, connecting the fuel distribution bases from Araucária to Lapa.

The Potencial Biodiesel plant is the largest in Brazil and one of the five largest in the world, producing around 900 million liters per year. “Today, the transport of these products in Brazil is mainly carried out by road. With this pipeline, we will have agility, safety and better quality in the delivery of this fuel, in addition to zero CO2 emissions in distribution,” highlighted Hammerschmidt.

SUSTAINABLE CORRIDOR – Another important announcement made by Compagas was the start of operations of the first route of the Paraná Sustainable Corridor connecting the municipalities of Londrina and Paranaguá. In total, there are 11 filling stations with CNG (vehicular natural gas) and biomethane to supply light and heavy vehicles.

Lamastra sees the implementation of this first corridor as a milestone for the project, reflecting progress in transforming the state's energy matrix in the transport sector. “Compagas’ strategy is to expand the supply of natural gas and biomethane for heavy vehicles, especially trucks and buses, so that they can travel throughout the State, transit between other regions and transport production to the port of Paranaguá using cleaner and sustainable fuels, contributing to the reduction of polluting gases in the atmosphere,” he stated.

The Sustainable Corridors project began in 2020 at Compagas, with the identification of the state's main transport routes and strategic locations for the introduction of gas into the energy matrix. The initiative provides the integration of the State's main road routes with the Port of Paranaguá for the flow of agricultural production and road transport of cargo for the export of food and agribusiness, in addition to connection with the South and Southeast regions.

In addition to the first route in operation announced today, the project has other routes to be implemented, covering other regions of Paraná. Compagas is also engaged in debating and coordinating with other states the expansion of corridors to interconnect the system from Rio de Janeiro, passing through São Paulo, Santa Catarina to Rio Grande do Sul, consolidating an important sustainable axis for road transport in the country.