Geo Biogas betting on Brazil's biomethane market growth

Brazil’s Geo Biogas has signed an MOU with Prumo Logística for the installation of a biomethane plant at Açu port (pictured) or adjacent areas, in the north of Rio de Janeiro state. 

The project will be initially designed to produce 200,000m3/d of the fuel. 

Geo Biogas’ founder and director, Alessandro Gardemann, said that Brazil has unique conditions for the production of biogas and renewable carbon, with huge untapped potential. 

"The Açu project is extremely well located to supply the markets for green methanol, green steel and the entire industry that is difficult to decarbonize," he told BNamericas. 

Talks underway to connect the port and industrial complex to the domestic gas pipeline network, through NTS or TAG, are an important factor in the partnership so the biogas can be transported through the future pipelines. 

The studies should take up to two years before an investment decision is made, according to Prumo.

Prumo Logística, the holding responsible for the development of Açu port, has US firm EIG and the United Arab Emirates’ Mubadala Investment Company as shareholders. 

Geo Biogas has five biogas plants in operation, in partnership with Cocal Energia, Raízen, uisa, Crivellaro Ambiental and Coopcana. 

The MOU is one of several green energy agreements signed by Prumo Logística, which estimates the deals involve investments of 15bn reais (around US$3bn) in the next 10 years.  

In 2022, the company closed a deal with TotalEnergies for studies into the installation of logistical support bases for wind projects. 

"Brazil is very well placed in its ability to attract capital, both for renewable sources and oil and gas," TotalEnergeis' CEO in the country, Charles Fernandes, said during the Prumo Day conference on Wednesday.

The French company currently has 11 oil and gas exploration licenses in Brazil and has a partnership with Casa dos Ventos to develop wind and solar projects. 

Prumo also has offshore wind and/or green hydrogen MOUs with groups like Neoenergia, EDF Renewables, Shell, White Martins, SPIC Brasil and Fortescue Future Industries.

Ítalo Freitas, executive VP of engineering and commercialization at Eletrobras, said the electric power holding is in a position to produce the most competitive green hydrogen in the world, mainly due to its large hydroelectric capacity. 

He added, however, that the expansion of the market will depend on the resilience of the national power grid. 

"We've just faced a blackout, which is related to the lack of inertia in the system, and it's necessary to pay the hydroelectric plants to do this [backup] service," he said during Prumo's Day.

Meanwhile, Prumo Logística is eyeing the fertilizer segment, where it has a partnership with Toyo Setal to develop a nitrogen fertilizer plant.

Dorian Zen, CEO of Toyo Setal, estimates that the project will require investment of between US$3bn and US$4bn. 

He said the greatest challenge for the undertaking is the price of natural gas, a basic raw material to produce ammonia and urea. 

"We need a state policy and to achieve prices of between US$4 and US$6 per million BTU," he said during the same event.