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New investments slated to unlock biogas potential

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The slow pace of activity in the Brazilian economy in 2020 passed by the biogas industry. Last year, 69 new renewable gas production plants were completed, most of them investments by agricultural companies and cooperatives seeking to reuse waste, especially from animal husbandry, to diversify and increase income.

The sugar-and-ethanol industry has the greatest potential for expansion, says the Brazilian Biogas Association (Abiogás), which forecasts potential of producing up to 57.6 million cubic meters daily. The animal protein sector comes next with potential for 35.3 million cubic meters daily.

Resulting from the decomposition of organic materials discarded in the environment today, biogas has the versatility to be used both for power generation and in the production of biomethane for industrial companies, homes and automobiles. As a renewable alternative to fossil natural gas, biogas is attractive due to the financial potential linked to low carbon emissions.

In the last two years, more than R$700 million were invested in new plants, which in 2020 alone injected 50 megawatts (MW) into the system - the equivalent of 100 million cubic meters of biomethane per year.

The current national production of biogas is 1.5 billion cubic meters per year, representing less than 4% of the fossil production. The volume is also far from the potential for biogas in Brazil, of 40 billion cubic meters per year, according to Abiogás.

Virtually all current investments are aimed at generating electricity, but the greatest potential is in biomethane, says Alessandro Gardemann, president of the association.

The inauguration of two large projects in 2020 may end up unlocking new investments in this sector, he says. One was from Raízen Energia, which is already delivering energy from burning biogas after authorization from CPFL and the Brazilian Electricity Regulatory...

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