Getting biomethane out of the shadow: a framework analysis in Portugal and Brazil

Biogas and Biomethane are low-carbon, accessible and efficient renewable gases, but they are often excluded from political discussion and marginalised in decision-making. Biomethane plays a key role in the energy transition as it directly replaces NG in its various uses, as well as reducing GHG emissions through better management of the organic waste that is used as feedstock and by replacing synthetic fertilisers with organic fertilisers. Recent developments in technology enable biomethane to be an affordable fuel that contributes to the security and flexibility of the energy system. International energy agencies and sector associations have been warning for several years about the potential of biomethane, but measures for promotion, support policies and actions, are uneven among different countries. Although, biomethane is considered a relevant option in the decarbonisation of gas networks and the substitution of fossil fuels, namely for non-electrifiable uses, Portugal, and Brazil, have been laggards in promoting these gases. In a context of strong commitment to biomethane, which is expected to fulfil 61% of gas demand in Europe by 2050, in 2023, Brazil had only 6 plants in operation and Portugal had none. We were interested in understanding the biomethane context in the political, regulatory, and strategic dimensions that could justify this situation. This study has made it possible to determine the similarities and differences in the regulatory and legal framework between the two countries. It also enabled to acknowledge the existing business models that emerge from the current environmental restrictions in the international context of political instability surrounding NG and the critical factors for business, particularly those referring to the injection of biomethane into the natural gas (NG) network, compression for vehicle use or conversion of existing biogas plants. It also allowed to identify the constrains, opportunities and challenges, which need to be addressed to bring biomethane to the frontline with other renewable energies. The two countries under study, have taken different paths towards biomethane. The analyses identified similarities between them, particularly those referring the need to understand value chains, involve stakeholders, propose appropriate and coherent policies, and guarantee the support mechanisms required to set up new plants or update the existing ones.