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BNDES Released R$ 450 Million for a New Biogas Plant in Paulínia. The Project by Edge and Orizon Strengthens Renewable Energy, Reduces Emissions, and Boosts Green Jobs in Brazil
On December 17, the National Bank for Economic and Social Development (BNDES) approved financing estimated at R$ 450 million for the implementation of one of the largest biogas plants in Brazil, located in Paulínia, in the interior of São Paulo. The project will be developed by Biometano Verde Paulínia (BVP), a company linked to the joint venture formed by Edge and Orizon, and marks a relevant advance for renewable energy and for the low-carbon economy in the country.
BNDES Financing Strengthens Biogas Plant in Paulínia
The financing was structured with resources from the Climate Fund and the Finem line, reinforcing BNDES’s role as one of the main drivers of large-scale sustainable projects in Brazil. The initiative also stands out for its ability to transform urban solid waste into renewable fuel, with direct impacts on emission reductions and job creation.
This is one of the largest investments ever made in the biogas segment in the country, consolidating Paulínia as a strategic hub for the national energy transition. The financing approved by BNDES for the construction of the biogas plant totals approximately R$ 450 million.
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Of this total, 80% of the funds come from the Climate Fund, a federal mechanism aimed at supporting projects with positive environmental impact, while the remaining 20% comes from the Finem line, a traditional long-term credit instrument from the bank.
The contract has a total term of 16 years, maturing on September 15, 2041, offering financial stability for the execution of the venture. According to a statement released to the market by Orizon, the first disbursement, amounting to R$ 242.5 million, occurred on December 17, intended for the full settlement of a bridge loan due on December 31, 2025.
The financial structure demonstrates BNDES’s confidence in the economic and environmental viability of the project, as well as signaling to the market the growth potential of biogas in Brazil.
Structure and Capacity of the Biogas Plant in Brazil
The new biogas plant will be installed at the Orizon VR Ecopark in Paulínia, one of the main waste treatment complexes in the country. The unit will be dedicated to purifying the biogas generated from urban solid waste, converting it into biogas with quality standards compatible with industrial and vehicular use.
The plant will have the capacity to produce up to 225 thousand cubic meters per day of renewable source gas, a volume considered significant for the Brazilian market. This level of production positions the project as the largest in the country in this segment, especially in the energy recovery of landfills.
By transforming urban waste into clean fuel, the project reinforces the concept of a circular economy, reduces environmental liabilities, and increases the supply of renewable energy in the national matrix.
Edge and Orizon Lead Strategic Renewable Energy Project
Biometano Verde Paulínia (BVP) is the corporate name of Onebio, a joint venture formed by Edge and Orizon. Edge Comercialização, a company of the Cosan group, holds 51% of the stake, while Orizon owns the remaining 49%. Within the project structure, Onebio will be responsible for receiving all the biogas generated at the ecopark and purifying it at the new biogas plant.
The partnership between Edge and Orizon brings together complementary expertise in energy trading, waste management, and industrial asset operation. This model strengthens project governance and creates a solid foundation for future expansions.
The joint efforts of the companies enhance the competitiveness of biogas against fossil fuels, especially in industrial applications and heavy transport.
Renewable Energy and Low-Carbon Economy at the Center of Investment
The project financed by BNDES is directly aligned with policies that encourage renewable energy and the low-carbon economy. Biogas is considered a strategic alternative as it allows for the substitution of fossil fuels, such as diesel and non-renewable natural gas.
Furthermore, the capture and energy utilization of biogas contribute to the reduction of methane emissions, a gas with a high global warming potential. This dual environmental benefit strengthens the role of biogas as a relevant climate solution, especially in a country with significant urban waste generation.
Impact of the Biogas Plant on Job Creation
During the construction phase of the biogas plant in Paulínia, it is estimated that around 3,000 direct and indirect jobs were generated. The opportunities cover areas such as engineering, civil construction, industrial assembly, logistics, and specialized services.
Job creation associated with renewable energy reinforces the sector’s potential as a vector for economic development, especially in regions with strong industrial activity.
Additionally, the ongoing operation of the plant is expected to create permanent jobs throughout its lifespan. This positive impact contributes to strengthening the local economy and to the professional qualification of the workforce involved.
Edge’s Assessment of BNDES Support
For Demetrio Magalhães, CEO of Edge, the financing approved by BNDES represents a decisive incentive for the low-carbon economy in Brazil. According to the executive, the support from the Climate Fund and the Finem line enhances the competitiveness of biogas and enables new investments in the sector.
According to Magalhães in a statement, the support from the Climate Fund and the Finem line is essential to strengthen competitiveness and enable the expansion of investments in biogas. He also emphasized that the fuel can significantly contribute to the decarbonization of heavy fleets, such as trucks and buses.
Orizon’s Vision on Biogas Expansion
Milton Pilão, CEO of Orizon VR, classified the Paulínia plant as a pioneering project for the large-scale expansion of biogas production in Brazil. He stated that the initiative follows the model already implemented by the company in Pernambuco and will serve as a reference for future units.
The project transforms urban solid waste into clean energy and helps reduce greenhouse gas emissions, the executive highlighted. Orizon believes that the approved credit reinforces the environmental value of the enterprise and creates a basis for replicating the model in other landfills of the group.
What the Project Represents for the Future of Biogas in Brazil
The advancement of the biogas plant in Paulínia takes place in a context of growing interest in the fuel in Brazil. The country has high potential for biogas generation from urban, agro-industrial, and sanitation waste, which opens the door for new projects structured with the support of BNDES.
The experience of Edge and Orizon demonstrates that biogas can be produced at scale, with economic viability and significant environmental gains. The project solidifies as a milestone in the Brazilian energy transition, strengthening the supply of renewable energy, stimulating sustainable investments, and contributing to a cleaner and more resilient energy matrix.
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