State concessionaires have contracts to acquire 290 thousand m³/day and will increase demand for biomethane in 2024.
The biomethane market has gained prominence in the gas distribution sector in recent years. In 2023, several companies began to show interest in renewable fuel, expanding opportunities for producers.
In addition to the concessionaire that already regularly purchased biomethane, at least four distributors have already signed contracts to purchase renewable natural gas. Copergás, a gas distributor in Pernambuco, is one of the most recent examples, having signed an amendment to the contract with Orizon VR to increase the acquisition of biomethane at the end of 2023.
Biomethane acquisition contracts boost renewable gas market
This represents less than 1% of the non-thermoelectric demand of dealerships, but the list tends to grow.
Compagas, from Paraná, hopes to close its first biomethane acquisition contract soon, while other companies, such as ES Gás (ES) and Sergás (SE) are also moving to acquire the product.
Distributors are not, today, the main destination for biomethane produced in the country, with the largest portion destined for final consumers (generally industries) or for internal circular economy projects – such as replacing diesel and even natural gas in the fleet of vehicles and production processes.
But state utilities have been gaining ground as important anchors for the feasibility of new biomethane projects in the country. Companies not only target environmental aspects, but also see renewable fuel a way to diversify supply sources.
Below, the epbr agency provides an x-ray of the movement of distributors that rely on biomethane as a source of supply:
Cegás (CE)
The distributor from Ceará is a pioneer in the injection of biomethane into the piped gas network. The concessionaire has a contract with GNR Fortaleza – partnership between Environmental and Ecometane Marquise (MDC).
GNR Fortaleza completed five years of activity in 2023, with a supply of 90 thousand m³/day of biomethane – which represents around 20% of the volume distributed by Cegás. The expectation is to reach 108 thousand m³/day in the future.
Necta (SP)
The former GasBrasiliano began, in 2023, operations of the primeiro isolated system of biomethane distribution in the country. The project supplies the municipalities of Presidente Prudente, Narandiba and Pirapozinho, in the interior of São Paulo, with renewable fuel produced by the Cocal group.
The biomethane plant at Usina Cocal has capacity to produce up to 25 thousand m³/day, from the processing of sugar cane waste.
The project has become an alternative supply to these municipalities — which are 200 km from the Bolivia-Brazil Gas Pipeline (Gasbol) and do not economically justify a conventional project to connect to Necta's integrated network.
Copergás (PE)
The Pernambuco distributor signed a contract with Orizon VR in 2023 for the acquisition of biomethane. The initial agreement provided for the sale of 60 thousand m³/day, but the volume was later adjusted to up to 130 thousand m³/day.
Supply is scheduled for 2025 for a period of ten years. The fuel will be produced at Ecoparque Jaboatão dos Guararapes, which is yet to be built.
Sulgás (RS)
The dealership from Rio Grande do Sul signed its first supply contract of biomethane with SebigasCótica – which joined the alternative investment manager eB Capital to develop bioproducts.
The plant will be installed in the city of Triunfo and will transform waste from agroforestry activities. The initial volume for the first five years of the supply contract with Sulgás is 15 thousand m³/day, starting from the end of 2024.
Capacity can be expanded to 30 thousand m³/day from the sixth year onwards, according to the contractual provisions. The project will initially benefit the Triunfo Petrochemical Complex.
Compagas (PR)
The distributor from Paraná expects to close its first biomethane contract at the beginning of this year, for supply from 2025.
Na public call opened by the company in 2023, proposals were presented from 12 different suppliers, with a potential volume that could exceed 380 thousand m³/day of biomethane for Paraná.
A Compagas plans to expand the share of biomethane in its portfolio to somewhere between 15% and 20% from 2025.
Sergas (SE)
The Sergipe concessionaire opened a public call in 2023, for supply from 2026. In October, the company met with representatives from Orizon VR, to begin negotiations to enable a biomethane plant at the Rosário do Catete (SE) landfill.
The expectation is to initially produce around 70 thousand m³/day, but the volume could reach 120 thousand m³/day.
ES Gas (ES)
The Espírito Santo concessionaire signed, at the end of 2023, a memorandum of understanding with Marca Ambiental, to develop a biomethane project with injection into the local piped gas network.
MSGás (MS)
AGEMS, the regulatory agency of Mato Grosso do Sul, published in 2023 three new regulatory standards that deal with biomethane, including Ordinance 257 (on Authorization of Structuring Projects for the provision of gas distribution services through local networks). In 2023, MSGás launched a public call for the purchase of renewable gas.
The concessionaire is betting on biomethane as a source for virtual gas pipeline projects – whether through compressed gas (CNG) or liquefied gas (LNG).
Naturgy (RJ/SP)
The controlling company of distributors CEG, CEG Rio and São Paulo Sul is considering developing distribution network projects supplied 100% with biomethane. The idea is to create types of ‘green municipalities’, supplied entirely by renewable natural gas.
Comgás (SP)
The country's largest distributor launched a public call in 2023 that received 14 proposals, two of which were for the supply of biomethane.
In December, the company reported that it was continuing in 'final negotiations with other suppliers', in addition to Petrobras – with which Comgás signed long-term agreements.
Gasmig (MG)
The Minas Gerais distributor opened a public call in 2023 to purchase renewable gas for injection into the grid.
Source: EPBR
