Study says biomethane can cut freight emissions and boost Brazil’s clean fuel exports

An international literature review commissioned by Instituto MBCBrasil says biomethane is a mature, cost-effective option for decarbonizing heavy-duty transport and could make Brazil a technology and equipment exporter. The study highlights growing global deployment, strong emissions cuts, and new Brazilian policy support under the Fuel of the Future Law.

Why it matters: - Biomethane can reduce emissions from heavy-duty and long-haul freight, where decarbonization is harder than in light vehicles. - The study says Brazil has an opportunity to supply both renewable fuel and the equipment, engineering and logistics needed to produce it. - The findings arrive as Brazil expands policy support for low-carbon transport fuels.

What happened: - Instituto MBCBrasil commissioned an international literature review titled “From Waste to Wheels - Turning organic waste into renewable fuel for transport.” - Researchers from the University of São Paulo, Federal University of Itajubá, Agronomic Institute of Campinas and Mauá Institute of Technology authored the study. - The review covers mature and emerging markets across the Americas, Europe, Asia and Africa. - The report says biomethane is one of the most immediate, mature and cost-effective options for road-transport decarbonization. - The fuel comes from anaerobic digestion of organic residues such as vinasse, manure, municipal waste and sewage.

The details: - Biomethane is produced in roughly 40 countries and used in transport in nearly 30 markets. - Global sustainable biogas and biomethane potential reaches 1 trillion cubic meters a year, or about 25% of total global natural gas demand. - The European Union is targeting 35 billion cubic meters of annual biomethane production by 2030 under REPowerEU. - The U.S. has 470 renewable natural gas projects. - India has 7.7 million gas-powered vehicles. - In Brazil’s sugarcane sector alone, biomethane potential is estimated at 41.4 billion cubic meters a year, equal to 41 billion liters of diesel. - Less than 2% of that sugarcane-sector potential is currently used. - Brazilian industry has developed vertical biodigesters, gas purification systems and bio-LNG transport logistics. - Commercial facilities using vinasse and sugarcane residues are already operating at Cocal, Raízen, São Martinho and Adecoagro. - Landfill projects such as the Paulínia facility can reach up to 225,000 Nm³/day. - Urban bus fleet conversions in Goiânia also show commercial scalability. - Replacing diesel with biomethane in heavy-duty transport cuts well-to-wheel CO₂-equivalent emissions by 45% to 75%. - When avoided fugitive methane from waste is included, net emissions can fall as low as -246% versus diesel. - Heavy-duty fleet total cost of ownership simulations in Brazil put LNG at US$ 1.59 per km, CNG/biomethane at US$ 1.73 per km and diesel at US$ 1.87 per km. - In mature markets, 20% to 60% of plant revenue can come from non-fuel sources. - Those revenue streams include waste treatment, biofertilizer sales and carbon credits. - The study says biomethane facilities can operate as multi-product biorefineries. - Brazil’s Fuel of the Future Law, Law No. 14,993/2024, created the Biomethane Certificate of Origin. - The law supports mandatory emission-reduction targets for natural gas starting at 0.5% in 2026 and reaching 10%.

Between the lines: - The report frames biomethane as more than a fuel story, positioning it as an industrial platform tied to waste management, agriculture and carbon markets. - Brazil’s feedstock base and existing industrial know-how could give the country an early advantage if policy and financing keep pace. - The economics in the report suggest biomethane can compete on cost while also monetizing byproducts.

What's next: - The study points to wider deployment in freight, buses and landfill gas projects as markets mature. - Instituto MBCBrasil says Brazil can expand from domestic use into exports of technology, equipment and engineering services. - The Biomethane Certificate of Origin may help scale supply as natural gas blending and emission-reduction targets rise.

The bottom line: - Biomethane is moving from niche renewable gas to a practical decarbonization tool for transport, and Brazil is being positioned as both a major producer and a global supplier of the machinery behind it.