Brazil’s waste streams could power a biomethane market

A new study commissioned by Instituto MBCBrasil says sugarcane residue, livestock waste and urban trash could become a major source of renewable fuel in Brazil. The report argues the country has enough feedstock to expand biomethane for trucks and the gas grid, but needs more policy support, financing and infrastructure to scale.

Why it matters: - Brazil is producing large volumes of organic waste that can either emit methane or be turned into fuel. - Biomethane could cut landfill emissions, support transport decarbonization and create new revenue from waste that is now costly to dispose of. - The fuel also offers local air-quality benefits by reducing nitrogen oxides and particulate matter compared with diesel.

What happened: - Instituto MBCBrasil commissioned the international study From Waste to Wheels: Turning Organic Waste into Renewable Fuel for Transport. - The study examines how sugarcane waste, livestock manure and urban waste can be converted into biogas and upgraded into biomethane. - Biomethane can replace fossil fuels in heavy-duty fleets or be injected into the natural gas grid. - The release was issued in São Paulo, Brazil, on Sept. 29, 2026.

The details: - Historical World Bank data cited in the release shows each Brazilian generates between 0.7 kg and 1.2 kg of solid waste per day on average. - The sugar-energy sector has 345 mills in operation, with nearly 92% located in Brazil’s Center-South region. - The sector’s biogas potential is estimated at 41.4 billion m³ per year, but less than 2% is currently used. - São Paulo state alone could generate between 8.5 billion Nm³ and 15.5 billion Nm³ of biomethane per year, according to the study. - The report says anaerobic digestion produces biogas from organic waste such as sugarcane vinasse, filter cake, animal manure and urban waste. - A purification step known as upgrading converts biogas into biomethane.

Between the lines: - The study suggests feedstock availability is not the main barrier to growth. - Commercial-scale biomethane depends on infrastructure, investment and public policy. - The market case is broader than fuel sales, since waste-to-energy systems can turn disposal costs into revenue streams. - José Eduardo Luzzi, chairman of the board of Instituto MBCBrasil, said the strongest argument is transforming environmental liabilities into economic assets.

What’s next: - Brazil will need more financing to build production, distribution and use infrastructure. - Public policy support will be key if biomethane is to scale beyond isolated projects. - The report points to transport decarbonization and new value chains as the main growth paths for the sector.

The bottom line: - Brazil already has the waste streams to build a larger biomethane industry; the next hurdle is turning potential into bankable projects and market infrastructure.