By Brazil Stock Guide – Brazil’s state development bank BNDES has approved a R$244.9 million ($49 million) financing package to support the construction of a biometane plant in Edéia, Goiás, reinforcing the country’s push toward decarbonization and renewable fuels.
The funding will go to Tropical Biogás Ltda., a subsidiary of bp bioenergy, and is split between R$193.4 million from the Climate Fund and R$51.4 million via BNDES’s Finem line. The project’s total investment reaches R$275.8 million and is expected to be completed by 2027.
Circular Energy Model
The plant will produce approximately 67,000 Nm³ of biometane per day using vinasse — a byproduct of sugarcane ethanol production — as feedstock. Currently applied directly to crops as fertilizer, vinasse will instead undergo biodigestion, generating renewable gas while preserving its nutrient value through digestate reuse.
The model reinforces circularity in Brazil’s sugar-energy industry, transforming waste into fuel while maintaining agricultural productivity — a key efficiency gain in a sector already central to the country’s energy matrix.
Decarbonization Angle
According to BNDES President Aloizio Mercadante, the project aligns with federal policy to replace fossil fuels with renewables and could reduce greenhouse gas emissions by up to 90% compared to diesel, particularly in industrial and heavy transport applications.
bp bioenergy CEO Andres Guevara de la Vega said the initiative combines technology and strategic partnerships to convert ethanol byproducts into scalable clean energy, supporting expansion of Brazil’s bioenergy footprint.
The produced biometane will be distributed by Ultragaz, which will handle logistics and commercialization to industrial and transport clients in the region. bp bioenergy operates 11 units across five Brazilian states, ensuring steady feedstock supply from its ethanol operations. The project is expected to generate around 300 direct and indirect jobs during construction.
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