Brazil's BNDES Approves R$180.7 Million Biomethane Plants, Set to Start Operations in 2027

en.Wedoany.com Reported - On September 22, the Brazilian Development Bank (BNDES) approved a total of R$180.7 million in financing for the construction of two biomethane production facilities using landfill biogas as feedstock, with total project investment of R$245 million. The two plants are being developed by GNR Vila Velha and GNR Mauá, respectively, both of which were established through a partnership between the Lara Group and MDC Energia.

Among them, the project located in Vila Velha, Espírito Santo, received R$78.8 million in financing, while the project located in Mauá, Greater São Paulo, received R$101.9 million in financing. Funding sources include Brazil's Climate Fund (Fundo Clima) and the BNDES Finem financing instrument.

The two plants have a combined biomethane production capacity of 97,000 standard cubic meters per day, with the Vila Velha project having a capacity of 32,000 standard cubic meters per day and the Mauá project having a capacity of 65,000 standard cubic meters per day. The feedstock comes from biogas generated by the decomposition of municipal solid waste in landfills operated by the Lara Group, which is processed to produce biomethane.

The two projects are scheduled to enter commercial operation in the first half of 2027, and the biomethane produced will be supplied to Ultragaz through long-term contracts. During construction, an estimated 575 direct and indirect jobs are expected to be created, and after commissioning, more than 50 permanent jobs are expected to be provided.

BNDES's existing Finem financing framework has already included biogas, biomethane production and related transmission infrastructure within its scope of support, and can be used for the construction, expansion and modernization of related facilities. These two projects adopt the landfill gas-to-biomethane pathway, the financing has been secured, and the next stage is engineering construction and commercial operation in the first half of 2027.