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Viewed in the past as a niche source, biogas is already starting to find a relevant space in the power mix, either as generation or fuel. A significant step was taken this month with the partnership formed between the Brazilian Association of Piped Gas Distributors (Abegás) and the Brazilian Biogas Association (ABiogás).
The two associations have formed a working group to develop actions to boost the injection of biomethane (highly pure biogas) in the distributors’ network, at a time when many companies are seeking to reduce greenhouse gas emissions.
According to ABiogás’s executive manager, Tamar Roitman, 25 new plants already announced have investments of around R$60 billion by 2030 to offer 30 million cubic meters a day – out of a potential that would surpass 120 million cubic meters a day.
“We want to transform this potential into reality,” said Marcelo Mendonça, Abegás’s head of strategy and market.
Data by CIBiogas, a reference center for the biofuel, show exponential growth of the source in the last five years, rising to 755 plants in 2021 from 271 plants in 2017. They produced 2.3 billion cubic meters of biogas, and supply is expected to increase by 22% as 56 plants under construction or renovation go online.
“The 4% of plants under construction account for 15% of the volume of biogas, which signals that the new plants will play a larger role,” said Karina Navarro, a member of the technical team of CIBiogás, in a study called “Panorama do Biogás no Brasil em 2021” (“Panorama of Biogas in Brazil in 2021”).
Changes in regulation have the effect of forming markets, and it couldn’t be different in the segment of biogas or biomethane. One example is the regulatory framework for distributed generation in small and very small grids, in force since 2012 and updated last year, which made it possible the emergence of biogas generation companies, which receive credits when they inject electricity into the distributors’ grid.
Another example was the legal framework for basic sanitation, which sets a deadline for the end of dumps, forcing the destination of solid waste to landfills, with some kind of treatment – laying the foundation for biogas. Financial incentives have also been helping biogas to make room: at the end of March, the federal government launched the Methane Zero program, which aims at encouraging production through the creation of lines of credit for new projects.
There are three main sources of biogas production: residues and waste from agriculture, from industry (producer of organic waste) and from basic sanitation – landfills and sewage system.
Of these three, agriculture accounts for most of the supply, but the vinasse resulting from the ethanol production process has been growing strongly. Raízen, for example, recently announced the construction of its second biogas plant – the first one focused on biomethane – from vinasse and filter cake, two residues from ethanol production.
The plant located in Piracicaba will have the capacity to produce 26 million cubic meters per year, enough to supply 200,000 households. The output has already been sold to Yara Brasil Fertilizantes and Volkswagen, in both cases through long-term contracts. Raízen CEO Ricardo Mussa said that the new unit represents the materialization of the company’s plan to expand business in renewable energy.
Although incipient, there are already investments in basic sanitation. Urca Energia started this week the commercial operation of its third biogas-fired power plant, in Mauá, São Paulo. The 5-MW plant accounts for 27% of the company’s capacity.
Two other plants totaling 9 MW are in operation: Seropédica (Rio de Janeiro) and Ipiranga do Norte (Mato Grosso). A fourth, 5-MV plant is expected to start operating in the second half of this year in São Gonçalo (Rio de Janeiro). Therefore, there will be 19 MW in distributed generation, totaling R$82 million in investments.
In addition to Eva Energia, the group acquired biomethane producer Gás Verde at the beginning of the year, in a R$1.2 billion deal. Among Gás Verde’s assets is a plant, also in Seropédica, with a production capacity of 120,000 cubic meters per day, with an expansion plan for 200,000 cubic meters per day.
“We have noticed a great interest on the part of companies in adopting biomethane in their production and, thus, enabling an effective change in their operations to a cleaner mix,” said Marcel Jorand, Urca Energia’s executive director.
In this sense, according to Ms. Roitman, with Abiogás, and Mr. Mendonça, with Abegás, the injection of biomethane into the network also aims to draw another segment – heavy transportation, currently impacted by the volatility of diesel oil prices. The volume of diesel imported today would correspond to the 30 million cubic meters a day offered by the next projects, the Abegás executive said.
“With more infrastructure for distribution, the interest will certainly increase; there is growing expectation from both sides [producer and distributor],” Ms. Roitman added.
Source: Valor International