Brazil unveils incentives to spur biomethane output

Brazil's government on Monday unveiled a series of incentives to spur the production and sustainable use of biomethane, a fuel that can be obtained from recycling urban and rural waste, and that can replace natural gas, diesel and gasoline.

The plan earmarks over 7 billion reals (1.4 billion U.S. dollars) to spur biomethane output, and is expected to generate at least 6,500 jobs in building and operating 25 new plants in six Brazilian states.

Minister of Environment Joaquim Leite signed the decree creating the National Methane Emissions Reduction Program, also known as the "Zero Methane" plan.

"The 'Zero Methane' program treats waste from cities and rural areas, such as waste from poultry farms, pig farms, sugarcane, dairy and landfills," said Leite.

The waste is turned into biomethane, which can be used to power trucks and buses, "reducing the cost of fuel," he added.

Meanwhile, Minister of Mines and Energy Bento Albuquerque signed a decree to include biomethane investment in Brazil's Special Incentives Program for Infrastructure Development.

The incentives exempt new projects from certain taxes on the purchase of machinery, construction materials and equipment.

"We are taking a new step toward the consolidation of an open and competitive market, providing bioenergy investors with the same conditions that natural gas producers already have," Albuquerque said.