BNDES Approves R$245 Million for BP Bioenergy to Build Biomethane Plant

Brazil's National Bank for Economic and Social Development (BNDES) recently announced the approval of R$244.9 million in financing for BP Bioenergy. This funding is designated for the construction of a biomethane plant adjacent to the Tropical mill in Edéia, Goiás. The financing package includes R$193.4 million from the Climate Fund (Fundo Clima) and R$51.4 million from the Finem program. The new biomethane unit will have the capacity to produce approximately 67,000 cubic meters of biomethane per day. This will be achieved through the biodigestion of vinasse, a residue from sugarcane ethanol production, followed by biogas purification. The total investment for the project is estimated at R$275.8 million, with completion anticipated in 2027. The biomethane produced by the new plant will be distributed by Ultragaz, which will be responsible for the sale and logistical delivery of the fuel to industrial and transport customers in the region. Investments in the biomethane sector are expected to accelerate this year, driven by the regulation of the program dedicated to the sector and the commencement of biomethane purchase targets for natural gas producers. On the first of the month, the National Energy Policy Council (CNPE) approved a target for natural gas producers to reduce greenhouse gas emissions by 0.5% this year. This target can be met through the purchase of biomethane or its corresponding certificates. BNDES stated that this financing project for BP Bioenergy “supports the decarbonization of the company’s operations and contributes to expanding the supply of biomethane for the industrial and transport sectors, helping to reduce greenhouse gas emissions by up to 90% compared to the diesel currently used.”