Rodrigo Cabral
Regulatory Affairs Coordinator
Petrobras
Mr. Cabral has nearly 20 years of experience in the energy industry. He holds a degree and a master’s in production engineering from Federal University of Rio de Janeiro (UFRJ). From 2020 to 2023, he was the CEO of Petrobras Biocombustíveis (PBIO). Since 2023, he has been the Coordinator of Biofuels Regulatory Affairs at Petrobras, managing the regulatory aspects and developments related to Brazil's Fuel of the Future Law within the company.
Participates in
TECHNICAL PROGRAMME | Energy Leadership
Energy Access for All
Forum 25 | Technical Programme Hall 5
27
April
13:30
15:00
UTC+3
This paper examines the opportunities and challenges related to the consolidation of biomethane as a key energy vector in decarbonization strategies that seek to balance environmental requirements with the large-scale supply of a reliable, affordable, and competitive energy source. To this end, it presents the Brazilian experience, analyzing the evolution of biomethane production—its potential and obstacles—as well as the development of its legal framework, with emphasis on the “National Program for the Decarbonization of Natural Gas Producers and Importers and Incentive to Biomethane,” established by the Fuel of the Future Law, enacted in October 2024.
Biomethane can be produced from various types of organic waste, including those from landfills, agriculture, wastewater treatment plants, and the food industry. This versatility enables production across diverse regions of the world, each with distinct conditions. As a substitute for natural gas, biomethane can be directly injected into gas distribution networks for use in industry, commerce, households, and as a vehicle fuel. In addition to being a low-carbon-intensity fuel, biomethane enables the capture and use of methane—a potent greenhouse gas that would otherwise be released into the atmosphere from landfills or agricultural waste—thereby transforming environmental liabilities into energy assets and aligning with the principles of a circular economy.
Nonetheless, several challenges must be addressed to scale up its market supply. Biomethane is often produced in a decentralized manner, frequently far from natural gas transmission and distribution infrastructure or major urban centers. Its production costs and the investments required for purification systems hinder the feasibility of small-scale projects and affect its competitiveness compared to fossil natural gas. Moreover, the seasonal availability of feedstocks, especially those derived from agricultural waste, can compromise production continuity, which is necessary to meet consumer demand. As an industrial input, biomethane’s higher cost compared to natural gas may reduce the competitiveness of domestic industry in global markets and bring inflationary risks within the country.
To seize the opportunities for biomethane expansion and address the barriers to its widespread adoption, Brazil has implemented a series of public policies over the past years, including the National Solid Waste Policy (2010), the RenovaBio Law (2017), the New Gas Law (2021), and most notably, the Fuel of the Future Law (2024). While the outlook for biomethane in Brazil is promising, its success will depend on the effectiveness of these initiatives and their regulatory implementation moving forward. This paper assesses the progress made and identifies opportunities for improving biomethane incentives in the Brazilian context, to offer insights to other countries seeking to enhance public policies and define strategies for a just energy transition that ensures the provision of sustainable and accessible energy for all.
Co-author/s:
Nivea Silva, Regulatory Affairs Consultant, Petrobas.
Biomethane can be produced from various types of organic waste, including those from landfills, agriculture, wastewater treatment plants, and the food industry. This versatility enables production across diverse regions of the world, each with distinct conditions. As a substitute for natural gas, biomethane can be directly injected into gas distribution networks for use in industry, commerce, households, and as a vehicle fuel. In addition to being a low-carbon-intensity fuel, biomethane enables the capture and use of methane—a potent greenhouse gas that would otherwise be released into the atmosphere from landfills or agricultural waste—thereby transforming environmental liabilities into energy assets and aligning with the principles of a circular economy.
Nonetheless, several challenges must be addressed to scale up its market supply. Biomethane is often produced in a decentralized manner, frequently far from natural gas transmission and distribution infrastructure or major urban centers. Its production costs and the investments required for purification systems hinder the feasibility of small-scale projects and affect its competitiveness compared to fossil natural gas. Moreover, the seasonal availability of feedstocks, especially those derived from agricultural waste, can compromise production continuity, which is necessary to meet consumer demand. As an industrial input, biomethane’s higher cost compared to natural gas may reduce the competitiveness of domestic industry in global markets and bring inflationary risks within the country.
To seize the opportunities for biomethane expansion and address the barriers to its widespread adoption, Brazil has implemented a series of public policies over the past years, including the National Solid Waste Policy (2010), the RenovaBio Law (2017), the New Gas Law (2021), and most notably, the Fuel of the Future Law (2024). While the outlook for biomethane in Brazil is promising, its success will depend on the effectiveness of these initiatives and their regulatory implementation moving forward. This paper assesses the progress made and identifies opportunities for improving biomethane incentives in the Brazilian context, to offer insights to other countries seeking to enhance public policies and define strategies for a just energy transition that ensures the provision of sustainable and accessible energy for all.
Co-author/s:
Nivea Silva, Regulatory Affairs Consultant, Petrobas.
TECHNICAL PROGRAMME | Energy Leadership
Public Policy (Global and Local) - Climate Change, Transition Management, Supply Security and Energy Affordability
Forum 26 | Technical Programme Hall 5
27
April
15:00
16:30
UTC+3
This paper presents the evolution of biofuels in Brazil and the ongoing efforts to reduce greenhouse gas (GHG) emissions in the oil and gas sector, through the introduction of lower-carbon fossil fuels and fossil-based products made via co-processing with renewable content. In addition, it provides an assessment of key national public policies, with a particular focus on the “Future Fuel Law,” approved in October 2024, highlighting its advancements and opportunities for improvement in support of a just energy transition.
Brazil has nearly a century of experience in biofuel production, which began in the 1930s with the blending of anhydrous ethanol in gasoline. Today, it is the world's second-largest producer of biofuels, with significant output of ethanol and biodiesel. Gasoline sold in Brazil contains 27% ethanol, and diesel is blended with 14% biodiesel. Over 70% of the country’s cars are equipped with flex-fuel engines, allowing the use of any ethanol-gasoline blend.
In addition to large-scale biofuel production, the Brazilian market currently offers Diesel produced via co-processing with 5% renewable content, carbon-neutral gasoline (with lifecycle GHG emissions offset by carbon credits), bunker fuel with 24% renewable content, and asphalt made from recycled material with lower energy consumption during application. Refineries are also testing SAF production via co-processing (with 1.2% vegetable oil), fuels with 5% bio-oil, and petrochemical products with renewable input, such as Light Refinery Hydrocarbons (LRH), from co-processing fossil streams with sugarcane ethanol.
The Fuel of the Future Law opens new opportunities to scale up biofuel production and use in Brazil. It introduces mandates for Green Diesel (up to 3% blend in Diesel), SAF (GHG emission reductions on domestic flights of 1% by 2027, rising to 10% by 2037), and biomethane (GHG reduction requirements from 1% to 10% for natural gas producers and importers starting in 2026), and raises blending caps to 35% for ethanol in gasoline and 25% for biodiesel in Diesel.
However, while there have been relevant advances in Brazilian legislation and regulation to expand biofuels in the national energy matrix, there are opportunities for evolution in terms of providing incentives for the production of fossil products with a lower carbon footprint or fuels produced by co-processing, as seen in the international aviation sector, where CORSIA considers Lower Carbon Aviation Fuels (LCAF) and SAF produced by co-processing as means to meet its targets. For the energy transition to be just and feasible, considering the goals established in the Paris Agreement, it will be necessary to promote all existing means to reduce emissions, especially those that can be achieved with less investment, utilizing existing infrastructure.
Co-author/s:
Nivea Silva, Regulatory Affairs Consultant, Petrobas.
Brazil has nearly a century of experience in biofuel production, which began in the 1930s with the blending of anhydrous ethanol in gasoline. Today, it is the world's second-largest producer of biofuels, with significant output of ethanol and biodiesel. Gasoline sold in Brazil contains 27% ethanol, and diesel is blended with 14% biodiesel. Over 70% of the country’s cars are equipped with flex-fuel engines, allowing the use of any ethanol-gasoline blend.
In addition to large-scale biofuel production, the Brazilian market currently offers Diesel produced via co-processing with 5% renewable content, carbon-neutral gasoline (with lifecycle GHG emissions offset by carbon credits), bunker fuel with 24% renewable content, and asphalt made from recycled material with lower energy consumption during application. Refineries are also testing SAF production via co-processing (with 1.2% vegetable oil), fuels with 5% bio-oil, and petrochemical products with renewable input, such as Light Refinery Hydrocarbons (LRH), from co-processing fossil streams with sugarcane ethanol.
The Fuel of the Future Law opens new opportunities to scale up biofuel production and use in Brazil. It introduces mandates for Green Diesel (up to 3% blend in Diesel), SAF (GHG emission reductions on domestic flights of 1% by 2027, rising to 10% by 2037), and biomethane (GHG reduction requirements from 1% to 10% for natural gas producers and importers starting in 2026), and raises blending caps to 35% for ethanol in gasoline and 25% for biodiesel in Diesel.
However, while there have been relevant advances in Brazilian legislation and regulation to expand biofuels in the national energy matrix, there are opportunities for evolution in terms of providing incentives for the production of fossil products with a lower carbon footprint or fuels produced by co-processing, as seen in the international aviation sector, where CORSIA considers Lower Carbon Aviation Fuels (LCAF) and SAF produced by co-processing as means to meet its targets. For the energy transition to be just and feasible, considering the goals established in the Paris Agreement, it will be necessary to promote all existing means to reduce emissions, especially those that can be achieved with less investment, utilizing existing infrastructure.
Co-author/s:
Nivea Silva, Regulatory Affairs Consultant, Petrobas.
