Brazil's Biomethane Sector Prepares for 2026 Mandate and CGOB Implementation
Brazil's biomethane sector is preparing for a 2026 mandate requiring 0.25% biomethane integration, alongside the introduction of a biomethane certificate of guarantee of origin (CGOB). This upcoming regulation has sparked concerns over pricing stability, as CGOB values may not meet the necessary floor for project viability. With seven new facilities boosting production capacity, public hearings on CGOB rules are set for January, with final decisions anticipated later in the year.
Theia Market Signal Identification - AI Assisted
Brazil's biomethane sector is set for a significant change in 2026 with the introduction of a 0.25% biomethane mandate, translating to 238,500 m³/d, and the establishment of the biomethane certificate of guarantee of origin (CGOB). This mandate has raised uncertainties regarding pricing, with concerns that CGOB values may fall below the R1/m³ (19¢) floor necessary for project viability.
Key regulatory aspects, including certificate rules and delivery models, remain unclear. While producers seek long-term targets to boost investor confidence, buyers view the modest target favorably to avoid price shocks.
Seven new biomethane facilities increased Brazil's production capacity by 439,827 m³/d to 1.1 million m³/d in 2025. Public hearings on CGOB rules are scheduled for January, with final decisions expected later in the year. Petrobras has also initiated a call for biomethane supply, receiving 20 proposals for negotiation in 2026.
Comments