Practice Areas

BIOMETHANE AND BIOGAS

Biomethane is a gas obtained from the purification of biogas, which results from the anaerobic decomposition of organic matter. Biogas is a mixture primarily composed of methane (CH₄), which constitutes between 45% and 75%, and carbon dioxide (CO₂), which accounts for 25% and 40%. It also contains residual amounts of other components, such as hydrogen sulfide (H₂S), water vapor, oxygen, nitrogen, and organic compounds.

The share of biomethane and biogas in the Brazilian energy matrix is minimal. To attract investment, the Brazilian Biogas Association (Abiogás) established the Biogas Credit Guarantee Fund, which aims to provide guarantees to financial institutions financing biomethane and biogas projects. Investments in infrastructure and logistics are crucial for distributing biomethane and biogas production to industrial consumers and for electricity generation.

The National Agency of Petroleum, Natural Gas, and Biofuels (ANP) regulates the production and operation of biomethane plants. The ANP’s regulation of biomethane is recent, and by the law, the regulatory treatment for biomethane is equivalent to that for natural gas. In contrast, biogas is not regulated by the ANP. 

How we can help:

Our firm has been regularly involved in projects, M&A, and financing for producing and operating biomethane plants.

  • Regulatory
    • Review the legal framework applicable to biomethane and biogas activities.
    • Due diligence and regulatory compliance
    • Obtain all necessary licenses, authorizations, and administrative approvals for the production, distribution, and commercialization of biogas and biomethane, including those issued by environmental agencies for the operation of biomethane and biogas plants.
  • Financing
    • Provide legal assistance with credit and financing operations for biomethane and biogas plant operations, construction of dedicated gas pipelines, and infrastructure for transportation and storage.
  • Projects
    • Offer legal advice on all phases and stages of projects (brownfield and greenfield) in the biomethane and biogas sector. These include project conception, obtaining necessary authorizations for plant construction and operation, reviewing environmental aspects and land and real estate property rights, negotiating financing with public and private banks, securing capital contributions from stakeholders and private equity, contracting suppliers, commercializing products with off-takers, managing financial disbursement, and fulfilling post-closing obligations.
  • Contracts
    • Support in drafting and negotiating real estate lease agreements, EPC contracts, production and commercialization agreements for biomethane and biogas, product movement through pipelines, and supply agreements for raw materials, equipment, and components.

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