Majority of biogas produced in Brazil comes from agro industrial waste and landfills, but waste water also shows potential for biogas production. Biogas is mainly used for power generation (electricity), thermal energy, bio fertilizers and carbon dioxide credits. As Brazil has a large market for ethanol and biofuel from sugar cane, biogas for vehicle fuel is rare. Prices and policy favor using biogas for non-vehicle means.
There are few existing projects, but both the public and private segments see the potential and several other projects are being analyzed. The federal government supports biogas projects through programs for reduction of CO2 emission, renewable energy production and reduction of import taxes on clean technology among others.
The national bank BNDES offers credits and finances up to 80% of total investment of PROINFA approved projects, 12 year depreciation and non-payment of interest during the construction phase or finances up to 100% ABC Projects up to 1 million BRL per client.