Technical and Economic Assessment of Integrating Biomethane Production with the Natural Gas Supply Chain

The integration of biogas and biomethane into energy matrices has been pursued by several countries aiming to increase the supply of renewable energy, as well as a measure to reduce greenhouse gas emissions (GHG) from fossil fuel use. The International Energy Agency (IEA) projects that global biomethane production will double between 2023 and 2027, primarily driven by projects in Europe, the United States, and Brazil (IEA, 2024). In the case of Brazil, agricultural activities, along with urban waste, contribute to a significant biomethane production potential that could help diversify and increase the supply of natural gas. Among the alternatives for connecting biomethane production to the final consumer, different transportation and distribution methods are considered, depending on the scale and dispersion of the gas supply points. These methods include the movement of compressed natural gas (CNG) or liquefied natural gas (LNG) and transmission and distribution pipelines. Given that natural gas networks are infrastructures with essential roles in energy security and in promoting the competitiveness of Brazilian industry, the objective of this study is to develop a technical and economic assessment of potential logistical routes for the integration of biomethane into the existing natural gas transmission pipeline grid. The biomethane will be derived from the utilization of agro-industrial residues in the Southeast region of Brazil, due to the high availability of sugar and ethanol production residues (filter cake and vinasse, respectively). Biomethane is a renewable gaseous fuel, primarily composed of methane (CH4). Provided that it complies with the regulations set by the National Agency of Petroleum, Natural Gas and Biofuels (ANP, the Brazilian regulatory agency), which address its specification and quality control (ANP, 2008), biomethane can be considered interchangeable with natural gas, qualifying it as a drop-in substitute or complement. It means that biomethane has a similar chemical composition and can share, without distinction, the logistical infrastructure and equipment used for fossil-derived natural gas.