Producer Guide

The biogas market in Brazil has gone through a period of great evolution in the last decade. We list three main points for this new scenario: 1. the formation of a more specialized workforce; 2. the more representative monetization of bio digestion products – such as energy and bio fertilizers – and 3. the regulation of several key points of the productive chain.

Still, many doubts hover over potential biogas producers and investors. To help more and more people to develop their businesses, ABiogás created the Producer’s Guide – an easy-to-understand material that assists the planning and development of your project.

Each of the eight steps described will help you understand the technical and economic viability of your project, as well as what steps should be followed for its development and implementation. Also, you will be able to find out which companies can assist in each process to achieve a successful result.

To know how much biogas you can potentially produce, it is initially necessary to know your residue. This means knowing its composition – quality – and its production regime and volume – quantity. Furthermore, it is desirable to know its effective potential for producing biogas and methane. These initial data will make it possible to create the technical project, define the best technology to be applied, and carry out a preliminary economic feasibility study, taking into account different ways to monetize your product.

There are several technologies that can be applied in the production of biogas. Choosing the right one initially depends on knowing your material, and then choosing the type of reactor. Reactors are classified in several ways, here we will use the terms high-rate reactor and conventional reactor.


A high rate reactor is defined as being an equipment with high efficiency for converting organic matter into methane. These reactors are usually more expensive and complex, and must be used with more complex substrates or very bulky effluents, in order to guarantee the economic viability of the project.


On the other hand, a conventional reactor is less efficient in converting organic matter into methane, resulting in larger reactors due to the longer residence time required. These reactors require less investment and are more resistant to changes, being able to easily adapt to changes in the feeding regime.

The economic feasibility study of a biogas project must be carried out not only considering the project’s installation, operation costs and revenue from the sale of the final product, but also keeping in mind all the costs avoided with treatment, transportation and disposal end of the residue to be treated, the

application of bio fertilizer and often the sources of income from other waste.


ABiogás has associates and specialists to assist in your business model. Contact us!


For a detailed analysis of the project, the following points should be considered:


  • Discounted payback
  • Return on investment
  • Net Present Value
  • Internal rate of return
  • Analysis on investment and operation costs (CAPEX+OPEX)
  • Specific taxation for each model and state
  • Financing

To successfully implement a project, there are a few points that must be taken under consideration:


Not all federative units will have a specific framework for biogas plants in their legislation. In these cases, the targeting channel must always be the unit of the state environmental agency in your city or capital, where you can open a prior consultation for the analysis of the project.

Among our associates, Terra Saneamento Ambiental can help you with environmental regularization processes.

There are legal norms that regulate the various applications of biogas, such as budget line regulations, definitions of biomethane quality for injection into the grid, policies to encourage renewable energies, among others.[]

Some states have public policies or provide tax benefits that aim at the development of the biogas industry. Check your state's tax regulations.

Biogas is a flammable gas with toxic properties that must be considered in order to guarantee the safe operation of plants. Thus, it is necessary to have a Fire Fighting Project, zone potentially explosive areas and obtain licenses from the fire department. The nomenclature and guidelines for obtaining these licenses vary by state, so it is imperative to check with your local Fire Department.

The Operating Permit is proof that your business is fit and authorized to carry out its activity. Issued by the city hall before the start of operation of the enterprise, it is necessary to present documents such as environmental licenses, certificates from the Fire Department, CNPJ among others. Contact your city hall to find out more.

The Work Insurance or Engineering Risk Insurance was developed to guarantee coverage for the construction, and may even cover damage caused to third parties. The insurance is justified by the risks inherent to the construction, including fire, execution error, sabotage, robbery or qualified theft, damage caused by windstorms, hail damage, among others.

Commissioning a plant is nothing more than testing and ensuring that the equipment that makes up your project is operating satisfactorily. Commissioning must also ensure that the plant’s operation follows the Technical Safety Standards.


 To ensure a safe operation in the long term, it is suggested:

       • Training of the workforce involved

       • Creation of a contract monitoring system

       • Creating calendars for:

                 – Preventive maintenance of equipment

                 – Licenses

       • Specialized team monitoring, aiming at:

                 – Biodigester feed and operation control

                 – Control of production indicators

       • Ongoing relationship with public bodies, count on ABiogás!

The product to be marketed has already been defined in the previous topics of biogas application and economic feasibility. But what are the real options once the business model has been structured and the plant goes live? In terms of the use of thermal energy, the application usually takes place in the form of self-consumption, so here is the focus with two possible products:

  • Electricity
  • Biomethane