Biomethane factory receives R$37,6 million from BNDES for expansion

The Brazilian Development Bank (BNDES) has approved financing totaling R$37,6 million for Geo bio gas&carbon to expand biomethane and biogas production at its Tamboara unit in Paraná. In total, the project is worth R$41 million.

The approved financing includes R$33,6 million from the Climate Fund and R$3,9 million from Finem Standard B (for the acquisition of new imported machinery and equipment, with no similar domestic product). The objective is to increase the production capacity of biomethane from 70 Nm³/h to 1.500 Nm³/h, and of biogas from 1.750 Nm³/h to 3.500 Nm³/h.

Opened in 2012, the Tamboara unit was the first large-scale commercial biogas production plant in Brazil to process waste from sugarcane production: filter cake, vinasse and straw. Historically, almost all of the biogas produced was used to generate electricity.

After the project is completed, most of the biogas will be used to produce biomethane. This is when the biogas undergoes an upgrade process, which involves removing other gases (mainly CO2) in order to increase the concentration of methane (CH4) in the molecule, reaching the biomethane standard defined by the National Agency of Petroleum, Natural Gas and Biofuels (ANP).

One of the unit's distinguishing features is the constant production of biomethane throughout the year, regardless of the harvest or off-season. The plant uses anaerobic biodigestion technology capable of processing filter cake and other solid waste, which can be stored without loss of organic matter, providing gas on a constant basis.

“Incentivizing the production of biomethane is an important guideline of President Lula’s government because it has a major environmental impact. The project approved by BNDES, once completed, should result in the production of up to 9,4 million Nm³ of biomethane per year, a renewable fuel that can replace around 8,5 million liters of diesel or approximately 7,4 million kilos of LPG, fossil fuels, avoiding the emission of almost 340 thousand tons of CO2 equivalent per year,” explains BNDES president Aloizio Mercadante.

According to José Luís Gordon, director of Productive Development, Innovation and Foreign Trade at BNDES, the federal government’s new industrial policy and the New Climate Fund aim to support and stimulate projects that contribute to decarbonization and a greener industry. “For this reason, the Bank supports the implementation and expansion of projects, in addition to the acquisition of more efficient machinery and equipment, so that the country can increase productivity by using clean energy sources.”

Alessandro Gardemann, CEO of Geo, highlighted BNDES' support for Tamboara since its inception in 2010, through a line of financing for innovation, and the impacts of this new loan on the company's trajectory. "BNDES' support was crucial for this plant to be implemented, as is this new financing, which allows Geo to take a major step in expanding its portfolio of projects for biomethane production. And, most importantly, it contributes to the energy transition and the implementation of the decarbonization goals determined by the Fuel of the Future Law. The increase in the supply of biomethane will also allow the internalization of the supply of gas, from renewable sources, in the country", he states.

Geo bio gas&carbon

A technology platform provider, Geo focuses on developing the production of green hydrocarbons. The company has developed a unique and innovative proprietary process for producing biogas from the reuse of solid and liquid waste from agribusiness. Today, with four plants operating in the states of Paraná and São Paulo, Geo has already invested more than R$450 million in the creation and installation of projects for biogas production.

The Tamboara (PR) unit produces biogas 12 months a year. This production, which reaches approximately 16 million Nm3/year, can generate approximately 21.000 MWh/year of electricity, 53.000 tons of solid biofertilizers and 1 million m3 of liquid biofertilizers. The biogas and electricity are sold on the market. The biofertilizers are donated as a form of compensation to the Cooperativa Agrícola Regional de Produtores de Cana Ltda (Coopcana), a partner from which Geo uses waste (vinasse and filter cake) to produce biogas.