By Brazil Stock Guide – Brazil’s development bank BNDES approved a R$148.5 million ($30 million) financing package for a new biometane plant to be built by Bioo Paraná Holding SA, a unit of Bioo Investimentos e Participações SA, in the southern state of Paraná. The project will be located in Toledo and involves a total planned investment of R$196 million, according to information released by the bank.
The funding includes R$101.5 million from Brazil’s Climate Fund and R$47.1 million from BNDES’s Finem credit line. Once operational, the facility is expected to produce 11 million cubic meters of biometane per year, helping to avoid an estimated 80,000 metric tons of carbon dioxide equivalent emissions annually.
The project is also expected to generate 210 direct and indirect jobs during construction and about 90 permanent positions after operations begin. In addition to renewable gas, the plant will produce organic fertilizer for use in regional agriculture.
Carbon dioxide generated during the biometane production process will be purified to food-grade quality and supplied to industries such as beverage manufacturers, replacing fossil-based CO2. BNDES said the integration supports emissions mitigation and helps decarbonize the regional supply chain.
“The project minimizes the negative environmental impacts of organic waste by directing it to the production of high value-added energy products such as biometane and CO2,” BNDES President Aloizio Mercadante said. “The renewable energy produced and the reduction of methane emissions strengthen the circular economy in Brazil, in line with the energy transition policy of President Luiz Inácio Lula da Silva’s government.”
Maurício Cótica, chief executive officer of Bioo, said the financing reinforces the company’s business model. “This funding marks another step in consolidating Bioo’s model of transforming organic waste into renewable energy and high-value bioproducts,” he said. “The support from BNDES, especially through the Climate Fund, underscores the project’s relevance to Brazil’s energy transition.”
Biometane is a renewable fuel equivalent to natural gas and is produced from the anaerobic digestion of organic materials in biodigesters. Its use reduces greenhouse gas emissions and directly replaces fossil natural gas.
Bioo Paraná Holding SA is controlled by Cótica Energia and the eB BIP fund, managed by Flying Rivers Capital, a climate-focused investment manager formed from eB Capital’s climate platform. The company also has a stake held by BNDESPar, the equity arm of Brazil’s development bank.