Ambitious biomethane project in Salvador secures tax incentives and moves toward implementation, boosting Bahia’s circular economy.
A significant milestone for clean energy infrastructure in the Bahian capital has been reached with the approval of the Biometano Salvador project by the Ministry of Mines and Energy (MME).
The venture, which involves a total investment of R$303.7 million, has been granted eligibility under the Special Regime for Incentives for the Development of Infrastructure (Reidi), a crucial step to enable the construction of a modern biomethane production plant.
This innovative project aims to transform domestic solid waste into a high-value renewable energy source.
The plant will have the capacity to generate an impressive 130,000 cubic meters of biomethane per day, a fuel with characteristics similar to natural gas but of sustainable origin, obtained through the purification of biogas released from landfills.
Boost to the Circular Economy
The Reidi approval represents a significant tax benefit, allowing for the suspension of taxes such as PIS/Pasep and Cofins on the acquisition of goods and services essential for infrastructure implementation.
This tax relief reduces the total project cost to approximately R$278 million, making the investment even more attractive and accelerating the execution process, planned for a two-year period from January 2026 to January 2028.
The project had already received authorization from the National Agency of Petroleum, Natural Gas and Biofuels (ANP) in February of this year, demonstrating the initiative’s progress and seriousness.
Once operational, the Biometano Salvador plant is expected to notify the Federal Revenue Service of its operation, consolidating its role in Brazil’s energy landscape.
Other Decisions and Sector Impacts
Concurrently, the MME also gave the green light to a 5 MW distributed solar generation project in Bagé, Rio Grande do Sul, with an estimated investment of R$15.6 million.
However, other applications for Reidi eligibility for distributed minigeneration projects were denied, indicating a rigorous selection process for the incentives.
The news also brings reflections on financing dynamics and project management.
In Goiás, three solar projects totaling 130.4 MW had their financing approved by the Center-West Development Fund (FDCO) revoked, amounting to R$229.4 million.
Meanwhile, in Paraná, the National Electric Energy Agency (Aneel) imposed a fine of R$1.67 million on the company responsible for the Small Hydroelectric Power Plant (PCH) Cavernoso VIII due to significant implementation delays.
Still within the regulatory context, Trafigura Energia Brasil received authorization to import electricity from Paraguay, opening new possibilities for Brazil’s free energy market.
On the other hand, a thermoelectric power plant project in Mato Grosso do Sul was canceled after more than two decades of processing, highlighting the challenges in realizing long-maturation ventures.
