The companies will develop biomethane plants in the Brazilian states of Alagoas and Pernambuco.

By Shardul Sharma

ZEG Biogas, the biogas and biomethane business arm of energy company Vibra Energia, on April 1 announced a collaboration with the EQM Group to produce biomethane in the Brazilian states of Alagoas and Pernambuco. 

The two companies have signed a memorandum of understanding to develop two biomethane plants, with a final contract set to be signed in the coming days. The two new facilities will be situated on EQM Group properties: Usina Utinga in Alagoas and Usina Cucau in Pernambuco.

The total investment in these plants will exceed Brazilian real 90mn ($17.7mn), with a combined production capacity exceeding 5.6mn m3/year of biomethane in the first phase.

The EQM Group will provide the physical installations for the units and supply all necessary raw materials for biogas production, leveraging its expertise and resources in the field. ZEG Biogas, on the other hand, will contribute its technological solutions for biogas generation and purification.

In addition to overseeing the technological aspects, ZEG will be responsible for exclusively selling all biomethane produced from the two units to industrial and fleet owners seeking to transition from diesel oil to renewable fuels. The investment payment will be made during implementation, with equal participation from both parties.

“This is another important step for ZEG Biogas, as it allows the expansion of biomethane production in two more states in the northeast”, comments Eduardo Acquaviva, CEO of ZEG Biogas.

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