On April 6, 2022, in the Official Gazette of the State of Rio de Janeiro, Law No. 9,635/2022, was published, instituting ICMS Convention No. 112/2013 as enacted by National Finance Policy Council ("CONFAZ"). The new law reduces the ICMS tax rate on local transactions in biogas and biomethane to 12% of the transaction value.
In addition, the new law establishes that biogas is the gas produced from the anaerobic digestion of organic wastes and is primarily composed of methane. the new law also establishes that biomethane must comply with Resolution No. 16/2008 of the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (“ANP”).