On Sept. 2, 2025, the biggest city in Americas with biggest bus fleet, started on the path to use of biomethane as fuel in the city’s public transport fleet and garbage collection vehicles. The initiative sets rules for fuel acquisition and introduces the gradual adoption of biomethane-powered vehicles. City officials emphasize that biomethane offers lower operating and acquisition costs compared to electric buses and avoids the need for large-scale charging infrastructure.
The measure builds on the experience of 125 garbage trucks that already operate with biomethane produced in municipal landfills. The new target includes replacing more than 600 diesel-powered vehicles by 2027 and, under the 2025–2028 Goals Program, substituting 2,200 diesel buses with clean-energy models. Instead of fully prioritizing electrification, the city will combine electric buses with biomethane solutions, seeking partnerships with private suppliers to expand the available volume of the renewable fuel beyond landfill production.
Source: Automotive Business Read The Article
PSR Analysis: São Paulo’s adoption of biomethane is a practical path to cleaner urban mobility, balancing cost, speed of implementation, and sustainability. Unlike electric buses, which face high acquisition costs and charging infrastructure limits, biomethane leverages existing gas networks and waste-to-fuel production, delivering immediate emission reductions. The strategy also strengthens circular economy practices by turning landfill waste into energy. Challenges include ensuring scalable biomethane production, transparent pricing, and reliable private-sector supply. PSR
Fabio Ferraresi is Director, Business Development, South America, for Power Systems Research
