Vibra Energia (VBBR3) announced on Monday its complete exit from ZEG Biogás e Energia’s capital structure. The company will inject R$40 million in credits to ZEG and pay R$20 million to current shareholders based on their ownership percentages.
The strategic move eliminates Vibra’s obligation to invest approximately R$400 million in future ZEG projects. This substantial amount can now be reallocated according to Vibra’s revised business priorities.
The transaction still requires approval from Brazil’s antitrust regulator, CADE, before finalization. This exit marks a significant shift in Vibra’s renewable energy strategy.
The partnership began in August 2021 when both companies signed a cooperation agreement to develop Brazil’s biomethane market. Vibra formalized the relationship in July 2022 by acquiring a 50% stake in ZEG for R$129.5 million plus an additional R$30 million cash injection.
Vibra had originally committed to invest up to R$412 million for developing new biogas projects in ZEG’s pipeline. The partnership initially aimed to leverage ZEG’s expertise in biogas production with Vibra’s extensive distribution network and client relationships.
ZEG Launches First Renewable Energy Plant
The first ZEG plant opened in Jambeiro, São Paulo, using technology to transform organic waste into renewable energy. ZEG specializes in capturing biogas from landfills and processing agricultural waste, particularly sugarcane vinasse from ethanol production.
Brazil’s biogas sector continues rapid growth despite Vibra‘s exit. The country’s installed capacity surpassed 4 billion Nm³/year in 2023, representing a 21% annual growth rate over five years. Experts estimate Brazil’s theoretical biogas potential at approximately 84.6 billion Nm³/year.
The divestment aligns with Vibra’s current focus on cost control and capital discipline. Vibra recently reported a significant 84.5% reduction in quarterly profits, with net earnings of R$510 million in Q4 2024 compared to the same period in 2023.
This strategic withdrawal allows Vibra to concentrate resources on core operations while maintaining other renewable investments through partnerships with Comerc, Brasil BioFuel, and Copersucar’s Evolua Ethanol joint venture.