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17.04.2026

Legal Alert | Biomethane - Market opportunity arising from the grazing programme for fire prevention

Legal Alert | Biomethane - Market opportunity arising from the grazing programme for fire prevention

Ordinance No. 141/2026/1, of April 6, has been published, approving a programme to support extensive grazing for the prevention of major rural fires.

What does the Ordinance provide for?

The Ordinance establishes two support schemes financed by the Environmental Fund, with a total budget of up to EUR 30 million:

  • Support for the establishment of new livestock producers (cattle, sheep and goats under extensive farming systems) in regions most susceptible to rural fires, with a EUR 30,000 establishment grant per producer, over five years; and
  • Support for the conversion of scrubland into pasture, with a view to creating agroforestry mosaics and reducing fuel loads in high-risk areas.

Why is this relevant for the biomethane sector?

Although the legislation does not expressly mention the production of renewable gases or biomethane, its practical effects could be significant for the sector:

  • The structural increase in livestock numbers in the regions covered (which encompass hundreds of parishes across the mainland) translates into a potential increase in livestock manure, one of the main raw materials for anaerobic digestion and biomethane production;
  • The public policy underpinning the legislation aligns with the objectives of the National Energy and Climate Plan 2030 (PNEC 2030) and with the decarbonisation commitments of the energy sector, reinforcing the favourable context for the development of biomethane projects in Portugal;
  • The regions covered by the programme are strategic areas for the planning of biomethane production units using livestock manure, in coordination with producers supported by the new scheme.

The Morais Leitão’s energy and natural resources team has experience in advising on biomethane and renewable gas production projects, from licensing to the structuring of supply contracts, grid injection and access to financing. We are available to analyse the specific opportunities that this new regulatory framework may create for your project.