Circular economy assessment of biomethane value chain in Brazil

From the numerous opportunities to add value to biomass in Brazil, biomethane production in sugarcane mills presents significant potential. This study introduces a diagnostic framework grounded in circular economy (CE) principles to assess new biomethane projects, aligning with the strategic objectives of product diversification, full biomass utilization, circularity, and regional integration. By adopting seven CE principles to qualitatively and quantitatively evaluate systemic impacts, the assessment provides a flexible tool for visualizing and testing alternative biorefinery configurations during the feasibility stage. The framework is applied to two real‐world scenarios: (i) the on‐site replacement of diesel in agricultural and transport operations; and (ii) the regional commercialization of biomethane via pipeline to substitute industrial liquefied petroleum gas (LPG). Results indicate that both pathways achieve over 85% reduction in carbon intensity compared with fossil benchmarks, while simultaneously enhancing nutrient cycling and soil regeneration through improved digestate application. The CE‐based assessment further demonstrates that on‐site utilization fosters internal transactional efficiency and operational control, whereas regional distribution extends defossilization benefits throughout the broader industrial value chain. The framework facilitates strategic decision‐making by capturing dimensions of value retention, regeneration, and stakeholder collaboration within bio‐based systems. This approach serves as a replicable and complementary tool for evaluating diverse bioeconomy contexts, supporting the transition toward more circular and resilient regional systems.