Brazil Flue Gas Desulfurization Market Overview, 2031

Key Insights

• According to the research report, "Brazil Flue Gas Desulfurization Market Outlook, 2031," published by Bonafide Research, the Brazil Flue Gas Desulfurization Market is anticipated to grow at more than 4.30% CAGR from 2026 to 2031.
• Brazil strengthened its air quality regulations through CONAMA Resolution No. 506/2024, which came into effect from 1 January 2025 under the PI-2 phase. The regulation introduced stricter ambient limits for sulfur dioxide (SO₂), particulate matter (PM₁₀ and PM₂.₅), nitrogen dioxide (NO₂), and ozone (O₃), supporting Brazil's gradual alignment with WHO air quality guidelines.
• Brazil's iron and steel industry remains the country's largest industrial application for FGD and gas-cleaning systems. The country produced 33.35 million tonnes of crude steel in 2025, while sintering, coking, and pelletizing operations continue to require advanced emission-control technologies to comply with national environmental regulations.
• Brazil's cement industry continues to generate steady demand for emission-control equipment. Cement sales reached 67.05 million tonnes in 2025, supported by installed production capacity of around 94 million tonnes, with ongoing investments in environmental compliance, filtration systems, and cleaner production processes.
• Brazil's petroleum refining sector is expanding investments in advanced emission-control technologies. Petrobras commissioned a SNOX unit at the Abreu e Lima Refinery (RNEST) in 2024, enabling simultaneous treatment of sulfur and nitrogen oxide emissions while supporting refinery modernization and capacity expansion.
• Brazil's FGD market is increasingly driven by brownfield modernization, retrofit, and environmental compliance projects across steel, cement, refining, mining, and other industrial sectors. Investments in equipment upgrades, digital monitoring, and lifecycle maintenance continue to create long-term opportunities for FGD suppliers and service providers.

Market Outlook

• Brazil's Flue Gas Desulfurization (FGD) market is witnessing steady growth, supported by stricter environmental regulations, industrial modernization, and rising investments in emission-control systems. Unlike major Asian markets where coal-fired power generation dominates FGD demand, Brazil's market is primarily driven by industrial sectors such as iron and steel, cement, petroleum refining, mining, and non-ferrous metallurgy, with retrofit and compliance projects accounting for a significant share of new investments.
• Brazil's power generation sector represents a relatively small share of the FGD market due to the country's electricity mix being dominated by hydropower and other renewable sources. However, existing coal-fired power plants continue to require maintenance, refurbishment, and emission-control upgrades to comply with progressively tighter environmental standards, creating stable demand for aftermarket services and modernization projects.
• The iron and steel industry remains the largest end-use sector for FGD and industrial gas-cleaning technologies in Brazil. With crude steel production reaching 33.35 million tonnes in 2025, major producers continue investing in sinter plant upgrades, dust collection systems, flue gas treatment, and digital monitoring solutions to improve environmental performance and comply with evolving regulatory requirements.
• Brazil's cement and petroleum refining industries continue to generate significant demand for emission-control technologies through plant modernization and environmental compliance initiatives. Cement manufacturers are investing in filtration systems, alternative fuels, and process optimization, while Petrobras continues upgrading refinery infrastructure with advanced emission-abatement technologies, supporting long-term demand for FGD systems and related engineering services.
• Brazil's FGD market is increasingly characterized by brownfield upgrades and lifecycle services rather than large-scale greenfield installations. Demand is expected to remain strong for equipment refurbishment, replacement components, automation, continuous emissions monitoring, predictive maintenance, and digital optimization as industrial operators focus on improving operational efficiency while meeting stricter environmental standards.

Policies & Regulatory Landscape

• CONAMA Resolution No. 506/2024: Approved in 2024, the resolution replaced CONAMA Resolution No. 491/2018 and updated Brazil's National Ambient Air Quality Standards. It establishes progressively stricter Intermediate Standards (PI-1 to PI-4) before eventual adoption of Final Standards (PF) that are intended to align with the WHO Air Quality Guidelines. The regulation covers particulate matter (PM₁₀ and PM₂.₅), sulfur dioxide (SO₂), nitrogen dioxide (NO₂), ozone (O₃), carbon monoxide (CO), lead (Pb), smoke, and total suspended particles.
• PI-2 Standards (Effective January 2025): From 1 January 2025, Brazil implemented the PI-2 phase, introducing lower permissible ambient concentrations for PM₂.₅, PM₁₀, sulfur dioxide (SO₂), nitrogen dioxide (NO₂), ozone (O₃), and other regulated pollutants compared with the previous PI-1 stage. These changes represent another step in Brazil's phased transition toward stricter national air quality standards consistent with international best practices.
• Some Brazilian states have introduced air quality regulations that are more stringent than the national minimum requirements. For example, Paraná adopted updated air quality standards through SEDEST Resolution No. 02/2025, further strengthening pollutant concentration limits for selected contaminants within the state.
• CONAMA Resolution No. 382/2006 (Steel Industry Emissions): For the steel production industry in Brazil, atmospheric pollutant limits are defined by CONAMA Resolution No. 382/2006. For SO₂, the limits apply to coking, sintering, pelletizing, casting, and thermo-electric plant operations. The sintering process is a major source of SO₂ emissions, with emission concentrations typically in the range of 500 to 4,000 mg/m³.
• Environmental Compliance Agreements (TAC): Companies can enter into environmental compliance agreements (Termos de Ajustamento de Conduta) with state environmental agencies to define timelines and investments for emission reductions. CSN's R$ 1.13 billion BNDES-financed modernization project at its Presidente Vargas steelworks aims to meet obligations established in a TAC with the State Environmental Institute (INEA). The project includes modernization of electrostatic precipitators, installation of new bag filters, and upgrades to raw material transfer systems.
• Brazil continues expanding its ambient air quality monitoring capacity through cooperation between federal and state environmental agencies. Although monitoring infrastructure has improved in recent years, coverage remains concentrated in the South and Southeast regions, and further expansion of monitoring stations is expected to improve environmental oversight and regulatory enforcement across the country.

FGD Procurement and Industry Impact

• Brazil's iron and steel industry represents the largest procurement opportunity for industrial gas-cleaning and emission-control technologies. Steel producers continue investing in modernization of sintering plants, filtration systems, electrostatic precipitators, bag filters, process optimization, and digital monitoring to improve environmental performance and comply with tightening emission requirements. Recent financing support for modernization projects at major steelworks demonstrates continued investment in pollution-control infrastructure across the sector.
• Brazil's cement industry continues investing in environmental modernization through upgrades to filtration systems, alternative fuel utilization, process optimization, and air pollution control equipment. These initiatives improve operational efficiency while supporting compliance with tightening environmental regulations, sustaining demand for industrial gas-cleaning and emission-control technologies across the sector.
• Brazil's petroleum refining sector continues generating demand for emission-control technologies as refinery operators invest in cleaner production processes and modernization projects. Petrobras's Abreu e Lima Refinery (RNEST) incorporates advanced emission-abatement technology, including a SNOX unit capable of converting sulfur and nitrogen oxides into commercial sulfuric acid. Ongoing refinery expansion projects and planned investments in refining and petrochemicals are expected to support future demand for industrial emission-control systems.
• Brazil's aftermarket for FGD and industrial gas-cleaning systems continues to provide recurring business opportunities through equipment refurbishment, replacement components, inspection services, digital monitoring, and predictive maintenance. Increasing environmental oversight and continued expansion of air quality monitoring infrastructure are expected to support long-term demand for environmental monitoring equipment and lifecycle maintenance services.

Industry News

• December 2025: BNDES approved R$ 1.13 billion in financing for CSN to modernise three industrial plants at its Presidente Vargas steelworks in Volta Redonda, including the installation of new electrostatic precipitators and bag filters at sintering plants. The project aims to meet obligations established in an environmental compliance agreement with INEA. The project is expected to generate approximately 1,300 jobs during execution.
• January 2025: The PI-2 stage established under CONAMA Resolution No. 506/2024 entered into force, introducing stricter ambient air quality standards for sulfur dioxide (SO₂), particulate matter (PM₁₀ and PM₂.₅), nitrogen dioxide (NO₂), ozone (O₃), and other regulated pollutants as part of Brazil's phased transition toward stricter national air quality standards.
• 2025: Brazil's crude steel production reached 33.35 million tonnes, a decrease of 1.6% year-on-year, with pig iron output of 26.25 million tonnes. Semi-finished steel output dropped by 4.9% to 8.17 million tonnes, while rolled products declined by 1.7% to 23.28 million tonnes.
• 2025: Brazil's cement sales reached 67.047 million tonnes, an increase of 3.7% year-on-year. The industry's production capacity is approximately 94 million tonnes. In October 2025, cement sales reached 6.3 million tonnes, up 7% year-on-year.
• 2024: Petrobras completed the installation of a SNOX unit at the Abreu e Lima Refinery (RNEST) in Pernambuco—the first emission abatement unit in Brazilian and Americas refining. The unit treats up to 650,000 Nm³/h of flue gas while producing up to 750 metric tonnes per day of sulphuric acid.

Segment Analysis

Brazil Flue Gas Desulfurization Market By Technology
• Wet Flue Gas Desulfurization (Wet FGD) systems remain the preferred technology for large industrial facilities requiring high sulfur dioxide removal efficiency, particularly within steel production, petroleum refining, non-ferrous metallurgy, and selected cement applications. Wet limestone scrubbers can typically achieve sulfur dioxide removal efficiencies exceeding 90%, making them suitable for facilities operating under increasingly stringent environmental regulations. Demand is primarily driven by retrofit projects and modernization of existing industrial emission-control systems rather than new coal-fired power generation.
• Spray Dry Absorber (SDA) and semi-dry FGD systems are increasingly used across medium-sized industrial facilities where reduced water consumption, installation flexibility, and lower operating costs are important considerations. These technologies are well suited for retrofit projects in industrial boilers, cement plants, and selected metallurgical applications, particularly where space limitations or water availability influence technology selection.
• Dry FGD technologies continue supporting emission control across cement manufacturing, chemical processing, and selected industrial facilities. These systems generally achieve sulfur dioxide removal efficiencies ranging from 50% to 80%, depending on process configuration and fuel characteristics, while offering lower water consumption and relatively lower capital costs than wet systems. Their application in Brazil remains concentrated in industrial facilities where operational simplicity and water conservation are important priorities.
Brazil Flue Gas Desulfurization Market By End-use Industry
• Iron and Steel Production represents the largest end-use sector for FGD technologies in Brazil. In 2025, Brazil produced 33.35 million tonnes of crude steel, a decrease of 1.6% year-on-year. The industry is subject to SO₂ emission limits defined by CONAMA Resolution No. 382/2006 for coking, sintering, pelletizing, casting, and thermo-electric plant operations. The sintering process is a major source of SO₂ emissions, generating emission concentrations typically in the range of 500 to 4,000 mg/m³. Major steel producers including CSN, ArcelorMittal, and Gerdau are investing in emission-control technologies to comply with environmental regulations. CSN's R$ 1.13 billion BNDES-financed modernization project at its Presidente Vargas steelworks includes the installation of new electrostatic precipitators and bag filters at sintering plants.
• Cement manufacturing remains an important end-use segment for industrial gas-cleaning and emission-control technologies in Brazil. Cement plants continue investing in bag filters, electrostatic precipitators, process optimization, alternative fuel utilization, and environmental monitoring to improve emissions performance while complying with increasingly stringent environmental regulations. Continued modernization across the industry is expected to sustain long-term demand for flue gas treatment technologies.
• Petroleum Refining represents a growing end-use sector for emission-control technologies in Brazil. The country operates 19 oil refineries with a total refining capacity of approximately 2.4 million barrels per day. Petrobras completed the installation of a SNOX unit at the Abreu e Lima Refinery (RNEST) in 2024—the first emission abatement unit in Brazilian and Americas refining. The unit treats up to 650,000 Nm³/h of flue gas while producing up to 750 metric tonnes per day of sulphuric acid. The refinery's capacity is being expanded to process 260,000 barrels per day. Petrobras has announced plans for $6 billion in refining and petrochemical projects in Rio de Janeiro.
• Power Generation represents a limited end-use sector for FGD systems in Brazil due to the country's predominantly hydropower-based electricity mix. However, coal-fired power plants with FGD systems continue to operate and require maintenance and potential upgrades as ambient air quality standards tighten under CONAMA Resolution No. 506/2024.
Brazil Flue Gas Desulfurization Market By Installation Type
• Brownfield Installations dominate the Brazilian FGD market as industrial operators prioritize modernization of existing emission-control systems over construction of new facilities. Investments focus on absorber refurbishment, slurry pumps, mist eliminators, corrosion-resistant materials, process controls, and digital monitoring systems to improve reliability, efficiency, and regulatory compliance across aging industrial assets. The implementation of CONAMA Resolution No. 506/2024—particularly the PI-2 phase effective from 1 January 2025—has created compliance-driven demand for brownfield FGD upgrades across iron and steel, cement, and industrial sectors. CSN's R$ 1.13 billion modernization project at its Presidente Vargas steelworks exemplifies brownfield investment, with the installation of new electrostatic precipitators and bag filters at existing sintering plants. The project aims to meet obligations established in an environmental compliance agreement with INEA.
• Greenfield installations account for a comparatively smaller share of Brazil's FGD market and are mainly associated with new industrial developments or capacity expansion projects in petroleum refining, mining, metallurgy, and selected manufacturing industries. Future demand is expected to remain concentrated in industrial expansion projects rather than coal-fired power generation, with environmental control systems increasingly incorporated during plant design to comply with evolving emission standards.


Considered in this report
• Historic Year: 2020
• Base year: 2025
• Estimated year: 2026
• Forecast year: 2031

Aspects covered in this report
• Flue Gas Desulfurization Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Technology
• Wet FGD Systems
• Spray Dry FGD Systems
• Dry & Semi-Dry FGD Systems

By End-use Industry
• Power Generation
• Cement
• Iron & Steel
• Chemical & Petrochemical
• Metal Processing & Mining
• Oil & Gas Refineries
• Waste-to-Energy
• Others

By Installation
• Greenfield
• Brownfield (Retrofit)