AbstractRecently, new solutions have arisen to promote bioenergy expansion, some of which meet the requirements of reliability, sustainability, and governance. In Brazil, the Sao Paulo state (SPS) is characterized by strong agro‐industrial and livestock activities, which generates increasing residues in the last years with the potential to produce bioenergy and offer environmental and economic benefits. The Brazilian National Biofuel Policy (Renovabio) has been enhanced to seek sustainable development, encouraging new agribusiness research. Studies have shown that the sugarcane sector, a conventional ethanol and bioelectricity producer, has the greatest potential to produce biogas/biomethane, which can be maximized with the introduction of co‐substrates regionally generated from corn, soy, orange, coffee, poultry, and swine. This overview, based on the main SPS agro‐industrial and livestock residues, shows innovative alternatives for integrating anaerobic co‐digestion (co‐AD) processes through a regional strategy, by providing long‐term revenues and greenhouse gas mitigation, which would also spread the discussion for National and International prospects. This study discusses logistical, political, and financial aspects, revealing a promising business model supported by public policies. However, its feasibility requires a real economic assessment with the inclusion of decarbonization credits, and political subsidies for biomethane as a biofuel under the Renovabio, which will facilitate its insertion into the agro‐industry in the coming years.This article is categorized under:Policy and Economics > Energy TransitionsSustainable Energy > BioenergyClimate and Environment > Circular EconomyPolicy and Economics > Regional and International Strategies