Policy mixes are needed to overcome the different barriers hindering sustainability transitions. This creates the need for policy coherence. Policy coherence studies in sustainability transitions literature are dominated by European cases, limiting their generalizability. This article analyzes policy mixes related to biogas systems and their related coherence issues, and, how that influences biogas production and use in Brazil. We identified policy coherence within and between biogas related sectors and over time, showing how the pre-conditions for biogas production, distribution and use differ considerably between the Brazilian states. This points to a need for decentralized governance structures to enable policy differentiation, as a complement to policy coherence. The article concludes that the characteristics of biogas systems as being locally embedded constitutes a challenge in hierarchical market economies such as Brazil, where policy development, resource mobilization and allocation are highly centralized. © 2021 The Authors