Biomethane production up 20% in 2022 boosting renewable gas ramp-up [Promoted content]

Brussels 12/12/23 – Biomethane production in Europe grew by almost 20% in 2022 compared to the previous year, according to data from the new edition of the biogases industry report released last week. Meanwhile, the EU dependency on natural gas imports went from 83% in 2021 to 97% in 2022. 

“With gas import dependency on the rise and pressing climate emergencies, sustainable biogases production in Europe is of strategic importance: each Euro invested in biogases will remain in the European economy and provide an additional value of 50% before 2030 that will also stay within our economy.” Says Harmen Dekker, EBA’s CEO.

Renewable energy made in Europe: a solid bet

The overall deployment of renewables in the EU has been steadily growing in the past years. Energy production from renewable sources has outpaced fossil energy supplies to the EU since 2016. Consequently, Europe’s greatest resource for reducing reliance on outside energy providers is a combination of all renewable energy sources, including biogases. 

It is not only a question of volumes. Due to their flexibility, energy storage capacity and ability to generate dispatchable power, biogases support and facilitate growth in other renewables. They bring high added value for the energy transition because they are produced locally by the repurposing of waste. This contributes to develop a low-carbon and descentralised renewable energy mix.

“It is imperative to think how to clear out our dependence on fossil fuels and energy imports by accelerating deployment of renewable energies made in Europe, rather than locking in other dependencies.” Reminds Giulia Cancian, EBA’s Secretary General. A faster scaleup needs investments and €18 billion has already been earmarked by the industry to speed-up biomethane production, according to EBA data. 

State of the art of a growing sustainable sector 

The industry report released last week on the state of play of biogases shows that Europe’s biogases production (combined biogas and biomethane) in 2022 amounted to 21 bcm. This is more than Poland’s entire inland natural gas demand and represents 6% of the EU’s natural gas consumption in 2022. 

If we look at biomethane production alone (upgraded biogas), it grew from 3.5 bcm in 2021 to 4.2 bcm in 2022, while installed capacity raised to 4.5 bcm. This last figure corresponds to the maximum volumes that Europe could reach if all current plants were constantly running. The production came from 1,323 biomethane installations in 24 European countries.

“Reaching the 35 bcm of biomethane production by 2030 earmarked by the REPowerEU requires a sustained annual growth rate of around 30% in biomethane production capacity.” Explains to Mieke Decorte, EBA’s Technical and Project Manager. “Such a level of growth is achievable, but needs to be supported by optimal market conditions. Coherent planning of biomethane potential and faster permissions processes are the first steps to encouraging market and project developers to operate at a significantly faster pace.”

De-fossilising demand

One of the advantages of biomethane is that it can be directly injected into the gas grid to progressively offset fossil gas in all end-uses, including electricity generation, heating, and industrial use. If we take the case of Denmark, the share of injected biomethane was close to 40% in 2022 and there are plans to raise this quota to 100% before 2030.

The versatility of this green gas is reflected in its balanced distribution pattern across end-uses, all in urgent need for defossilisation: 22% was used for buildings in 2022, whereas a further 14% was consumed by the industry, 19% spent in transport and 15% in power generation.  

Addressing negative effects of imports on food security 

Europe’s reliance on imports poses risks also for food security, due to our dependence on imported chemical fertilisers. The main nutrients needed are nitrogen (N), phosphorous (P) and potassium (K). From 2019 to 2021, 30% of the EU’s consumption of N-fertilisers was imported. This amounted to 68% in the case of P-fertilisers, and 85% for K fertilisers.

There is a clear need for more sustainable alternative fertilisers within the EU to ensure both strategic autonomy and global food security. Digestate, obtained from the production of biogases, is one of the available choices. According to EBA data, Europe produced 31 Mt (DM) of digestate in 2022 and that quantity could already cover 15% of EU N-based fertilisers demand. Concurrently, this could save 10 Mt CO2 equivalent and 2 bcm of natural gas consumption.

Along with the contribution to food security, enhancing the use of digestate as biofertiliser helps close nutrient loops and reduce waste. This empowers farmers to opt for more sustainable and efficient agroeconomic solutions in line with a circular economy concept. Besides, it smoothens the way for rural development, as agriculture is one of the main economic activities in many rural areas.

Biogases in National Energy and Climate Plans: a push for legal stability

Since December 2022, European Commission Guidance has encouraged including a ‘component’ on biogas and biomethane in the updates of their National Energy and Climate Plans (NECPs) for 2030. Those plans are the framework for Member States to outline their climate and energy goals, policies and measures. At the time of writing, 22 countries have published their drafts and 16 of them include already a specific target for biogases. The Commission will unveil the consolidated plans in 2024.