Growing biomethane production brings further market opportunities in Germany and Europe
Advancing Europe’s green transition and providing a broader, emissions-neutral basis for its energy supply – this was the ambitious goal set by the European Commission nearly three years ago with the REPowerEU plan. The recently signed coalition agreement between CDU and SPD also raises hopes that Germany will now fulfil its part in achieving the national climate targets. In line with the European Green Deal, the initiative aims to reduce net greenhouse gas emissions by at least 55% by 2030 and make Europe the first climate-neutral continent by 2050. “The REPowerEU calls for an increase in biomethane production across Europe to 35 billion Nm3 by 2030 and our new government is also showing clear openness to technology. That’s why we see our biomethane segment clearly on the rise,” says Olaf von Lehmden, CEO of EnviTec Biogas AG.
As one of Germany’s largest biogas producers, EnviTec Biogas has been investing in the operation of its own plants for years and is continuously expanding this area. Most recently, the company launched the largest investment package in its history - initiated in 2023 and totalling around EUR 200 million. “With our latest expansions to 400 GW/a, we are harnessing even more of the biomethane potential of our plants,” adds Jörg Fischer, CFO of the medium-sized company operating from Lohne and Saerbeck. This trend aligns with current market analyses. “Within Europe, a ninefold increase in today’s production capacity reaching 1,800 TWh/a in 2050 is conceivable,” says Fischer. The greatest potential is seen in France, Germany, Poland and Spain, with each expected to reach 200 TWh/a or more.
The many advantages of biomethane
“The diversity of organic input materials, combined with the multiple options for output and the resulting direct and indirect applications, makes biomethane the definitive all-rounder of the energy transition,” Fischer continues. The management team therefore sees growing market opportunities not only in the continuation and expansion of existing biomethane applications, i.e. EEG feed-in and heating, additive products for household customers, and CNG-/ LNG-powered road transport, but also in providing a substitute for natural gas, e.g. in industry and power generation.
The heating and fuel sectors as the main growth markets for biomethane
According to a study by the German Energy Agency (dena), the heating and fuel markets have particular potential. By 2040, demand for decentralized heating in Germany is expected to reach at least 50 TWh, and its use in heating networks is likely to further increase demand. “Our internal scenarios also predict significant opportunities for biomethane in road transport,” says Fischer.
“In the area of process heat, biomethane also has a good chance of replacing natural gas as an important process heat energy source over the next ten to 15 years,” says Olaf von Lehmden. As von Lehmden explains, biomethane offers a simple and immediately available option for decarbonizing process heat – currently accounting for around 128 TWh of natural gas consumption. Renewable sources of energy and especially the all-rounder biogas make an affordable, secure, and, above all, environmentally friendly energy and fuel supply possible – not only in theory, but also in practice. “Now it’s just a matter of taking action and harnessing the potential of biomethane for the climate transition,” the two board members agree.
