Biogaspartner annual conference 2023

Session I: The Future of Biomethane – Impacts of Increasing Use of Waste and Residual Materials

In the first session, Tino Barchmann (Federal Ministry of Food and Agriculture, Ref. 525) presented the current status of the National Biomass Strategy. Initially planned for publication in autumn 2023, discussions are still ongoing due to the numerous regulations that need to be considered. As a result, the strategy is now expected to be published in early 2024. The strategy defines 25 specific short- and long-term measures to provide planning security for the sector and to direct biomass flows more effectively. This includes reducing current barriers in waste utilization, adjusting subsidies for waste wood, and establishing credible certification systems.

In the panel discussion with Felix Colsmann (DAH Group), it was emphasized that restrictions on substrate use must be eased and a flexible approach between electricity generation and gas injection should be pursued to integrate biogas into the overall energy system. Colsmann expressed concerns about the mandatory 80% GHG reduction target from 2026 for all biogas plants, as this could lead to the shutdown of many existing facilities.

Session II: Biomethane Markets – Is There Enough Biomethane for Everyone?

Currently, the Renewable Energy Sources Act (EEG) represents the largest market for biomethane. However, no bids were submitted in the 2023 EEG auction. The revision of the Building Energy Act (GEG) introduces new potential applications for biomethane, and the fuel market, driven by the GHG quota, remains attractive. Yet, demand continues to outstrip supply. At the same time, there is still no clear roadmap for achieving biomethane targets under the REPowerEU strategy.

Dr. Volker Bartsch (DVGW e.V.) provided an update on biomethane grid connections. As of now, 232 biogas upgrading plants are connected to the gas grid, and a similar number of grid connection requests were submitted in 2022. This suggests that with further expansion, biomethane could support municipal heating planning and meet GEG requirements. However, decentralized locations and small plant sizes pose challenges for grid connections. To address this, regional raw biogas networks could be developed, linking multiple biogas plants to a centralized upgrading facility. This could unlock a biomethane potential of up to 102 TWh by 2030. Bartsch emphasized that hydrogen and biomethane must be considered together to gradually replace natural gas with renewable gases. He also sees the green gas quota proposed by the SPD as a promising tool to incentivize investment in renewable gases and scale up the market.

Thomas Wencker (ASUE at DVGW e.V.) discussed the regulatory impact on biomethane use. The GEG, Energy Efficiency Act (EnEfG), and Heat Planning Act (WPG) are increasing the demand for climate-neutral gases for heating. Biomethane can fulfill both GEG and WPG requirements, making it a key energy source. By 2045, when fossil fuels are no longer allowed for heating, biomethane demand could rise from 10 TWh today to 180 TWh.

Zoltan Elek (Landwärme GmbH) advocated for a triad of 100% green hydrogen, green methane, and renewable electricity to meet the energy transition targets. Negative emissions from CO₂ capture during gas upgrading could further enhance biomethane's profitability. A significant regulatory change is the inclusion of imported biomethane in the GHG quota. However, the massive import of supposedly advanced biodiesel from China has caused a collapse in the GHG quota, severely damaging the German biomethane market.

During the discussion, all speakers agreed that domestic biomethane potential must be fully utilized and that rapid, decisive action is required. This includes faster realization of grid connection requests by providing the necessary technical equipment. Additionally, biomethane auctions must be made more attractive, for example, by increasing full-load hours and bid price limits. Regional restrictions (e.g., the South Region) and the requirement for newly built plants were also criticized by Elek.

Session III: Biomethane in International Trade

According to Zvonko Ikic (STX Group), the biomethane trade is on a positive trajectory. Biomethane is increasingly in demand for GHG reduction in the EU Emissions Trading System (EU ETS), and he also sees strong market potential in the Building Energy Act (GEG). By 2025, he expects biomethane demand for biofuels to rise again due to RED III implementation and the GHG quota. However, potential political changes make forecasting difficult.

Sven Schneider (German Environment Agency) discussed the consideration of biomethane in the Renewable Energy Statistics (AGEE-Stat) and the challenges in tracking biomethane used exclusively for heat production and in foreign trade. He introduced EuroStat’s "Shares" tool to prevent double counting.

Steffen Löbner (EEX) provided insights into the French biomethane market. In 2022, French biomethane production increased by 61% to 7 TWh, with a target of doubling by 2030. 514 upgrading plants are now connected to the gas grid, and since 2018, the market for guarantees of origin (GOs) has expanded significantly. Since October 2023, EEX has been managing the French biogas register for five years and will also conduct GO auctions. Imports and exports to and from the French register are set to begin in Q1 2024.