Biomethane in the heating market

Building Energy Act (GEG)

The new regulations of the Building Energy Act came into force on January 1, 2024. The aim is to make the building sector more climate-neutral. To this end, from 2024, all new buildings in new development areas will initially be heated using 65% renewable energy.

Mandatory municipal heat planning is fundamental to the defossilization of existing buildings. Under the Heat Planning Act (WPG), the federal states are obliged to implement heat planning

in municipalities with over 100,000 inhabitants by June 30, 2026 and
in municipalities with fewer than 100,000 inhabitants by June 30, 2028.

A heating system may then only be installed in a building if it generates at least 65% of the heat with renewable energy or unavoidable waste heat. If there is no heating planning before these deadlines and the area is not designated as a heating network or hydrogen network expansion area, heating systems that do not yet meet the requirements for the use of RE can continue to be installed until the deadlines specified (with the exception of new buildings in new development areas) (Section 71 (8) GEG).

The operators of the heating systems must ensure that

at least 15 percent from January 1, 2029,
at least 30 percent from January 1, 2035 and
at least 60 percent of the heat is generated from biomass or green/blue hydrogen including its derivatives from January 1, 2040 (Section 71 (9) GEG).

Furthermore, heating systems that burn natural gas and can be converted to hydrogen can be installed if the building is located in a hydrogen network expansion area or if it can be proven that it is possible to convert the gas network to hydrogen. The hydrogen network expansion areas are to be fully supplied with hydrogen by December 31, 2044 (Section 71k GEG).

§ Section 71f (4) GEG also stipulates that no more than 40 percent by mass of grain or maize may be used to produce gaseous bioenergy in a calendar year. This applies to new fermentation plants with a capacity of 1 MW or more that are commissioned after December 31, 2023. For existing plants, the proportion of maize can also exceed 40 percent by mass.

The german text of the law can be read here.

Act for heat planning and the decarbonization of heating networks (WPG)

The WPG sets the target of generating an average of half of grid-based heat in a climate-neutral manner by 2030 and 100 percent by 2045. In addition, a target is set for the operators of existing heating networks to feed at least 30 percent of the heating networks with heat produced from renewable energy or unavoidable waste heat or a combination of both by 2030 and 80 percent by 2040.

Meeting this target for the integration of RE or unavoidable waste heat is promoted by the federal funding for efficient heating networks (BEW). From March 1, 2025, the WPG will legally require new heating networks to use 65% renewable energy, unavoidable waste heat or a combination thereof.

According to Section 30 WPG, the share of biomass in the annual amount of heat generated in new heating networks with a length of more than 50 kilometers is limited to a maximum of 25 percent from 1 January 2024.
According to Section 31 WPG, the share of biomass in the amount of heat generated annually in all heating grids with a length of more than 50 kilometers is limited to a maximum of 15 percent from January 1, 2045.
There is no limit on the proportion of biomass for small grids with a length of less than 50 kilometers.

Due to the operational and economic structure of these grids, meeting further technical requirements is only feasible to a limited extent. In addition, it should be possible in rural regions to exploit the value creation potential of locally available biomass where there is no major competition for use. As a result of the potential analysis for the planned area, the locations of the identified technical supply potentials must be mapped for the required heating plan, stating the respective technology and the type of energy generation, as well as the usable amount of energy per year.

The german text of the law can be read here.

Renewable Energies Heat Act (EEWärmeG) → repealed by GEG

The Renewable Energies Heat Act (EEWärmeG) came into force at the beginning of 2009 and was adapted to EU legislation in May 2011. With the Building Energy Act (GEG), the EEWärmeG expired on November 1, 2020. The regulations and usage obligations of the EEWärmeG have been integrated into the GEG. This means that all current requirements for the use of renewable energies (including biomethane) in the heating sector are now regulated in the GEG.