European Biomethane Benchmark: 2025 Edition

The biomethane sector in Europe continues its strong growth momentum, with more than 1,500 biomethane plants recorded across Europe at the end of 2024. This growth is driven particularly by France and Italy, although new key markets are emerging, notably in Spain.

This 60 TWh/year capacity is the combined output of more than 1,500 biomethane plants recorded in Europe at the end of 2024. Nevertheless, it represents less than 5% of the continent’s total gas consumption.

The year 2024 confirms the acceleration of the sector, with a total biogas production capacity in Europe exceeding 260 TWh/year, including 60 TWh/year of biomethane. However, the growth potential remains immense and largely untapped across the continent.

The European market shows a significant gap between current production and the identified methanisable potential:

• Only around 20% of the available feedstock potential is currently being utilised, opening up substantial development opportunities for the sector.
• Nevertheless, it is important to note that in some countries, feedstock availability may already be starting to pose a constraint.

Support mechanisms for the biomethane sector are evolving, shifting from production-focused schemes toward mechanisms supporting end-uses in countries where the sector is mature.

Historically, support was mainly provided through feed-in tariffs, feed-in premiums, and subsidies for biomethane production facilities. These production-oriented support mechanisms remain in place in countries where the sector is still emerging, as they offer long-term stability for investors and are simpler to implement.

Today, in mature markets, the trend is moving toward incorporation mechanisms that direct biomethane valorisation toward final uses.

This relies in particular on the introduction of blending obligations. In the transport sector in France and the Netherlands, for example, fuel suppliers will gradually become subject to biomethane incorporation mandates.

The value of the associated certificates plays a central role in covering the additional cost of producing biomethane compared with the market price of natural gas. Prices vary widely, but these certificates remain essential to bridging the gap between revenue from gas molecule sales and production costs, enabling the sector’s development without burdening public finances. Certificates (notably GOS and POS) can also be traded on a voluntary basis, for example within the EU ETS framework.

For the biomethane sector to continue its development and reach the ambitious target of 35 bcm by 2030, several major challenges must be addressed:

• Improving economic competitiveness: making biomethane more economically attractive through the valorisation of co-products (biogenic CO₂, digestate, etc.) and efficiency gains (reducing methane leaks, improving energy performance, etc.).
• Ensuring a stable and harmonised support framework: providing long-term visibility and harmonising mechanisms at the European level (particularly guarantees of origin (GO) and POS trading systems).
• Recognising the decarbonisation value of biomethane: acknowledging the carbon reduction benefits of biomethane in carbon compliance mechanisms, to enable large-scale development of Power Purchase Agreements (PPAs) between industrial consumers and producers