European biomethane sector to receive €25bn investment by 2030
The European biomethane sector will receive an injection of €25bn ($26.81bn) in private investments by 2030, according to an analysis by the European Biogas Association (EBA) published on June 18.
This represents a 30% increase compared to last year's estimates. The second edition of the Biomethane Investments Outlook forecasts an additional €2.1bn in investments in the pipeline, yet to be allocated.
The projected investments by 2030 will result in the installation of 950 new biomethane plants across Europe, alongside the 1,300 facilities already operational. This will add 6.3bn m3/year of biomethane capacity to the continent, potentially avoiding nearly 29mn tonnes/year of CO2 emissions, providing renewable energy to 5mn European households year-round, and producing 830,000 tonnes/year of fertiliser.
Investments will be mostly located in Denmark (€3.6bn), Poland (€3.4bn), and Italy (€2.4bn). In Denmark, the share of biomethane in the gas grid is close to 40%, with plans to increase production to substitute 100% of the gas demand before 2030, according to the EBA.
EBA believes that two years after the launch of the REPowerEU plan, the industry is mobilising to achieve the 35bn m3/year biomethane production target by 2030.
Aligning the EU Taxonomy with the REPowerEU objectives for biomethane will direct capital towards the sector. The EU Taxonomy plays a crucial role in incentivising green investments, although challenges in implementing screening criteria persist, EBA stated. To secure the announced investments, it is essential to implement aligned policies, maintain stable regulatory frameworks, and facilitate the long-term end-use of biomethane and its co-products.