• Biomethane is steadily gaining ground as a practical and scalable decarbonization tool.
  • Europe leads with supportive policies and grid integration, while North America sees growth driven by transport credits and private investments.
  • Beyond energy, biomethane contributes to circular sustainability by producing low-carbon fertilizers and capturing CO? for reuse.

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In the fast-paced world of clean energy innovation, biomethane is rarely the star of the show. It doesnt sparkle like solar, boom like batteries, or stir geopolitical intrigue like hydrogen. But quietly, consistently, and with increasing impact, biomethane is doing exactly what many climate technologies still promise to do someday: replacing fossil fuels today.

Produced from organic waste, agricultural residues, and even wastewater sludge, biomethane is essentially upgraded biogas with a methane content high enough to substitute fossil natural gas. It can be injected into existing gas grids, used in transport, or serve as a feedstock for chemicals and fertilizers. In a world scrambling to decarbonize gas use without rebuilding everything from scratch, biomethane is proving to be an invaluable bridge, and in some sectors, a long-term solution.

Biomethane in Europe: From policy footnote to energy asset

Europe has taken biomethane seriously for longer than most. France, in particular, has emerged as a leader, with a supportive feed-in tariff structure, regional planning, and grid injection mandates. The country now boasts over 600 biomethane plants, with a national target of 20 TWh of production by 2030. In practice, it could exceed that.

The UK is also leaning in. Its Green Gas Support Scheme provides financial incentives for anaerobic digestion (AD) plants upgrading biogas into biomethane. The use of biomethane in transport, particularly heavy-duty vehicles, is receiving growing interest as a near-term alternative to diesel in hard-to-electrify fleets.

Denmark, Germany, and Italy are similarly accelerating development, often linking biomethane to agricultural policy, waste management, and even rural economic development. Its an example of what happens when climate goals and circular economy logic align.

And importantly, biomethane is not just being blended. In some networks, particularly in rural or islanded areas, it is starting to replace fossil gas outright. This changes the game: from marginal substitution to full decarbonization.

North America: From RNG hype to steady deployment

Across the Atlantic, biomethane, typically referred to as renewable natural gas (RNG), is gaining traction in the United States and Canada, albeit along a different path. Driven largely by transport credits (like Californias Low Carbon Fuel Standard), RNG has been growing steadily, especially in waste-to-fuel applications.

In the U.S., major gas utilities are beginning to invest in RNG as part of their decarbonization pledges, and several states are introducing procurement targets. Canadas Clean Fuel Regulations and supportive provincial programs are creating space for biomethane to scale in both transport and stationary uses.

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The Inflation Reduction Act, while more prominently associated with hydrogen and CCS, also contains provisions that could bolster RNG. And private sector players, especially in agriculture-heavy states, are investing in manure-based biomethane, with co-benefits in methane mitigation and fertilizer production.

Still, the U.S. faces some challenges that Europe has already begun to address: fragmented policy, uneven grid access, and limited visibility in national energy strategy. But the potential is undeniable, and the building blocks are there.

Beyond energy: Biomethanes circular bonus

One of biomethanes most powerful selling points is its integration with other sustainability goals.

Anaerobic digestion not only produces gas, but also digestate, a nutrient-rich byproduct that can be used as a low-carbon fertilizer. As synthetic nitrogen fertilizers face rising costs, carbon scrutiny, and supply volatility, digestate offers a regenerative alternative. France and the Netherlands are already exploring large-scale fertilizer substitution through AD outputs.

Meanwhile, the CO? released during biogas upgrading, normally considered a waste stream, is increasingly being captured and used in everything from beverage carbonation to greenhouses and even e-fuel production. CO? valorization turns what was once a liability into an asset, improving project economics and climate performance.

In this way, biomethane is not just a fuel, its a node in a broader circular bioeconomy. It cleans up waste, produces energy, captures carbon, and replaces petrochemicals. Not bad for something thats been hiding in plain sight.

Whats next: Policy, scale, and recognition

The next stage in biomethanes evolution is all about scale and integration. That means:

  • Clear targets: The EU has set a 2030 goal of 35 billion cubic meters (bcm) of biomethane, roughly 10% of current gas demand. Achieving this will require robust national implementation and faster permitting.
  • Infrastructure access: Streamlining injection into gas grids and securing blending rights is critical, especially in North America.
  • Cross-sector planning: Linking biomethane strategies with agriculture, waste management, and fertilizer policy is essential to unlock its full potential.
  • Carbon recognition: Accurately accounting for biomethanes life-cycle benefits, including methane mitigation and soil health, can unlock additional funding streams and emissions credits.

Conclusion

Biomethane may not make headlines, but it is shaping the energy transition in very real, very measurable ways. In both Europe and North America, its growth reflects a shift in thinking: that decarbonization isnt just about the next breakthrough, but about deploying the tools we already have and doing so smartly.

In previous publications, Ive explored how technologies like hydrogen and CCS can help us decarbonize industry and energy systems. Biomethane deserves a place in that same conversation. Its practical, circular, and increasingly scalable.

As policymakers look for fast, affordable, and systemic climate solutions, they shouldnt overlook the quiet climber. Biomethane is already proving it can rise to the challenge one digester, one pipeline, one molecule at a time.

By Leon Stille for Oilprice.com

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