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Raw materials - usually called feedstocks - for biomethane are organic materials that serve as raw material for the production of biogas. These include in particular
Selecting the right feedstock is crucial for the efficiency and cost-effectiveness of biomethane production. A diverse mix of substrates can increase biogas output and improve nutrient availability, optimising the overall process performance.
Biomethane is produced by processing biogas obtained from the anaerobic fermentation of organic materials such as liquid manure, waste or energy crops. The raw biogas is upgraded to biomethane in a multi-stage process:
After processing, the biomethane consists of at least 97% methane and is therefore almost identical to fossil natural gas. The processed biomethane can either be fed directly into the natural gas grid in accordance with the relevant quality standards or used in CHPs to generate electricity and heat and as fuel for biogas vehicles.
The market for biomethane is experiencing dynamic growth, driven by increasing demand for renewable energies and the pressure to reduce CO₂ emissions. The European Biogas Association (EBA) speaks of an annual biomethane production potential of up to 260 TWh in Europe in 2030. Comparing this with the production of 41 TWh in 2022 or with the year 2018 (20 TWh) shows the enormous growth predicted by market experts.
However, the increasingly complex structures in legislation and regulatory requirements are leading to an extremely opaque market environment. This and the varying availability of feedstocks is the reason to volatile prices and increases the risks for market participants. Despite these fluctuations, biomethane is increasingly establishing itself as an important component of a sustainable energy supply and offers stable long-term market opportunities and a wide range of use-cases.
Your benefits at a glance
Distributors of fossil fuels are obligated to meet the THG-quota. To do so, a percentage of the fossil fuels they distribute must be renewable. If the obligated company does not distribute any renewable fuels, it must purchase a corresponding number of THG-quotas on the market.
Options for quota-fulfilment:
These options allow quota-obligated companies to develop individual strategies for achieving the annually specified THG-quota.
THG-quotas are generated using renewable energy sources such as biomethane, bio-CNG, bio-LNG, or renewable electricity in the transportation sector. Distributors of renewable fuels generate THG quotas and can trade them on the market or use them to meet their own quota obligations.
Options to generate THG-quotas:
Distributors of renewable fuels can generate additional revenue via the THG quota market or fulfill their own quota obligations at lower cost.
In the past years, the THG-quota market has developed into a dynamic and growing market. International producers, energy suppliers, and oil companies are the key market participants, looking for the best market opportunitiy.
Market characteristics at a glance
The THG-quota market is thus becoming the key driver for the renewable energy transformation of the transport sector and offers producers of renewable fuels an attractive sales market.
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