Title page 1

Contents 7

Executive summary 4

Introduction: current state of the European biomethane sector 9

The transport sector dominates biomethane use 11

Agricultural residues are the dominant inputs for biomethane production 11

Cross-border trade is emerging 12

Strong EU regulatory framework, but some inconsistencies and gaps 13

High sustainable feedstock potential, but competition is coming 17

High sustainable biomethane production potential 17

But competition for feedstocks is coming 18

Biomethane production costs mainly depend on scale 21

Biomethane production costs 21

Cost reductions through innovation, economies of scale and industrialization 22

From subsidy-dependent models towards market-driven solutions 25

A shift to demand-side obligations 25

Towards a merchant biomethane market 28

Valorizing biomethane benefits beyond energy 31

Valuing and trading the environmental value of biomethane 31

Valorizing biogenic CO₂ 33

Valorizing digestate as biofertilizer 34

What role for biomethane in the energy transition? 36

Criteria for prioritizing biomethane uses 36

Industry 37

Power 40

Transport 41

Road transport: decarbonization of heavy-duty vehicles (HDVs) 41

Maritime sector 43

Building 45

A hierarchy for biomethane applications 46

Where is the strongest additional production potential in Europe? 48

France: a model for European biomethane development 49

Germany: large biogas base, renewed momentum, but still missing a clear biomethane roadmap 51

United Kingdom: reinforced policy support and rising energy-security imperatives 53

Italy: rapid biomethane expansion, although slower than expected 55

Spain: strong investment momentum and a rapidly strengthening policy framework 57

Poland: high potential, early market stage 59

Ukraine: an emerging biomethane exporter with large, still untapped potential 60

Conclusion and recommendations 62

Table 1. Main directives relevant for the biomethane sector 15

Table 2. Indicative biomethane production costs by segment 22

Table 3. Blending obligations for gas suppliers 27

Table 4/Table 3. Recent examples of BPAs signed by large corporations and industrial companies 29

Boxes 13

Box 1. Biomethane certificates 13

Box 2. Blending obligations for gas suppliers 26

Graphs 10

Graph 1. Biogases production in Europe, 2019-2024, and biomethane production in Europe by countries in 2024 10

Graph 2. European biomethane & e-methane production potential in 2030, 2040 and 2050 18

Graph 3. Production cost of biomethane vs. Natural gas prices 32

Graph 4/Graph 3. France - Production of RNG and number of facilities (2016-2025) 49