All subjects

Europe sees EUR 25 billion in private investments for RNG growth to 2030

Europe sees EUR 25 billion in private investments for RNG growth to 2030
Biomethane aka renewable natural gas (RNG) from a biogas upgrading unit.

The European biomethane sector will receive an injection of EUR 25 billion in private investments by 2030, according to a new European Biogas Association (EBA) analysis. This represents a 30 percent increase compared to last year's estimates.

Two years following the launch of the REPowerEU Plan, the European biogas industry is swiftly mobilizing to achieve the 35 bcm biomethane aka renewable natural gas (RNG) production target by 2030.

Investments are crucial to fully unlock biomethane production potential and streamline the development of new plants across Europe.

The 2nd edition of the EBA Biomethane Investments Outlook forecasts some EUR 2.1 billion extra investment in the pipeline but that is yet to be allocated.

According to EBA’s Outlook, 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 6.3 billion cubic meters (bcm) of biomethane capacity annually to the continent, which could contribute to avoiding nearly 29 million tonnes of carbon dioxide (CO2) emissions each year, providing renewable energy to 5 million European households year-round, and producing 830,000 tonnes of biofertiliser annually.

According to the report, investments will be mostly located in Denmark (EUR 3.6 billion), Poland (EUR 3.4 billion) and Italy (EUR 2.4 billion).

In the case of Denmark, the share of biomethane in the gas grid is close to 40 percent and there are plans to increase this production to substitute 100 percent of the gas demand before 2030.

Top EU Member States with planned biomethane investments (graphic courtesy EBA).

Policy alignment will direct capital

EBA stresses that aligning the EU Taxonomy with the REPowerEU objectives for biomethane will direct capital towards the sector.

The EU Taxonomy plays a “crucial role in incentivizing green investments, although challenges in implementing screening criteria persist. To secure the announced investments, it is essential to implement aligned policies, maintain stable regulatory frameworks, and facilitate long-term end-use of biomethane and its co-products.”

EBA will present the key outcomes of this analysis on July 5, 2024, at a webinar “Biomethane scale-up in figures: Mapping new plants and investments across Europe”, which will also unveil the new edition of the European Biomethane Map.

Most read on Bioenergy International

Get the latest news about Bioenergy

Subscribe for free to our newsletter
Sending request
I accept that Bioenergy International stores and handles my information.
Read more about our integritypolicy here