A new report released by the Renewable GAs TRAde Centre in Europe (REGATRACE) project reveals a general European overview, together with an in-depth mapping at the country level of 23 European countries.
The study, “Mapping the state of play of renewable gases in Europe” shows that the countries with the biggest production of biomethane are Germany (10,018 GWh in 2018), United Kingdom (3,300 GWh in 2018), the Netherlands (2,226 GWh in 2018), Denmark (1,425 GWh in 2017), Sweden (1,281 GWh in 2018) and France (1,207 GWh).
Production and consumption of biomethane are well-balanced in most Member States. Denmark and Germany produce more biomethane than they consume, and the excess of production is exported or stored. In Sweden, the consumption of biomethane doubles its production.
This can be explained because Swedish incentives are focused on the consumption side, whereas most Member states tend to subsidize the production or injection of biomethane.
The implementation of adequate support measures is essential for the further development of biomethane. The value and duration of operational support for biomethane differ largely between the different countries and regions. When it comes to the type of support, 65 percent of renewable gas producers have a preference for the application of Feed-in Tariffs (FiT).
Many countries report the upgrade to biomethane as an interesting alternative for existing biogas plants, as it can help decarbonize the natural gas grid. This reasoning is introducing a shift from subsidies for biogas towards subsidies for biomethane.
However, still two important biomethane countries – Austria and Germany – focus their subsidy scheme for biomethane on electricity production only and other end-uses are only supported to a minor extent.
End-use pathways for biomethane are quite clearly defined and regulated in some countries. In Sweden and Italy, the main end-use application is transport, whereas in the United Kingdom it is heating and cooling. Most of Sweden’s biomethane is used in the transport sector due to a favourable support system.
In Italy, the use of biomethane in the transport sector is facilitated by the already existing infrastructure and methane vehicles fleet. In 2014, the Italian government introduced the first obligation for the use of biofuels in the transport sector.
In Germany, most biomethane is used for electricity production in combined heat and power (CHP) units. The usage of biomethane as a transport fuel is indirectly supported in Germany through its inclusion into the list of fuels accepted for the reduction of GHG footprint for fuel distributing companies.
Consumer payment willingness
The cross-border trade of biomethane is still limited. Awaiting European harmonization, bilateral and multilateral cooperation have been set-up to transfer minimal volumes of biomethane cross-border.
Issuing bodies for the end consumer disclosure (so-called Guarantees of Origin GOs) according to RED II Article 19 are slowly being established in the European Member States.
The study also examines consumer readiness to pay for biomethane. A choice experiment has allowed to monetize individual aspects or characteristics of renewable gas and predict consumer preferences.
The experiment shows that GHG emission reductions compared to natural gas are the aspect of the renewable gas which has the highest impact on consumers choice (29 percent), followed by additional cost compared to natural gas (27 percent), the origin of the renewable gas (17 percent) and reliable delivery of the renewable gas (14 percent).
The type of feedstock (9 percent) and the length of the contract (4 percent) play only minor roles in the decision-making process the report finds.
Facts
About REGATRACE
Launched in June 2019, the Renewable GAs TRAde Centre in Europe (REGATRACE) project is a three-year EUR 3 million EU funded Horizon 2020 project with 15 partners in 10 countries: Institute of Studies for the Integration of Systems – ISINNOVA (Italy), CIB – Consorzio Italiano Biogas (Italy), European Biogas Association (EBA), Association of Issuing Bodies – AIB (Belgium), European Renewable Gas Registry – ERGaR, Fluxys (Belgium), Renewable Gas Forum Ireland – RFGI (Ireland), Agency for the Applied Energy Transition – DENA (Germany), DBFZ (Germany), AGCS Gas Clearing and Settlement (Austria), Elering (Estonia), Union of Producers and Employers of Biogas Industry – UPEBI (Poland), Romanian Association of Biomass and Biogas – ARBIO (Romania), Naturgy Energy Group – NEDGIA (Spain) and Amber Grid (Lithuania). The project that aims to create an efficient trade system based on issuing and trading biomethane/renewable gases Guarantees of Origin (GO) in Belgium, Spain, Ireland, Italy, Lithuania, Poland and Romania, Croatia, Czech Republic, Greece, Latvia, Ukraine, Sweden and Slovenia, Austria, Switzerland, Germany, Denmark, France, Estonia, Finland, the Netherlands and the United Kingdom (UK). This will strongly contribute to the uptake of the European common biomethane market. It will be achieved by setting up a European biomethane/renewable gases GO system, by setting up national GO issuing bodies, by integrating GO from different renewable gas technologies with electric and hydrogen GO systems, through integrated assessment and sustainable feedstock mobilisation strategies and technology synergies, through support for biomethane market uptake, and by transferring the results beyond the project’s countries.
