Purchasing biomethane: a guide for buyers

Biomethane market: An overview for decision-makers

In order to achieve the climate targets that Germany and the EU have set themselves, it is necessary to use all available options for generating renewable energy. In addition to solar and wind power, biogas offers an attractive alternative, as it is independent of the weather. can be used. Another option for renewable energy is to buy biomethane, as it can be used in a variety of ways.

Biomethane also has the advantage that it is chemically identical to natural gas and at the same time virtually climate-neutral. This allows it to be used directly in existing natural gas networks and plants without any technical modifications. The existing natural gas infrastructure, including gas grids, combined heat and power plants and other systems, can usually be used in a climate-friendly way without any adaptations. This makes biomethane an extremely practicable and sustainable energy source that makes both ecological and economic sense.

The advantages of biomethane in the EU ETS

The EU Emissions Trading Scheme (EU ETS) is a key instrument of EU climate policy. It aims to limit greenhouse gas emissions from industrial plants, power plants and other energy-intensive businesses. Plants with a consumption of over 20 MW are obliged to purchase emission allowances to cover their CO₂ emissions.

The purchase of biomethane offers considerable advantages in this context: It is produced from organic waste or energy crops. Due to its closed CO₂ cycle, it is considered almost climate-neutral. This enables companies to significantly reduce their need for cost-intensive emissions certificates. Biomethane is also compatible with the existing gas infrastructure. This makes it easier to integrate into existing plants and eliminates the need to invest in new technologies.

Also within the framework of the National Emissions Trading Scheme (NEHS) in Germany, biomethane plays an important role. This system complements the EU ETS by pricing CO₂ emissions in the transport and heating sectors. Companies replace fossil fuels with biomethane and thus save certificate costs, as an emission factor of zero can be applied to biomethane.

How to find the best biomethane offers

The biomethane market is complex and subject to national and EU-wide legislation. One way to find suitable offers is to work with specialized brokers or traders and buy the biomethane through them. These act as an interface between producers and purchasers and offer a wide selection of certified biomethane sources.

If you have any further questions or are interested in an offer, you are welcome to organize an appointment with a suitable contact person from us: Sales areas of agriportance. | Your contact persons

Important criteria when purchasing biomethane for the heating market

When purchasing biomethane, companies should ensure that the sustainability criteria in accordance with the BEHG (Fuel Emissions Trading Act) and the EU RED II Directive (Renewable Energy Directive II) must be fulfilled. These regulations stipulate how sustainability and greenhouse gas reduction must be demonstrated.

For example, biomethane must come from plants that are certified according to a recognized voluntary system, such as REDcert and ISCC. The greenhouse gas balance is also a decisive criterion. Before purchasing biomethane, it must be ensured that the biomethane used actually offers CO₂ savings of at least 70%.

From offer to delivery: how the purchase of biomethane works

Trading in biomethane is based on accounting verification. This means that although biomethane is physically fed into the gas grid, its actual use is documented via so-called guarantees of origin and sustainability certificates. At the physical level, however, it is still important that the requirements of DIN EN 16723-2 are met. Among other things, these relate to the sulphur content and calorific value of the gas. Just like sustainability, this information must be certified and is communicated in the manufacturer's declaration, for example.

Sustainability certificates such as ISCC certificates (International Sustainability and Carbon Certification) or REDcert certificates are issued to ensure the legal conformity of biomethane. These guarantee the origin and compliance with environmental regulations. The entire process is controlled via a mass balance. This fully documents how and where biomethane is used. The mass balance system allows sustainable biomethane to be mixed with natural gas, but ensures that the sustainable properties match the certified quantity.

How pricing works in biomethane trading

The pricing of biomethane is made up of various factors. The base price is generally based on the market price for fossil natural gas. In addition, there are costs for sustainability certificates and guarantees of origin. A biomethane broker can advise on the purchase of biomethane.

If buyers have special requirements for greenhouse gas reduction, further surcharges may apply. Such quality requirements, such as particularly high CO₂ savings, can have a significant impact on the price.

Find out more in our blog on this topic: What factors influence the price of biomethane?

Frequently asked questions about biomethane for buyers - FAQs and answers

How can I buy biomethane?

Biomethane is chemically identical to natural gas and can be easily obtained via the existing natural gas grid. It is distributed via a mass balance system, which makes regional availability less relevant.

Is biomethane economical?

Biomethane is economical when subsidies, legal incentives and long-term benefits are taken into account. Although biomethane is currently more expensive to produce than fossil natural gas, rising CO₂ prices and other greenhouse gas reduction legislation are making it increasingly competitive. Support programs, such as EEG funding or subsidies for combined heat and power plants, contribute significantly to its economic viability. In the long term, biomethane offers financial benefits by avoiding CO₂ penalties and improving the carbon footprint, particularly in the heat supply and transport segments. Larger purchase volumes and economies of scale can further reduce costs.

From what size does it make sense to buy biomethane?

The purchase of biomethane only really pays off from a consumption volume of 1 GWh per year. Above this level, administrative and logistical costs can be managed more efficiently. Biomethane is particularly suitable for combined heat and power plants and local heating networks, as it can flexibly generate heat and electricity. It can also be used to comply with the GEG (Building Energy Act) and the BEHG (Fuel Emissions Trading Act). In the fuel market, the use of biomethane becomes economically viable for municipal utilities from around 10 GWh. This enables the use of subsidies under the EEG or the fulfillment of the GHG quota in the transport sector.

Can I also use foreign biomethane?

The use of foreign biomethane is regulated differently depending on the sales market and legal requirements. In the fuel market, imports have been possible since 2023 to fulfill the greenhouse gas quota (GHG quota). However, this only applies if the legal requirements are met. In the electricity and heating market, the accounting of imported biomethane is more complex. In particular, there are uncertainties regarding the avoidance of double marketing and compliance with national subsidy conditions. According to the dena it is crucial that the imported biomethane meets the EU sustainability criteria in accordance with the Renewable Energy Directive II (RED II). Certifications (e.g. ISCC, REDcert) and guarantees of origin are required.