European shipping is facing a profound transformation: with the FuelEU Maritime Regulation, which comes into force on January 1, 2025, sets binding reduction targets for the greenhouse gas intensity of the energy used on ships for the first time. Emissions are to be reduced by 80 % by 2050. This opens up a completely new market for climate-neutral fuels - especially for Bio-LNG (liquefied biomethane).

As leading service provider for biomethane certification, GHG calculation, verification management and the Procurement of biomethane, agriportance actively accompanies this change and positions itself as a Central point of contact for shipping companies, bunker companies and biomethane producers. agriportance bridges the gap between biogas production and maritime applications by providing in-depth regulatory expertise and practical services.

Bio-LNG: immediately usable climate fuel for shipping

Bio-LNG is a Drop-in fuel, which can be used without technical modifications to the existing LNG infrastructure. Particularly attractive is the use of manure or residual materials as the starting material. This means that particularly low and sometimes even negative well-to-wake emissions can be achieved.
This enables shipping companies not only to fulfill their legal requirements, but even to surplus emission credits in large quantities to be generated. These can be credited as part of fleet pools.

agriportance: Market pioneer for sustainable maritime energies

With the FuelEU Maritime Regulation, there is a growing need for reliable partners who can Sustainability, cost-effectiveness and regulatory security agriportance is a full-service provider along the biomethane value chain:

• Certification know-how according to RED II & III (REDcert-EU, ISCC-EU, SURE)
• Software & service solutions for well-to-wake GHG calculations and verification management
• Operational support in the strategic use of pooling, banking and borrowing mechanisms
• Mediation between biomethane producers, traders and maritime customers
• This makes agriportance the contact point for the maritime bio-LNG sectorFor producers as well as for shipping and logistics companies.

Growing demand and attractive revenue opportunities

The market is on the move: The agriportance FuelEU price ticker currently shows prices of over 70 €/MWh for biomethane from manure - and the trend is rising. The growing interest from the maritime industry is creating new sales opportunities and better revenue prospects for biogas plant operators throughout Europe.

Henning Dicks, Managing Director of agriportance, emphasizes: „With FuelEU Maritime, the EU provides a clear framework for climate-friendly shipping - and we offer the solutions with which companies can already follow this path today.“

Shape your market entry now

Companies that prepare for the new EU requirements at an early stage will secure decisive competitive advantages. agriportance supports them with lucrative brokerage, digital tools and regulatory expertise - also ensures a smooth, economical and sustainable entry into the maritime biomethane market.

Der Beitrag Maritime Dekarbonisierung mit agriportance: Biomethan als strategischer Kraftstoff unter FuelEU Maritime erschien zuerst auf agriportance GmbH.

International shipping is one of the largest emitters of greenhouse gases in the EU. In 2022, it accounted for 4.0% of all greenhouse gas emissions. While this makes it a smaller sector compared to the transport sector with 20.5%, there is a projected higher increase in emissions in this sector due to the increase in global trade. For this reason, efforts are being made in the EU to reduce greenhouse gas emissions in this sector in the long term.

FuelEU Maritime is the EU's cornerstone for decarbonizing shipping, establishing binding life cycle GHG-intensity limits on the energy used on board vessels and incentivizing the uptake of renewable fuels. In Article 1, the Regulation "lays down uniform rules imposing [...] a limit on the greenhouse gas (GHG) intensity of energy used on board by a ship arriving at, staying within or departing from ports under the jurisdiction of a Member State" and "an obligation to use on-shore power supply (OPS) or zero-emission technology in ports under the jurisdiction of a Member State".

Beginning 1 January 2025, every large ship must ensure that its yearly average GHG intensity does not exceed a progressively tightening threshold. Article 4(2) specifies that this limit is derived by reducing the 2020 reference value of 91.16 g CO₂ eq/MJ by 2 % from 2025, 6 % from 2030, up to 80 % by 2050. By defining both the reference and the reduction steps in law, the EU gives shipowners a clear multi-decade roadmap toward near-zero emissions.

Bio-LNG: A Drop-In Renewable Solution

Against this backdrop, biomethane bunkered as Bio LNG offers an immediate "drop-in" pathway. The Regulation's Annex II explicitly recognizes "Liquefied Bio-methane as transport fuel" alongside conventional LNG in its default emission-factor table , ensuring that operators can apply the same monitoring, reporting and verification framework used for fossil LNG.

Bio-LNG thus marries compatibility with existing dual-fuel engines and bunkering infrastructure to the potential for maximum life-cycle GHG reductions-even achieving negative Well-to-Tank credits for waste-based biomethane pathways. However, before a bunkering invoice can translate into climate credits, the fuel must first clear FuelEU Maritime's precise legal definitions and certification hurdles.

Defining Biomethane (Article 3)

FuelEU Maritime borrows its key glossary from Directive 2018/2001 (RED II) via Article 3 (2). By delegating the definitions fully, the Regulation guarantees that any biomethane qualifying as "biogas" or "biofuel" under RED II automatically qualifies under FuelEU Maritime. This alignment removes ambiguity and creates a seamless legal bridge between land-based renewable-energy mandates and maritime compliance.

Certification Requirements (Article 10 & Article 4(3))

Once a biomethane cargo meets the definitions, it must then satisfy sustainability and reporting rules under Article 10:

"Where biofuels, biogas, RFNBO and recycled carbon fuels, as defined in Directive (EU) 2018/2001, are to be taken into account for the purposes referred to in Article 4(1) of this Regulation, the following rules apply:"

Specifically:

• Article 10(1)(a) mandates that "biofuels and biogas that do not comply with the sustainability and GHG emissions saving criteria set out in Article 29 of Directive (EU) 2018/2001 ... shall be considered to have the same emission factors as the least favourable fossil fuel pathway for that type of fuel;"
• Article 10(1)(b) extends the same worst-case default to RFNBO and recycled carbon fuels failing to meet RED II thresholds.

Finally, Article 4(3) ties together definitions and certification by requiring that:

"On the basis of the fuel bunker delivery notes complemented in accordance with Annex I to this Regulation, companies shall provide accurate, complete and reliable data on the GHG emission intensity and the sustainability characteristics of fuels ... that have been certified under a scheme that is recognized by the Commission in accordance with Article 30(5) and (6) of Directive (EU) 2018/2001..."

In practice, this means that a RED II certification (e.g., REDcert-EU, ISCC-EU) is necessary but not sufficient. Operators must still calculate and report the full Well-to-Wake intensity of Bio-LNG per Annex I's methodology before any GHG credits can be claimed.

With Articles 3 and 10, and the reporting mandate in Article 4(3), the Regulation lays out a clear, legally robust path: biomethane that meets RED II's definitions and sustainability criteria can be bunkered and credited under FuelEU Maritime-provided its life-cycle emissions are fully documented. In the next sections, we will apply Annex I's equations to quantify Bio-LNG's Well-to-Wake profile and explore how shipowners can leverage compliance flexibilities such as pooling, banking and borrowing to meet each five-year reduction milestone.

Calculating GHG Intensity (Well-to-Wake)

Even though the FuelEU Maritime Directive refers to the Renewable Energy Directive, there are differences in the calculation of GHG emissions. While it is sufficient to calculate well-to-tank emissions for biofuels within the scope of the Renewable Energy Directive, well-to-wake emissions must also be included in the FuelEU Maritime Directive. This means that not only the emissions for the production of the biofuel are calculated, but also those for its combustion. As the average emissions may not exceed 89.34 gCO2eq/MJ in 2025 and 18.23 gCO2eq/MJ in 20250, the following calculation is carried out for biomethane to determine whether it is suitable as a fuel to meet the GHG requirements in the long term:

Overall Well-to-Wake

The Well to Wake emissions are calculated by adding the Well to Tank and Tank to Wake emissions. These added emissions can be reduced, for example, by using a sail (fwind). In this example, however, this is not calculated for the sake of simplicity.

Well-to-Tank (WtT)

Well-to-tank emissions are calculated by multiplying the absolute amount of energy used by the emission factor in gCO2eq/MJ. In this case, 1000 MJ and a GHG value of -100 gCO2eq/MJ are assumed. -100gCO2eq/MJ is a realistically achievable value for biomethane produced from manure. If CO2 capture also takes place during biomethane production in order to replace fossil CO2 (CCR) or store it geologically (CCS), values lower than -120 gCO2eq/MJ can also be achieved. There are several projects in Europe that are already producing and marketing these qualities.

CO2-Combustion (TtWcomb)

Tank-to-Wake combustion emissions quantify the CO₂ released when Bio-LNG is burned on board. These emissions are calculated by multiplying the ship's total energy use by the fuel's CO₂-per-energy emission intensity, EF₍comb₎, which is itself derived from the fuel's carbon content and calorific value:

Determine EF₍comb₎

Divide the CO₂ emission factor of methane (Cf₍CO₂₎ = 2.750 g CO₂/gFuel) by Bio-LNG's lower calorific value (LCV = 0.0491 MJ/gFuel):

Compute TtW₍comb₎

Multiply EF₍comb₎ by the ship's energy demand (Q = 1 000 MJ):

This term typically dominates the ship's onboard emissions profile and, together with methane-slip (TtW₍slip₎), completes the Tank-to-Wake leg of the life-cycle calculation.

CH4 slip (TtW slip)

Not all methane burns cleanly in a dual-fuel engine-some fraction bypasses combustion as unburned CH₄. Because methane has a 100-year global-warming potential (GWP) 28 times that of CO₂, even small slip rates can add disproportionately to a ship's GHG burden. FuelEU Maritime factors this in via Annex I, Eq. 2which defines the methane-slip emission factor, EF₍slip₎:

Calculate EF₍slip₎

Multiply the slip fraction (C₍slip₎ = 3.1 % = 0.031 gCH₄/gFuel) by the methane emission factor (C₍f,CH₄₎ = 0.00011 gCH₄/gFuel) and the GWP₍CH₄₎ = 28, then divide by the lower calorific value (LCV = 0.0491 MJ/gFuel):

Compute TtW₍slip₎

Multiply EF₍slip₎ by the ship's energy demand (Q = 1 000 MJ):

Total well-to-wake emissions (WTW₍total₎)

This equation aggregates all life-cycle contributions-upstream credits (WtT), CO₂ combustion (TtW₍comb₎), and methane slip (TtW₍slip₎)-and applies the wind-reward factor (f₍wind₎):

Well-to-Wake Intensity (EF₍WTW₎)

Finally, the ship-level intensity metric normalizes total Well-to-Wake emissions by the reference energy demand:

In this example, a GHG value of -43.97 gCO2eq/MJ well to wake would be achieved with biomethane that was procured with -100 gCO2eq/MJ well to tank for the bunkering of the ship. All requirements regarding the GHG value would therefore be permanently fulfilled here. Other fuels with a higher GHG value could even be added in the long term.

Compliance Flexibilities & Advantages

Having achieved a Well-to-Wake intensity of -43.97 g CO₂ eq/MJ, a vessel burning Bio-LNG can more than meet each FuelEU Maritime target on its own. Allowing system participants to make use of the regulations options for fleet-wide and multi-year mechanisms to leverage those significant savings. By pooling compliance balances, a ship with Biomethane made from manure can offset higher-emitting vessels in the same pooling group, ensuring the group hits its average GHG targets even if some units continue to burn conventional fuels. Likewise, banking allows that WTW-emission-saving surplus to be carried forward to smooth out peaks and troughs in renewable fuel availability.

Under Article 21, "the compliance balances for GHG intensity ... of two or more ships ... may be pooled for the purposes of complying with the requirements set out in Article 4" EUR-Lex. In practice, this means a ship recording -43.97 g CO₂ eq/MJ can generate a compliance surplus, which is then allocated across the pooled vessels-under the condition, that compliant vessels stay compliant, deficiant vessels benefit from the pooling and that the total pool remains compliant. This flexibility transforms a lone Biomethane fueled vessel into a fleet enabler, allowing operators to stagger investments in alternative fuels and still ensure collective compliance.

Meanwhile, Article 20 empowers companies to bank genuine compliance surpluses into future reporting periods or borrow a limited advance against next year's allowance. "Where the ship has ... a compliance surplus ... the company may bank it to the same ship's compliance balance for the following reporting period," and if a deficit arises, the operator "may borrow an advance compliance surplus ...", the fulfillment of which however will require 1.1-times the GHG-savings to be added in the coming year EUR-Lex. Banking preserves the negative-WTW credits that Bio-LNG delivers today, smoothing compliance over leaner years; borrowing lets an operator front-load up to 2 % of their allowed emissions to avoid short-term penalties.

Together, pooling and banking/borrowing make it possible not only to meet the straight-line targets set by FuelEU Maritime, but to optimize the use of Biomethane's exceptional carbon profile-turning one ship's negative emissions into a strategic asset for the entire fleet, both now and in the years to come.

Der Beitrag FuelEU Maritime erschien zuerst auf agriportance GmbH.

2024 was a year of renewal and strategic rethinking for the German biomethane market, with important impetus provided by new legal regulations. We shed light on these developments in our market review.

• The new Building Energy Act came into force, which introduced heat from biomass as a flat-rate fulfillment option
• Consequences of flooding the biomethane market with fake UER certificates and supposedly non-advanced biodiesel on the GHG quota
• The BMUV (Federal Ministry for the Environment) adopts a new UERV (Upstream Emission Reduction Ordinance)
• Consequences of the GHG quota crisis and triggering further uncertainties in the market, primarily due to payment difficulties for biomethane trading players
• A new BImSchG (Federal Immission Control Act) is passed by the BMUV
• Upturn in German biomethane production

A new building energy law strengthens the biomethane market

At the beginning of the year, on 1.1.2024, the new Building Energy Act (GEG) (20). It marked the start of the heating transition and focused on heating with renewable energies. Biomethane is a particularly interesting option as it enables the use of existing infrastructure and heating systems. In addition, the use of biomethane is considered a "blanket fulfillment option". This means that homeowners do not need to provide individual mathematical evidence. This change promises a solid long-term sales market for biomethane from waste and residual materials (1). These substrates are used in the heating sector as they have a fuel value of less than 21.6 g CO2/MJ. It exempts biomethane from the BEHG (Fuel Emissions Trading Act) (21).

Estimates by dena in relation to the GEG

The new Building Energy Act not only marks an important step in the energy transition. It also has a direct impact on the biomethane market by creating new incentives for the use of renewable energies. According to estimates by dena, EWI and BMWK, this new legislation will increase biomethane demand in the heating sector from the current level of 1 TWh to at least 13 TWh by 2040 (2).

Falsified UER certificates and the fall of the GHG quota

Figure 2: Overfilling of the GHG quota and quota price (Stellungnahme-Gutachten-SG2410100001.pdf)

In the GHG quota market, however, the effects were still being felt. On the one hand, the falsified upstream emission reduction (UER) certificates and the falsely declared biodiesel from palm oil, which was confirmed for the first time in mid-2023. ViGo Bioenergy estimates that 50% of the GHG quota was due to falsely declared certificates. The figure for 2024 remains untitled. Other factors influencing the quota price were the slow increase in the quota, rising electromobility and the expansion of the market abroad for quota fulfillment. In addition, the previous extreme overfilling of the quota destabilized the market. From 3.4 million tons of CO2eq in 2022 and 8.1 million tons of CO2eq in 2023 and kept demand low (19, 22).

After much finger-pointing and denial, there were some new laws to reinstate the GHG quota as a serious tool. For example, on August 14, 2024, an executive order on anti-dumping duties was published, strengthened domestic production and was part of the measures that contributed to the recovery of the GHG quota (7, 8, 9, 24).

The new UERV

In February 2024, the draft bill to amend the UERV was published. This would end the future eligibility of UER projects, but did not address the damage already caused by the certificates placed on the market. So while the quota has continued to fall steadily, to less than half since the fraud cases became known, it was still possible to claim the UER certificates and even carry them over to 2025. The damage to the renewable energy sector was estimated at 4.4 billion euros. According to the Stop Climate Fraud initiative, the money went to the fossil fuel industry.

The topic gained further attention in May when the ZDF "frontal" report uncovered fake UER projects. This led to an increase in statements from political circles in Berlin. In July, Federal Environment Minister Steffi Lemke admitted that there had probably been a lack of controls. According to the police, the involvement of external inspection bodies is legally difficult. Lawyers suspect that parallels can be drawn with tax evasion. This could mean redemption periods of up to 10 years. According to a lawyer Altenschmidt for commercial and corporate law, the UERV can be interpreted individually. It is not possible to speak definitively of fraud; moreover, neither the UBA nor the BMUV has the final decision-making power, but rather the Federal Administrative Court (4).

'Stop climate fraud initiative' for the biomethane market

Some key players from the renewable energy sector then founded the "Stop Climate Fraud Initiative" on September 4, 2024 and exerted media pressure on politicians. The President of the UBA then announced the reversal of 45 UER projects in mid-September. This was a clear sign of a reappraisal, as according to a press release a week earlier, there had only been 8 projects. The amendment to the 38th BImSchV was also amended to suspend the transfer of the GHG quota overfill for 2025 and 2026. However, the damage caused not only affects the renewable energy sector, but also the Federal Republic of Germany (5, 6).

If these allegations prove to be true on a large scale, Germany could face higher financial costs as a result of the EU Effort Sharing Regulation (ESR). It is already estimated that potential fines for insufficient emission reductions in the transport sector could amount to around 16.2 billion euros by 2030. However, companies subject to quotas have not yet had to fear any consequences, as the certificates enjoy protection of confidence in the biomethane market (3).

Effects of the THG quota crisis and insolvency in self-administration of a market leader

Landwärme GmbH, a major provider of biomethane for energy supply companies, municipal utilities and industrial companies, ran into financial difficulties in 2024. On August 13, the Berlin-Charlottenburg district court ordered provisional insolvency under self-administration. This was officially opened on November 1, 2024. The subsidiary Landwärme Service GmbH also filed for insolvency after THE terminated its balancing groups on October 15. Such terminations represent an exceptional situation and are considered a last resort measure to minimize risk on the part of THE(10).

Landwärme GmbH attributed its insolvency primarily to falling revenues in GHG quota trading. The VKU also reports that a good 100 member companies, mainly municipal utilities, still have outstanding claims against Landwärme (11). Customers feared delays or problems with the timely invalidation of certificates, which is particularly critical for the EEG subsidy certificate. Subsequently, sales of biomethane from farm manure fell so sharply due to the drop in quotas that in some cases it was already being sold and sold into the heating market. This further unsettled the already unstable biomethane market, with many trading partners unclear about which supply contracts were available. exist would remain.

Amendment of the law to stabilize the quota market through BImSchG in the biomethane market

The next amendment to the law came with the declared aim of making the GHG quota a relevant instrument for greenhouse gas reduction and climate protection once again.

On September 20, 2024, the BMUV published the draft bill (RefE) of the Third Ordinance amending the Ordinance on Further Provisions for the Reduction of Greenhouse Gases from Fuels (38th BImSchV). This amendment brought some life back into the market at the end of the year, even if it was criticized by some biogas industry stakeholders for being short-sighted. The Bundesverband Bioenergie e.V. wrote in a statement that producers of sustainable fuels could not forego the turnover for certificates from 2024, which led many to accept sub-par prices, while financially strong quota-obligated companies can now buy quota fulfillment options cheaply, which could push the 2027 quota price down again. This price had already fallen further at the end of 2024 for the 2024 compliance year, as most buyers were not interested due to suspended transfers and producers had to pay for uneconomical Prices sold to limit the damage.

The central change in the RefE was the suspension of the quota transfer for 2025 and 2026. This change was a reaction to the fact that the GHG quota had fallen sharply in value, from around €160 at the beginning of the year to as low as €50 per tCO2eq in October (16). The news of the first draft of this legislative amendment alone caused the biomethane market to breathe a sigh of relief, as a result of which the price of fuel-grade biomethane from slurry/manure with a GHG value of -100 gCO2/MJ rose from 9.5 ct/kWh in September to 12.5 ct/kWh in November.

Domestic production volumes rose noticeably again for the first time

According to dena, seven plants with a total processing capacity of over 2,500 Nm³ per hour were commissioned by September 2024. In other words, more plants than in the three previous years combined (15). These observations are supported by the Market Master Data Register. It records an increase of 3,125 Nm³ for the full year 2024, which is fed into the grid by 12 plants. This corresponds to an expansion of approx. 5%. According to dena, growth is expected to remain constant at 10 to 15 new plants per year in the coming years. The average plant size is 2.8 MW, which reflects an increasing consolidation of the market and producers into large company mergers. This is a sign of a mature market. The substrates used in the two largest plants are liquid manure and dung. This makes the biomethane produced interesting for the fuel market (12, 13).

Positive signs for the market

Despite difficulties in the market, new construction efforts indicate a stable interest in investment and a positive outlook for the coming years. The European Biogas Association (EBA) shows that Germany is lagging behind the EU member states despite increased growth. It records a steady expansion of biogas production volumes of around 20% percent. But even this was surpassed in the first quarter, as 6.4 billion cubic meters were produced in the EU-27. Compared to the previous year, this represents an increase of more than 30% (14). The fact that other European countries are catching up in terms of biomethane production volume promises to diversify and thus stabilize the biomethane market.

Sources

Der Beitrag Rückblick Biomethanmarkt 2024: Herausforderungen, Entwicklungen und neue Weichenstellungen erschien zuerst auf agriportance GmbH.

The dena (German Energy Agency) biogas register plays a central role in providing evidence in the electricity and heating market. In 2018, the European Union set itself the goal of reducing greenhouse gas emissions and increasing the use of renewable energies in the Renewable Energy Directive (RED II). Laws such as the Renewable Energy Sources Act (EEG) were passed to implement these climate targets at national level. This regulates the remuneration of electricity from sustainable sources, such as biomethane. The EEG also places requirements on electricity generation, in particular the complete provision of evidence. To this end, the biogas register was set up in Germany as a central register for recording and transferring guarantees of origin, the legal basis for which is set out in the dena Biogas Register Guide is noted. In addition to the biogas register, Nabisy (Sustainable Biomass System) is another register. Nabisy and dena have a certain overlap, but mainly cover emissions trading. 

What are dena certificates and why are they important? 

The Biogas Register (BGR) is a platform for the documentation and dissemination of guarantees of origin for biomethane that are used in the Renewable Energy Sources Act (EEG) or the Building Energy Act (GEG). There is also the Nabisy register for sustainability certificates that are required to comply with other laws such as the GHG quota or the Fuel Emissions Trading Act (BEHG). 

Plants that produce electricity for the EEG or heat for the GEG are obliged to have the previous year's biomethane quantities certified by February 28 at the latest. 

Recording the data in the dena system

In order to record biomethane quantities, registry participants must first enter the relevant installation in the system. They then initiate a plant audit (AAD), which serves to check the plant information. Once the plant audit (AAD) has been successfully confirmed, production batches (PC) can be entered into the biogas register. It is possible to enter PC either during the year or at the beginning of the following year.

At the beginning of the following year, the booked-in PCs are subjected to an operational audit (BAD). This audit serves to verify the quantities fed into the grid and to check compliance with legal requirements, such as mass balancing. The operational audit is based on a standardized catalog of criteria that sets out specific requirements for the legal framework, including the EEG, GEG and BEHG. The dena Biogasregister product matrix and the dena Biogasregister criteria catalog support the assignment of the respective criteria to the biomethane quantities. When creating the BAD, the applicable criteria can be selected from a list and assigned to the PC. Both the auditor and the registry administration must confirm the PC with the assigned criteria and thus set it to green. There is also the option of setting quantities to yellow, which allows separate marketing of guarantees of origin and biomethane. However, this procedure is not permitted under German legislation and is only used abroad or to achieve voluntary targets. 

Contact & Help!

Are you a producer or customer? We will be happy to help you.

Please complete the relevant form and we will get back to you as soon as possible:

Producers

Customer

Documentation of the GHG value 

In addition to the standardized criteria, it is also possible to have so-called verification-relevant comments accepted. For example, some customers request the certification of a GHG value. This information gives traders the flexibility to also sell to other European countries. 

By adding a "free substrate criterion", you have the option of specifying a GHG value (greenhouse gas value) for a specific PC or splitting the PC and storing different GHG values for the respective partial quantities. This enables a flexible and precise transfer of GHG values along the value chain. You should pay particular attention to the correct specification of the GHG value. This is done in g CO2eq/kWh and not in g CO2eq/MJ. The distinction comes from the electricity sector, where calculations are made in kWh, and the emissions trading and transportation sector, where MJ are used. In addition, a description such as "EVK1 (020204)" can be added to further specify the documentation. 

Alternatively, you can pass on the GHG value via a delivery bill for intermediate products (Proof of Sustainability, PoS). A major disadvantage of the PoS is that the dena criteria are not shown on the PoS and, unlike in the dena biogas register, are only checked at a later date as part of recertification. For this purpose, the PoS is linked to the proof of origin, as described in the next chapter. 

Parallel verification 

A careful approach is required to ensure the parallel use of guarantees of origin and sustainability certificates and to rule out double marketing. If a PC is used both for the EEG or the GEG and for the BEHG, it may be necessary to maintain the proofs in parallel in Nabisy and in the biogas register. 

In order to link biomethane certificates of origin from the dena biogas register (BGR) with the sustainability certificates in Nabisy, it is crucial to include the plant number of the last interface and the relevant verification numbers in the plant criteria to be checked in good time before the audit as part of the dena plant audit (BAD). 

dena and the BLE are working on an interface between the systems, which would allow the data to be reconciled automatically. However, until these efforts are finalized, the simultaneous transmission of certificates of origin and sustainability certificates is the recommended procedure to prevent double marketing. 

Do you have any questions or need advice?

Please feel free to contact us:

Der Beitrag Dena Nachweise – Hinterlegen von THG-Werten im Betriebsaudit erschien zuerst auf agriportance GmbH.

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.

Der Beitrag Biomethan erfolgreich einkaufen: Die wichtigsten Fakten für Einkäufer und ein Leitfaden für den Markt erschien zuerst auf agriportance GmbH.

Summary: What is the Building Energy Act (GEG)?

The GEG serves the national enforcement of the European Buildings Directive (EPBD) and the Energy Efficiency Directive (EED). Since it came into force in 2020, the law has gone through many iterations and was last amended on October 16, 2023. According to JIT 2024 and are concerned with the optimization of older buildings. Heating systems (§60b), which must be inspected and optimized by 2027 if they were built before 2009, younger systems must be inspected and optimized every 15 years. years are checked. Parameters such as efficiency and thermal insulation are optimized.

When does the EnEV apply and when does the GEG apply?

The Energy Saving Ordinance (EnEV) and the Energy Saving Act (EnEG) were passed in 2005 and 1976 and were valid until November 1, 2020. Since then, they have been replaced by the Building Energy Act (GEG), meaning that the EnEV and EnEG are no longer valid.

Can biomethane be used to comply with the Building Energy Act?

For buildings to be constructed, there is a requirement that they must be nearly zero-energy buildings. Nearly zero-energy buildings are only required to have a maximum annual primary energy requirement (Q_P) of a reference building and to comply with maximum heat loss values. This corresponds to a heat consumption of less than 75 kWh/m²a and an energy efficiency class B or around 1/10 of the consumption of an average 1950s building (bauhandwerk.de). The calculation of the Q_P is calculated using DIN V 18599: 2018-09. For this purpose, the final energy consumption is calculated as shown below and multiplied by the primary energy factor. (energy-experts.org) The primary energy factor merely refers to the energy source used, as explained below.

Achieving the annual primary energy requirement through renewable energies

One means of achieving the required annual primary energy demand is the use of renewable energies. For this purpose, the primary energy factor is used, which is 1.1 for fossil fuels and, depending on how biomethane is used, 0.7 (boiler) or even 0.5 (high-efficiency CHP plant).

Biomethane is renewable methane produced by upgrading biogas from organic materials such as agricultural waste and sewage sludge. Read more in the blog about biomethane (agriportance.com).

Illustration of DIN V 18599 - Energy assessment of buildings

One means of achieving the required annual primary energy demand is the use of renewable energies. For this purpose, the primary energy factor is used, which is 1.1 for fossil fuels and, depending on how biomethane is used, 0.7 (boiler) or even 0.5 (high-efficiency CHP plant).

The quantity of biomethane used must be verified using a mass balance system and must also meet the requirements of the EEG 2009 in Annex 1 (EEG 2009).
As in the Dena guide a heating system that is operated with 65% RE from biogas (i.e. biomethane) represents a flat-rate fulfillment option. This means that an individual calculation in accordance with DIN V 18599 is not necessary.
Verification is primarily carried out via the Dena biogas register. The responsible authorities are state-specific, in NRW it is the building inspectorate (GEG-UG NRW).

To which buildings does the Building Energy Act apply?

The Building Energy Act obliges owners of both new and existing buildings to comply with energy-specific criteria. It also stipulates requirements for possible subsidies, which are implemented at state level. The law applies to all buildings that are heated or cooled according to their intended purpose.

Exceptions: To which buildings does the GEG not apply?

All buildings are subject to Section 3 of the GEG, which deals with the inspection of air conditioning systems. For the rest of the law, however, the following buildings are not considered:

• Farm buildings used primarily for animal breeding or husbandry
• Buildings that have to be kept open for a long time and over a large area depending on their intended use
• Greenhouses
• Tents and temporary buildings with a planned useful life of less than 2 years
• Religious buildings
• Underground buildings
• Residential buildings that are used for less than 4 months per year
• Residential buildings whose useful life is limited annually, resulting in an energy consumption of less than 25% of the expected value
• Commercial buildings that are heated to less than 12 degrees Celsius according to their intended purpose
• Business premises that are heated for less than 4 months and cooled for less than 2 months

What are the penalties?

The owners or developers of a building are responsible for complying with the regulations. They are therefore also liable for fines of up to €5,000 in the event of non-compliance with the energy requirements.

How is the subsidy regulated according to the Building Energy Act?

The JIT also states that renovated or newly built plants that generate heat from biomass (including biomethane) are eligible for funding. You can find more details on the funding program at Federal Office for Economic Affairs and Export Control (BAFA) in the Program for the federal promotion of efficient buildings (BEG).

Summary

The Building Energy Act (GEG) 2023 brings comprehensive changes for new and existing buildings and replaces previous regulations such as the EnEV and the EnEG. It requires the optimization of heating systems, promotes and regulates the use of renewable energies such as biomethane and sets new standards for energy-efficient construction. The law also provides for sanctions in the event of non-compliance and offers funding opportunities for sustainable energy projects.

Der Beitrag Neue Chancen und Pflichten: Das ändert sich mit dem Gebäudeenergiegesetz 2023 erschien zuerst auf agriportance GmbH.

The Union database is a register of evidence in the biofuel sector, which is set up and operated by the EU Commission. It is intended to enable better traceability of gaseous and liquid (bio)fuels. This is intended to avoid double counting and double marketing of sustainability properties. The greenhouse gas savings of a bioenergy quantity are counted towards the German biofuel quota and the EU ETS. The establishment and operation of the Union database reduces the risk of fraud. By recording the biomass, the Union database prevents large quantities of palm oil from being falsely declared as biodiesel in other EU countries. The link to biomass should be available for these quantities in the UDB.  

Establishment of the Union database in accordance with RED II

The "Renewable Energy Directive" (RED II) regulates the establishment and operation of the Union database in Article 28 (2) and (4). The Commission shall establish a Union database that enables the tracking of liquid and gaseous transport fuels and allows them to be counted towards the numerator in accordance with Article 27(1)(b).

Or be taken into account for the purposes of the first subparagraph of Article 29(1). Member States shall require the relevant economic operators to provide information in that database on the transactions carried out and the sustainability characteristics of those fuels. This shall include their life-cycle greenhouse gas emissions, from the place of their production to the fuel supplier placing them on the market. Member States may set up a national database linked to the Union database. They must ensure that data entered is immediately transferred between the databases.". 

Who needs to store data in the UDB and use it? 

In accordance with RED II, the UDB should Transportation sector all gaseous and liquid fuels are covered. These include biofuels, bioliquids and sustainable gases. These include biomethane and hydrogen. In addition, renewable fuels of non-biological origin (RFNBOs) and recycled carbon fuels are included there. From RED III onwards, the scope is to be extended to the biomass sector. This will then be used for heat/cooling production and electricity production and will then also include the Union database.  

Scope of the UDB

As the scope of the UDB is not limited to the last interface, as is the case with Nabisy, for example, the circle of users is correspondingly larger. Currently, all economic operators along the biofuel value chain must register and store data from the biomass collection point onwards. This means that every trader of biomass who collects biomass such as silage maize, manure or municipal waste would have to register in the Union database. The places of origin of biomass, such as farms or restaurants in the case of kitchen waste, are currently exempt. However, they still have to submit their self-declarations in the system of their choice, such as REDcert-EU, ISCC-EU, SURE, BetterBiomass or others to the collector of the biomass.

Biomass in the UDB

These biomasses are then stored by the biomass collector in the UDB as "Transaction of the buyer at the place of origin" with the associated sustainability properties. The first gathering point/collector of the biomass can then pass it on to another economic operator, e.g. a biogas plant. Collectors must register the transfer/transaction in the UDB within 72 hours report. Conversions of biomass must also be recorded. In the case of biomethane, this could be biogas production, for example, where biogas is produced from a volume of biomass such as dry chicken manure.  

Different designations of biomasses in the registers

The trick is that there are different biomass designations in the various registers and systems. For example, the UDB currently in the case of manure "Manure", "Manure with organic waste" and "Manure with organic waste and energy crops". The Material list of ISCC, on the other hand, only knows "Manure". Registers like Nabisy on the other hand, take into account not only the source material but also the production process in their biomass codes. These codes take into account whether waste gas combustion has taken place and whether a closed fermentation residue storage facility is available. For example, there are 4 different codes for biomethane from liquid manure, which also take into account: "Biomethane from liquid manure (all animal species); closed fermentation residue storage; waste gas incineration".  

What are the first steps with the UDB? 

The first step with the UDB for all economic operators is the recording of Initial stocks. According to the UDB documentation, this is required for all economic operators from 01.01.2024. Users must first create all suppliers. The user can then navigate to "Entry of initial stocks": 
 

Under "Enter initial stock", users enter the stock for a biomass or for intermediate products such as biogas and end products such as biomethane.

If the economic operator clicks on this button, a menu opens. This is where users enter data relating to biomass and PoS data.

As there is currently no way of correcting incorrectly entered biomasses after final storage, care should be taken when entering them.

We will be happy to assist you with any questions you may have about UDB administration, greenhouse gas value calculation and mass balancing. 

Der Beitrag Erfassung von Anfangsbeständen in der Unionsdatenbank: Die Initial Stock Registration erschien zuerst auf agriportance GmbH.

Production costs from biomethane

The production of biomethane is a complex process that involves the fermentation of organic materials such as agricultural waste, liquid manure or energy crops. The costs of the raw materials, the fermentation technology, the processing of the gas produced and the costs of operating and maintaining the plants must be taken into account here. Operating costs also include expenses for energy, water, personnel and plant maintenance. Increases in efficiency and technological advances can reduce production costs, but the investment costs for the construction of the plants remain a significant factor.

Determining the price of biomethane from manure in the fuel sector requires a detailed examination of the cost structure. This is done along the entire value chain as well as an analysis of profitability. Several defined factors form the basis for determining the costs:

1. The biomethane has a greenhouse gas (GHG) saving of -100g CO2eq.
2. Existence of a biogas plant; only the construction of a biogas upgrading plant is required.
3. The distance to the natural gas grid is less than 1 kilometer.
4. 100% of the capital employed consists of borrowed capital.
5. production of raw biogas is 250 standard cubic meters per hour; biomethane production is around 125 standard cubic meters per hour.
6. The biogas plant has already been fully depreciated.

Cost components incurred in the production of biomethane

Various investment costs must be taken into account for the conversion of biogas to biomethane:

1. Fixed costs for the biomethane processing plant amount to 1.5 million euros.
2. A central pumping station with a pumping capacity of 85 cubic meters per hour incurs costs of 50,000 euros.
3. Expenditure of 20,000 euros is incurred for the pump enclosure.
4. A biogas feed-in system costs 250,000 euros.

Planning, approval and other items such as certification are estimated at a flat rate of 10% of the total investment. Depreciation for the technical equipment is set for 10 years, resulting in annual fixed costs of around EUR 200,000. The variable costs vary depending on the operation. A significant cost factor is the purchase of substrate, which can have a considerable impact on profitability.

Example calculation of the production costs of biomethane

In our scenario, we assume a substrate input of 20% maize silage and 80% liquid manure. The variable costs are made up as follows:

1. The production of maize silage costs 45 euros per ton.
2. The trade tariff catalog (HTK) for additional purchases is 50 euros per ton.
3. A flat rate of 10 euros per ton is assumed for the disposal of the digestate.
4. The provision of heat for the fermenter incurs costs of around 50,000 euros per year.
5. Repairs, maintenance and operating materials cost around 180,000 euros a year.

Between June and October 2022, a biomethane price of around 22 cents per kilowatt hour was achieved on the spot market. Long-term contracts achieved lower prices in some cases due to double marketing. Assuming a cautious price of 20 cents per kilowatt hour for biomethane with a GHG value of -100g CO2eq and taking into account avoided grid fees of around EUR 50,000, an annual turnover of around EUR 1,800,000 could be achieved. After deducting fixed and variable costs, this resulted in a profit of around 650,000 euros per year. With this constellation, a system could pay for itself within three years.

For many stakeholders, trading GHG quotas now represents a significant economic incentive for the transition to sustainable energy in the transport sector. Be it by maintaining existing vehicle fleets or switching to electric drives. However, the statutory increases in the GHG quota to 9.25 percent in 2024 and the following years are not sufficient to achieve the climate protection targets in the transport sector by 2030.

Factors that determine the biomethane price

Transportation costs

After production, biomethane must be transported to the distribution points or directly to the end customer. This logistics chain can include costs for transportation by truck, feeding into the gas grid or transport by ship or rail. The costs vary depending on the distance, means of transportation and infrastructure.

Taxes and duties

In Germany, the sale of biomethane is subject to energy tax, although biofuels can be tax-privileged under certain conditions. Further charges may arise due to regulatory requirements, such as emission certificates. These costs are usually passed on to the final price. They contribute to the total amount that the consumer has to pay.

Profit margins

Producers and suppliers of biomethane calculate profit margins in order to amortize their investments and generate a profit. These margins must be competitive and depend on various factors. Including market dynamics, competition from other biofuels and consumer demand.

The Obligation to reduce emissions in Germany

The legal obligation to reduce emissions in Germany creates a market for trading GHG quotas, which makes the use of biofuels such as biomethane more attractive. Oil companies that place fossil fuels on the market must reduce their greenhouse gas emissions. The GHG quota, which is defined as a percentage of the total fuel volume, indicates the proportion that must be replaced by sustainable fuels.

Rising GHG quotas increase the demand for biofuels. As distributors of fuels have an incentive to achieve their emission targets by using biofuels instead of risking high penalties. The fixed penalty of €470/t CO2eq for not achieving the GHG quota is a significant economic incentive. This also indirectly influences the formation of the biomethane price. If the costs for CO2 reduction when using biomethane are lower than the penalty, it becomes more attractive for the mineral oil companies to use biomethane instead of paying the penalty.

The competitiveness of biomethane compared to other biofuels such as biodiesel or bioethanol is ultimately influenced by the price. Manufacturers can charge this for the GHG quota. The production of biomethane has different cost structures compared to other biofuels. This can lead to a diversification of pricing. In addition, regional differences in the availability of raw materials and the efficiency of production processes have a direct influence on biomethane prices.

The GHG quota price

The GHG quota price reflects the cost of emitting one tonne of CO2 equivalent and is a key element in the regulation of greenhouse gas emissions. The price fluctuations of the quotas between 430 and 520 euros per tonne of CO2eq in 2021 show the changes in demand for emission allowances. These are influenced by various factors such as market dynamics, political decisions and economic activities.

The GHG value plays a key role, as it determines how much of the so-called quota can be met by using a certain amount of biomethane. Biomethane is considered more environmentally friendly as it releases less CO2 during combustion compared to fossil natural gas. The amount of GHG quotas that can be generated with biomethane depends on its greenhouse gas savings potential.

Price development of biomethane

Click here for our price ticker →

Important sustainability properties of biomethane

As far as sustainability properties are concerned, there are two important points:

1. Double counting of savings from advanced raw materials: Once a certain sub-quota has been met, savings from the use of advanced raw materials can be credited twice. This is intended to create an incentive to use more advanced and environmentally friendly raw materials in order to further reduce CO2 emissions.
2. Upper limit for NawaRo biomethane: For biomethane produced from renewable raw materials (NawaRo), there is an upper limit for the proportion of plants that could also be used as food or animal feed. This regulation is intended to ensure that the production of biomethane does not compete with food and animal feed production, thereby guaranteeing sustainability.

TTF price

The TTF price refers to the trading market for natural gas in the Netherlands, known as the Title Transfer Facility (TTF). This spot market is one of the most important and liquid trading venues for natural gas in Europe and serves as a benchmark for the pricing of natural gas in the region. The TTF price is used for short-term trading (spot market) as well as for long-term contracts (futures) and reflects supply and demand on the European natural gas market.

Composition of the gas price

The gas price is made up of the following main components:

1. Gas prices on the international markets, which can fluctuate depending on supply and demand, geopolitical events and other economic factors.
2. The network charges that cover the costs of using the transmission and distribution networks for gas. These fees can vary depending on the region and the costs of maintaining the infrastructure.
3. Taxes and levies, including the CO2 price.

These state-defined cost items can include aspects of environmental and energy policy. Examples include the CO2 price, which aims to reduce the emission of greenhouse gases. It does this by putting a price on the carbon content of fossil fuels.

All of these factors combine to shape the final price that consumers pay for gas.

Effects of the TTF price on biomethane

The TTF price as an indicator for natural gas can have an impact on the biomethane price. This is due to the fact that biomethane is seen as a renewable alternative to conventional natural gas. If the TTF price rises, this can make biomethane more competitive, as the price difference between renewable gas and fossil natural gas is reduced. Conversely, a falling TTF price can make biomethane appear more expensive and reduce its competitiveness against natural gas. However, biomethane prices are also dependent on other factors, such as local subsidies, production costs and specific market dynamics.

The natural gas price at the TTF hub (Title Transfer Facility) in euros shows a relatively stable and low price, which rises slowly in the first half of 2021. From May 2021 (May.21), prices start to rise sharply, with notable peaks and high volatility. The extreme peaks, which go well beyond 200%, reach their peak around November 2021 (Nov.21). After these peaks, the price falls, but rises again in May 2022 (May.22). Subsequently, the price falls again and stabilizes at a higher level than at the beginning of the period shown, with a final value of around +208% in May 2023 (May.23). You can find more information on current natural gas prices at https://www.finanzen.net/rohstoffe/erdgas-preis-ttf/chart

These volatile movements are due to various market conditions. Examples include changes in demand, political decisions, contractual changes or other external events, such as the war in Ukraine, which influence the natural gas market.

Historical TTF gas prices can be seen as an indicator of general energy market trends, which in turn can influence biomethane prices, especially in markets where biomethane is used as a direct substitute for natural gas. To determine the exact impact of the TTF gas price on the biomethane price, one would need to look at specific market analyses that analyze both natural gas and biomethane prices over the same time period. If you have any questions, please contact us. Contact Henning.

Promotion of biomethane

The promotion of biomethane also creates incentives for more sustainable agriculture. This is achieved by supporting the recycling of organic waste and thus minimizing the ecological impact of agricultural activities. This not only strengthens rural areas, but also supports the energy transition and the circular economy.

In the fuel sector, biomethane as CNG is an environmentally friendly replacement for traditional fossil fuels. The combustion of biomethane in vehicles leads to lower emissions of nitrogen oxides (NOx) and particulates. Which in turn improves air quality and reduces greenhouse gas emissions. Governments and authorities are motivating the switch to biomethane through financial incentives, tax breaks and support programs.

CNG filling station infrastructure

A decisive factor for the success of biomethane as a fuel is the availability of a corresponding infrastructure for CNG filling stations. While some countries already have a well-developed network, others still have a lot of catching up to do.

To summarize, the price composition of biomethane is determined by a complex mix of production costs, transport and logistics costs, tax conditions, market dynamics and government requirements to reduce emissions. Profit margins must be carefully calculated. This in order to be able to compete, while at the same time the legal framework for reducing emissions provides an additional financial incentive that influences demand and therefore also the price of biomethane.

Der Beitrag Welche Faktoren beeinflussen den Biomethanpreis? erschien zuerst auf agriportance GmbH.

The importance of the biomethane market is growing steadily. Especially in countries with strict climate targets and efforts to decarbonize the energy sector. The market is primarily driven by government support measures such as the GHG quota, environmental regulations and the increasing demand for renewable energy sources. Various technologies, such as the methanation of hydrogen in combination with CO2 (power-to-gas), offer further opportunities to produce biomethane efficiently and in line with demand.

Influences on the biomethane price

The price of biomethane is strongly influenced by the political framework conditions. These can be GHG quotas, which promote the use of renewable energies and thus encourage investment in biomethane production. 

Biomethane is traded in Germany via direct marketing. This can be done either nationwide by feeding it into the natural gas grid or locally by selling it directly to end consumers via their own filling stations. The attractiveness of this marketing is largely based on the emission rights traded. These result from the saving of greenhouse gases and can lead to additional income.

Biomethane prices reflect these dynamics and can be influenced by subsidy policy, tax benefits and infrastructure development. This makes them a volatile but strategically important element of the energy price landscape.

In summer 2018, the price for the fuel quota was around 150 euros per tonne of CO2 equivalent. The additional revenue from the sale of fuel quotas due to the GHG reduction through biomethane can be calculated using this value.

Three different CO2 prices were relevant in the same year:

• the EEX emissions trading price of EUR 20 per tonne of CO2 equivalent
• the above-mentioned price of the fuel quota
• the penalty payment of 470 euros per tonne of CO2 equivalent in accordance with the Federal Immission Control Act (BImSchG)

In terms of GHG reduction, a distinction is made between three substrate classes for biomethane:

• Biomethane from 100 % waste and residues
• Biomethane from 100 % farm manure (slurry, dung)
• Biomethane from 100 % renewable raw materials (NawaRos)

Production grew slightly in 2018. More than 10 terawatt hours of biomethane were fed into the grid for the first time. This is despite the fact that the construction of new feed-in plants remains at a low level. An oversupply due to the construction of new plants with sales remaining constant has resulted in falling prices. In addition, climatic changes such as the hot summer of 2018 and the resulting crop failures have increased the cost of feedstock and led to lower production in 2019.

Development of demand on the German biomethane market

The German biomethane market is characterized by increasing demand and rising prices for biogas fed into the grid. The introduction of the Renewable Energy Directive II (RED II) and a growing interest in bio-LNG and, in some cases, bio-CNG, have boosted demand and thus also prices for biomethane, particularly from manure and advanced residues. These sources are particularly profitable due to their more favorable GHG profile and the possibility of double counting as part of the GHG quota. This opens up new business opportunities for biogas plant operators beyond electricity generation under the EEG.

From January 2022, the Biomethane price from manure on the basis of a GHG value of -100 g CO2eq/MJ achievable through RED II. The price already includes the possibility of double counting for advanced biomethane. The price applies to a 7-year supply contract starting in January 2025.

External influences that shape the biomethane price

The war in Ukraine has further accelerated the rise in energy costs, including biomethane. However, depending on the energy source, costs rose by up to 80 percent between January and March 2022. This has led to significant cost burdens that hit low-income households particularly hard. Uncertainty on the markets and the freezing of business with Russia by international oil companies have led to record prices for energy products. Russian oil is being shunned and freight rates have risen sharply. In the case of gas, the price increase is caused by high demand and at the same time uncertain supplies from Russia. These general trends in the energy sector were also reflected in the biomethane market. For example, prices for biomethane from farm manure reached a high of 38 ct/kWh in October 2022.

The price of biomethane produced from advanced residues is influenced by the implementation of the Renewable Energy Directive II (RED II). This directive sets a realistic greenhouse gas reduction value (GHG value) of +10 grams of CO2 equivalent per megajoule (gr CO2eq/MJ). The price for biomethane in a six-year supply contract was around 15-16 ct/kWh in January 2023 and rose to up to 20 ct/kWh in October 2023. In addition, the possibility of double counting of advanced biomethane is included in the price. This double counting makes it possible for certain types of biomethane produced from residues to be counted twice under RED II for the fulfillment of GHG quotas. This increases the value of biomethane under such contracts.

Price development of NawaRo biomethane

NawaRo biomethane, which is primarily used in biomethane cogeneration plants (CHPs) that receive remuneration under the German Renewable Energy Sources Act (EEG), shows a specific price trend.

Prices may vary depending on the respective EEG regulations and possible bonuses. Historical data shows that the price for NawaRo biomethane was 12 cents per kilowatt hour in January 2022 and had fallen to 10 cents per kilowatt hour by October 2023. During this period, the price trend was linear with a slight downward trend. There were price peaks of up to 13 cents per kilowatt hour in June and July 2023 and in December 2023. This presentation is based on a hypothetical six-year supply contract starting in January 2025 and reflects the potential price movements based on the historical data provided and the legal framework.

Current price development of biomethane

You can find the exact and current price development at any time on the website at:

Biomethane

Price development

to our price ticker

A new milestone was reached in 2022 with biomethane sales of over 11 terawatt hours. Driven by demand in the fuel sector and 6% growth in trading volumes, boosted by rising natural gas prices and the expansion of supply sources, such as from Poland, the Czech Republic, France and Spain. Despite increasing international trading activities, the potential is dampened by inconsistent sustainability requirements and administrative burdens within the EU.

The industry is experiencing an all-time high due to the positive development in the fuel and heating market as well as increasing international trading activities. The expectation of a further increase in CO2 pricing is boosting the competitiveness of biomethane. The European market could continue to experience growth thanks to stable biomethane markets and supporting measures such as RED III and the REPowerEU package.

The GHG quota in Germany, introduced in 2015, will be gradually increased to 25 % in 2030. Between 2015 and 2019, the amount of biomethane included in the quota remained stable, but then increased significantly. In 2021, it was almost 1000 GWh and a further increase is expected for 2022.

The greenhouse gas reduction quota for renewable energies in Germany

The greenhouse gas reduction quota (GHG quota) in Germany is a legally standardized instrument. It has been in place since 2015 and promotes the use of renewable energies in the transport sector in order to reduce greenhouse gas emissions.
On May 20, 2021, this quota was revised and will increase from 6 percent in 2021 to 25 percent by 2030. Biomethane produced from liquid manure, straw and biowaste is particularly effective in reducing greenhouse gas emissions and achieves savings of up to 60 % compared to a mid-range diesel car purchased in 2019.

GHG quota for biomethane

The GHG quota expresses as a percentage how much sustainable fuel is used in relation to the total amount of fuels, including fossil fuels such as diesel and petrol. For 2021, the GHG quota was set at 7 %. Operators of biogas plants form an important source of income by selling the GHG quota when using biomethane as a fuel, whereby they can calculate the savings individually.

This regulation promotes the use of biomethane and other sustainable fuels by offering economic incentives for the reduction of greenhouse gases. By increasing the quota, a stronger incentive is created to increase the share of renewable energies in the transport sector.

High quota prices were reported for 2022, which are expected to continue in the coming years. This is due to the penalty payment for non-compliance. Further development potential is seen for biomethane, particularly in the CNG and LNG fuel sector. Although the use of CNG in passenger cars is decreasing, CNG trucks and especially LNG trucks are still in demand. The toll exemption for CNG and LNG trucks has been extended until 2023, resulting in additional demand. However, uncertainties are dampening the extension of the current growth trend, for example due to the discussion about the elimination of double counting of advanced biomethane.

Introduction of the EU-wide Union database

The introduction of an EU-wide Union database will also affect imported biomethane. This development could result in greater competition and increased trading activity. In addition, the scandal surrounding misdeclared biodiesel from China affected the biomethane price between March and October 2023.

After all, the German mineral oil industry exceeded the GHG quota in 2021 and saved over 15 million tons of CO2 in the process. This exceeds the legal requirements and biomethane has played a significant role in this.

Der Beitrag Wie ist die Entwicklung des Biomethanpreises? erschien zuerst auf agriportance GmbH.

The biomethane market has caused quite a stir in recent months. With rapid price jumps, intense discussions around the greenhouse gas (GHG) quota under the Renewable Energy Directive (RED) III, and a general upswing in the industry due to the energy crisis, it is clear that the German biomethane market is more exciting than ever. But what makes it so attractive? And what circumstances characterize the German market in particular?

A dynamic market picture: biomethane revenue through the greenhouse gas quota

According to dena's "Biomethane 2023 Industry Barometer" analysis, total biomethane sales exceeded the 11-TWh mark for the first time in 2022. A main driver of this development is the growing demand for biomethane in the fuel sector. Here, one also sees increased import and export activities. A particular incentive for EU member states is that biomethane produced in other EU countries can count towards the German greenhouse gas quota (GHG quota).

What are the benefits of the German greenhouse gas (GHG) quota?

The greenhouse gas quota (GHG quota) in Germany characterizes the legally prescribed reduction of greenhouse gas emissions. Quota obligated parties - usually mineral oil companies - must meet this by introducing sustainable biofuels to the market. The reference base for the reduction is diesel's reference value of 94.1 g CO2 equivalent per megajoule. Instead of focusing solely on the energetic quantity of biofuels provided, as was previously the case with the biofuel quota, the focus is now on the actual reduction of greenhouse gas emissions.

This reorientation arose from the need to steer the use of biofuels more strongly in the direction of reducing greenhouse gas emissions. In 2015, the GHG quota thus replaced the biofuel quota. With this innovation, the German Bundestag limits emissions from the petroleum industry. In addition to the direct blending of biofuels, the trading of quotas based on the production of biomethane gives mineral oil companies another option for reducing their CO2 emissions.

Biomethane producers play a key role here. They produce the gas, which serves as a fuel and thus indirectly saves CO2 emissions. The resulting GHG quota is either sold directly to the obligated companies if the producers also act as distributors of the biomethane, or they sell the biomethane to other distributors. The placing on the market or refueling of the biomethane generates the said quota. The revenue generated is based on the sale of these quotas to the obligated companies.

This switch from biofuel quota to GHG quota is based on the European Renewable Energy Directive (RED II). The original 2009 Renewable Energy Directive (RED) and its 2018 revision (RED II) set renewable energy targets for the transport sector. These define criteria for sustainability and greenhouse gas savings. In parallel, the Fuel Quality Directive (FQD) was established, which aims to reduce life-cycle emissions from fuels. EU member states are required to transpose these directives into national law. In Germany, this resulted in their integration into the Federal Immission Control Act (BImSchG) and the Biofuel Sustainability Ordinance (Biokraft-NachV).

What circumstances make Germany an attractive biomethane market?

The GHG quota in Germany was introduced to create an incentive for the market, especially for biofuels with high GHG reductions. While fossil natural gas cannot contribute to meeting this quota, biomethane does. Interestingly, the eligibility of biomethane for this quota depends on the substrate used. A prominent candidate in this area is biomethane produced from farm manure, such as slurry. This is classified as an advanced biofuel.

In fact, companies that exceed their quota obligation benefit twice, as surpluses of advanced biofuels can be counted twice toward the overall GHG quota. In contrast, companies that fail to meet or miss their quota face financial penalties. These penalties were set at 0.47 euros per kg CO2eq until the 2021 commitment year and were increased to 0.60 euros per kg CO2eq from 2022.

These regulations have led to an increased demand for biomethane, which in turn has influenced the prices and revenue potentials for biomethane in Germany. However, the requirements and thus the revenue potentials for biomethane vary depending on the substrate group used. The EU has recognized that the production of conventional biofuels can have negative impacts, for example by affecting areas with high biodiversity. Therefore, EU member states have been given guidelines that promote the use of biofuels, but under strict sustainability criteria.

Why is biomethane from farmyard manure important for the German biomethane market for Fuele so attractive?

Particular attention is paid to biomethane from manure, whereby the "manure bonus" must be taken into account. This bonus results in a GHG emission reduction of an impressive standard value of -100 g CO2 eq/MJ, as stipulated in RED II. In fact, if calculated individually, this value can even be exceeded. The prices and revenue opportunities for biomethane in Germany are therefore closely linked to the substrate used and the associated GHG quota.

Within the greenhouse gas quota (GHG quota) system, farm manure and advanced residues will enjoy double crediting in the coming years. This gives them a more advantageous GHG value compared to renewable resources (NawaRos). What this means for you is that biomethane produced from farm manure and advanced residues offers the highest revenue opportunities. The reason is that the GHG value is the central element for pricing and depending on which substrate is used, different premiums or discounts are applied to the price.

What does the price development for biomethane look like?

The long-term marketing of biomethane opens up considerable revenue prospects, especially when considering that a stable and sustainable source of revenue can be generated by concluding 7-year supply contracts with biomethane customers. Detailed insights into which specific revenue opportunities arise depending on the substrate used can be found on the website: Learn more about biomethane prices and revenue opportunities here.

However, it is equally important to keep your eyes open for short-term opportunities - this is where the spot market plays a crucial role. On this market, natural gas and electricity are traded in near real time, which means that supply and demand meet directly. Trades made here reflect the current market price and are concluded within two days. Accordingly, biomethane trading is based on the current exchange price, which certainly offers lucrative opportunities for higher revenues.

However, one should not focus solely on the price development. Global trends in biomethane demand and supply are also relevant. A growing media interest in bio-LNG and also bio-CNG testifies to an increasing awareness and interest in sustainable energy sources. In addition, biomethane production offers new business opportunities for biogas plant operators that go beyond the previous possibilities offered by the EEG. So it is an exciting time for all those who want to get involved in the biomethane sector.

So what are the key factors for revenue on the German biomethane market?

Accordingly, the central factors on the biomethane market can be summarized as:

1. The GHG quota: it ensures that companies favor advanced biofuels, which increases biomethane prices in Germany and the associated revenue opportunities.
2. Differentiated substrate categories: Biomethane can be credited differently depending on the substrates used. Biomethane from farm manure and advanced residues offers the best revenue opportunities, as the GHG value is the pricing element.
3. Long-term marketing opportunities: With 7-year supply contracts, biogas producers can secure stable sources of income.
4. The spot market: A look at the spot market shows that biomethane is traded at the current exchange price, which offers additional revenue opportunities.

In addition to the domestic biomethane market, international trade also plays a significant role. The growing interest in Bio-LNG and Bio-CNG offers new opportunities also for biogas plant operators from other EU member states.

What does the international trade of biomethane look like? Keyword: Demand and need

Demand and interest in the biomethane market have grown noticeably as a result of the energy crisis and the resulting increase in natural gas prices. Caused by high gas prices and mechanisms such as the EU Emissions Trading Scheme (EU-ETS) and the Federal Emissions Trading Act (BEHG), international trade in biomethane has increased sharply. Data from dena in 2022 show that 3.5 TWh of biomethane certificates of origin were transferred from neighboring European countries to Germany. One of the reasons for this is that biomethane - whether as Bio-CNG or BIO-LNG - from other EU countries contributes positively to the German GHG quota.

Sources of supply for biomethane has expanded

The range of supply sources for biomethane has consequently expanded. Exports from countries such as Poland, the Czech Republic, Spain and also France are particularly relevant here. As expected, France will start exporting guarantees of origin in January 2024, bringing further volumes of biomethane to the market. Furthermore, Denmark is a key player. There, biogas already accounts for 30 percent of the total gas market. Until now, the use of this biogas has primarily taken place in Sweden. However, a recent ruling by the European Court of Justice could affect this export route, opening up new opportunities for countries like Germany.

The outlook for the European biomethane market is positive. More stable markets are emerging as a result of planned biomethane plants and EU-level measures, especially the RED III Directive. In addition, the establishment of a European Union database promotes trade between EU member states.

However, there are also hurdles. The different sustainability criteria of the EU member states and the associated bureaucratic hurdles make international trade more difficult. For Germany, one thing is clear: Only biofuels that meet the criteria of the Biofuel Sustainability Ordinance (Biokraft-NachV) can contribute to quota fulfillment.

What are the current regulations for the certification of biomethane in the German fuel market?

Until the first financial return from quota trading can be realized, there is an indispensable hurdle to be overcome: certification of the biomethane. Even if biomethane is imported from countries outside the EU, this should not be seen as an obstacle. However, this imported biomethane must meet the same high sustainability standards that apply to biomethane produced in Germany. For the German region, these requirements are specifically set out in the Biofuel Sustainability Ordinance (Biokraft-NachV). Accordingly, biomethane used in the fuel sector is produced either by systems such as. REDcert or ISCC certified.

The certification process itself is not trivial. The plant operator must commission a qualified auditor to check that the sustainability criteria have been met in an in-depth audit. This includes, among other things, verification of greenhouse gas reduction through a corresponding GHG balance, a detailed analysis of the mass balance, and a comprehensive review of all relevant documents that accompany the entire biomethane value chain.

What's the deal with mass balancing of biofuels in the German biomethane market?

There are two main guarantee systems for biomethane in the EU member states: the "book and claim" via Guarantee of Origin (GOs) systems and the mass balance system. 

While GOs separate sustainability attributes from the physical commodity, the mass balance system ensures that certified material leaving a supply chain has been added to it in the same quantity. This system requires detailed records of biomethane transport, biomethane conversion processes, and other factors.

In principle, the GO has been expanded to cover not only electricity from renewable sources, but also renewable gases. GOs serve as a means to demonstrate to the end user that a certain percentage of the energy they consume comes from renewable resources. The GO can be transferred regardless of the energy gas unit for which it was originally issued For more information on GOs, see Article 19 of RED II or visit the German Federal Environmental Agency. However, a GO issued for biomethane does not contribute to meeting national renewable energy targets. Therefore, under RED II, the EU has divided biomethane into two groups with two different potential values: 

1. A renewable fuel for transportation under the mass balance system, with a GHG reduction value for achieving the targets under Article 29 (1); and
2. a green added value for energy products under the GO scheme. 

Mass balance system on the part of the EU obligatory for the use of biomethane as fuel

The different potential values also make it clear that the mass balance system is mandatory on the part of the EU for the use of biomethane as a fuel in transport. In Germany, the obligation for mass balance is explicitly mentioned in the Biokraft-NachV. In this way, they ensure that the amount of certified material leaving the supply chain is equal to the amount of certified material entering the supply chain, taking into account conversion processes. More details on mass balancing can be found at: >link<

In principle, national regulators can introduce their own mass balance systems by having them validated by the EU. Currently, the European Renewable Gas Registry (ERGAR) has applied for such a validation for the European gas grid. The outcome of this application is still open.

What about after the biomethane is certified?

Once certification has been successfully completed, the operator of biomethane plants can open an account in the Sustainable Biomass System (Nabisy) at the Federal Agency for Agriculture and Food (BLE). There, the freshly obtained certificate and the respective quantities of certified biomethane are deposited. In addition, the specific greenhouse gas emissions of the biofuel in kilograms of carbon dioxide equivalent per megajoule are recorded. After data entry, an official sustainability certificate is issued to the operator. This document, along with the annual quota declaration, must be submitted to the biofuel quota office. You can see what a sustainability certificate looks like in the figure below. It becomes clear in view of the certificate how important the mass balance system is for participation in the German biomethane market as well as the relevance of the specific greenhouse gas emissions. 

Figure 1: Example of sustainability proof

With regard to the quality of the biofuel, further proof is required, often in the form of certificates of analysis or manufacturer declarations. With the approval of the biofuel quota office, alternative suitable forms of proof can also be accepted. As of January 1, 2017, the sustainability certificate or partial certificate under the Biofuel Sustainability Ordinance (Biokraft-NachV) are considered formal producer declarations. It should be noted that the biofuel quota office may also require samples that must comply with certain minimum standards. These standards are defined in the DIN EN 16723-2:2017-10 standard, which describes the specifications for natural gas and biomethane in the transport sector and for biomethane for injection into the natural gas grid.

In summary, both strict certification processes and extensive documentation requirements are necessary for the trade and use of biomethane in Germany. This ensures that the biomethane meets the high requirements for sustainability and quality.

What are the exact biomethane export regulations?

The export of biomethane to Germany represents a rule-bound undertaking characterized by a complex legal situation. In principle, the import of gaseous biomethane from other EU member states into the German public natural gas grid is permitted, provided that all relevant requirements are met. The focus is on the fact that both the injection and the withdrawal or exit of the biomethane take place in the excise tax area of the European Union. Furthermore, it should be noted that the balance sheet allocation of the biomethane is exclusively limited to the excise tax territory of the European Union in accordance with the EU directives.

Which laws and regulations exist for the import of biomethane to Germany

A key criterion here is that the imported biomethane is used as a fuel on the German market. In addition, it must be ensured that the biomass used to produce the biomethane qualifies for the credit. Correct taxation represents another fundamental condition for the biomethane to count toward the greenhouse gas (GHG) quota in Germany. Not only biomethane from other EU countries is eligible, but also physical biofuel that is physically imported into Germany regardless of where it is produced can contribute to meeting the GHG quota.

Biomethane exported from countries outside the EU, so-called third countries, is a separate regulation. Here, the biomethane must be in physical form; an accounting allocation is not permitted in this context. If you are considering biomethane products, whether in gaseous form (Bio-CNG) or in liquefied form (Bio-LNG), from other EU countries, you should find out about the specific requirements. The main customs office provides detailed information for the biomethane market on the conditions that must be met in order for such products to count toward the German GHG quota. For a more comprehensive and clear overview, these criteria are detailed in the figure below.

Figure 2: Export regulations and guidelines for biomethane import.

If you require further information, you can find it on the website of the main customs office under the keyword "greenhouse gas quota" or you can contact us.

The international trade opportunities of biomethane between Germany and other countries - whether EU member states or third countries - vary depending on the existing legal regulations and bilateral agreements.

What are the possibilities for international trade of biomethane between Germany and other EU member states or non-EU member states? 

Within the EU: Biomethane trade with EU member states is possible under certain conditions and taking into account sustainability requirements. This allows the free trade of biomethane via the public natural gas network. It must be ensured that imported biomethane meets the same sustainability requirements as biomethane produced in Germany and that the above-mentioned export regulations and guidelines are observed. 

Non-EU member states - case of Switzerland: Switzerland, although not a member of the EU, has numerous agreements with the EU that facilitate trade. However, when exporting biomethane from Switzerland to Germany, there are special rules and regulations that must be observed.

Austria and its peculiarities: Austria has its own system for regulating biomethane and its trading in the biomethane market. In Austria, if the producer feeds gas into the public grid and it is withdrawn elsewhere but neither for final consumption nor for conversion purposes, such as when gas is used for transport, the gas certificate of origin (HKN) applies according to §81 Renewable Expansion Act Package (EAG). Specifically, it means that when gas is converted, the certificate of origin is invalidated and green gas certificates are issued instead in accordance with § 86 EAG (exception UBA). Accordingly, the guarantees of origin cannot be removed again. E-Control is the independent electricity and gas regulator in Austria that monitors and supervises the energy markets. In concrete terms, however, you should first note that biomethane exports from Austria do not proceed without further ado and that many individual regulations have to be considered

It is important to emphasize that despite the possibility of trading biomethane on an international level, compliance with sustainability criteria, legal requirements and bilateral agreements must always be ensured.

The German biomethane market - an outlook

The German biomethane market is at the center of a dynamic development, driven by regulatory incentives, market mechanisms and international trends. For players, it thus offers multiple opportunities with regard to biomethane export to Germany and revenue opportunities on the German fuel biomethane market. To easily overcome the challenges of certification for biomethane export to Germany, you can simply contact us.

Der Beitrag Warum der deutsche Biomethanmarkt so interessant ist: Eine tiefgehende Betrachtung erschien zuerst auf agriportance GmbH.