As companies race to meet net-zero targets, replacing natural gas remains a costly hurdle. Biomethane offers a ready-to-use, low-carbon alternative that fits seamlessly into existing infrastructure, helping businesses cut emissions without compromising operations.
As the market for corporate PPAs has boomed over the years, businesses have made major strides in meeting their renewable energy targets. Replacing natural gas has proven to be trickier and more expensive, particularly when electrification would require considerable changes to the composition of an industrial site.
Many renewable fuels are not yet available in the necessary quantities in the short term, nor are they financially competitive. This is where biomethane comes in: as it is chemically identical to natural gas, it seamlessly integrates into existing energy infrastructure by serving as a grid-injected drop-in fuel.
As biomethane production is a baseload process, it provides a stable and immediate low-carbon alternative compatible with existing natural gas infrastructure, offering an immediate solution where alternatives are still years away. This positions biomethane as an ideal short-term solution for companies facing challenges in phasing out natural gas use.
Unlocking the Potential of Biomethane
Most major businesses in Europe have some form of corporate sustainability targets aimed at reducing their emissions.
In parallel, a growing number of regulatory incentive schemes, sustainability standards, and other government policies are increasingly pushing companies operating in Europe to consider sustainable alternatives to natural gas. Most notably, many of the free allowances allocated under the EU ETS scheme are gradually being phased out.
Biomethane is zero-rated under the EU ETS, meaning that biomethane consumed instead of natural gas, will be considered as having no emissions and thus do not need to be compensated by EUAs. This means that, by using biomethane, a company can save the costs of having to purchase EUAs in the market.
In addition to this, some national governments offer tax breaks for use of renewable energy, which oftentimes also includes the use of biomethane. This means that, while biomethane is undoubtedly more expensive than natural gas, there are plenty of financial incentives that make it more competitive, on top of the extrinsic value of becoming a more sustainable company and reaching your net-zero targets.
Biomethane’s Versatility in Delivering Sustainability
With biomethane being a non-uniform product, its decarbonisation potential differs considerably depending on the sustainability of the supply chain and the environmental impact of the feedstocks used. At the same time, not all end-use markets for biomethane require the same sustainability standards.
As there are different costs associated with different kinds of decarbonisation potential or certain feedstock use, we at Centrica Energy will always assist you in selecting the most cost-effective way of achieving your net-zero and regulatory compliance targets.
Decarbonisation Without Compromising on Quality
With a carbon-intensity score that can be as low as -100g/MJ, compared to the 80g/MJ fossil fuel comparator, biomethane offers a direct path to substantial emissions reductions. This means businesses can make significant strides towards their net zero goals without abandoning the reliable methane-based industrial processes they know and trust; processes that continue to provide the operational effectiveness that their business depends on.
Why Centrica Energy Excels in Biomethane
We are at the forefront of the biomethane revolution. With a commitment to sustainability, we source biomethane directly from the injection point, where we also offtake the physical gas.
Our tailored biomethane solutions includes us helping you identify the precise biomethane product qualities needed to help achieve your goals, and we can even provide you with a physical gas flow if needed.
Backed by extensive experience in the energy sector and a strong understanding of the biomethane markets and regulatory obligations, we deliver reliable and cost-effective biomethane solutions with a wide range of product specifications and delivery options.
Are you ready to join the biomethane journey? Explore our biomethane services and get in touch with our experts here.
