Biomethane is a renewable carbon-neutral fuel produced from organic waste. It supports Europe's net-zero goals. It creates local jobs and boosts GDP. Also, it offers a flexible energy source for hard-to-abate sectors such as heavy transport, aviation and plastics.
Biomethane production will be an important cornerstone in Europe’s energy transition.
Going forward, Europe has the potential to produce enough renewable biomethane to replace fossil fuels in hard-to-abate industries like heavy transport, aeroplanes and plastic.
How is Biomethane Produced?
Biomethane is produced using organic waste materials such as manure, agricultural residues and food industry waste that have no other productive use. Instead of spending resources getting rid of the waste, it can be utilised by biomethane plants where natural microbial processes convert parts of the waste into biomethane that can replace fossil fuels.
This process does not only support the energy transition; it also creates local employment and European GDP – and there are even more positive elements connected to the production of biomethane.
Processing the organic waste materials in a biomethane plant creates biomethane, but there is also waste left. This waste can be used on the fields as fertiliser and actually, the waste from a biomethane plant is much better fertiliser than if the farmer only used manure from his own livestock to fertilise the crops. The reason for this is that the waste from the biomethane plant is a mixture of many different types of waste and therefore is a higher fertiliser than e.g. 100% manure from pigs.
Capturing Harmful Emissions
The process of producing biomethane captures methane and nitrous oxide that would otherwise be released to the atmosphere if the manure was spread on the fields without being processed in a biomethane plant.
The Green House Gas effect of methane is approximately 30 times more damaging than CO₂, and nitrous oxide is approximately 300 times more damaging than CO₂. Therefore, manure treated in a biomethane plant not only produces CO₂-neutral biomethane, but it also prevents around 90 grams of CO₂ equivalent per megajoule (MJ) from being released into the atmosphere. This means that producing 1 MJ of biomethane from manure reduces atmospheric CO₂ by approximately 90 grams, whereas burning 1 MJ of fossil fuel increases the atmospheric CO₂ by approximately 90 grams - so producing and burning 1 MJ biomethane actually saves the atmosphere for ca. -180 g/MJ!
We are aiming for a world where only a limited amount of gas is needed. This gas shall be renewable gas that entirely replaces fossil gas and delivers a net reduction in atmospheric greenhouse gases.
This negative GHG score is recognised in European policy and is a strong selling point for both biomethane plant operators and end users. The biomethane plants use both proven industrial processes and new technology to support the decarbonisation targets while creating value and jobs in rural economies.
How does Centrica Energy support the biomethane value chain?
We connect producers such as farmers and plant operators with the most valuable biomethane markets across Europe. As an ISCC-certified and pan-European gas trader, we manage the offtake of both gas and certificates from biomethane plants.
Different feedstocks are valued differently in each market. For example, biomethane from manure may achieve a higher price in one market, while food waste is more valuable in another. We know where to sell each type to maximise the plants profit.
We help plants source the most profitable feedstock and take care of trading, nomination, balancing and cross border transport, allowing operators to focus on efficient production. Our team also manages sustainability certification and compliance, keeping up with regulations to reduce risk and administration while improving market appeal.
By aligning production with demand, we help optimise revenues and support long term growth. With EU targets driving rapid expansion, Centrica Energy ensures producers can capture value and contribute to Europe’s energy transition.
Explore our biomethane service here.
