The versatility of biogases: applications in power, transport, buildings, and industry

Ramping up biogas and biomethane production is key to ensuring a fast, resilient and affordable energy transition for the decarbonisation of all economic sectors and the shift towards a circular economy. The use of biogases to reduce GHG emissions is already a reality in the transport, buildings and industrial sectors, concentrating over 80% of the EU’s energy consumption[1].

Let’s explore which end-uses already rely on biogases in the run towards climate-neutrality and how could the situation look like in the coming years. Within the framework of the Biomethaverse project, the European Biogas Association (EBA) has investigated the substitution of natural gas with biomethane in the different gas-consuming sectors, and has provided potential challenges and drivers related to its usage, estimating its contribution to decarbonise different sectors in Europe.

Thanks to their flexibility as energy carriers, biogases not only boost energy supply volumes and contribute to greening the EU’s gas and electricity grids, but also offer dispatchable power across sectors. This is strategic for ensuring a stable and reliable energy supply by accommodating fluctuations in electricity demand, enhancing grid stability and seasonal gas storage. Additionally, biomethane consists of the same molecule as methane and can therefore be used in all sectors that use natural gas.

A renewable gas with many applications

If we look at the specific end-uses, the utilisation of biomethane in the industrial sector today is a key lever to meet the GHG mitigation targets by 2030, as it ensures a fast and cost-competitive replacement of fossil alternatives. It serves as a sustainable fuel, providing a renewable source of heat and power in various industrial processes where options for decarbonisation are limited.

Biomethane can also be used as feedstock for the chemical synthesis of basic chemicals and for the manufacturing of non-metallic minerals (e.g., cement, glass and ceramics), as well as iron and steel. It is well-suited for the production of pharmaceuticals, plastic, and various chemicals (e.g., ethanol, hydrogen) and is used in sectors such as the food industry. It also plays a crucial role in the production of fertilisers, such as ammonia, which is a key ingredient in the urea synthesis process.

Biomethane is also one of the few readily available alternatives to fossil fuels for long-distance and energy-intensive heavy-duty transport segments (HDVs), such as coaches and trucks. The production of biomethane as transport fuel, either in compressed (bio-CNG) or liquified (bio-LNG) form, has proven to be an effective option for the decarbonisation of the maritime sector as well. By 2030, biomethane could constitute 10-20% of the maritime fuel mix, playing a crucial role in reducing emissions from shipping.

In European households, space heating represents almost 80% of household energy consumption, making it the largest portion of energy demand in Europe. Biogases can be used in cogeneration systems that produce power and heat simultaneously, serving residential, commercial and industrial purposes. By using biomethane, which is compatible with existing gas-based space-heating systems and district heating networks, hospitals, offices or retail spaces could reduce their reliance on non-renewable resources. Furthermore, biomethane can complement the electrification of household heating by using hybrid heat pumps that can be tailored for versatile applications (e.g., switching to biomethane during peak electricity demand or in the cold season).

The primary end-use of biogases varies from country to country depending on regulatory frameworks, market demand, and the extent of the gas grid infrastructure. Regarding geographical variations in biomethane end-use in Europe, the EBA’s database shows that the majority of biomethane produced in countries like Italy, Sweden, and Norway is used in the transport sector. In contrast, in countries such as Germany, a larger portion of the biomethane produced is used to heat buildings or is converted into electricity.

Driving up the uptake of biomethane

Biomethane is a competitive renewable energy source. The deployment of biomethane to replace fossil fuels does not require the investment of additional resources to develop new infrastructure: the existing gas infrastructure in Europe is biomethane-ready.

Multiple factors significantly impact the decision to use biomethane, beyond its availability. Carbon-cost savings under the EU Emission Trading Scheme (ETS) and Biomethane Purchase Agreements (BPAs) make biomethane an attractive option compared to other low carbon energy carries. Nevertheless, these market mechanisms, including the Guarantees of Origin (GOs) system, Proofs of Sustainability (PoFs), and other measures certifying the renewable origin of the gas are not yet fully mature.

A clear and stable legislative framework setting a level playing field in Europe, with no internal market barriers and effective support schemes, is crucial for scaling up the use of biomethane. Increased EU climate and renewable ambitions to drive the uptake of biomethane, together with streamlined permitting processes, are necessary to guarantee a timely scale-up of biomethane production capacity. Biomethane should be tracked and traded consistently across different areas, recognising the amount of green gas produced and used (mass balance) and allowing it to be traded across borders.


About the authors

Gabriella Papa –Technical Officer papa@europeanbiogas.eu  

Anna Venturini- Policy Manager venturini@europeanbiogas.eu


[1] Data from 2021 included in EBA Statistical Report 2023