The biogas and biomethane market is developing under the influence of energy prices, support schemes and climate targets. We follow investments, financing and market data.
RSS
Canada's 2023 Budget introduced a refundable investment tax credit for clean hydrogen in the range of 15–40% depending on carbon intensity; alongside it operates a clean technology credit of up to 30%.
A guarantee of origin (GO) confirms that 1 MWh of gas comes from renewable sources and can be transferred independently of the physical gas. We explain the RED II rules, registers, validity and the risk of double counting.
On 13 February 2023 Global Hydrogen signed a contract to build a complete 1 MW biogas plant in Markowice (Strzelno municipality) on a design-and-build basis, worth PLN 15.5 million, using SMBP technology.
From 15 February 2023 the EU gas market correction mechanism applies, a temporary price cap on the TTF triggered once EUR 180/MWh is exceeded. It is meant to limit price spikes, not to set a fixed price.
H2 2022: day-ahead market (RDN) PLN 903.4/MWh against FIT PLN 745.8/MWh. The price peak, the levy to the Fund that did not affect biogas, and what to do with a positive balance.
On 5 January 2023 the CSRD directive on sustainability reporting entered into force. About 50 thousand companies in the EU (compared with about 11.7 thousand covered so far by the NFRD) will report environmental and climate impact under uniform ESRS standards.
On 28 December 2022 BP completed the acquisition of Archaea Energy, an American developer of landfill gas RNG projects; the value of the transaction is USD 4.1 billion.
The Act of 15 December 2022 limits gas prices for eligible customers in 2023 to PLN 200.17/MWh. A VAT refund on bills is provided for low-income households. It enters into force on 21 December 2022.
On 28 November 2022 Shell announced the purchase of the Danish Nature Energy for about USD 2 billion (EUR 1.9 billion). It is one of the largest such transactions in Europe and a significant signal for the biomethane market.
In the auction of 25 October 2022 the Spanish ministry awarded 146 MW of biomass; the weighted price was EUR 93.09/MWh, ranging from EUR 72.38 to 108.19/MWh.
The Minister of Climate's regulation of 31 October 2022 sets reference prices in the RES auctions: among others PLN 785/MWh for agricultural biogas plants below 500 kW and PLN 920/MWh in cogeneration.
In mid-September 2022 the spot price of LGCs in Australia exceeded AUD 70, for the first time since November 2015. By the end of the quarter it had fallen to AUD 64.25.
TTF is the European reference point for gas prices, quoted in EUR/MWh. We explain what a front-month contract means, how to convert prices to m³ and why biomethane is sold at a premium.
On 17 October 2022 bp announced its intention to acquire the American renewable natural gas producer Archaea Energy for about USD 4.1 billion. It is one of the largest transactions in the biogas sector.
On 27 September 2022 Baltic Pipe, a pipeline with a capacity of 10 billion m³ a year from Denmark to Poland, was officially opened. For the biomethane industry it is also a link to a system in which renewable gas makes up a large part of the mix.
A biomethane plant can sell gas into the grid, to an end customer under a PPA, as a transport fuel, or with guarantees of origin separated out. We compare the models and their risks.
On 26 August 2022 gas quotations on the Dutch TTF hub closed above 330 euro/MWh, the highest ever. The peak resulted from fears about winter and supply restrictions from Russia.
In the first Croatian premium auction for renewable sources all seven biogas bids were successful. 8.7 MW was awarded from a pool of 16.7 MW.
On 26 July 2022 EU energy ministers agreed a voluntary 15% cut in gas consumption for the period August 2022 – March 2023, with the possibility of moving to a mandatory reduction in the event of a "Union alert".
H1 2022: the day-ahead market at PLN 660.0/MWh exceeds the FIT of PLN 617.5/MWh. Should one move towards the market, and what about the positive balance in FIP?
The fourth round of British contracts for difference (CfD AR4, 7 July 2022) covered 93 projects and 10.8 GW, but no anaerobic digestion or biomass CHP. One waste-to-energy project received 45.99 GBP/MWh.
The Gas Substitution Roadmap of July 2022 identifies electrification as the main path away from gas in Victoria, with biomethane and hydrogen as a complement for industry.
Regulation (EU) 2022/1032 of 29 June 2022 obliges EU countries to fill gas storage to 80% by 1 November 2022, and to 90% in subsequent years.
How do you calculate the levelised cost of biomethane in PLN/MWh? We present the LCOE formula, an example with explicit assumptions and a sensitivity table for CAPEX, substrates, availability and methane losses.
