European Commission: the REPowerEU communication. The aim – moving away from Russian gas, the role of biomethane

On 8 March 2022 the European Commission presented the communication "REPowerEU: Joint European Action for more affordable, secure and sustainable energy" (COM(2022) 108). Its main aim is to reduce EU demand for Russian gas by two thirds before the end of 2022 and to become independent of Russian fossil fuels well before 2030. Among the tools were also renewable gases, including biomethane.

What changes

The document is strategic in nature: it indicates directions for action that in the coming weeks are to be translated into specific proposals. The Commission announces, among other things:

• diversification of gas supplies – more LNG and pipeline gas from other directions,
• increasing production of biomethane and renewable hydrogen in Europe,
• accelerating the deployment of renewable energy sources and heat pumps,
• filling gas storage before winter and joint purchasing,
• saving energy and improving efficiency.

Biomethane thus gains the status of an energy security instrument, not just an element of climate policy. This matters for the argumentation in further legislative work, including the revision of the Renewable Energy Directive.

Significance for the industry in Poland

In Poland the communication launches a discussion on how quickly domestic gas supply can be increased. The transmission system operator is developing connection infrastructure, and the regulator is beginning to analyse how to bring biomethane into the market. The biggest gap is the legal framework: in March 2022 the Act on Renewable Energy Sources contains neither a definition of biomethane nor a mechanism of guarantees of origin for it.

For investors this means a window of opportunity: political pressure for biomethane is growing, and decisions on support instruments and simplifying procedures could be taken within a few months. Until then it pays to prepare projects – analyses of feedstocks, location and grid connection – so as to make quick use of programmes as they appear.

What the communication does not settle

The communication is not a legal act and imposes no obligations on Member States or businesses. It indicates a direction and announces instruments that have yet to be proposed and agreed. For investors it is therefore important to distinguish between a political declaration and ready-made support: subsidies, simplified permits or quantitative targets will appear only in subsequent documents. It is good practice to follow consultations by the Commission and national ministries, because it is at this stage that the shape of the rules can be influenced.

What next

The Commission announced that it would present a detailed plan in May, and in the meantime would prepare proposals on gas storage and purchasing rules. The heads of state and government of the EU are to meet in Versailles to discuss moving away from Russian gas, oil and coal. The biomethane industry expects a specific quantitative target to appear, as well as incentives for investment.