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July 2024

Blunomy's insights on the biomethane market - a series of briefs addressing key industry topics

Blunomy's insights on the biomethane market - a series of briefs addressing key industry topics

Blunomy is sharing insights through a series of 6 biomethane briefs addressing key industry topics.

Building on 15 years of experience, Blunomy has been very active in the biogas and biomethane sector, helping project developers, industrial leaders, major energy companies, public associations, and financial investors to understand this market and seize its opportunities.

Renewable gases are expected to contribute strongly to carbon-neutrality targets by 2050 whilst reinforcing energy independence:

  • Biogas and biomethane production is usually based on local feedstock and processing: they thus contribute to strengthening energy supply security
  • Biogas and biomethane also support GHG emission reductions across their whole value chain. They contribute to residue treatment and to the decarbonisation of end use sectors like buildings, industry, transport, or agriculture. Biomethane in particular has an important decarbonisation potential as a direct alternative to natural gas that can leverage existing infrastructure to be transported, distributed and consumed.

These biomethane briefs unpack the current trends and changes that drive the development of the sector:

  • Market entry and organic growth can be challenging due to value chain complexity, but a range of strategies are available for players willing to pursue new strategies.
  • Market designs are switching away from “production-side” support toward “demand-driven” market mechanisms, which impact project financing, price setting and trade flows.
  • Feedstock competition with alternative biofuel uses is increasing and feedstock exposure to climate change-related risks is still overlooked, but increasingly real, raising the urgency to secure “future-proof” sources of supply.
  • Emerging alternative processes could significantly boost green gas production to help meet demand in the future.
  • Use of by-products CO2 and biofertilisers have yet to become as mainstream as biomethane and should be encouraged because of their value in monetising positive externalities.
  • The impact of climate change on agricultural activities, both livestock and cropping, is starting to take shape and will only accelerate in the coming years – this should be integrated in all biomethane development strategies.