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SUMMARY

While natural gas currently costs €80 ($91)/MWh, at least on spot markets, bio-methane can be produced for as low as €55. EBA said.

By Joseph Murphy

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Featured Economy EU

Bio-methane is 30% cheaper than natural gas today, the European Biogas Association (EBA) said on February 17, noting that with the right policies in place, the fuel could keep Europe's energy affordable and reduce its reliance on imports.

While natural gas currently costs €80 ($91)/MWh, at least on spot markets, bio-methane can be produced for as low as €55. EBA said. And the price of the former is set to remain high next winter as well, it said.

As much as 34bn m3/year of gas could be produced in Europe by 2030, covering 10% of total EU demand, "if underpinned by a supportive legislative framework." An extra 6bn m3 could come from Ukraine, it added.

"Additional partnerships, such as the recently launched Sustainable Biomethane Initiative, showcase the interest from industry users, producers and other major companies within the value chain, on the deployment of this renewable gas right now," EBA CEO Harmen Dekker said. "Fostering the rapid scale up of biomethane means supporting climate change mitigation, reducing dependency on external gas supplies and dealing with an unprecedented natural gas price increase. A clear legislative framework will provide certainty for long-term investments on the roll out of sustainable bio-methane.”