5 questions: Is biomethane = biomethane?

1. What exactly is biomethane?

Biomethane is a renewable gas obtained from organic raw materials such as manure, crop residues or biowaste. The raw materials are fermented in a digester, initially producing biogas. This is then processed using methods such as amine scrubbing, pressurised water scrubbing or membrane separation. This transforms biogas into higher-quality biomethane, which can replace natural gas, a proven energy source that has been in use for decades.

2. What is the significance of the different qualities?

The type of biogas processing influences the resulting biomethane quality – and only with the appropriate quality does biomethane have the same properties as natural gas and can be fed into the grid. The quality depends on various factors, primarily the methane content and the impurities it contains. A high methane content is crucial for high energy density and high calorific value of biomethane. Quality is also important for possible certifications and remuneration under the Renewable Energy Sources Act (EEG).

3. What are the possible uses for biomethane in Germany?

Alongside other decarbonisation pathways, biomethane is playing an increasingly important role in the transition to a fossil-free energy supply. Despite its limited availability, it offers remarkable potential as a sustainable alternative to natural gas in numerous areas of application. We have compiled some examples of its use and the underlying laws and regulations:

• Heat supply: Biomethane can be fed directly into the natural gas grid and used for both space heating and process heating in industrial plants. In the building sector, it can be a particularly useful alternative where the use of heat pumps is not possible. Here, the Building Energy Act (GEG) provides a legal framework in which biomethane can contribute to meeting legal requirements.
• Power generation: In combined heat and power (CHP) plants and micro-combined heat and power (micro-CHP) plants, biomethane generates electricity and usable heat at the same time, making it ideal for municipal utilities with local or district heating networks. The Renewable Energy Sources Act (EEG) applies to feed-in for power generation. A particular advantage of biomethane is its availability: as a partner to weather-dependent renewable energies such as wind and solar, biomethane can be used flexibly to contribute to security of supply and grid stability and to complement the energy mix in a meaningful way.
• Transport: In addition to established decarbonisation strategies in the transport sector, such as electric vehicles and electricity-based e-fuels, biomethane offers an additional low-carbon option – both as a fuel for gas-powered vehicles and as a feedstock for the production of e-fuels. In this context, the greenhouse gas quota may be taken into account.
• Industrial use: Biomethane can replace fossil raw materials in the chemical and food industries, thereby contributing significantly to reducing emissions – both in the context of legal requirements and voluntary climate protection. Companies that have set themselves ambitious decarbonisation targets are increasingly using biomethane as a climate-friendly alternative. The emission reductions achieved can be credited in accordance with the Greenhouse Gas Emissions Trading Act (TEHG) (see also SBTi Greenhouse Gas Protocol).

4. How can Vattenfall support biomethane procurement and marketing?

Vattenfall addresses the issue of sustainability in biomethane with a clear focus on regulatory compliance and long-term partnerships. Different legal frameworks – such as the Greenhouse Gas Emissions Trading Act (TEHG), the Building Energy Act (GEG) and the Biofuel Sustainability Ordinance (Biokraft-NachV) – each have their own requirements for the sustainability of biomethane. Vattenfall is certified accordingly (e.g. REDcert, ISCC) and can offer products that meet these requirements. We have a flexible trading model and offer tailor-made solutions for our customers' needs – whether with physical gas, certificates or both. Tracking is carried out via established systems such as Nabisy and the dena biogas register, ensuring complete documentation. Thanks to our market access, we have the right solution for different demand and sales volumes. In both the voluntary and regulatory context of decarbonisation, Vattenfall positions itself as a reliable and long-term trading partner for producers and consumers of biomethane.

5. What risks are associated with biomethane procurement?

The biomethane market is a challenging market environment with complex requirements, regulatory uncertainty and a number of recent insolvencies. To minimise risks, we focus primarily on long-term partnerships. We are already concluding purchase agreements with producers, thereby ensuring security of supply. With in-depth market knowledge, an extensive network and many years of expertise, Vattenfall – as a Swedish state-owned company – offers the highest level of stability and reliability as a trading partner.

Further information can also be found in our webinar documents: Webinars & Documentation | Vattenfall Energy Trading GmbH - Vattenfall

Do you have any questions about biomethane? Feel free to contact us!

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