Even a partial biomethane blend can influence carbon costs. Where natural gas is fully replaced by biomethane, carbon costs under the national carbon pricing scheme and the European Emissions Trading System (EU-ETS) may, under certain conditions, no longer apply.
Biomethane can replace natural gas on a 1:1 basis and can be integrated into many industrial applications without requiring changes to existing equipment or processes.
Even a partial biomethane blend can influence carbon costs. Where natural gas is fully replaced by biomethane, carbon costs under national carbon pricing scheme European Emissions Trading System (EU ETS) may, under certain conditions, no longer apply.
Biomethane can replace natural gas on a 1:1 basis and can be integrated into many industrial applications without requiring changes to existing equipment or processes.
The EU Emissions Trading Scheme (EU-ETS-1) covers operators of energy-intensive industrial installations. For every tonne of CO2 emitted, emission allowances in the form of EUAs (European Union Allowances) must be surrendered. One EUA entitles the holder to emit one tonne of CO2.
Under certain conditions, biomethane can be taken into account when calculating CO2 emissions. This is done on the basis of relevant sustainability certificates from the state-run Sustainable Biomass System (Nabisy), which are made available to the operator of a facility subject to the EU-ETS-1.
A typical example is a chemical plant with gas-fired boilers: from a thermal input of 20 MW upwards, the plant is subject to EU ETS-1, which results in immediate permit costs.
When biomethane is blended with natural gas, the share of natural gas in the energy mix is reduced. As a result, carbon costs may decrease proportionally per kilowatt-hour consumed.
Where energy demand is fully covered by biomethane, carbon costs under German carbon pricing schemes (BEHG) or the European Emissions Trading System (EU-ETS) may, under certain conditions, no longer apply.
Biomethane has combustion properties equivalent to those of natural gas. This means that, in industrial processes, natural gas can be replaced on a 1:1 basis without modifications to burners, boilers or pipelines.
For industrial operations, this offers a practical advantage: in many applications, the switch can be implemented without technical modifications and without interrupting production processes.
Biomethane can replace natural gas on a 1:1 basis in boilers and industrial heaters. This can influence reported carbon emissions and related carbon costs, while maintaining process stability, including in temperature critical applications.
Biomethane can be used in existing combined heat and power (CHP) plants for the generation of heat and power. The proportion of fossil CO2 decreases, which, depending on how it is accounted for, directly reduces certificate or CO2 costs.
Biomethane is well suited for applications in the chemical industry where reliable supply and stable processes are important. As less natural gas is used, carbon costs may be affected and sustainability-related reporting metrics may change, depending on the application and regulatory framework.
In energy-intensive production processes, biomethane can be integrated into ongoing operations by replacing natural gas through blending or full supply. Depending on the biomethane share and application, this may influence reported carbon emissions and related carbon costs. The paper and pulp industry alone accounts for around 11.8 million tonnes of fossil-bound CO2 in Germany.
Biomethane can be used for site and building heating through the existing gas supply infrastructure. Depending on the biomethane share and application, this may influence reported carbon emissions and related carbon costs, including for smaller consumers.
For an internationally active skincare company, we partnered with the Polish energy wholesaler HANDEN Sp. z o.o. to transition the entire Polish production operation to biomethane. The project covers 19.8 GWh per year, supplied under an ISCC EU-certified framework over a two-year term. It marked the first-ever physical biomethane supply to an industrial customer in Poland.
In addition to supply, documentation plays an important role when using biomethane. Companies require reliable records for ESG reporting, audits and internal reporting processes. To support this, the origin and production of the biomethane are documented transparently, including whether it is produced from residual materials or energy crops, and which certification schemes apply.
These proofs of origin also form the basis for greenhouse gas accounting under the Greenhouse Gas Protocol, whose treatment of biomethane tracking instruments is currently being further developed. Robust and transparent mass balance documentation provides a reliable foundation for reporting, audit readiness, and compliance with future requirements.
Source: GHG Protocol – Interim Update zur Anrechnung von Biomethan-Zertifikaten (August 2023).
As one of the leading biomethane traders, we offer a diversified portfolio of different biomethane qualities. This enables us to respond flexibly to production fluctuations and maintain supply even if individual production facilities are affected by technical issues or feedstock-related constraints. This helps industrial customers reduce procurement and supply risks that can arise when sourcing directly from a single producer.
Our solutions are tailored to the individual requirements, objectives and operating conditions of each company. Many industrial customers begin by using biomethane for selected products, later expand to blending models and eventually develop more comprehensive decarbonization strategies. Our portfolio and market expertise support a long-term and strategically aligned approach.
We combine suitable procurement models with regulatory expertise relating to EU-ETS, helping companies assess carbon costs and crediting effects. In addition, we provide support with certificates and proof of origin documentation, reporting requirements, tax-related processes and swap transactions (accounting-related product changes within the supply chain). This helps ensure that biomethane-related projects are supported by the necessary documentation and can be integrated into operational processes.
Understand why biomethane can carry a zero-emission factor in greenhouse gas accounting, which requirements apply, and how proofs of origin and mass balance documentation support credible reporting.
Biomethane can be used in energy-intensive industries that currently rely on natural gas for process heat, steam generation, furnaces or combined heat and power (CHP) applications.
Typical sectors include the glass, food and beverage, pharmaceutical, automotive, paper, steel and chemical industries – in other words, industries where natural gas is currently a key energy source.
This depends primarily on the quantity, the contract model (blending or full supply) and the required verification or certification. In many cases, it is possible to start at short notice following a review of the current natural gas supply, consumption and objectives.
With blending, your supply via the gas grid continues as normal. A defined proportion is contractually allocated as biomethane – for example, 80 per cent natural gas from your energy supplier and 20 per cent biomethane from us. This reduces CO₂ emissions and CO₂ costs proportionally, without you having to retrofit your system.
CO₂ costs arise primarily from the fossil fuel component. With eligible, certified biomethane, these costs may be reduced proportionally (blending) or largely eliminated (full supply) – depending on the applicable regulations and the relevant verification requirements.
To qualify, the biomethane must meet relevant sustainability requirements and be delivered on a mass balance basis. The evidence required to demonstrate compliance is defined in the guidance for stationary installations under the EU Emissions Trading System (2021–2030).
Typically, these include certificates of origin and sustainability, as well as clear documentation of quantities (e.g. a mass balance). Exactly which documents are required depends on the specific application (EU ETS, audit, ESG).
Certificates and mass balance accounting provide traceable documentation of the origin, feedstock basis (e.g. waste materials) and quantity allocation. This ensures that usage can be verified for reporting and audits.
Scope 1 refers to direct emissions from combustion in your facilities. If you replace natural gas with biomethane, the reported proportion of fossil emissions can be reduced accordingly.
Not all biomethane is the same: Different grades of biomethane vary depending on the raw materials used, certifications, GHG reduction values, origin and other criteria. These characteristics determine the applications for which the respective biomethane is suitable.
Which grade of biomethane is the right one depends largely on the specific intended use – for example, regulatory requirements or sustainability targets.
Power
Heat
Fuel
We are happy to advise you on biomethane specifications, documentation requirements, and potential use cases. Together, we assess the requirements of your project and support you in navigating the relevant regulatory framework.
The final determination of biomethane eligibility and its treatment under applicable regulations remains the responsibility of the relevant auditors and competent authorities in accordance with current requirements.
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