Biomethane as a pillar of the new European industrial policy

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Europe is entering a new phase of the energy transition, where the challenge is no longer solely technological or financial, but also industrial, regulatory, and territorial.Biomethane is no longer just an alternative: it is now a strategic pillar of European industrial and energy policy.

European industries are urgently calling on EU leaders to accelerate the deployment of biomethane as a driver of competitiveness, energy security, and decarbonization. The recent Joint Biomethane Declaration marks a turning point in this process. This is not merely a sectoral position, but a clear signal that biomethane in Europe is consolidating as a strategic vector for industrial competitiveness, energy security, and the decarbonization of the economy.

From IAM Carbonzero, as biomethane project developers, we analyze this document as a key reference for understanding the market’s direction in the coming years.

Biomethane in Europe: from pilot to industrialization

Europe is moving from biomethane pilot projects to industrialization. The central message of the declaration is clear: Europe needs to accelerate the deployment of large-scale biomethane.

The data reflects the scale of the challenge — and the opportunity —:

  • Europe already produces 22 bcm of biogas and biomethane, with a target of reaching 35 bcm by 2030 within the REPowerEU framework
  • The European Union continues to import approximately 90% of the gas it consumes, highlighting the need to strengthen its energy autonomy
  • The sector generates 25 million tons of digestate per year, compared to 24.2 million tons of imported fertilizers in 2024
  • Additionally, 1.17 million tons of biogenic CO₂ are already captured, equivalent to nearly 14% of European CO₂ demand

The 35 bcm target by 2030 marks an unprecedented shift in ambition in Europe. Europe still imports nearly 90% of the gas it consumes: biomethane is a direct opportunity to reduce this dependence. These data position biomethane as a structural element within European energy policy, the bioeconomy, and sustainable reindustrialization.

Biomethane and industrial decarbonization: an immediate solution

Biomethane is not just energy: it is a key raw material for European industry. One of the key aspects of the European positioning is the recognition of biomethane as a solution for industrial decarbonization in Europe.

Its role is particularly relevant in hard-to-electrify sectors: Chemical industry, Fertilizers, Metallurgy, Paper and pulp, Maritime and heavy transport, etc.

Furthermore, biomethane acts as:

  • A renewable energy vector, integrated into existing infrastructure
  • Industrial raw material (feedstock, agricultural and livestock waste, and biological waste)
  • A circular economy lever, through digestate and biogenic CO₂

25 million tons of digestate per year position biomethane as an essential vector of the bioeconomy. Biogenic CO₂ already covers nearly 14% of European demand: a strategic resource in a context of industrial transformation.

This approach directly connects with the role of digestate as a biofertilizer. You can delve deeper into this point in our analysis on digestate valorization and biofertilizers.

Likewise, biomethane is part of an integrated energy system alongside other solutions, as we explain in the role of biomethane in the energy transition.

Barriers to biomethane development: the regulatory challenge

The main limit of biomethane is no longer technological: it is regulatory. The development of biomethane in Europe is conditioned by a series of structural barriers:

  • Administrative complexity in certification and commercialization
  • Limitations in biomethane purchase agreements (BPAs)
  • Fragmentation of support systems between countries
  • Delays in authorization processes
  • Difficulties in accessing gas infrastructure
  • Highly politicized social noise

Experience in Spain shows that these challenges are particularly reflected in administrative processes. The European response points to:

  • Administrative simplification and limiting approval deadlines
  • Harmonization of incentives
  • Creation of specific financial instruments
  • Acceleration of permits and grid connection

Biomethane in Spain: potential and challenges

Spain has the potential to lead biomethane in Europe, but needs to accelerate its implementation framework. Spain has high potential to lead the development of biomethane in Europe, especially due to its agricultural and livestock capacity. Its strengths include:

  • Availability of organic waste
  • Developed gas infrastructure
  • Technical and industrial capacity

However, significant challenges persist: Lack of structural demand in industry, uncertainty in access and grid connection costs, complex administrative processes, and the need for greater alignment between energy, agricultural, and industrial policies

Biomethane and rural development: territorial impact

Biomethane is not just energy infrastructure: it is a tool for rural development.

The development of biomethane has a direct impact on the territory and the sustainability of the agricultural and livestock sector. At IAM Carbonzero, we address these challenges from an integrated perspective, which also includes the social dimension. A well-managed Biomethane plant:

  • Improves and organizes waste management
  • Reduces emissions in nitrate-vulnerable zones
  • Generates direct and derived local economic activity
  • Boosts the local economy, paying taxes and being a neighbor.
  • Strengthens the evolution of the countryside towards sustainability, enabling generational renewal.
  • Drives the circular economy

The challenge is not to prove that biomethane works, but to decide how quickly we want to deploy it.

Europe has defined the role of biomethane in its energy transition. The question is no longer whether biomethane will be relevant, but which countries will lead its development and at what speed. At IAM Carbonzero, we believe that Spain has the opportunity to position itself among the European leaders, provided it advances in:

  • A clear and stable regulatory framework
  • Facilitating investment
  • Integrating biomethane into industrial policy
  • And its connection with the territory

The opportunity is defined. Today’s regulatory decisions will make the difference.

Biomethane is a solution available today, with an immediate impact on decarbonization, competitiveness, and energy autonomy. The challenge now is to turn that potential into reality.

#Regulation #Sustainability #EU