What is a guarantee of origin?
A biomethane guarantee of origin (GO or GdO) is an official electronic document that certifies that 1 MWh of gas injected into the grid (or otherwise delivered) comes from renewable sources.
It is a traceability system that certifies that the gas comes from organic waste or biomass (biogas), subsequently purified to obtain biomethane. (this gas is mixed with fossil-origin gas in the gas grid at a specific percentage). Each certificate includes key information:
- Production date.
- Volume generated.
- Location and facility.
- Type of plant and source used.
- Issue date, among other data.
Why are guarantees of origin important?
Traceability
- They make it possible to know how much renewable energy is actually produced and consumed.
- They separate the physical aspect of the gas (which is mixed in the grid) from the biomethane’s environmental value.
Regulatory compliance
- Companies with renewable energy consumption obligations (transport, industry, shipping) can use GdOs to meet legal or regulatory quotas.
Market and trading
- GdOs are tradable: they are bought and sold independently of the physical gas.
- This creates a green certificate market, in which producers earn additional revenue by selling them to companies that need them.
Image and sustainability
- They are a tool for companies to reduce their carbon footprint and advance their ESG (Environmental, Social & Governance) goals.
- They can be integrated into sustainability reports, certifications, and CSR campaigns.
- In addition, many companies are legally required to consume a minimum percentage of renewable energy, especially in sectors such as transport (SICBIOS System in Spain), industry, or large energy retailers.
How to obtain a guarantee of origin in Spain?
In Spain, the body responsible for managing this system is Enagás GTS, appointed by the Ministry for the Ecological Transition and the Demographic Challenge (MITECO). The process follows these stages:
- Registration: You must register as a holder on the platform and register each biomethane production facility. (each plant is a different facility)
- Legal and technical requirements:
- The plant must have the commissioning certificate and pass a prior audit.
- Once validated, it is considered operational in the system.
- Issuance of GdOs: They are issued based on the amount of biomethane generated. They can be transferred, exported, imported, or redeemed from the platform.
- Transfer and use: The certificate can be used to prove renewable consumption or transferred to another registered entity. The maximum validity is 12 months from the production date. There is also the possibility of exporting them to other European Union countries.
Sharing insights with our experts: @Iñigo Chillón – Offtakes Manager, IAM Carbonzero