Biomethane: the leading green gas

What are ENGIE’s goals for biomethane?

ENGIE’s roadmap includes three main objectives:  

• 10 TWh of annual biomethane production in Europe by 2030
• €3 billion invested in biomethane production capacity
• 30 TWh of biomethane sold by 2030

This expansion will cover production activities in eight European countries: France, Germany, Italy, the Netherlands, the UK, Spain, Belgium, and Poland.

What is biomethane?

Biomethane is a renewable gas produced from the fermentation of organic waste from households, agriculture, or industry. It's a renewable alternative to natural gas for households, industries, farmers, and local authorities. Its carbon footprint is eight times lower than that of natural gas (based on life cycle analysis).

What are the advantages of biomethane?

Reducing greenhouse gas emissions

Produced from organic matter, biomethane is a renewable energy source that reduces carbon emissions by 81% compared to natural gas (based on life cycle analysis), while also improving air quality.

Adding value to waste

The biomethane production process makes valuable use of waste and reduces the need for chemical fertilizers, which produce CO2 emissions during their manufacture and import.

In exchange for organic waste from farmers, ENGIE provides digestate, a residue rich in nitrogen from the methanization process, which can be used as a fertilizer or soil amendment. This natural fertilizer helps return essential nutrients to the soil, aiding plant growth.

By producing biomethane, farmers can convert their waste into renewable energy, generate additional income, and contribute to decarbonizing the energy mix.  

Industries can also add value to their organic waste, such as wood, by installing methanization units near their factories. This simplifies their environmental management at more favorable economic conditions for the recovery of co-products and by-products.

A storable energy that requires no additional investment in networks

One of the key benefits of biomethane is that it has the same physical characteristics as natural gas. This means it can be transported through existing gas infrastructures without needing to invest in new networks.

Like natural gas, it can be stored easily and in large quantities, then used when needed. These storage capabilities ensure a continuous supply and contribute to the overall flexibility of the energy system.

An energy that creates jobs and supports a circular economy

Unlike natural gas, which is imported, biomethane is produced locally. Each biomethane unit creates between 3 to 7 local, non-relocatable jobs.

Furthermore, the biomethane sector encourages the development of a circular economy through waste recovery.

Immense growth potential

In its annual report on renewable energy, the International Energy Agency (IEA) now dedicates an entire section to biogas and biomethane. The report highlights an "enormous and largely untapped" global potential for biomethane, estimated at 730 million tonnes of oil equivalent (Mtoe), or 8,500 TWh, which is equivalent to 20% of today’s global gas demand. Currently, global biomethane production stands at just 80 TWh.

How is biomethane produced?

Biomethane production involves three key steps: raw material collection, methanization, and biogas purification. After these processes, biomethane is ready for the final stage: reinjection into gas networks.

Step 1: Raw material collection

Biomethane can be produced from various sources. The most common process, methanization, uses inputs such as agricultural, food industry, household, or community waste, and even grass clippings or roadside vegetation.  

A second method, hydrothermal gasification, utilizes wet or liquid waste and biomass like sewage sludge or methanization digestate that cannot be spread on land.  

Finally, pyrogasification employs solid waste that is currently unrecycled, such as residues from the wood sector, furniture waste, plastics, or solid recovered fuels (SRF).

Step 2: Methanization

Methanization is a natural process where organic matter (either plant or animal) breaks down in the absence of oxygen by microorganisms, producing biogas. This process occurs naturally in places like wetlands.

It's the most mature process for producing green gases and has been industrialized in dedicated plants. 

Step 3: Biogas purification

The methanization process generates biogas, which must be purified to remove components other than CH4 (methane) and be odorized before being injected into gas networks. Once purified, biogas becomes biomethane.

Step 4: Injection into gas networks

Existing gas networks don’t need to be modified to accommodate biomethane. In France, nearly 700 biomethane production sites are already connected to the network, with an annual capacity of around 9 TWh.

Biomethane uses

Biomethane production in Europe currently equates to the output of five nuclear reactors. With properties identical to natural gas, biomethane serves the same domestic, industrial, and community purposes: it can be used as fuel for heating, cooking, and industrial processes, as well as fuel for transport or as a raw material for the chemical industry. Additionally, during winter, it can be burned in thermal gas power plants to meet peak electricity demands.

Biomethane for industrial use

Like natural gas, biomethane is transportable, storable, and transformable, making it a viable solution for the decarbonization needs of energy-intensive and chemical industries. The growth of the biomethane sector is also accompanied by an increase in biomethane purchase agreements (BPAs). These innovative contracts allow industries to secure a local supply at a price that is not tied to natural gas market fluctuations.

Biomethane for mobility

Biomethane can also be used as a green fuel for vehicles, referred to as bioNGV. It produces no nitrogen oxides (NOx), no black smoke, and minimal greenhouse gas emissions. It is available in compressed (bioCNG) or liquefied (bioLNG) forms.

ENGIE: A leader in biomethane

From production to customer sales

ENGIE is well-positioned in the biomethane market, actively engaged across the entire value chain. The Group produces, purchases, supplies, and markets biomethane.

By the end of 2023, ENGIE operated 35 biomethane production sites in France and the UK, generating a total of 0.8 TWh annually. The Group is expanding its production into six other European countries.

ENGIE is the number one supplier of biomethane to businesses in France and a leading player in Europe. The Group has signed biomethane sales contracts in France, the UK, Spain, Belgium, and Italy, totaling 5 TWh in 2023.

Our commitments

ENGIE is committed to minimizing the use of energy crops in biogas production. Specifically, land designated for energy use should comprise less than 10% of the input tonnage for new biomethane production units built by the Group in any given country. Find out more about our commitments.

Technological innovations for biomethane

ENGIE leverages its research and development (R&D) efforts to advance the green gas sector. For the past decade, the Group has been running the Gaya program, which focuses on producing renewable gas from non-recyclable solid waste. This initiative is supported by the French Agency for Ecological Transition (ADEME).

ENGIE is also collaborating with innovative companies. The ENGIE New Ventures fund has invested in the French startup CryoCollect, whose novel process captures carbon from biogas purification, and in the UK-based Wase, which has developed technology to increase methane production from biomass by 30%, including from waste that was previously not processable.

Some projects

The Coëvrons Biogas Plant

Located 40 km from Le Mans, in north-western France, the Coëvrons methanization unit produces biomethane from local organic byproducts, processing up to 82 tons per day. It is designed to inject 21 GWh of biomethane into the grid each year, which is equivalent to the annual gas consumption of approximately 1,900 households. This helps prevent the emission of 4,800 tons of CO2 each year.

Client case studies

Salamandre: Decarbonizing maritime transport

Since 2022, in partnership with CMA CGM, ENGIE has been engaged in producing renewable gas for maritime transport. The goal is to produce up to 200,000 tons of renewable gas annually worldwide by 2028. This unique partnership has led to the announcement of a large-scale commercial biomethane production unit in the Port of Le Havre, aiming to produce 11,000 tons of renewable and low-carbon second-generation gas (see above) in the form of Liquefied Natural Gas (LNG) for the CMA CGM fleet. In total, this will avoid 60,000 tons of CO2 emissions annually compared to using fossil natural gas.

To address the needs of the aviation sector, ENGIE will also initiate a feasibility study for France KerEAUzen, a synthetic fuel production unit combining renewable hydrogen with CO2 supplied by Salamandre and other local industries.

Arkema: Reducing the carbon footprint of chemistry

In 2023, ENGIE signed a biomethane purchase agreement with the chemical company Arkema to help reduce the carbon footprint of high-performance bio-based polyamides. Under this agreement, ENGIE will supply 3 terawatt-hours (TWh) of biomethane to Arkema over a period of 10 years. This is one of the largest private biomethane purchase contracts in Europe.

Our latest news related to biomethane

ENGIE and INRAE renew research partnership (September 2024)

The National Institute for Agricultural Research, Food, and Environment (INRAE), a leading scientific center, has renewed its partnership with ENGIE for another five years. The two organizations are collaborating in the field of biomethane. Their joint work focuses on biomass mobilization, the environmental benefits of the sector, and improving the productivity of methanizers.

BASF and ENGIE sign a biomethane purchase agreement in Europe (July 2024)

The BASF chemical group has signed a Biomethane Purchase Agreement (BPA) with ENGIE for 2.7 to 3 TWh of biomethane over seven years, providing a sustainable alternative to fossil raw materials in its manufacturing process.

ENGIE acquires two biomethane production units in the Netherlands (April 2024)

The Group has acquired two new plants with respective production capacities of 90 GWh and 47 GWh per year of biomethane. The Netherlands is the third country where ENGIE is developing biomethane, following France and the UK.