Biomethane Purchase Agreement (BPA) : The Complete Guide.

CO₂ emissions, energy transition, rising energy prices... These are words we hear every day in the media, prompting us to rethink how we consume energy.

What if the solution was to simplify access to green energy at a fixed price?

The growth of the biomethane industry in Europe has led to an increase in BPAs, or Biomethane Purchase Agreements. These innovative contracts allow industries to secure their supply of renewable, local energy.

What is a BPA?

A Biomethane Purchase Agreement (BPA) is a contract between a biomethane producer and a customer, which defines the terms for purchasing biomethane over several years. It’s the gas equivalent of a PPA, or Power Purchase Agreement, for electricity.

The producer—often a farmer using a digester to turn agricultural waste into energy—commits to supplying biomethane to the consumer through a contract with an energy provider acting as an intermediary.

The contract price is negotiated for a set period, and the provider ensures the gas delivery and covers any risks.

Unlike a standard "green gas" contract with a gas provider, the origin of the biomethane in a BPA is clearly defined. The BPA specifies the quality of inputs, pricing structure, duration, risk-sharing, and the level of financial guarantees.

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What are the benefits of a BPA?

For producers

A BPA provides financial security for biomethane producers and makes it easier to plan long-term activities. It encourages investment in biomethane technologies, thereby supporting industry growth.

For ENGIE, a BPA secures investment in methanization facilities.

For clients

For clients, a BPA guarantees access to biomethane and provides cost predictability. No investment is required on the customer’s part, as biomethane has the same composition as natural gas and is transported through existing networks. It reduces greenhouse gas emissions by more than 80%.

ENGIE's expertise at your service

As France’s leading biomethane supplier to businesses, and one of the leaders in Europe, ENGIE leverages the expertise of its GEMS entity—Global Energy Management & Sales—which acts as the intermediary between its production activities and its clients. GEMS is the leading intermediary (or ‘midstreamer’) for biomethane in France.

Paulo Almirante, Deputy CEO in charge of Renewable Energy and Energy Management

“We are convinced that biomethane will play a crucial role in Europe’s energy mix and be a key driver of decarbonizing our clients’ energy use.”

Arkema: A Pioneer Client

In 2023, the chemical group Arkema signed a BPA with ENGIE, agreeing to receive 300 gigawatt hours (GWh) of biomethane annually for ten years.

That’s equivalent to the gas consumed annually by 25,000 French households.

News

In July 2024, BASF and ENGIE signed a BPA for the supply of 2.7 to 3 terawatt hours of biomethane over seven years. The biomethane will serve as a sustainable alternative to fossil raw materials in the chemical production process, helping reduce BASF’s carbon footprint.

In May 2024, Waga Energy and Veolia announced a 13-year BPA with ENGIE for their Claye-Souilly site. This is the longest contract of its kind signed in France to date.