Video release: Task Force 4.2 reveals current biomethane production costs from real industry data

Brussels, 6th of October. Task Force 4.2 has released a video that offers a glimpse into their latest study, obtained through real industry data, on current biomethane production costs. The comprehensive material produced for this study will be made available following the European Biomethane Week, during which the study’s key findings will be presented.

The biomethane production sector has been marked by disparate cost estimates from various sources. To provide clarity and support the sustainable growth of biomethane, Task Force 4.2 works to understand current biomethane production costs and strategies for future cost reduction. In the last months, the subgroup conducted a study through a first-of-a-kind data collection process that ensured strict confidentiality and anonymity for participating industry stakeholders.

The study successfully collected data from over 10% of biomethane production within the European Union. Some of the key findings that have emerged from this undertaking are as follows:

  • The total feedstock-related costs average between €35-€45/MWh.
  • The study highlights the significant impact of economies of scale on both capital and operational costs.
  • Biomethane production costs show a decrease from an average of €87/MWh for plants with a capacity of 540 Nm3/h to €54/MWh for plants exceeding 1200 Nm3/h.

With a clearer understanding of production costs, prospective investors can make more informed choices regarding investments in biomethane production. Likewise, existing biomethane producers and industry players can benchmark their own costs, identifying areas for improvement and enhancing operational efficiency.

Kees van der Leun, rapporteur of Task Force 4.2, will present the study’s key findings during the European Biomethane Week. The comprehensive material produced for the study will be published thereafter.