Video recording available: BIP Webinar on current biomethane production costs from real industry data

Brussels, 30^th of November, 2023. The Biomethane Industrial Partnership hosted the first webinar of the BIP Autumn Webinar Series on the 30^th of November, focusing on the findings of Task Force 4’s latest study on current biomethane production costs from real industry data. The recording is now available for review.

The biomethane production sector has been marked by disparate cost estimates from various sources. Task Force 4.2, committed to unravel these complexities, conducted a study through a first-of-a-kind data collection process that ensured strict confidentiality and anonymity for participating industry stakeholders. The key findings were presented today in a dedicated webinar:

• In 2021, biomethane production costs averaged €84/MWh for average-sized producers and €54/MWh for larger ones, revealing economies of scale
• Despite variable feedstock costs (-€94 to +€43/MWh), “total feedstock-related costs” remained comparable across mixes
• Large biomethane producers could already be cost competitive with natural gas wholesale TTF price and a cost of carbon (64 euros/MWh), though overall biomethane production remains on average more expensive
• Biomethane has broader benefits beyond cost, serving as a sustainable energy solution that enables other sustainable processes and emission reduction in hard-to-abate end uses

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.

For those who missed the webinar, the recording is now available for review.