Decreasing the cost of biomethane production and grid connection

Task Force 4

The goal of Task Force 4 is to provide insights into best practices for efficient and low-cost biomethane production and grid injection. Task Force 4 consists of companies, particularly distribution and transmission operators, with the involvement of the European Commission.

The subgroups of Task Force 4

Task Force 4 is currently formed by three active subgroups (TF 4.1, TF 4.2 and TF 4.4). Following the delivery of preliminary results of these three subgroups, Task Force 4 will kick off other three subgroups (TF 4.3, TF 4.5 and TF 4.6).

• TF 4.1 worked to optimising the business case for biomethane production through the valorisation of biogenic CO₂ as co-product. Moreover, it is working on a business case analysis concerning digestate and e-methane.
• Task Force 4.2 was established with the primary objective of exploring strategies to minimise both technology and operational costs associated with biomethane production.
• Task Force 4.4 analysed the optimisation of the costs associated with biomethane grid injection and the necessary grid reinforcement, encompassing reverse flow technology and grid extensions.

Key findings of Task Force 4.2 on current biomethane production costs

Task Force 4.2 works to understand current biomethane production costs and strategies for future cost reduction. 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:

• 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.

Find the video, the Executive Summary covering all the highlights of the study, and the extensive slidedeck with all the data below!

Task Force 4.1 analysed the role of the biomethane industry in satisfying a growing CO₂ demand

Task Force 4.1 investigated the biomethane business case optimisation through the valorisation of one of its co-products, biogenic CO₂. The results of the study were disclosed during an online webinar.

With carbon emissions accelerating, the utilisation of biogenic CO₂ provides a crucial means to prevent the accumulation of fossil CO₂ in the atmosphere. Biomethane production is a readily available and cost-competitive source of biogenic CO₂. The current market for CO₂ in Europe is approximately 41 Mt/y, supplied almost entirely by industrial production resulting from burning fossil fuels. Even the most conservative estimates for future renewable CO₂ needs show a demand nearly tenfold by 2050. The TF4.1 study indicates the potential of biomethane production to satisfy a significant share of this demand.

Watch the video below on biomethane as a solution for a growing biogenic CO₂ demand! The study can be downloaded below.

Task Force 4.4 published report on biomethane grid injection cost optimisation

Task Force 4.4 of the BIP prepared a report to provide a roadmap for optimising biomethane grid injection costs, delving into the technical, regulatory, and economic pathways of integrating biomethane into Europe’s extensive gas network—a key step in our transition to a sustainable energy system. The report was launched during the 2^nd Forum of the Polish Biomethane Organization + Study Tour and can be downloaded below.