Identifying and facilitating ways to decrease 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. This Task Force is mainly composed of companies active in the biomethane value chain.

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 is working to optimizing the business case for biomethane production through the valorization of biogenic CO2 and digestate as co-products. Moreover, it is working on a business case analysis concerning e-methane production.
• Task Force 4.2 was established with the primary objective of exploring strategies to minimize both technology and operational costs associated with biomethane production.
• Task Force 4.4 is focused on optimizing 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!

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

Task Force 4.1 has been investigating the biomethane business case optimisation through the valorisation of one of its co-products, biogenic CO₂. The results of the study were during a webinar.

With carbon emissions accelerating, the utilization 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.