3-2025 Newsletter Task 37
Topics:
- Biomethane: Brussels gives the green light to Denmark’s €1.7 billion plan
- Commission recognizes voluntary schemes for renewable fuels
- Last chance: DOE doles out $6.9M for organic waste-to-biofuels projects
- Trump’s freezing of environmental actions: Effect on RNG?
- Brazilian’s regulations drive the development of biogas and biomethane
- Global consortium calls for GHG Protocol to “let green gas count”
- UK gas group eyes biomethane boost in 2030 decarbonization view
- Germany: Breakthrough of the “biomass package”
- BNetzA sets maximum values for tenders for biomethane plants
- A Competitiveness Compass for the EU
- Vision for Agriculture and Food
- Introduction of California Biogas Bill
Biomethane: Brussels gives the green light to Denmark’s €1.7 billion plan
In accordance with European state aid rules, the European Commission has approved a Danish program worth an estimated 1.7 billion euros to support the production of renewable gas for injection into the grid. Thanks to this program, Denmark plans to unlock more than 2 TWh of additional capacity each year through the financing of new production sites and the extension of existing units. Projects will cover both biogas and e-methane, a synthetic gas produced from renewable hydrogen and recycled CO2. In practice, support will take the form of a premium based on the quantity of renewable gas produced, and paid over a 20-year period. To select the projects, Denmark plans to hold five tenders between 2024 and 2030. Plants must be connected to the grid within three years of the grant being awarded.
More (in French)
Commission recognizes voluntary schemes for renewable fuels
The European Commission published five Implementing Decisions in the EU Official Journal, formally recognizing some voluntary schemes for certifying biofuels, bioliquids, biomass fuels, RFNBOs and recycled carbon fuels. Links to the decisions can be found here: REDcert-EU, ISCC EU, CertifHy, PEFC, Sustainable Biomass Program
Last chance: DOE doles out $6.9M for organic waste-to-biofuels projects
The U.S. Department of Energy (DOE) is funding nine projects that convert organic waste into transportation fuels, the agency announced this week. The projects will recapture the energy from food waste, dairy cow manure and municipal wastewater sludge and solids. The grants are meant to help projects through the initial feasibility study and design phases so the projects can advance. Later funding could help bring projects to the construction and operation phases. The funding agreements are part of a $17.5 million Waste Analysis and Strategies for Transportation End-Uses program announced by DOE last year. The program is expected to fund up to 14 projects.
Trump’s freezing of environmental actions: Effect on RNG?
Trump administration executive orders during the first weeks in office have called for numerous changes related to climate change initiatives, greenhouse gas research, grant funding and potential tariffs particularly from the “Inflation Reduction Act” and the “Infrastructure Investment and Jobs Act” that have the potential to affect energy production and associated infrastructure as well as the future energy mix in the United States. We tried to summarize a few of all the decisions which might concern energy and environment:
- Certain funding disbursements from the two laws mentioned above, which have provided millions of dollars for recycling and energy from waste related initiatives, are on pause pending a 90-day review of spending recommendations, according to an executive order.
- Tax credits appear to be unaffected by the pause.
- All agencies must conduct an “immediate review” of actions believed to “impose an undue burden” on the development and use of certain energy sources, according to an executive order.
- It specifically calls for identifying any regulations, policies, guidance documents or other materials that would negatively impact the development or use of oil, gas, coal, hydropower, biofuels, nuclear energy or critical minerals.
- The articulated aim of the energy and climate focused Executive Orders is to boost development and production of domestic energy resources — with particular attention to oil, natural gas, coal, hydropower, biofuels, critical mineral, and nuclear energy resources:
- Declaring a National Energy Emergency
Unleashing American Energy
Temporary Withdrawal of All Areas on the Outer Continental Shelf from Offshore Wind
Leasing and Review of the Federal Government’s Leasing and Permitting Practices for Wind Projects
Non-governmental organizations and labor groups are sounding the alarm over environmental programs that are experiencing funding problems amid the transition to President Donald Trump’s administration. The widespread confusion stems in part from a memo Trump released and rescinded last week that tried to halt programs related to environmental justice and the “green new deal.” The Trump administration is battling with state attorneys general in court to allow its funding pause plan to continue. Dozens of U.S. EPA programs appear to be affected, according to a list published by the New York Times on January, 29. The list includes the Solid Waste Infrastructure for Recycling grants program. So far Biofuels including RNG seems to be unaffected.
As of 28 February, the resignation offer that first appeared in the “Fork in the Road” email to employees has been paused by federal courts, and its legality and enforceability remains unclear.
That hasn’t stopped agency heads from taking further action to shrink certain offices or agencies. On February, 12, the EPA informed most staff working in the agency’s Office of Environmental Justice that they would be placed on leave. Meanwhile, the dismantling of the U.S. Agency for International Development continues despite ongoing court cases. Employees in both agencies deliver programs that support waste and recycling initiatives domestically and abroad. More than 160 employees in the EPA’s Office of Environmental Justice have been placed on administrative leave, the agency confirmed in a statement.
Early February, Lee Zeldin, a former member of the U.S. House of Representatives from 2013 to 2023, has been confirmed as administrator of the U.S. EPA. He testified during a confirmation hearing before the Senate Environment and Public Works Committee that the Renewable Fuel Standard, E15 and sustainable aviation fuel (SAF) were among the issues discussed. Lee Zeldin was asked during his confirmation hearing if he would set timely renewable volume obligations under the Renewable Fuel Standard, the policy controlling federal incentives for renewable natural gas. Zeldin said he would. The U.S. Senate confirmed Brooke Rollins
to lead the U.S. Department of Agriculture. She founded the America First Policy Institute. The organization advances policy priorities laid out by the first Trump administration. She has previously opposed climate policies, but said she would support biofuel-friendly measures.
Brazilian’s regulations drive the development of biogas and biomethane
In September 2024 President Lula signed the “Fuel of the Future” program into law, aiming to encourage biofuel production and use in Brazil, including biodiesel, ethanol, green diesel, biogas, biomethane, and sustainable aviation fuel (SAF). The legislation also sets guidelines for carbon capture and storage. The Fuel Law (No. 14.993) was enacted to promote sustainable, low-carbon mobility. Biogas, produced from organic waste, aligns perfectly with these goals, enabling greater valorization of agro-industrial and urban waste, the expansion of biogas plants, and the development of biomethane-powered vehicles. In recent years, Brazil’s biogas sector has shown accelerated growth. In 2023, installed capacity surpassed 4 billion Nm³/year for the first time, representing a 21% compound annual growth rate (CAGR) over the past five years. The country’s total theoretical biogas potential is estimated at approximately 84.6 billion Nm³/year, with a short-term potential identified at around 10.8 billion Nm³/year. The sugar-energy sector alone has a biogas production potential of 5.2 billion Nm³/year, of which only 5% is currently being effectively utilized.
Global consortium calls for GHG Protocol to “let green gas count”
Following the withdrawal of guidance on the use of biomethane certificates in the GHG Protocol, over 144 companies and trade associations from around the world have issued a public joint letter to the governance bodies of the GHG Protocol calling for the key role of market-based instruments to be recognized in the Protocol’s Scope 1 inventory. Their message to the GHG Protocol is simple: Let Green Gas Count. The GHG Protocol is the world’s leading standard for measuring and managing greenhouse gas emissions. Widely used by businesses, governments, and organizations globally, it provides a framework for tracking, reporting and reducing emissions. Its influence shapes corporate climate strategies and drives accountability in emission reduction efforts. Led by the Anaerobic Digestion and Bioresources Association (ADBA), the Coalition for Renewable Natural Gas, Eurogas, the European Biogas Association (EBA), and the World Biogas Association (WBA), the signatories represent economic operators globally responsible for the production, trading and consumption of renewable gaseous fuels and their derivatives. They underline the urgent need for a climate reporting framework that provides rules and certainty for investment in their sectors.
UK gas group eyes biomethane boost in 2030 decarbonization view
The UK must establish “appropriate” support schemes to accelerate green gas uptake if it hopes to tackle ambitious decarbonization goals set for 2030, according to a February statement by UK gas group, Future Energy Networks. The additional support from policymakers and regulators would engender “realistic, deliverable and cost-effective” measures to achieve decarbonization goals, cutting the UK’s carbon budget deficit in buildings and industry by a quarter in 2035, according to the group’s latest report. Transporting more green gas through biomethane uptake, low-carbon hydrogen via new or repurposed networks and increased support for hydrogen blending could offset some 11 million mt CO2e/year in the sectors by 2035. The statement also asked for collaboration between the government and regulator, namely in establishing business models consistent with low-carbon ambitions, financing network expenditure and addressing barriers to entry. It also recommended clarity on support beyond 2028, when schemes such as the UK’s Green Gas Support Scheme expire.
Germany: Breakthrough of the “biomass package”
The German Bundestag’s Energy and Climate Committee has taken a major step forward by passing a comprehensive biomass package that sets the stage for a more flexible and future-proof biogas sector. Key improvements include an increase in auction volumes for 2025 and 2026, a higher flexibility bonus, and an extension of the remuneration period for existing plants. Additionally, new regulations make flexibility requirements for CHP plants more practical, while smaller plants benefit from an exemption threshold. By increasing the tender volume to 1,300 megawatts (MW) in 2025 and 1,126 MW in 2026 (plus the unawarded volume from the biomethane tender) in combination with the flexibility surcharge increased from EUR 65 to EUR 100/kW and the extension of the second remuneration period, thousands of existing biogas plants will in principle be given a perspective as the flexible backbone of the renewable energy supply. The parliamentary groups have impressively put the issue above party politics and set the course for the future at a crucial time for the biogas sector. The German Biogas Association (GBA) welcomes the commitment of the involved parties. However, concerns remain and further reforms are needed to ensure the economic viability and long-term sustainability for the biogas industry.
BNetzA sets maximum values for tenders for biomethane plants
The Federal Network Agency (BNetzA) has set the maximum values for tenders for biomass and biomethane plants for 2025 at the same level as the previous year: 19.43 ct/kWh for new biomass plants; 19.83 ct/kWh for existing biomass plants; and 21.03 ct/kWh for biomethane plants.
This decision creates stable conditions for future tenders and prevents an automatic reduction in values in accordance with the EEG. In addition, the regional restriction for biomethane plants has been lifted, meaning that bids will be possible nationwide from September 2025.
More (in German)
A Competitiveness Compass for the EU
End of January, the European Commission has published the Competitive Compass, an analysis of the EU’s global competitiveness in various sectors, including renewable energy, digital innovation, manufacturing, and more. Its purpose is to identify the policy changes needed for Europe to shift to a higher gear and develop new ways of working together to increase the speed and quality of decision-making, simplify our frameworks and rules, and overcome fragmentation.
Based on the Draghi Report, the Competitiveness Compass identified three imperatives to boost competitiveness: 1) Closing the innovation gap; 2) A joint roadmap for decarbonisation and competitiveness; 3) Reducing excessive dependencies and increasing security. These cardinal points are complemented by action on horizontal enablers, which are necessary to underpin competitiveness across all sectors. Key points relevant to our sector are: 1) The 2040 target of a 90% emissions reduction has been confirmed; 2) the ETS directive will be revised to support permanent carbon removals; and 3) A targeted amendment of the CO₂ standards regulation is anticipated to include e-fuels and ensure technology-neutral approach while maintaining the 2035 target for cars.
Vision for Agriculture and Food
DG AGRI published its Vision for Agriculture and Food, recognizing biogas production as a key renewable energy opportunity and highlighting the strategic importance of low-carbon fertilizers and recycled nutrients including digestate.
Introduction of California Biogas Bill
Mid-February, California Sen. Timothy Grayson (D) introduced a California Senate Bill 377, legislation that modifies the state’s renewable natural gas (RNG) procurement framework and authorizes utilities to recover costs associated with RNG interconnection investments. Kee aspects are: 1) Utility involvement will lower customer costs of California RNG interconnection investments by avoiding a tax factor of 24%; 2) Increasing options for RNG supply to displace fossil gas imports; 3) Adding new eligibility criteria — The displacement of conventional natural gas would here forth be recognized as an environmental benefit.
