In this latest OIES podcast, James Henderson speaks with Maria Olczak about her recent research on biomethane. Combined European biogas and biomethane production has grown by 34% over the past decade, reaching around 232 TWh (22 bcm) in 2024. In the podcast, they explain the difference between biogas and biomethane, review current production levels in Europe, and discuss why the EU is unlikely to meet the REPowerEU target of 35 bcm of biomethane by 2030.

The discussion also explores the sources of growing market optimism, particularly in the transport sector, where demand is increasingly driven by quota obligations and new EU regulations, such as FuelEU Maritime targeting shipping sector. We look at how these demand-side instruments are shaping prices and investment signals, and assess whether this momentum is sustainable.

Finally, the podcast examines the two competing growth models emerging in Europe’s biomethane sector – a subsidy-driven, producer-focused approach and a market-driven, buyer-led model – and the regulatory tensions they create. We conclude by identifying the key policy and market design issues that will need to be resolved if biomethane is to scale up effectively and integrate into the European gas market.

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