Unresolved Bottlenecks in the Development of European Biomethane
2023/5/30
Firstly, the ultimate market size of biomethane is uncertain. A statistical report released by the European Biogas Association predicts that by 2050, biomethane may account for 30% to 40% of natural gas consumption in the EU. If this prediction comes true, biomethane would undoubtedly be one of the main driving forces of Europe's future energy. However, apart from some sparsely populated and resource-rich Nordic countries that are approaching this proportion, other countries are still far from this consumption target. Many experts have doubts about whether biomethane can reach such a consumption ratio, which directly affects future investment scale.
Secondly, biomethane production involves not only the energy and chemical industry but also various other sectors such as agriculture, forestry, and urban management. However, the EU's support and coordination efforts for the biomethane industry are insufficient. The raw material for biomethane is biogas, which can be derived from agricultural and forestry by-products or food waste. Ensuring a reasonable price and convenient transportation of raw materials is crucial for industry development. If the raw material supply is not met, downstream demand will also struggle to develop. Moreover, agricultural and forestry by-products and food waste often have strong odors, and improper management can lead to environmental pollution. Local residents, especially in densely populated Western and Central Europe, often strongly oppose facility construction and raw material transportation, making site selection and raw material logistics major challenges. This requires coordination among various departments within the EU. If the issues related to effective coordination of industry development cannot be resolved, the biomethane industry will struggle to achieve rapid growth.
According to the EU's biomethane development targets, the consumption of biomethane in the EU should reach 35 billion tons by 2030, which is more than ten times the current level. However, the regulatory framework for biomethane extends beyond energy policies and may require synergies among environmental, agricultural, and energy regulations to drive industry development. Whether Europe can overcome the doubts from the business sector regarding the biomethane industry and overcome industry bottlenecks is worth observing and anticipating.
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