Can Homegrown Biomethane Fuel Spain’s Next Leap?

Naturgy and ID Energy plan 20 biomethane plants in a major lift for Spain’s renewable gas drive

22 May 2025

Spain is leaning into its clean energy future as Naturgy moves to scale up biomethane, a fuel made from farm waste and other organic scraps. The company’s new alliance with ID Energy Group lays out a 500 million euro plan to build at least twenty plants across the country. It is one of the nation’s most ambitious bets yet on renewable gas and signals a broader shift in Europe’s energy playbook.

Biomethane has been gaining ground across the continent as governments look for ways to cut emissions and reduce reliance on imported fossil fuels. Spain, despite its vast agricultural output, has only tapped a sliver of its potential. Naturgy’s planned network could supply enough renewable gas to serve hundreds of thousands of homes, depending on how much energy each household uses. The effort lines up with the EU’s REPowerEU target of reaching 35 billion cubic meters of biomethane by 2030.

For Naturgy, the move is as practical as it is environmental. European rules are tightening, and utilities are expected to fold cleaner fuels into their long term plans. Partnering with ID Energy speeds up construction by blending Naturgy’s financial muscle and national reach with its partner’s technical know how. Analysts see the venture as part of a quiet reshaping of the energy sector, with legacy players adjusting to a low carbon landscape while keeping an eye on long term profits.

The ripple effects could stretch well beyond the energy grid. Rural towns may see new jobs from facility construction and operations. Farmers could gain new value from crop waste that once had few uses. Better waste management systems may follow. Challenges remain, from costly early investments to tricky approvals and the logistics of gathering reliable feedstock. Even so, government incentives and rising investor interest hint that the sector is picking up speed.

Naturgy’s push into biomethane shows how Spain is trying to build a bridge between its current gas system and a cleaner future. If the plan stays on track, the country could cement its place among Europe’s leaders in renewable energy while tightening its grip on long term energy security.