Europe Bets Big on Biomethane With €1.5B Push

Asterion expands its renewable gas platform ABIO as investors back biomethane to cut emissions while using existing gas networks

5 Mar 2026

Europe’s renewable gas sector is entering a period of faster expansion as investors channel new capital into biomethane production across the region, seeking to scale an industry once dominated by small projects.

Asterion Industrial Partners in January said it would invest €1.5bn to expand its biomethane platform, ABIO, aiming to build and operate facilities across Spain, Italy, Germany, the Benelux region and the UK.

The move reflects growing confidence that biomethane can help lower emissions while allowing countries to continue using existing gas infrastructure. The fuel is produced by processing organic waste, including agricultural residues, manure and food waste, into a renewable equivalent of natural gas that can be transported through existing pipelines.

ABIO currently operates six biomethane plants and has six more under development. The company plans to expand to 20 operating plants by 2026, with a longer-term ambition of roughly 40 facilities producing about 3–3.5 terawatt hours of renewable gas annually.

“ABIO represents exactly the type of scalable energy transition platform we seek to support,” said Jesús Olmos, chief executive of Asterion Industrial Partners, pointing to the firm’s confidence in long-term demand for renewable gas.

The investment reflects broader changes in Europe’s gas sector. Biomethane production has historically been led by farms and local utilities operating small digesters. Increasingly, infrastructure investors are assembling larger, cross-border portfolios designed to produce renewable gas at industrial scale.

Energy network operators are also preparing for higher volumes of renewable gases. Companies including Fluxys are adapting pipeline systems to integrate biomethane alongside conventional natural gas supplies.

Developers still face challenges, including varying regulations across European markets and securing reliable supplies of organic waste feedstock. But policy support for decarbonisation, combined with energy security concerns following recent gas market disruptions, continues to strengthen interest in renewable gas.

As investment rises and projects grow in scale, biomethane is moving from a niche fuel towards a more established role within Europe’s evolving energy system.