From Scraps to Supply: Biomethane’s European Ascent

Waste-based renewable gas gains momentum as EU targets 2030 goals

27 May 2025

Europe is increasing its use of waste-derived biomethane as utilities and municipalities look for new ways to cut emissions and strengthen energy supplies. Producers across the region are converting sewage sludge, food waste and industrial residues into a renewable gas that is now being injected into national grids and used in transport and manufacturing.

The European Biogas Association estimates that output has reached about 7bn cubic metres this year, marking the sector’s strongest growth to date. The industry’s move away from crop-based feedstocks towards organic waste has helped reduce lifecycle emissions and broaden sources of supply. “Waste-based biomethane is no longer experimental,” said a senior analyst at Wood Mackenzie. “It’s now a pillar of Europe’s decarbonization strategy.”

Several cities are testing large-scale applications. Barcelona is processing wastewater into biomethane to fuel parts of its bus fleet, while projects in France, Denmark and Italy are linking municipal waste services with local gas networks. These initiatives aim to secure reliable volumes of feedstock while easing pressure on landfill and incineration systems.

Energy groups are adjusting their portfolios in response to rising demand. Air Liquide has expanded its biomethane capacity across western Europe, reflecting broader investor interest in renewable gas infrastructure. Analysts view the shift as part of a gradual rebalancing from fossil-fuel assets into regulated or certified low-carbon gas facilities.

Market prices have also been influenced by the rise of certification schemes. Waste-based biomethane that meets new EU traceability standards can sell at a premium of up to 30 per cent compared with conventional gas, supported by buyers in heavy transport and industry seeking verified low-emission alternatives. The certification rules are intended to improve transparency and reduce concerns about the origin of feedstocks.

However, the sector continues to face structural hurdles. High capital costs, regulatory delays and competition for quality waste streams limit the pace of expansion. Many producers argue that clearer long-term policy signals are needed to meet the EU’s target to triple biomethane capacity by 2030 under the REPowerEU plan.

Even so, output is increasing and investment pipelines remain active. For policymakers, the technology offers a route to cut emissions while making use of existing gas infrastructure, placing waste-derived biomethane at the centre of Europe’s broader energy transition.