How Captured Carbon is Rewriting Biogas Economics

Europe’s biogas sector is converting captured CO₂ into new revenue, driving early but accelerating progress toward a circular carbon economy

10 Oct 2025

Europe’s biogas industry is beginning to extract commercial value from carbon dioxide that was previously released as waste, as operators expand into carbon capture and reuse to support the region’s climate targets.

Biomethane plants across Europe are installing systems that capture CO₂ generated during gas purification. About 125 facilities now recover roughly 1.17mn tonnes a year, according to the European Biogas Association, with further growth expected as more sites adopt the technology. Captured CO₂ is being supplied to food and beverage companies, agricultural users and early-stage projects producing synthetic fuels by combining carbon with renewable hydrogen.

Large industrial groups are helping accelerate deployment. Air Liquide is installing CO₂ liquefaction and reuse units at several biomethane plants, including its Covo site in Italy, with plans to serve industrial customers. Nordic operators are testing the integration of biogenic CO₂ with hydrogen methanation to produce additional methane, supported by research into linking renewable hydrogen with carbon recycling. In Germany, Hitachi Zosen Inova is offering compact liquefaction systems designed to retrofit onto existing plants, allowing smaller producers to enter the CO₂ market.

“By capturing and selling CO₂, biogas operators are unlocking new value streams while cutting emissions,” said Giulia Cancian, policy director at the European Biogas Association. “It positions the sector at the core of Europe’s decarbonization drive.” The trend supports the EU’s 2040 climate plan, which calls for expanded carbon removal capacity and closer integration of renewable gas, hydrogen and carbon capture technologies.

Commercial use of CO₂ from biogas is still at an early stage, particularly in synthetic fuels and industrial supply chains. But as operators seek to broaden revenues and reduce emissions, the shift marks a growing effort to place biogenic carbon within a circular system rather than release it into the atmosphere.