The Surprising New Power Player in EU Carbon Capture

Biogas plants could trap 89 Mt CO₂ by 2040, turning waste into fuel and driving Europe’s net-zero strategy

26 Sep 2025

Europe’s biogas industry is moving into a central position in the region’s climate strategy, as new analysis points to significant potential for carbon capture from existing waste-to-energy assets. A report from the European Biogas Association (EBA), released on September 25 2025, estimates that biogas plants could capture as much as 89mn tonnes of CO₂ a year by 2040, depending on future investment and supportive policy.

About 125 biogas sites across Europe are already capturing roughly 1.17mn tonnes of CO₂ annually, according to the EBA. Most projects remain small and early stage, but the data indicates that the sector is beginning to demonstrate how biogenic CO₂, produced from organic waste, can be reused in industrial processes, greenhouses or synthetic fuel production. The association argues that such "circular carbon solutions" could satisfy more than a quarter of the EU’s capture requirement under the bloc’s Climate Law.

Technology developers are moving quickly to meet demand. Companies including Air Liquide and Hitachi Zosen Inova are rolling out modular capture systems designed to fit into existing biogas operations. These units allow plant operators to store or sell CO₂, creating new revenue streams and positioning facilities as multi-use clean-energy hubs. "Biogenic CO₂ is not waste; it is an opportunity," said EBA chief executive Charlotte Morton. "With the right policy support, biogas can drive Europe toward a climate-positive economy."

Market activity is gathering pace. Utilities, waste managers and start-ups are forming partnerships to link biomethane production with carbon capture, while investors are backing projects that combine energy output with negative-emission capabilities. Analysts say this is laying the groundwork for a new industrial network built around carbon-efficient energy infrastructure.

Challenges remain, particularly in expanding CO₂ transport and storage systems and ensuring that smaller biogas producers can access funding and incentives. Governments are beginning to respond with new support schemes and adjustments to carbon credit markets, though the pace of implementation varies across member states.

As the EU strengthens its net-zero targets, biogas is taking on a larger role in the region’s decarbonisation outlook. The sector is shifting from a niche fuel supplier to a platform for carbon removal, offering a route to convert waste emissions into productive use.