Investor interest in the biomethane market is strong. Investment commitments have reached €36 billion. This represents significant growth, given that reported investments last year totaled €28 billion, according to the updated investment outlook from the European Biogas Association (EBA) included in the European Biomethane Map 2026.
Growing confidence in investment will drive the sector’s growth, provided that appropriate regulatory conditions are put in place. If fully realized, these investments are expected to deliver an additional 9 billion cubic meters (BCM) of biomethane production capacity per year by 2030. This outlook will contribute to Europe’s domestic energy supply and help achieve the European Union’s decarbonization goals.
Biomethane, a solution for energy security and decarbonization
As Europe continues to address challenges related to energy security, geopolitical uncertainty, and dependence on imported fossil fuels, biomethane remains a strategic source of renewable energy. With sustainable feedstocks available throughout Europe, existing gas infrastructure ready for integration, and valuable byproducts that support the goals of the circular economy, the conditions are in place for further deployment of biomethane.
Rising number of facilities
In Europe, the number of biomethane facilities increased from 1,678 to 1,975 during the 2025 and 2026 data collection periods. A total of 327 new facilities came online. Since some plants closed during the same period, the net increase is less than the total number of new plants that began operations. Nevertheless, the figures indicate continued momentum across the entire sector. At the same time, growth remains uneven across the EU.
5 countries account for 95% of European production
In line with member states’ targets, although domestic production is expected to increase significantly by 2030, only five countries currently account for 95% of European biomethane production. According to a 2026 Guidehouse study, the EU-27’s potential is 31–32 billion cubic meters for 2030 and is projected to reach 163–184 billion cubic meters by 2050.
The average size of biomethane plants in Europe is 472 Nm³/h. There are, however, significant variations across the continent. France, despite its leading position in terms of the number of plants, has smaller plants, with an average capacity of 212 Nm³/h. In contrast, Italy (667 Nm³/h) and Germany (607 Nm³/h) operate larger plants, contributing more to the total capacity. Denmark (1,528 Nm³/h) also has fewer plants, but they are significantly larger.
Industry calls for clearer rules and faster approvals
The results of the EBA’s analysis underscore the need for clear and consistent policy frameworks to accelerate implementation across all member states. Industry stakeholders are calling for regulatory certainty and dedicated strategies for biomethane to help turn investment ambitions into operational projects.
“Biomethane is increasingly viewed as a key pillar of Europe’s efforts to enhance energy security and accelerate the transition away from fossil fuels. However, regulatory uncertainty and complexity continue to prevent the sector from reaching its full potential. One of the simplest measures we can take is to allow existing facilities to operate at higher capacity (currently averaging 70%). This, along with reducing the complexity of accessing raw materials, facilitating grid connections, and speeding up the issuance of permits, would allow the sector to expand much more rapidly,” explained Harmen Dekker, CEO of the EBA.
To mark the launch of the Biomethane Map and the updated Investment Outlook, the EBA organized a webinar in July to explore the latest developments in Europe’s biomethane sector, ranging from plant deployment and market trends to investment dynamics and emerging opportunities.
Ricardo Fernández-Blanco Carramolino, Scientific Project Officer in the Gas, Hydrogen, and Retail Department of the European Union Agency for the Cooperation of Energy Regulators, explains the main findings of the Biomethane Roadmap. “Are we on the right track? When we talk about biomethane, I think that’s the right question to ask. Europe has ambitious goals for achieving climate neutrality by 2050, and the challenge isn’t the ambition itself, but how we can decarbonize the gas market while maintaining a balance between the three fundamental objectives of the energy transition: sustainability, in the sense of reducing carbon dioxide emissions; security of supply, to ensure the reliability of gas delivery; and competitiveness, so that energy prices remain affordable. This is also the perspective we adopted in ACER’s most recent report on the decarbonization of the European Union’s gas market, in which we analyze the main challenges and trade-offs associated with the market’s decarbonization process.”
Currently, the European Union consumes approximately 340 billion cubic meters of natural gas per year, and 88% of its supply comes from external sources. Natural gas remains essential for industry, heating, and electricity generation, but it is also responsible for approximately 20% of the EU’s greenhouse gas emissions.
“Methane emissions also represent a significant part of this challenge. Approximately 85% of methane emissions associated with the oil and gas supply chains serving the European Union occur outside EU territory. This means that decarbonizing the gas market is not just about the climate, but also about improving Europe’s energy security,” Ricardo Fernández emphasized.
Multiple paths to decarbonizing the gas market
There are several ways to decarbonize the gas market, says Fernandez, noting that gas demand can be reduced through energy efficiency and electrification based on renewable sources. Emissions can also be reduced by addressing methane leaks and using carbon capture and storage solutions. Furthermore, fossil gas can be gradually replaced with renewable gases and low-carbon gases. “Among these options, biomethane stands out because it is already available. It can be injected into the existing gas infrastructure, requiring very limited adaptations. It is not a technology of the future. It is already part of Europe’s energy transition.”
Currently, the EU has approximately 1,500 biomethane production facilities, which produce about 4.3 billion cubic meters annually. This still represents a very small share of the total gas injected into the European gas system. However, the biomethane sector continues to grow. What is remarkable is that the sector’s development is visibly uneven across European Union member states. “For example, France and Germany have the largest number of production facilities, followed closely by Italy. Denmark also highlights an important point: approximately one-third of its gas consumption is already covered by biomethane. A similar situation is found in Sweden. Other countries, such as Spain and Portugal, are expected to significantly increase their biomethane production capacity in the near future. This demonstrates that biomethane is not only a solution for decarbonization but also one for security of supply. Every additional cubic meter of biomethane produced in Europe means one cubic meter less of imported fossil gas. This aspect becomes even more important as gas demand gradually declines,” Fernández explained.
According to the European Commission’s decarbonization scenarios, gas consumption is expected to decline by 2050.
Biomethane can meet a significant portion of European demand
If biomethane production were to reach, for example, approximately 60 billion cubic meters, domestic production could cover more than half of Europe’s remaining gas demand by 2040. This represents a significant opportunity to strengthen Europe’s resilience. “Expanding biomethane production will not happen automatically. First, we must ensure that this growth is sustainable; technical potential is not the same as sustainable potential. The expansion of production must respect environmental limits,” Fernández concluded.
As biomethane production increases, gas networks will need to accommodate a greater number of injection points and larger volumes of gas. “Europe still needs a more integrated biomethane market. The various certification systems and existing barriers to cross-border trade continue to slow down the market’s development. Therefore, greater harmonization of the regulatory framework will be important (…). The competitiveness of biomethane is another key element, which we also addressed in ACER’s most recent report on the decarbonization of the European Union’s gas market,” the expert from the European Union Agency for the Cooperation of Energy Regulators continued.
Currently, the costs of producing biomethane are higher than natural gas prices. However, competitiveness does not depend solely on the price of natural gas; it also depends on the interplay between the price of carbon, guarantees of origin, and sustainability certificates. Equally important is the existence of a predictable regulatory framework. Furthermore, a functional carbon pricing mechanism will remain essential for supporting cost-effective decarbonization.
ACER’s conclusions on the future of biomethane
“First of all, Europe already has a mature biomethane sector. The question is no longer whether biomethane works, but how quickly can we scale it up in a sustainable way. Unlocking Europe’s biomethane potential requires more than just increasing production. It also requires harmonized certification, better opportunities for cross-border trading, adequate infrastructure, and regulatory certainty. Ultimately, biomethane is much more than just another type of renewable gas. It can simultaneously contribute to the three fundamental objectives I mentioned earlier: climate neutrality, energy security, and industrial competitiveness,” Fernández concluded.
Investments in biomethane are gaining momentum
George Osei Owusu, Technical and Project Officer at the EBA, highlights the investment trends shaping the biomethane market. His first conclusion is that the sector is developing holistically to ensure security and also to meet the growing demand for gas in Europe. The European biomethane sector is entering a new phase of development, supported by investments of tens of billions of euros and the expansion of projects across an increasing number of European countries. Investments identified to date point to an additional capacity of 9.5 billion cubic meters by 2030, while the number of facilities could increase significantly. Denmark, Italy and Spain are among the markets attracting the largest volumes of capital, but countries such as Romania are also beginning to appear on the investment map.
Romania, between energy potential and the gap with European leaders
Romania ranks fourth in the EU in terms of biogas and biomethane potential. While the EU biogas market is estimated to grow by 20% annually over the next 10 years, Romania’s biogas market is projected to grow at nearly twice that rate—40%.
The Romanian biogas market includes major companies developing cogeneration plants, biomethane production facilities, and organic waste recovery operations. Among the most important players are Genesis Biopartner (the market leader, with a major plant in Filipestii de Padure in Prahova County and another in Cordun, Neamt), BSOG Energy (backed by Black Sea Oil & Gas, Carlyle, and the EBRD, with large biomethane projects), and Ecoterra Biogas (operator of a large plant in Moara, Suceava).
In fact, according to the European Commission’s fact sheet on biomethane in Romania, the country has the technical capacity to replace approximately one-quarter of its current natural gas imports with biomethane. The advantage is that Romania’s natural gas distribution network is extensive and could be adapted for renewable gas.
Romania’s Energy Strategy 2025–2035 highlights the role of biomethane in the future energy mix. However, one of the main challenges for the development of the Romanian market is the lack of a comprehensive framework governing the production, certification, and injection of biomethane into gas networks. Romania can market biomethane as a strategic asset, but it will also have to prove that it produces it cleanly. Otherwise, its energy advantage could become a climate vulnerability.
State support for biomethane production
Romania could consider using the Modernization Fund to develop a support scheme for biomethane production. The government has successfully used this funding in the past to support onshore and photovoltaic power generation through the Contracts for Difference scheme.
It is worth noting that countries such as Germany, France, and Italy provide government support for biomethane production, either through feed-in tariffs, supplier purchase obligations, auctions, or a combination of two of these measures.
NECP forecasts biomethane consumption of 4.27 TWh by 2030 for Romania
The EU Directive on the hydrogen and natural gas market requires equitable treatment for renewable gases in terms of supply, transmission and injection. The recent revision of the National Energy and Climate Plan (NECP) projects biomethane consumption of 4.27 TWh by 2030, in line with the target set in the Energy Strategy, which calls for a 10% increase in consumption by 2050.
The first major biomethane projects in Romania
As for commercial biomethane projects in Romania and the companies involved, the market is still in its infancy, but several large, concrete projects emerged in 2025–2026.
BSOG Energy is probably the company to watch closely: it has a major platform dedicated to the development of biomethane projects in Romania. For the Alba project, the company reports 20 MW of biomethane, with DN AGRAR as a major supplier of raw materials. For the South project, the announced capacity is 57 MW.
The agreement between Black Sea Oil & Gas, through BSOG Energy, and DN AGRAR was announced in October 2024. In July 2025, the two companies signed the development and supply contracts. The project has moved into a much more advanced stage. The initial capacity remains at up to 15 MW, with the possibility of exceeding 20 MW at a later date. For its part, DN AGRAR projects estimated revenues of approximately €3.5 million per year from the supply of raw materials and expects to begin operations no later than the first half of 2028.
- The BioMethaneMix – Delgaz Grid Pilot Project
Delgaz Grid, a subsidiary of the E.ON Romania, is developing the BioMethaneMix pilot project, one of the first projects in Romania dedicated to testing the integration of biomethane into existing natural gas networks. The project was announced in 2025 and is scheduled to begin in 2026, with completion expected in 2027. The project aims to produce biomethane by processing biogas generated at wastewater treatment plants and industrial facilities, followed by its injection into a section of the natural gas distribution network. Delgaz Grid will also test the operation of facilities and appliances using a mixture of biomethane and natural gas.
- The BSOG Energy – Unigrains Trading Biomethane Project
In April 2025, BSOG Energy, a company owned by Black Sea Oil & Gas, and Unigrains Trading (an agricultural company in Constanta County), announced a project to build an integrated biomethane and organic fertilizer production facility. The investment is estimated at over €65 million, and the facility is designed to produce approximately 57 MW of biomethane and over 250,000 metric tons of organic fertilizer per year. The estimated duration of the project is approximately two years. BSOG Energy presented the project as its second biomethane production project in Romania, following the one developed in partnership with DN AGRAR in Alba.
At the same time, there are other initiatives at various stages of development, and ANRE already has a framework in place for authorizing biogas/biomethane production facilities.
An important moment for Romania
In February 2026, Romania introduced specific provisions for the production and injection of biomethane through Government Emergency Ordinance No. 9/2026. The law also stipulates that the transmission/distribution operator may not refuse a connection request, and that the producer is responsible for the costs of the feed-in facility and the connection. The national strategy aims for biomethane to account for at least 5% of the gas transported/distributed by 2030. Biomethane will not completely replace natural gas, but it could become a key component of Romania’s energy transition.
Romania can close the gap with Western Europe
The experience of European countries shows that the development of biomethane depends on three main factors: stable public policies, access to gas networks, and the efficient use of local resources. In fact, the most recent data presented by EBA clearly show the emergence of new investment markets, and Romania is among the countries where growing investment has been identified.
“We have identified and mapped out investments in new countries. We can see Greece, Austria, Latvia, Romania and Slovenia, which report investment figures year after year, giving us a good overview of how emerging markets are catching up,” George Osei Owusu said.
European targets: 300 additional biomethane plants compared to 2025
George Osei Owusu emphasizes that the sector’s development is closely linked to both European energy security goals and the need to meet gas demand. In this context, the investments already announced provide a clear outlook on the pace at which biomethane production could grow in the coming years. “The sector is developing holistically to ensure security and also to meet the growing demand for gas in Europe. We’re talking about €36 billion that has been allocated for investment in biomethane. This means that, in practice, we are looking at an additional capacity of 9.5 billion cubic meters by 2030, so we can also anticipate that this additional capacity will become operational by 2030, which means we will see 300 more facilities than last year.”
According to the EBA representative, the pace of development is faster than estimates made a year ago. While the 2025 outlook indicated approximately 900 facilities set to come online over the next five years, some of these have already been completed, and new investments bring the estimate to approximately 1,200 facilities.
Investments are not distributed evenly across Europe
Denmark currently leads in terms of planned investment volume, followed by Italy, Spain, the United Kingdom and France. George Osei Owusu points out the significant differences between these markets and how investments have evolved compared to the previous year. “The countries that are also leading in terms of investment volume at this time are Denmark. Italy and Spain are the main frontrunners in terms of our investment projections. The top countries in terms of planned investments are Denmark, Italy, Spain, the United Kingdom, and France.”
Denmark is by far the market with the highest value of planned investments, and the increase compared to last year is significant. “Denmark clearly shows an increase of 8.75 billion, which represents a significant rise from last year’s figures, which were approximately 3.5 billion. Next comes Italy with 4 billion, Spain with 3 billion, followed by 2.7 billion from the United Kingdom and 2.4 billion in investments from France.”
Significant production capacities on the horizon
In addition to investment values, differences between markets can also be observed in terms of projected production capacities. Italy and Denmark are among the countries with the highest planned capacities. “In terms of projected capacity, Denmark has 20.9 terawatt-hours, while Italy is projected to have 23 terawatt-hours. Spain and Poland also continue to be important markets when it comes to investments.”
The announced investments are at various stages of development. Some projects have already been completed, others are under construction, and a significant portion is scheduled for the coming years. According to George Osei Owusu, the pace of implementation will become more apparent in the coming period. “Last year, 300 plants were listed as either completed or under construction. Furthermore, many plants are scheduled to come online over the next three years. By 2028, we should see some of them coming online. And then, after 2030, an additional 2.4 billion cubic meters will be produced by these plants as well.”
New facilities and refurbishment of decommissioned industrial sites
An analysis of the investments shows that most of the capital is earmarked for the development of new facilities built on new sites, but there are also significant funds allocated for the reuse and refurbishment of existing industrial sites. “In terms of investment types, 87 of the plants are new or the facilities are new. 31 out of the total 36 billion is earmarked for greenfield sites or new facilities. 4.4 billion is set aside for brownfield sites, and approximately 240 million is allocated for measures and acquisitions,” notes Owusu.
One of the significant changes observed over the past year is the increase in investment in projects developed on brownfield sites. These allow for the reuse of existing infrastructure and can help speed up projects. “This year, I’ve seen a lot of investment in brownfield sites, ranging from 0.7 billion to 4.4 billion, which means that a lot of biomethane plants are being modernized. The next trend is a 30% increase in investment in greenfield areas. So, if we compare last year to this year, we see a 30% increase for brownfield sites,” Osei Owusu noted.
€8bn for the infrastructure needed to integrate biomethane
The expansion of production, however, requires investments that go beyond the facilities themselves. A significant portion of the capital is earmarked for the infrastructure needed to connect the new capacity to the energy system, including gas networks and injection stations, according to expert Owusu. “There are €8 billion in investments allocated to infrastructure modernization. This trend can be seen in countries such as Denmark, the Netherlands and Sweden, where it’s not just about facilities, but also about infrastructure—the gas network, pipeline upgrades, compression injection stations, and all these things that are being acquired.”
Investments in carbon capture and liquefaction technologies
The investments identified by EBA also include technologies that can expand the use of biomethane and integrate its production into more complex energy systems. These include carbon liquefaction, storage and capture solutions. “These are investments totaling €781 billion in technology, end-use applications, or fueling stations. We’re talking about liquefaction technologies, carbon capture and storage technologies,” the EBA representative added.
These investments point to an expansion of the European biomethane sector—not only through an increase in the number of facilities, but also through the development of infrastructure, the modernization of existing capacity, and the integration of new technologies into the production and use of renewable gas.
Biomethane, Europe’s strategic opportunity and Romania’s chance to close the gap
In conclusion, biomethane is increasingly emerging as a strategic component of the European energy transition, situated at the intersection of decarbonization, energy security and competitiveness. Increased production, investments worth billions of euros, and the development of thousands of new facilities by 2030 show that the sector has moved beyond the stage of emerging technology and is entering a phase of rapid expansion. However, realizing this potential depends on the ability of European countries to remove administrative barriers, facilitate access to raw materials and networks, and create a predictable and harmonized legislative framework.
For Romania, this opportunity is particularly important, given its high production potential and a gas infrastructure that can facilitate the integration of biomethane. However, turning this potential into actual capacity will require coherent public policies, support mechanisms and a fair distribution of connection costs. In the coming years, the success of biomethane will not be measured solely by the number of projects announced or the billions invested, but by Europe’s ability to turn these investments into actual, sustainable and competitive production.