20 July 2026
The energy transition is currently one of the greatest challenges facing our society. We must reduce greenhouse gas emissions without jeopardising security of supply. At the same time, we must ensure that energy supply remains cost-effective and affordable. To achieve these goals, we need solutions that work today. Biomethane is one such solution.
A Key Building Block for Decarbonization
Biomethane is produced by upgrading biogas. The biogas itself is generated from organic residues and waste materials. During the upgrading process, carbon dioxide (CO₂) and other trace substances are removed. The result is biomethane with the same quality as natural gas.
As a substitute for fossil natural gas, this climate-neutral alternative helps reduce greenhouse gas emissions. The CO₂ released during combustion is not newly introduced into the atmosphere but was previously absorbed from it by the organic feedstock used to produce the biogas. As a result, the overall carbon balance remains neutral.
Benefits of Biomethane
Biomethane plays an important role in the energy transition. It is renewable, storable and can be used immediately and with ease. Biomethane can be transported and utilised via the existing natural gas infrastructure, meaning that no additional investment in new infrastructure is required.
In addition, biomethane enhances energy security by reducing dependence on imported fossil fuels. In doing so, it strengthens both the autonomy and resilience of energy supply systems. Its production also makes a tangible contribution to the circular economy.
Biomethane is particularly attractive for municipal utilities and industrial companies. It offers an opportunity to make energy supply and production processes more sustainable while helping organisations meet both regulatory requirements and their own climate targets.
Where Biomethane Can Be Used
Biomethane is highly versatile. In addition to industrial applications, it can be used as a sustainable transport fuel. In power stations, biomethane can generate both electricity and heat. It is also suitable for use in gas heating systems.
This is particularly relevant in light of the recently enacted Building Modernisation Act (GModG). It replaces the previous Building Energy Act (GEG). The focus is on regulating the heating options permitted in buildings in a more technology-neutral manner in future. From 2029, under the GModG, newly installed gas and oil heating systems must be fuelled by climate-friendly fuels for at least ten per cent of their operation. This minimum proportion will then rise in three stages in accordance with the so-called ‘bio-staircase’ – 15 per cent from 2030, 30 per cent from 2035 and 60 per cent from 2040. From 2045, heating is to be provided exclusively using climate-neutral fuels.
Furthermore, the Act provides for a green gas quota for suppliers of fossil fuels used for heating in buildings, which is set to begin in 2028 at a level of up to one per cent. The Federal Government is to set out the details of this in a separate Act by 1 December 2026. Biomethane is an important solution for both regulations – the GModG and the green gas quota.
Why Are Certification and Eligibility Important?
Certification of the relevant supply chain is crucial for biomethane to be eligible for credit. This is where SEFE comes in. Our biomethane comes from various countries across Europe, is produced sustainably and delivered to the consumer via a certified process. Our supply chains have been awarded the International Sustainability and Carbon Certification (ISCC) – in the version relevant to the European Union (EU). Behind this certificate, which is awarded following an independent audit, lies an internationally recognised system for sustainable and traceable supply chains. The transparency of our supply chains ensures that our biomethane counts towards targets, such as those set out in legal requirements or quotas. Its sustainability is verifiable and documented in accordance with the relevant regulations. Our biomethane meets the EU requirements set out in the second and third versions of the Renewable Energy Directive (RED). Furthermore, our customers can use the evidence of our certification for their own reporting and audits.
Driving the Energy Transition with SEFE
As a strong partner, we aim to reliably meet our customers’ energy needs whilst paving the way for them to become more sustainable. That is why green energy, such as biomethane, forms part of our portfolio. This renewable energy source combines predictability and a high level of security of supply with a reduction in greenhouse gas emissions. Together with our customers, we are actively shaping the future of energy supply.
Discover Biomethane Solutions from SEFE
FAQ:
What is biomethane?
Biomethane is a renewable energy source produced by upgrading biogas generated from organic residues and waste materials. Once CO₂ and other trace substances have been removed, biomethane reaches natural gas quality and is chemically equivalent to fossil natural gas.
Is biomethane climate-neutral?
Biomethane is generally regarded as carbon-neutral on a lifecycle accounting basis. The CO₂ released during combustion originates from biogenic sources and was previously absorbed from the atmosphere. As a result, no additional CO₂ is introduced into the atmosphere.
What can biomethane be used for?
Biomethane is a versatile fuel suitable for use in industry, transport, power stations for electricity and heat generation, and gas heating systems. Because it can be transported through the existing natural gas network, no additional infrastructure investment is required.
What does ISCC EU certification mean?
The International Sustainability and Carbon Certification (ISCC EU) scheme is an internationally recognised system for sustainable and traceable supply chains. Certification is awarded following an independent audit and confirms that renewable energy sources are produced sustainably, are fully traceable and comply with the requirements of the EU Renewable Energy Directive (RED II and RED III). Certified biomethane can therefore be counted towards legal obligations and quota schemes.
What does the Renewable Energy Directive (RED) regulate in relation to biomethane?
The European Union’s Renewable Energy Directive (RED) sets out the conditions under which biomethane can be recognised and counted as a renewable energy source. The currently applicable third version, RED III, has introduced even stricter requirements regarding sustainability, traceability and greenhouse gas emission savings.