Biomethane industry sees great potential for climate protection and self-sufficiency

The industry group CNG-Mobility and the non-profit CNG-Club e.V. have reported a continued significant increase in the share of renewable biomethane in CNG as well as a growing number of stations with 100 percent renewable methane. After steady growth in the share of biomethane in the CNG (Compressed Natural Gas) fuel, 100 percent BioCNG is now being offered at 640 CNG stations. The over 100,000 CNG vehicles in Germany are thus being operated almost climate-neutrally with biomethane from residual and waste materials. The organizations expect that the 100-percent mark with biomethane at all around 790 stations will be reached this year, says Dietrich Gerstein, Senior Advisor at the German Association of the Gas and Water Sector (DVGW) and head of the industrial group.

“We could even achieve the repeatedly missed climate goal in the transport sector," Gerstein continued.

Biomethane also remains cost-effective: Five euros instead of 13 euros are required for 100 kilometers. Additionally, the biomethane for the gas stations in Germany can be produced and sold independently of international gas markets, it is a "fuel made in Germany". Furthermore, the government's measures are seen as taking effect, imposing growing greenhouse gas reductions on station operators and thus ever-increasing shares of sustainable fuels. This enables biofuel producers to earn revenue depending on the certified greenhouse gas reduction. This is an attractive factor for residual material biomethane.

The residual materials yield two and a half times the amount

The associations also point to the great potential in terms of quantities. Current studies show, according to Horst Seide from the Biogas Association, that in Germany alone the economically usable potential of biomethane lies at around 230 TWh/a. This is 2.3 times the current amount. This would allow not only the corresponding vehicle fleets to be expanded many times over but also other energy-consuming sectors to be supplied. The costs for the production of biomethane are also largely independent of the prices on European or international markets for fossil gas and oil.

"Biomethane does not follow - also due to the aforementioned achievable revenues from greenhouse gas reduction certificates - the extreme price fluctuations currently experienced at the stations with fossil fuels," the industry group advertises.

According to a market analysis by the internet platform gibgas.de, for example, E.ON and orangegas offer biomethane at 0.99 to 1.45 euros per kilogram (as of 16.03.2022). Since one kilogram of biomethane has almost the energy content of 1.5 liters of gasoline, these prices correspond to 0.67 to 0.98 euros per liter of Euro Super. Thus, CNG vehicles are currently driving for about 2 to 2.5 times less cost than diesel or gasoline. For a car the size of a VW Golf, for example, fuel costs are around 5 euros per 100 km for the CNG variant and about 13 euros per 100 km for a comparable gasoline engine.

Biomethane must be included in CO2 fleet limits

To continue implementing this cost-effective biomethane option for climate-neutral mobility for consumers, political recognition is necessary that this fuel is still desired for trucks and cars. The decisive factor, according to the group, is that biomethane as a fuel is also included as climate-neutral in the calculations for CO2 fleet values. This is currently not the case.

"The ongoing discussion in Brussels about adjusting fleet limits, which manufacturers will have to adhere to in the future, opens up the possibility of recognizing innovative fuels such as biomethane and e-fuels as a compliance option," the association argues.

Another, but very similar possibility has been introduced into the debate by the new federal government. According to this, vehicles that are demonstrably supplied with these fuels could be exempted from fleet regulation and thus also be sold permanently.

"Only with such technology-open solutions will the necessary vehicles hit the road, and the necessary incentives be provided to expand the refueling infrastructure so that the cost-effective, climate-neutral, versatile, and supply-secure energy carrier biomethane can be increasingly produced and offered," the responsible parties argue further.