Renewable Gas French Panorama 2016 – Overview of biomethane injection in Europe :BiogasWorld

By Marjolaine | 2017-11-15

Renewable natural gas: a solution for reducing greenhouse gas emissions in the future

The biogas production is part of the renewable energy development strategy in France since 2011. The France’s Energy Transition for Green Growth Law (LTECV) boosts the development of the biomethane injection industry.

In 2016, 40 400 tonnes of greenhouse gases were avoided thanks to biomethane. According to an analysis by GRDF and ADEME, the development of the biomethane sector would avoid 750 000 tonnes of CO2 by 2020.

An important potential for biomethane

In France, the biomethane sector is currently booming. In 2016, 215 GWh were injected into the gas network – an annual increase of 162%. France has 548 biogas production units, 26 of which inject biomethane into the natural gas network. However, renewable natural gas represents only 0,05% of the French consumption, while the Energy Transition for Green Growth Law sets at 10% the consumption of renewable natural gas by 2030.

A growth target of 8 TWh of biomethane injected in 2023

The developmental objectives for biomethane injection fixed by the Energy Transition Law are 1.7 TWh in 2018 and 8 TWh in 2023.

Summary of the key figures in 2016

26 biomethane injection sites in service (+ 53% compared to 2015)
05% of the natural gas consumption (+ 146% in 2016)
215 GWh of biomethane injected into natural gas networks (+ 162% in one year)
410 GWh/year of annual injection capacity (+ 47% compared to 2015)
241 projects registered in the biomethane injection plant connection queue (5TWh/year)
40 400 tonnes of greenhouse gases were avoided thanks to biomethane
2 000 to 3 000 direct jobs by 2020

Necessary regulatory framework

Biomethane injected into gas networks will help achieve objectives that have been defined by France and Europe for reducing greenhouse gas emissions, energy efficiency and developing the share of renewable energies in total energy consumption.

Introduction of a feed-in-tariff for biomethane injected into natural gas networks

2016 was marked by the implementation of a decree on the various adaptation measures in the gas sector, which may use tenders in addition to feed-in-tariff to support the biomethane injection sector. A producer will benefit from a feed-in-tariff of between 46 and 139 €/MWh, according to the decree.

French government to subsidy up to 40% of renewables grid connection costs

Another piece of good news: The French government will decrease up to 40% the costs of connection for small and medium-sized biogas production installations. In recent years, the rising costs of connection for biogas plants could make impossible the implementation of biogas projects in rural areas where the methane gas was located too far from the gas network.

Additional measures are expected

Although all renewable gas professionals welcome these major advances, additional measures will be recommended. To meet the ambitions de la LTECV, some measures are necessary including:

remove the specific coefficient for installations that have never benefited from a tariff for the purchase of electricity produced and biomethane injected;
moving from a monthly step to an annual step in standard purchase contracts for new facilities;
consider extending the purchase contract between producer and gas supplier period from 15 to 20 years, as has been the case for electrical recovery.

Mapping biomethane injection in Europe

Injection in Europe includes approximately 430 installations for 18 TWh of maximum capacity installed at the end of 2016 (a real production of about 13 TWh/year).

Growth prospects for the sector

According to the report,

“The queue of biomethane projects awaiting connection and injection increased to 5TWh/year for 241 projects, which corresponds to an average annual consumption of 420,000 customers or 22,000 buses or trucks running on bio-NGV.”