The future of the biomethane sector in Spain
There are currently five biomethane plants in Spain injecting into the gas grid (covering more than 100,000 km). Spain’s total biomethane production in 2021 amounted to 100 GWh.
There is a strong interest in the development of the biomethane market: the biogas sector is asking the Spanish government to approve support mechanisms for renewable gas and its injection into the gas grid.
Two interesting key developments: I) the last four biomethane plants were commissioned in 14 months; II) private investments in biomethane production plants focus on the EU market.
The objective of the sector is for biomethane to reach a 10% share of gas consumption by 2030 (around 30 TWh of biomethane). To do so, establishing a reasonably stable regulatory framework and long-term foresight to attract investment and foster both the supply and demand sides is key. In addition, there is an urgent need to implement a system of biomethane Guarantees of Origin, including information on compliance with sustainability criteria and the reduction of greenhouse gas emissions in the production process of biogas, where appropriate. The implementation of appropriate policies to make better use of energy potential for biomethane producers, prioritising biomethane injection into the grid, is also a key element for the development of the biomethane sector.
In Spain, GO systems have still not been implemented. The Ministry for Ecological Transition and the Demographic Challenge published Royal Decree 376/2022 of 17 May, which regulates the criteria for sustainability and the reduction of greenhouse gas emissions from biofuels, bioliquids and biomass fuels, as well as the system renewable gas GOs. It determines the creation of a system of GOs applicable to renewable gases, such as biogas/biomethane and green hydrogen, establishing the definition of these guarantees, their content, the conditions for issuing them, as well as the authorisation for the designation of an entity responsible for their management and the procedure for the operation of the aforementioned system. ENAGAS GTS was designated to implement this Guarantees of Origin system on a temporary basis. The Ministry may eventually require the transfer of the IT tool.
Recently, the Ministry for Ecological Transition and the Demographic Challenge has published Order TED/1026/2022 of 28 October approving the management procedure for the system of guarantees of origin of gas from renewable sources. This procedure will regulate the operation of the system of guarantees of origin for gas from renewable sources in Spain. ENAGAS GTS has until March 2023 to activate the service.
November 16th, 2022