Gasum calls for removal of barriers in European biomethane market

Gasum, a significant player in the European biomethane market, has called for the removal of cross-border regulatory barriers to facilitate a more efficient pan-European biomethane market. The company argues that fully unlocking biomethane's potential requires the harmonization of national regulations, which would enable free movement and enhance energy security.

Biomethane, produced from organic waste, offers up to a 90% lifecycle reduction in greenhouse gas emissions compared to fossil fuels. Its local production within Europe also supports regional energy independence. However, current national legislations and support mechanisms restrict its cross-border utilization, creating inefficiencies and hindering market growth. Specifically, national support schemes can prevent biomethane from being used in certain applications, such as heavy transport, if it has received subsidies in its country of origin.

Gasum proposes that harmonizing regulations and support mechanisms at both EU and national levels is the solution. This would streamline the regulatory framework and promote the free movement of biomethane across Europe. A unified market would provide producers with a broader customer base and customers access to more cost-effective sources, thereby driving efficiency and innovation.

A key challenge is the lack of a unified system for guarantees of origin. Different national registry systems create complexity and limitations, preventing, for instance, the utilization of French biomethane in Sweden or Norway. The mass balancing system, which allows biomethane injected into the gas grid in one country to be used in another, also faces limitations, particularly concerning liquefied biomethane.

Gasum is investing significantly in its own production capacity, currently producing 3 TWh of renewable biogas annually with a target of increasing this to 7 TWh by 2027. The company also sources biomethane from European producers. Gasum's goal is to ensure transparency and certification throughout the biomethane value chain, from production to end-use, positioning itself as a reliable partner for those seeking sustainable energy solutions.