The economics of biomethane in a post-subsidy world
From subsidy to certificate
Feed-in tariffs are tapering across most European markets, but voluntary corporate offtake of renewable gas certificates is filling the gap.
Voluntary carbon markets and renewable gas certificates are becoming the dominant revenue stream for new biomethane plants.
Our analysis of 40 European projects shows the levers that protect IRR.
From subsidy to certificate
Feed-in tariffs are tapering across most European markets, but voluntary corporate offtake of renewable gas certificates is filling the gap.
What protects IRR
Three levers consistently drive project returns: feedstock contract length, plant availability and bio-CO₂ valorisation.
- Long-term feedstock contracts above 12 years
- Availability sustained above 96%
- Bio-CO₂ recovery adding €40 – 80 per tonne
- Stacked compliance and voluntary certificates
- Long-term feedstock contracts above 12 years
- Availability sustained above 96%
- Bio-CO₂ recovery adding €40 – 80 per tonne
- Stacked compliance and voluntary certificates