Naturgy and Biomethane: Spain’s Path to Renewable Gas Leadership

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The production of renewable gases aligns with the REPowerEU plan, Europe’s strategy to reduce reliance on fossil fuels and accelerate the green transition. Within this framework, biomethane is set to play a crucial role in reducing natural gas use in the coming years.

European Commission data identify Spain as the third European country with the highest potential for biogas development. The country could reach a production potential of 137 TWh annually. Together with other renewable gases, this could meet about 57 percent of total gas demand in the medium term. With appropriate incentives, Spain could produce around 20 TWh of biomethane by 2030.

Naturgy is committed to developing new energies that allow the country to benefit from the quality and investments already made in existing gas supply networks. The company pursues a portfolio of projects to connect biomethane plants to its networks, enabling an injection of about 6 TWh per year. Naturgy leads renewable gas development in Spain as a key axis of decarbonization in the short and medium term.

Recently, the multinational energy firm announced that the biomethane plant at the Porgaporcs cattle ranch in Vila-Sana, Lleida, has been adapted to inject renewable gas into the group’s distribution network in 2023. An investment of 1.5 million euros will advance the goal of circulating gas from renewable sources throughout distribution networks by 2050.

The Vila-Sana biomethane plant will become Naturgy’s third commercial operation in Spain and its second plant in Catalonia. From next summer, this facility will inject 11.8 GWh per year of biomethane into the gas distribution network, equating to the annual consumption of about 3,150 homes. The production and use of this renewable gas will prevent the release of more than 2,450 tons of CO2 annually, roughly the equivalent of planting more than 4,900 trees.

With this facility, Naturgy advances its commitment to energy transition, local generation, and a circular economy by supplying clean gas to the energy system and contributing to the sustainable management of Lleida’s agricultural waste. Naturgy’s gas distribution network is prepared to distribute renewable gases, supporting decarbonization targets thanks to recent investments. The company is recognized for its capability to realize such projects, backed by deep knowledge of natural gas and the breadth and depth of its networks, which solidify its leadership in gas distribution.

Through its subsidiary Nedgia, Naturgy serves approximately 5.4 million natural gas points in 1,150 municipalities across the country. Its core asset is a vast network of more than 55,500 kilometers, enabling today’s natural gas supply and the future distribution of hydrogen and renewable gas in a safe and efficient manner.

Projects

In 2019, Naturgy tested the biomethane produced at the Lleida facility in gas vehicles through the LIFE Metamorphosis project, funded by European funds, and a year later the biomethane produced there was transported to Zaragoza for use in urban transport.

  • Biomethane production of 11.6 GWh/year is equivalent to the consumption of 2,320 homes and yields CO2 emission savings of 2,900 tonnes.

The first biomethane plant commissioned by the company is at the Bens wastewater treatment plant in A Coruña.

Elena, the second plant in Cerdanyola del Vallès near Barcelona, was the first to inject renewable gas from a landfill into the Spanish gas grid.

  • It will prevent the production of 12 GWh/year of biomethane, equal to the annual consumption of 3,200 homes, and the release of 2,400 tonnes of CO2 per year, roughly the equivalent of planting around 5,000 trees. Some gas will be used to fuel Naturgy group stations, showing a viable path for sustainable mobility. The biomethane produced supports the circular economy and efficient energy use.

With these projects, Naturgy positions itself at the forefront of renewable gas development, greatly contributing to the decarbonization of the Spanish economy in the coming years.

Study titled Biogas and Biomethane as a Key Lever in Spain’s Decarbonization, prepared by PwC and CIEMAT and published by Fundación Naturgy

The Biogas Roadmap suggests renewable gases will help Spain reach climate neutrality by 2050, though it does not set explicit national production and consumption targets aligned with some neighboring countries.

The study from PwC and CIEMAT, published by Fundación Naturgy, argues for binding and more ambitious targets to unlock the true potential of biogas and biomethane in Spain. It proposes increasing production to more than 10.4 TWh by 2030 and making biomethane at least 1% of natural gas consumption that year. In leading European countries, biomethane already accounts for higher shares of gas use. Industry experts note that Spain’s biomethane potential is significantly higher than current targets suggest.

Experts emphasize that institutional support is essential to accelerate this technology and learn from other European leaders in biogas and biomethane. They also highlight that existing infrastructure can support rapid and competitive deployment, and that structural updates will help scale this energy vector.

The study concludes that beyond binding targets, developing a guarantee of origin system for renewable gases and digitizing gas networks will reduce administrative hurdles for building biogas plants. It also calls for a clear regulatory and financial framework to enable non-electrical uses of biogas, including financing injection costs, valuing export rights, and securing sales at competitive prices through auctions.

With these measures, the European Union can reduce energy dependence and make biogas an indispensable part of waste management, while driving emissions reduction and sustainable development.

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