targets up
Energy companies in Spain are urging the government to streamline support and policy reforms that would unlock a historic opportunity. Spain is positioning itself at the forefront of the renewable gas movement by becoming a European hub for biomethane, a clean fuel produced from biogas created by recycling organic waste. The Spanish Gas Association, known as Sedigás, is advocating for public assistance and regulatory updates to maximize biomethane production, strengthen local energy resilience, and accelerate the decarbonisation journey of the country.
Spain’s gas sector, encompassing marketers, transmission and distribution networks, and suppliers, holds the potential to generate around 163 terawatt hours of biomethane each year. If realized, this level could cover nearly half of Spain’s natural gas demand last year, while delivering substantial savings for households by reducing reliance on imports from external suppliers. Biomethane production was still minimal in 2022, contributing less than a quarter of a terawatt hour. The shift toward larger-scale biomethane would therefore mark a meaningful leap for energy security and economic relief for consumers, as well as a step toward a more circular economy.
Biomethane is a form of biogas that results from the decomposition of agricultural residues, livestock waste, and wastewater. After cleaning and processing, it is made compatible with existing natural gas networks and equipment. The result is a locally generated energy source that supports industrial activity and promotes waste reuse, contributing to decarbonisation and a more sustainable energy system.
To realize Spain’s full potential, Sedigás and PwC conducted a study on the country’s biomethane production capacity. The analysis estimated that about 2,326 private facilities could come online nationwide. At present, five projects are in operation and roughly 200 are in corporate portfolios. Realising the expansion would require an investment around €40.5 billion by 2030 and the creation of approximately 62,000 direct and indirect jobs tied to operation and maintenance—a substantial boost for regional economies and green job opportunities.
Joan Batalla, president of Sedigás, notes that government support has weakened recently, hindering the biomethane sector’s growth compared with its peers in the European Union. He stresses that progress is hampered not only by policy gaps but also by administrative, regulatory, economic, and financial barriers that deter new biomethane infrastructure investments. He points to examples from France, Germany, Denmark, and Sweden where policy incentives have fostered rapid development. He also highlights that neighboring Turkey’s incentives have proven effective in attracting both investors and consumers to this technology.
Experts emphasize that Spain has made early strides in creating pathways for biomethane, including the Biogas Roadmap. Yet many practical obstacles remain, and a clearer and more stable policy framework would help attract capital and speed deployment. The conversation around boosting biomethane production is part of a broader shift toward energy independence and resilience in Europe’s gas system.
Teresa Ribera, vice president and minister for Ecological Transition, underscored the country’s delayed yet accelerating exposure to biogas during a recent dialogue. She acknowledged the vast potential from the country’s agricultural and urban waste streams and indicated that the Ministry is preparing reforms to unlock that potential while ensuring environmental and social safeguards. The administration is already updating national strategies to align with long-term decarbonisation goals, with new emphasis on renewable gases and increased biomethane targets, alongside a renewed focus on green hydrogen as complementary energy vectors.
The European Union’s REPowerEU framework places a strong emphasis on renewable gases as a key element of energy sovereignty and diversification. The plan aims to expand biomethane production to 35 billion cubic meters, matching about 10% of gas consumption, and to bolster gas networks with substantial investment to ensure the safe and reliable movement of renewable gases across borders. This integration supports Europe’s broader strategy to reduce exposure to external gas supplies and accelerate the transition to a low-emission energy system.