France Gaz says the government is putting the biomethane sector in a dead end

With over 800 biomethane production facilities connected to gas networks and nearly 16 TWh of annual injection capacity, and an equal number of sites producing biogas for cogeneration, the renewable gas sector is now fully operational. Its development addresses several strategic priorities: decarbonizing the energy system, strengthening national energy sovereignty, supporting agricultural transitions, reducing France's dependence on imported nitrogen fertilizers, and utilizing effluents in an international context marked by significant geopolitical tensions.

However, the persistent lack of visibility regarding the conditions for the sector's development, and in particular the trajectory of the CPB bond after 2028, is jeopardizing this momentum. More than one billion euros of investments are currently on hold, while numerous projects are mature and ready to be deployed across the country. Yet, the CPB scheme relies on an extra-budgetary mechanism, with no impact on public finances.

Even as the urgency to produce more biomethane intensifies and the government calls for the decarbonization of the gas system, the signals sent to the industry are contradictory. After nearly two years of waiting, a National Biogas Exchange Group was scheduled to meet on June 12th under the auspices of the Ministries of Energy and Agriculture, in order to make concrete progress on defining the post-2028 trajectory. The industry has just learned of the postponement of this meeting, without any specific date being announced.

“We can no longer wait. Project developers need visibility now, whether it's to secure the development of new sites or to support the evolution of existing facilities, particularly cogeneration units whose contracts are expiring, both in terms of conversion to injection and sustainable solutions for smaller installations. Every month lost delays investments, jobs, and volumes of renewable gas essential to achieving France's climate and energy objectives.”

Should this uncertainty persist, the sector's development momentum could once again be disrupted. Such a situation would be all the more incomprehensible given that France is currently the European leader in biomethane. Does the government intend to abandon France's renewable gas team just as it is poised to scale up its operations?

Biomethane contributes to security of supply, energy sovereignty, decarbonization, and value creation for farmers and local communities. It is now up to the Government to promptly address the uncertainties surrounding the future of the sector, particularly by quickly publishing the legislation necessary for implementing biogas production certificates and by setting an ambitious and credible trajectory beyond 2028.

Illustrative image of the article via Depositphotos.com.