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conference paper · SPE Nigeria Annual International Conference and Exhibition

The Role of Biomethane in the Energy Transition: Pathways, Economics, and Future Prospects

In plain language

Modern bioenergy accounts for over 6% of global energy consumption and represents 55% of renewable energy worldwide. Upgrading biogas to biomethane involves removing carbon dioxide and other impurities through techniques such as water scrubbing, chemical scrubbing, physical scrubbing, pressure swing adsorption, and membrane separation. Biomethane provides a direct replacement for natural gas, enabling use as transport fuel, heating supply, and fuel for off-site combined heat and power systems. Production costs range from 25 to 100 Euros per megawatt-hour, making biomethane competitive with European fossil gas. When used to produce hydrogen, costs range from 0.83 to 3.33 Euros per kilogram, lower than green hydrogen produced via electrolysis. Furthermore, biomethane can leverage existing gas distribution networks, supporting broader adoption and energy security within global net-zero emissions strategies.

Key takeaways

  • Modern bioenergy accounts for 55% of renewable energy and more than 6% of global energy consumption.
  • Biogas is upgraded to biomethane using water, chemical, or physical scrubbing, pressure swing adsorption, or membrane separation.
  • Biomethane production costs range between 25 and 100 Euros per megawatt-hour, producing hydrogen at 0.83 to 3.33 Euros per kilogram.
  • Biomethane is more cost-competitive than electrolyser-derived green hydrogen and benefits directly from existing gas distribution infrastructure.

Why it matters

Biomethane provides an immediate, drop-in alternative to fossil natural gas using existing pipeline infrastructure. Because it produces hydrogen at significantly lower costs than water electrolysis, it offers an economically attractive pathway to reduce greenhouse gas emissions across heating, transportation, and industrial power generation without waiting for new distribution networks to be constructed.

Commercialisation angle

Biomethane serves commercial applications across transport fuel, heating, and combined heat and power generation, appealing to gas utilities, vehicle fleet operators, and industrial hydrogen producers. Because production relies on established scrubbing, adsorption, and membrane technologies and utilises existing gas grids, the technology represents an applied, near-market solution capable of immediate integration alongside fossil gas networks.

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Abstract

Abstract Modern bioenergy, especially in the forms of biogas and biomethane, has become the most significant renewable energy source worldwide, accounting for 55% of renewable energy and over 6% of global energy consumption. Consistent with the Net Zero Emissions by 2050 Scenario, bioenergy is anticipated to play an essential role in replacing fossil fuels by 2030. Biogas can be used in various ways, such as for local heating and in Combined Heat and Power (CHP) systems, while biomethane acts as a direct alternative to natural gas, supporting circular economy initiatives and promoting sustainable energy solutions. Our research centers on converting biogas to biomethane by eliminating impurities, mainly CO2, to enhance methane levels. The upgrading methods encompass several technologies, including water scrubbing, chemical scrubbing, physical scrubbing, pressure swing adsorption, and membrane separation. The adaptability of biomethane allows it to be utilized in the transportation sector as fuel, as a natural gas substitute in heating applications, and for off-site CHP units. The costs of producing biomethane vary between €25/MWh and €100/MWh, positioning it as a financially competitive option against fossil gas in Europe. This cost leads to a hydrogen production expense of €0.83 to €3.33 per kg, which is considerably lower than the cost of producing green hydrogen through electrolysis (€4/kg, with hopeful estimates ranging from €1-2/kg). Considering current market dynamics, biomethane is likely to remain more economically attractive than green hydrogen for the near future. The consistent growth in bioenergy usage, averaging an annual increase of 7% from 2010 to 2021, highlights its increasing importance in the energy transition. Unlike hydrogen, biomethane benefits from a pre-existing distribution network, facilitating its widespread implementation. A robust political environment is crucial to foster the expansion of the renewable gas sector. By incorporating biogas and biomethane into global energy frameworks, we can improve energy security, encourage sustainability, and hasten the move toward a net-zero emissions future.

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DOI: 10.2118/235177-ms

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