Back in the spotlight because of the energy crisis, biomethane production is a perfect example of the benefits of the circular economy
By Giorgio Kaldor of Renewable Matter
In recent years, driven by the decarbonization goals of the Fit for 55 package and the energy crisis triggered by the Russian invasion of Ukraine, the European Union has rediscovered biomethane as a strategic resource. However, biomethane is not only a newfound player in Europe’s energy mix, it is also a perfect example of the benefits of the circular economy. In fact, biomethane is obtained from the purification of biogas, which is produced through the anaerobic digestion of matrices such as organic waste, livestock manure, agricultural residues and wastewater sludge.
Its production offers farmers a new source of income and improves soil quality through its by-product, digestate, which is used as an organic fertilizer. Finally, under certain conditions it can also promote industrial symbiosis, in the future, even fostering the creation of industrial clusters where one company’s waste becomes a resource for another.
Biomethane is circular, not just “renewable”
Biomethane is normally described as a renewable carrier. However, according to the European Biogas Association (EBA), this definition is not entirely accurate. “Rather, biomethane is a circular, nonlinear product, and anaerobic digestion represents a real ‘hub’ of the circular economy,” Giulia Cancian, secretary general of EBA, explains. “An ideal biomethane plant is well rooted in the local area, takes advantage of local resources to produce biogas, and addresses social and environmental challenges, such as reducing methane emissions from livestock manure or other waste materials.”
In an efficient circular economy model, digestate is then valorized as a by-product, returning it to the soil to enrich it with nutrients and carbon. Indeed, soil quality in Europe is deteriorating rapidly. According to European Commission data, 60-70 percent of European Union (EU) soils are unhealthy, in part due precisely to current soil and manure management practices. With possible negative impacts on water quality and biodiversity as well, a special report by the European Court of Auditors points out.
The paper noted in July 2023 the insufficient use by the Commission and member states of the use of EU instruments for sustainable farmland and manure management, among them the Common Agricultural Policy (CAP) and the Nitrates Directive. “Digestate represents a practical and cost-effective solution to maintain soil fertility and ensure sustainable agricultural production,” Cancian continued. “It also contributes both to energy security and to the reduction of fertilizer imports. Finally, another aspect that should not be overlooked isbiogenic carbon dioxide, which can be stored and used, for example, in agriculture (such as in greenhouses) or in the agribusiness industry.” .
Biomethane in Europe
Unlike other renewable energy sources, such as solar and wind, biomethane production is programmable, which allows for more flexible energy management. Because of its chemical composition similar to that of natural gas, biomethane can be fed directly into the existing grid, the one that feeds homes. These characteristics have allowed biomethane to gain an increasingly prominent role in European policies, especially in response to the goal of climate neutrality and the need to diversify energy supply sources in the wake of the Russian-Ukrainian conflict. With the RePowerEU Plan, Brussels has not only initiated an industrial partnership, but also doubled the target for biomethane production and use to 2030, setting it at 35 billion standard cubic meters, compared to the Fit for 55 package.
“Just over 21 billion cubic meters of combined biomethane and biogas are currently produced in Europe, an amount equivalent to the gas needs of a country like Poland, so a significant number,” Cancian continues. “For biomethane alone, production in Europe was close to 4 billion cubic meters at the end of 2022. We updated the mapping of biomethane to 2024, including plants that came on stream in 2023, and found interesting growth: installed capacity at the European level is now 6.4 billion cubic meters, including 5.2 billion in the EU27, where it has grown by 37 percent.”
According to Cancian, leading the expansion is France, thanks to supportive measures and effective centralized planning, which has divided the territory into small zones (so-called zonage) to assess the demand for biomethane and the areas in which to inject the gas. In addition, the right to inject directly into the grid, known as “right to inject,” has been a key element in facilitating the development of the sector. “France is followed by Italy, where, last year, the number of new plants quadrupled, with significant installed capacity,” concludes EBA’s general secretary. ” Denmark is also growing rapidly, driven by its gas network decarbonization goals. These three countries are driving the growth of biomethane, but there is also growing interest in other nations, such as Spain and Poland. We will see in the coming years whether this translates into an increase in installed capacity.”
Italian potential and PNRR nodes on biomethane
Italy has significant potential for biogas and biomethane development. “Currently, there are about 1,803 biogas plants in Italy, with a total installed capacity of 1,066 MW,” the Italian Biogas Consortium (CIB) lets us know. Specifically, incentivized biomethane production, according to the DM of March 2, 2018, totals 719,130,563 Smc/hour. Following the first three competitive procedures carried out under the Ministerial Decree of September 15, 2022, 157 projects were eligible for incentives, with a production capacity of 71,950 Smc, corresponding to an annual production of about 630 million Smc.
“The National Recovery and Resilience Plan (NRP) introduced specific investments for biomethane, and the recent update of the National Integrated Energy and Climate Plan (NIPEC) sees an estimate for the sector of 4.9 billion Smc of biomethane by 2030.” In the face of this potential, however, the CIB data go further, estimating a production of 6.5 billion Smc of agricultural biomethane by 2030. In order to aim for these figures, however, CIB is calling for a boost to the authorization processes to allow more companies to access PNRR funds, in light of the delays in the start-up phase of the calls, and all the more so in light of the trajectories defined by the PNIEC to 2030. “Urgent work is still needed to accelerate the implementation processes of the still missing regulations, to introduce the mechanisms that favor the reduction/socialization of network connection costs, as well as to make the gas transmission and distribution network more flexible,” the CIB concludes.
The future is in districts if production incentives drop
The biomethane system functions as a closed, circular cycle, with strong integration between the energy and agricultural sectors. It is Giovanni Sorlini, head of quality, safety and sustainable development at Inalca (Cremonini Group), who tells of this two-way link. With an investment of 28 million euros, NewCo Biorg, the result of a partnership between the multi-utility Herambiente and Inalca, has inaugurated an old biodigester in Spilamberto (Modena) into a state-of-the-art plant capable of producing 3.7 million cubic meters of biomethane and 18,000 tons of compost each year, starting with organic waste from separate collection and agrifood waste.
“Having found this plant and company solution allows us to place what is waste by law, while being excellent for producing biogas, in our case sewage sludge,” explains Giovanni Sorlini. “This solution allows us to adapt industrial plants in large slaughterhouses to biomethane production in agricultural settings. By working with Hera, we can channel waste efficiently, making the most of the opportunities offered by incentives and integrating our animal suppliers. Our model involves collecting livestock waste and slaughter by-products, which are not considered waste, and returning digestate to farmers, who provide us with manure and slurry.” .
This configuration “of our agro-industrial plants allows us to take advantage of subsidies, such as up to 40 percent subsidy on investment, and to plan for a future for electric biogas plants whose incentives expire by 2025, turning them into agricultural plants and thus aiming for a zero-waste goal,” Sorlini continues. “We are evaluating the possibility of starting new biogas projects at the plants in Pegognaga, Ospedaletto Lodigiano and the recently acquired plant in Forlì. These plants, which are connected to slaughterhouses and livestock farms, could be upgraded from a district perspective, since they are located in areas with a strong livestock vocation. In particular, small and medium-sized dairy farms, with less than 100-120 cows, cannot support the construction of biogas plants on their own. Therefore, the most viable solution is to develop consortium projects that unite these realities.”
What benefits from districts for small farmers?
For the small- to medium-sized farmer, organic waste management models appear to offer significant benefits. “Planners explain that by delivering slurry to a plant that returns digestate and manages the manure plan, not only do you save money, but you gain about 25 work days per year,” Sorlini explains. “This freed-up time can be devoted to the farm’s core business, such as the milking plant and maintenance, while activities related to waste management and fertilization are outsourced to specialized professionals.”
Finally, an economy of scale would ensure a steady supply of organic fertilizer to adopt stable and sustainable agronomic strategies. “This constancy, achieved through composting, allows farms to avoid the temptation to switch to chemical fertilizers when prices are low,” Sorlini concludes. “Two years ago, chemical fertilizers were competitive due to the high cost of organic fertilizers and the energy crisis. Now, with the crisis over and chemical fertilizer prices down, maintaining a stable organic supply is even more crucial. Therefore, farms need to establish reliable agronomic protocols and not be forced to constantly change their practices based on market fluctuations.”
