The European Biogas Association (EBA), working with Gas Infrastructure Europe (GIE), has published new data showing that Europe’s biomethane sector continues to expand.
Annual production capacity reached 8.2 billion cubic metres (bcm) by the end of the second quarter of 2026, representing a 17% increase from the previous year and takes Europe’s installed capacity beyond 8 bcm for the first time.
The findings come from the latest European Biomethane Map and the Biomethane Investment Outlook, which together track the sector’s expanding production base and investment pipeline. Investment commitments have risen from €28bn to €36bn, signalling stronger financial backing for new biomethane projects across Europe.
If those investments are fully realised, they could add a further 9 bcm of annual biomethane production capacity by 2030. That would strengthen domestic energy supplies while supporting Europe’s efforts to cut fossil fuel use and reduce greenhouse gas emissions.
What is biomethane and how is it used?
Biomethane is a renewable gas produced by processing biogas generated from organic materials such as agricultural residues, food waste, manure and sewage.
The biogas is purified to remove carbon dioxide and other impurities, leaving a methane-rich gas that can be used in much the same way as conventional natural gas.
Because biomethane can be compatible with existing gas infrastructure, it does not necessarily require entirely new networks or end-use equipment. It can be supplied for heating and industrial applications, used to generate energy, or upgraded for use as a transport fuel.
Biomethane production can also support the circular economy by turning organic waste streams into a source of energy while producing useful by-products.
This combination of renewable energy generation, waste management and existing infrastructure is a key reason for growing interest in biomethane as Europe looks to reduce fossil fuel dependence.
Biomethane production capacity accelerates
The expansion is also reflected in the number of operating plants. The European Biomethane Map records 1,975 plants during the latest data collection period, compared with 1,678 previously. A total of 327 new facilities entered operation, although plant closures mean the net increase was lower.
Despite this growth, biomethane production remains heavily concentrated in a small number of countries. Five European countries currently account for around 95% of total production, leaving substantial room for less-developed markets to expand.
A 2026 Guidehouse study cited by the EBA estimates that the EU-27 could produce between 31 and 32 bcm of biomethane annually by 2030. By 2050, the potential could reach 163–184 bcm.
Europe’s plants vary considerably in scale
The European market also has significant differences in plant size. The average facility produces around 472 normal cubic metres per hour (Nm³/h), but national averages vary widely.
France has a large number of facilities but relatively small plants, averaging 212 Nm³/h. Italy and Germany operate larger installations, with average capacities of 667 Nm³/h and 607 Nm³/h respectively. Denmark has fewer plants but much larger facilities, averaging 1,528 Nm³/h.
These differences illustrate the variety of approaches being taken to biomethane production, depending on available feedstocks, infrastructure and national energy policies.
Policy could determine the pace of expansion
The investment figures suggest that financing is available, but industry stakeholders argue that capital alone will not be enough to unlock Europe’s full biomethane potential.
Clearer and more consistent regulatory frameworks will be needed to turn proposed investments into operational facilities. Dedicated national strategies and greater policy certainty could also help accelerate deployment in countries where the sector remains relatively small.
This matters beyond the renewable gas market itself. Biomethane can be produced from sustainable organic feedstocks and injected into existing gas networks, allowing it to contribute to energy supply without requiring an entirely new distribution system.
A role in Europe’s energy security
As Europe seeks to reduce its reliance on imported fossil fuels, biomethane is increasingly being considered as both a renewable energy source and a component of energy security.
Its potential extends beyond gas production. Biomethane systems can make use of locally available organic resources while generating co-products that support wider circular economy objectives.
The latest figures therefore point to a sector that has moved beyond early-stage development. With billions of euros committed to new projects and significant additional production potential available, the next challenge for Europe will be converting investment plans into capacity and ensuring that biomethane production expands more evenly across the continent.
