The European biomethane market continues to develop dynamically. By the end of the second quarter of 2026, installed production capacity had reached 8.2 billion m³ of biomethane per year, representing year-on-year growth of 17%. Investment commitments, the number of production facilities and demand from industrial customers are all increasing.
European capacity grew by 17%
According to the latest European Biomethane Map, published by the European Biogas Association and Gas Infrastructure Europe, Europe’s installed capacity has exceeded 8 billion m³ per year for the first time.
There are now 1,975 biomethane facilities registered across Europe. During the latest reporting period, 327 new plants entered operation. The average European biomethane plant has a production capacity of 472 Nm³ per hour.
New projects are being developed across Europe, and biomethane is increasingly establishing itself as a locally produced and storable alternative to natural gas.
Investment commitments reached EUR 36 billion
The expansion of production capacity is accompanied by significant investor interest. The European Biogas Association currently records investment commitments of EUR 36 billion, compared with EUR 28 billion in the previous reporting period.
The projects included in this investment outlook represent the potential for an additional 9 billion m³ of annual production capacity by 2030.
Biomethane is therefore becoming an important European infrastructure and energy asset. Its development supports energy independence, the use of biological waste, industrial decarbonisation and the continued growth of the circular economy.
The European Commission is connecting producers, customers and investors
The launch of the European Biomethane Mechanism represents an important step in the further development of the market. The European Commission officially launched the mechanism on 18 June 2026 as part of the EU Energy and Raw Materials Platform.
The new mechanism connects biomethane producers, industrial customers, investors and financing opportunities. It also provides access to information about regulatory frameworks and emerging investment opportunities across individual European countries.
The first supply and demand matching round is scheduled for September 2026. This creates a Europe-wide environment that can accelerate the conclusion of long-term contracts and the development of new projects.
Demand from industrial customers is growing
A specific example of growing industrial demand is the ten-year agreement between ENGIE and PepsiCo UK. PepsiCo will purchase 60 GWh of biomethane annually from a new anaerobic digestion facility being developed in Northern England.
The project is valued at GBP 70 million and is expected to begin operations in the second half of 2027. The biomethane produced by the facility will be equivalent to the annual gas consumption of approximately 5,000 households.
Long-term offtake agreements of this kind demonstrate the growing importance of biomethane in the decarbonisation of the food industry and other industrial sectors.
A strategic energy asset
Biomethane brings together several key European trends. It uses existing gas infrastructure, converts biological waste into energy, supports local economies and helps reduce dependence on imported fossil fuels.
The coproducts of biogas plants also play an important role. Digestate can be used as an organic fertiliser, while captured biogenic CO₂ has applications in agriculture, food production and industry.
WERO has long viewed biogas plants as a promising component of the modern European energy system. Their development and gradual conversion to biomethane production connect tangible energy assets with the long-term needs of the European economy.
Biomethane is gradually evolving from a locally produced renewable energy source into a strategic energy asset with significant potential for further growth.
Sources
- European Biogas Association and Gas Infrastructure Europe, European Biomethane Map 2026 and Biomethane Investment Outlook 2026, 1 July 2026.
- European Commission, Biomethane Mechanism: Connecting Buyers and Sellers, 18 June 2026.
- Reuters, ENGIE Inks Sector-First Biomethane Supply Deal with PepsiCo UK, 21 January 2026.