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European biogas production could double by 2030: EBA

  • : Biofuels, Natural gas
  • 21/01/28

Biogas and biomethane production in Europe could double by 2030 and more than quadruple by 2050, according to the European Biogas Association (EBA).

Around 19,000 biogas plants and 725 biomethane plants are already in use in Europe, producing around 167TWh of biogas and 26TWh of biomethane. The EBA projects overall production to increase to up to 467TWh by 2030, of which around 117TWh will be available for the road transport sector. This will allow for an increase in the share of biomethane used to fuel Europe's natural-gas vehicle fleet, which it said will comprise around 13.2mn vehicles by that date.

In comparison, only around 3.9TWh of biomethane was used to fuel natural-gas vehicles on European roads in 2020.

Biomethane, which is purified biogas that can be used as a substitute for natural gas, will primarily play a role in those sectors in transport that are difficult or impossible to electrify, such as heavy-duty truck operations, according to participants of the recent virtual Fuels of the Future conference.

Compressed biogas (bio-CNG) has an advantage, in that much of the supply chain and infrastructure is in place. This year, most of the around 850 CNG filling stations in Germany have switched to biomethane, Eon Biogas' head of portfolio management Claus Bonsen said during the conference. The premium of bio-CNG to fossil CNG of around 5¢/kWh can be compensated by participating in the German greenhouse gas (GHG) emission reduction certificate market.

But additional investment is needed to increase the market share of liquefied biogas (bio-LNG), because suppliers will have to change their supply chain and the number of gas liquefaction plants is limited. The LNG market in Germany will therefore remain mainly fossil in the near future, but the bio-LNG sector will grow in the mid- and long term, Bonsen said.

The feedstock used for biomethane production was mainly energy crops, but since 2017 producers have moved towards agricultural residues, bio- and municipal waste and sewage sludge, according to the EBA.


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24/07/05

Caribbean power faces long recovery from Beryl

Caribbean power faces long recovery from Beryl

Kingston, 5 July (Argus) — Power utilities in several eastern and central Caribbean countries have started repairing networks that were brought down this week by Hurricane Beryl. Beryl — the Atlantic's first hurricane this season — hit several islands with winds of up to 225 km (140 miles)/h, and also damaged roads, bridges and ports and telecommunications infrastructure. Many parts of Jamaica, Grenada and St Lucia remain without power, with one utility company forecasting "a long and difficult period of continuing darkness" in these countries. Jamaican power utility JPS said yesterday 60pc of its clients — just under a half a million households — were without electricity. "Our teams are doing damage assessment, and will complete the necessary repairs to restore power as quickly and as safely as possible," the company said. Beryl entered the Caribbean earlier in the week, leaving extensive damage in St Vincent and the Grenadines and in Dominica. St Vincent and the Grenadines will be without power for the next fortnight, chief executive of its power utility Vinlec Vaughn Lewis said. "We have significant damage … and we will be working to get power to facilities such as gas stations and supermarkets." Granada's ward island Cariacou is in an "Armageddon-like condition," prime minister Dickon Mitchell said. "The electricity and communication systems are wiped out." Winds from Beryl hit the southern coast of the Dominican Republic on 3 July, causing blackouts from a deficit of 900MW, according to distributor Edesur. Winds affected major natural gas-fired power plant AES Andres, reducing its regasification capacity for LNG and its fuel supplies to other natural gas plants, the government said. Beryl left several thousand people without power in the Cayman Islands yesterday as it left Jamaica and headed for Mexico. The Caribbean is likely to be hit by more strong hurricanes by the end of the season in November, a spokesman for Jamaica's weather office told Argus . "We have been promised a very active season with many and strong storms." The US federal weather agency NOAA forecast that there is an 85pc chance that this year's Atlantic hurricane season will be "above normal." The Atlantic season's first hurricane "sets an alarming precedent for what is expected to be a very active hurricane season," the World Meteorological Organization said. By Canute James Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US adds 206,000 jobs in June, jobless rate ticks up


24/07/05
24/07/05

US adds 206,000 jobs in June, jobless rate ticks up

Houston, 5 July (Argus) — The US added a solid 206,000 jobs in June while job gains in the prior two months were revised downward and wage gains cooled. The job gains, which beat analyst estimates, followed downwardly revised 218,000 job gains in May and 108,000 gains in April, the Bureau of Labor Statistics (BLS) said today, for a combined downward revision of 111,000 for the prior two months. The US generated a monthly average of 220,000 jobs in the 12 months through May. Economists expected gains of about 190,000 in June, according to a survey by Trading Economics. The jobless rate ticked up to 4.1pc, the highest in more than two years, from 4pc. Still, the unemployment rate remains near five-decade lows. Construction added 27,000 jobs, while manufacturing lost 8,000 jobs. Gains also occurred in government, health care and social assistance. Average hourly earnings rose by 3.9pc from a year earlier, down from a 4.1pc annual gain in the prior month and the lowest in three years. Futures markets after the jobs report indicated a 71.8pc chance the Fed will cut its target rate by a quarter point from a 23-year high in September, up from 68.4pc odds on Wednesday. The Federal Reserve, after its last policy meeting in mid-June, had penciled in one likely quarter point rate cut was likely this year, paring that from a likely three cuts shown in March. Still, it also said it needs to see evidence that inflation is "sustainably" slowing towards its 2pc target before beginning to cut rates from 23-year highs. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Q&A: RAG says EU lacks clear hydrogen storage rules


24/07/04
24/07/04

Q&A: RAG says EU lacks clear hydrogen storage rules

Brussels, 4 July (Argus) — RAG Energy Storage has been one of the front-runners in hydrogen storage, and established the first operational commercial underground hydrogen storage (UHS) in a depleted gas field in April 2023. Argus spoke to its managing director Georg Dorfleutner, who is calling for a clear framework. Are you OK with the EU apparently scaling back from 10mn t/yr of hydrogen imports? We base the modeling of the report for HeartforEurope more or less on 2030 projections from the RepowerEU strategy. The assumptions on our modelling to identify an investment gap for hydrogen storage were rather conservative — that the only demand would come from industry, thus a rather flat profile over the year without seasonal-shift needs yet. From our side we have multiple potential hydrogen storage projects throughout Europe, but the hydrogen market development and support regimes for infrastructure investments will define the timely realisation. How might any scaling back affect your report's projected 36 TWh H2 storage gap? Whatever happens infrastructure needs to be in place very soon. Our report really underlines the need for a clear framework for hydrogen storage. And we come with a toolbox of different possible measures to support this. Storage tariffs alone won't solve the issue of market ramp-up. Policymakers may feel relieved that the gas and hydrogen decarbonisation package was finished before the EU elections. But our report is more or less saying that this alone will not do the trick. Could a strict EU definition of low-carbon hydrogen hinder growth? The wider and more pragmatic the definitions of low-carbon hydrogen are, the easier market ramp-up will be. Market ramp-up is enormously important for infrastructure. You don't build infrastructure just for demand over the next two years but for the next 10-15 years. Do we need more tailored financial support for UHS, at EU and state levels? There's simply no tailored financial support right now. There's a little aid for hydrogen storage research projects. Currently, policy-making appears focused on whether or not hydrogen infrastructure has to be unbundled. As for financial support, we're completely out of the picture for now. And there's this idea that regulated tariffs make commercially viable projects. But that's not true. It's only booked capacity based on a cost-covering approach that delivers a financially viable project. You don't build infrastructure just to have nice infrastructure without customers. Do we need EU and member state UHS targets? We're not looking for a strict mandatory goal. But if there is a certain goal for hydrogen uptake in the market, then you should ensure that you have the necessary infrastructure in place. That said, targets may be helpful at state level in setting a framework for state aid. But we also have to recognise that Europe is very diversified. Some areas may have very well-functioning hydrogen supply while other landlocked countries might depend on longer supply chains, thus being more dependent on storage. Are markets ready for UHS? Firms are already approaching us. The market is willing, but they need to know what the costs are. The best way forward then is providing clear rules for storage and giving industry a clear pricing idea. There also need to be clear state support mechanisms until we get to cheaper hydrogen and sufficient infrastructure utilisation. In the process of creating UHS capacities we need to keep in mind the SOS for natural gas, which currently is crucial. That's why we focus on new sites — caverns, porous reservoirs and aquifers — rather than repurposing. But at some point, post-2030 with a market ramp-up, decisions on repurposing gas into hydrogen storage will need to be taken. Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Upper Mississippi locks closed by high water


24/07/03
24/07/03

Upper Mississippi locks closed by high water

Houston, 3 July (Argus) — High water levels on the upper Mississippi River have caused several lock closures and spurred delays for barge carriers. Lock and Dams (L&D) 12, 16 and 17 on the upper Mississippi River closed 2 July and are expected to remain closed through the rest of this week and possibly into the next, according to the US Army Corps of Engineers. Locks 11, 13, 18 and 20 are expected to close on 4 July. The Corps will likely close locks 14 and 22 on 5 July, while lock 15 is expected to close 6 July. The Corps said the duration of the July 4-5 closures is unclear. Another 2-5 inches of rain fell along the western Corn Belt in the past week, according to the National Oceanic and Atmospheric Administration. High river conditions led to major flood status at Dubuque, Iowa, while other locations along the river are at moderate flooding levels. Water levels are 4-5ft below record highs on the upper Mississippi River. The outdraft at lock and dam 16 was at 211,444 cubic feet per second (cfs) on Tuesday, compared with typical flow of 41,100cfs. Major barge carrier American Commercial Barge Line anticipates 7-10 days of disruption followed by a 2-3 week catch-up. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US services contract in June, signal broad weakening


24/07/03
24/07/03

US services contract in June, signal broad weakening

Houston, 3 July (Argus) — Economic activity in the US services sector contracted in June by the most since 2020 while a report earlier this week showed contraction in manufacturing, signaling a broad-based slowdown in the economy as the second quarter came to an end. The Institute for Supply Management's (ISM) services purchasing managers index (PMI) registered 48.8 in June, down from 53.8 in May. Readings above 50 signal expansion, while those below 50 signal contraction for the services economy. The June services PMI "indicates the overall economy is contracting for the first time in 17 months," ISM said. "The decrease in the composite index in June is a result of notably lower business activity, a contraction in new orders for the second time since May 2020 and continued contraction in employment." The business activity/production index fell to 49.6 from 61.2. New orders fell by 6.8 points to 47.3. Employment fell by 1 point to 46.1. Monthly PMI reports can be volatile, but a services PMI above 49 over time generally indicates an expansion of the overall economy. "Survey respondents report that in general, business is flat or lower, and although inflation is easing, some commodities have significantly higher costs," ISM said. The prices index fell by 1.8 points to 56.3, showing slowing but robust price gains. ISM's manufacturing PMI fell to 48.5 in June from 48.7 in May, ISM reported on 1 July. It was the third consecutive month of contraction and marked a 19th month of contraction in the past 20 months. Wednesday's weaker than expected ISM report, together with a Wednesday report showing initial jobless claims last week rose to their highest in two years, slightly increase the odds that the Federal Reserve may lower its target rate later this year after maintaining it at 23-year highs since last year in an effort to stem inflation. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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