Overview of the bio-methane sector in France and ideas for its development

The anaerobic digestion of organic waste, be it agricultural, industrial or household, produces biogas that is 50 to 70% methane, the main component of natural gas. The purification of this biogas produces bio-methane, a gas that is very similar to natural gas. Once injected into gas grids, bio-methane can be put to use in vehicle and heating fuel applications. This renewable gas is therefore a concrete alternative helping to reduce carbon emissions from natural gas uses. ENEA Consulting and 7 reference partners - Biogaz Vallee, Cryo Pur, GRDF, GRTgaz, Meridiam, TIGF and TOTAL - have published a report on their in-depth study of the French bio-methane sector's state of development. This comprehensive and objective overview is completed by ideas to boost the development of the sector. Launched in 2011, the French bio-methane sector is young, dynamic and already competitive. The study coordinated by ENEA Consulting identifies several drivers that could enable it to become a sustainable part of the French energy mix. From an industrial perspective: reduce costs through innovation and the optimisation of technologies and operating practices. The study shows that a 30% reduction in production costs is achievable within the next 5 to 10 years. From a regulatory perspective: progressively adapt the support framework in line with the sector's growing maturity. From a financial perspective: develop effective financing plans suited to the specifics of bio-methane. The study estimates that Euros 10 billion of financing will be required between now and 2030 to continue to develop production facilities. From an administrative standpoint: simplify the authorisation process to cut project development times. With a footprint in every region, the bio-methane sector offers a wide range of positive externalities, which, when fully harnessed, will help secure the industry's long-term future. In particular, the development of bio-methane will make it possible to: Firmly establish waste management and recycling processes within local circular economies; Ramp up the development of sustainable mobility solutions in the transport sector through the use of bio-methane vehicle fuel (bio-GNV), in the form of bio-CNG or bio-LNG, to improve air quality; Contribute to local economic development by providing farmers with an additional source of income (90% of bio-methane's production potential lies in agriculture); Attain the greenhouse gas emissions targets set by the Energy Transition for Green Growth Act. Key elements (End of June 2017): 35 sites are injecting bio-methane into the gas grid; 315 GWh/year of production, corresponding to the annual consumption of 26,250 households; A tripling of the quantity of bio-methane injected into the gas grid since 2015; France was ranked the 5. biggest bio-methane producer in Europe at the end of 2016; 297 additional projects are on the waiting list to be connected to the gas grid, corresponding to an injection capacity of 6.5 TWh/year, i.e. 2% of France's natural gas consumption A target of 10% renewable gas in French consumption by 2030 (Energy Transition for Green Growth Act)