The European Commission has officially opened registrations for the new biomethane mechanism, a voluntary platform designed to connect buyers, producers, investors and public authorities, supporting the growth of the EU biomethane market and accelerating Europe's clean energy transition.
New support for the EU biomethane market through the Energy and Raw Materials Platform
Following the launch of the hydrogen mechanism, the European Commission is now turning its attention to biomethane. On 18 June, Brussels officially opened registrations for the new biomethane mechanism, a voluntary and free initiative designed to match supply and demand across Europe.
Developed within the EU Energy and Raw Materials Platform, the mechanism addresses a key market challenge by improving connections between producers, buyers and investors while increasing transparency across the sector.
The growth potential of the EU biomethane market
Europe’s biomethane sector continues to expand, although not yet at the pace required to unlock its full potential. Installed production capacity, based almost entirely on anaerobic digestion, reached 7 billion cubic metres per year by the end of the first quarter of 2025, representing a 9% increase compared with 2024.
However, this figure remains far below the sector’s long-term potential. According to the European Biogas Association (EBA), Europe could reach between 34 and 35 billion cubic metres of biomethane production by the end of the decade. This potential would primarily come from agricultural residues (25%), animal manure (23%), sequential crops (19%) and industrial wastewater (15%). The estimate also includes e-methane, the synthetic version of the fuel.
“Around 60% of this potential is concentrated in Germany, France, Italy, Poland and the United Kingdom,” the association notes, while highlighting that investor interest in the sector remains strong.
Why Europe needs a biomethane mechanism
What has been missing is not only production capacity but also a framework that enables market participants to operate more efficiently. Producers need easier access to potential buyers, while investors and developers require greater visibility on regulatory conditions and funding opportunities at national and European level.
The EU biomethane mechanism has been created specifically to address these barriers by providing a structured environment where stakeholders can exchange information and identify business opportunities.
How the new EU biomethane mechanism works
“Today marks a significant step forward in Europe’s clean energy transition,” said Dan Jørgensen.
“With the launch of the Biomethane Mechanism, we are stepping up our support for scaling up a domestic and sustainable energy source that strengthens our security of supply, reduces emissions and creates new economic opportunities. Biomethane is not just a fuel but a strategic resource that reduces our dependence on imported fossil fuels while supporting farmers, industries and local communities.”
The mechanism will provide greater visibility on both demand and supply, helping reduce information asymmetries and improve regulatory transparency. It is designed for European biomethane producers and buyers, as well as public authorities, network operators, investors and financial institutions.
Connecting buyers, suppliers and investors across Europe
Companies interested in purchasing biomethane will be able to submit supply requests, identify potential suppliers, access regulatory information on supply conditions and connect with financial institutions.
At the same time, biomethane producers and suppliers will gain visibility into demand across different Member States, identify aggregation opportunities with other suppliers to meet larger consumption needs and engage directly with buyers throughout Europe.
By facilitating these connections, the mechanism aims to create a more efficient and transparent marketplace, supporting the expansion of the EU biomethane market and helping Europe advance its energy security and decarbonisation objectives.
