“Biomethane is available” – VNG on the potential of renewable gas in decarbonisation
by Dagmar Dieterle-Witte
Within the VNG Group, VNG Handel & Vertrieb GmbH (VNG H&V) is one of the key players in natural gas, biomethane and hydrogen solutions in Germany and Europe. The biogas and biomethane business within the VNG Group is organised across the value chain: Whilst Balance Erneuerbare Energien GmbH produces biogas and biomethane and bmp greengas GmbH specialises in the marketing of biomethane, VNG H&V handles trading and integration into customer solutions. Together, the three companies represent the VNG Group’s expertise in biogas and biomethane.
In this interview with marketSTEEL, Alexander Lück, Executive Vice President Sales at VNG H&V, explains the role biomethane currently plays in the decarbonisation of industry – and why, despite significant opportunities, the market is coming up against natural and regulatory limits.
marketSTEEL: Mr Lück, what role does biomethane currently play in the decarbonisation of industry?
Biomethane already plays an important role in the decarbonisation of industry, particularly in areas where high levels of process heat are required and electrification is technically or economically difficult to achieve. Here, it can directly replace fossil natural gas without the need for major modifications to existing gas infrastructure or industrial plants.
Unlike many other renewable alternatives, it is not a technology of the future, but an energy source that can be used immediately. This is precisely why biomethane currently plays a key role in industrial decarbonisation.
However, the market is regulated and the requirements are complex. There are numerous quality and certification levels, meaning that companies must carefully assess which grade of biomethane makes economic and regulatory sense for their requirements. Unlike with conventional natural gas, individual product advice is therefore necessary.
marketSTEEL: How is VNG positioned in this sector?
Within the group, we hold a strong position across the entire value chain. BALANCE, a wholly-owned subsidiary of VNG AG, is one of Germany’s leading operators with over 40 biogas plants; at the same time, bmp greengas is one of the largest marketers of biomethane in Europe and one of the key players in the renewable gases sector. This enables us to combine natural gas, biomethane and, in the future, hydrogen solutions, and tailor them to industrial requirements.
marketSTEEL: Is there enough biomethane available for industry?
Yes, biomethane can already make an important contribution today in many areas of application, such as industry, depending on requirements. Looking ahead, the sector offers considerable potential for expansion, particularly if existing resources are systematically tapped and utilised.
For example, in addition to the volumes currently fed into the grid, a further 100 TWh of biogas could be produced in Germany and used directly on site, without being fed into the gas grid. This represents a key lever for making additional volumes of biomethane available to the market.
Further opportunities lie in the use of residues and biomass, for which there is demand from various sectors. To realise this potential, what is needed above all are reliable framework conditions that facilitate investment and accelerate expansion.
By optimising existing plants, constructing new biomethane plants and providing targeted policy impetus, biomethane’s contribution to decarbonisation can be significantly expanded. Whilst around 13 TWh of biomethane was fed into the German gas grid in 2025, current analyses show that an increase to 30–40 TWh is possible by 2030. This corresponds to an increase of around 130 per cent to over 200 per cent compared with current levels.
marketSTEEL: Are there any regional differences?
Yes, certainly. In eastern Germany, larger and more efficient biogas plants are often found due to the larger-scale agricultural structures. In southern Germany – for example in Baden-Württemberg – smaller, family-run plants predominate, some of which are under greater economic pressure.
Biomethane is also gaining in importance at European level. Under the RepowerEU plan, production is set to be massively expanded by 2030. Many Member States, such as France, Italy and parts of Eastern Europe, are already actively driving this expansion forward. This momentum opens up additional potential and, in the long term, will also strengthen the availability of biomethane on the European market.
marketSTEEL: What significance could biomethane have for energy-intensive industries such as steel or chemicals?
In our view, biomethane plays a complementary role. For large consumers, such as steelworks or chemical plants, additional volumes will be crucial as the sector continues to expand. At the same time, even small blends of one to three per cent can help to reduce CO₂ emissions in the short term and enable the first steps towards transformation to be taken.
Availability and price trends remain crucial factors here. With increasing decarbonisation requirements – for example in the fuel sector – demand for biomethane is also likely to rise further. This could lead to significant changes in the market in the future.
Photos: VNG Handel & Vertrieb GmbH