Biomethane is an essential solution for reducing Scope 1 emissions and transitioning to a more sustainable energy system. However, businesses face significant challenges when it comes to sourcing, tracking, and certifying biomethane effectively. From certification hurdles to price volatility and evolving regulatory incentives, procurement complexities can slow adoption and increase costs.

Discover the key barriers to biomethane procurement and effective strategies that businesses can use to overcome them.

1. Ensuring Proper Certification

Proper certification is critical to verifying the sustainability and authenticity of biomethane purchases. Without it, businesses may struggle to prove their emissions reductions, risking regulatory non-compliance and reputational damage.

In Brazil, Gas-RECs (biomethane certificates) function similarly to renewable energy certificates (RECs) in electricity markets, ensuring accurate tracking and verification of biomethane consumption. Managed by Instituto Totum, these certificates are expected to align with the IREC global standard, increasing their credibility and international recognition.

To overcome these challenges, businesses can implement biomethane certificate tracking platforms to streamline verification and ensure transparency. Partnering with suppliers that provide certified biomethane with clear tracking mechanisms helps maintain credibility and compliance. Additionally, staying informed about international standards and evolving regulations is essential for navigating the complexities of biomethane procurement effectively.

2. Navigating Pricing Volatility

Biomethane pricing is influenced by supply-demand fluctuations, feedstock availability, and regulatory policies. With natural gas prices varying significantly in Europe, businesses may face challenges securing cost-effective and stable pricing for biomethane. However, companies that valorise by-products such as digestate and biogenic CO₂ can offset costs and improve overall financial feasibility.

To mitigate these challenges, businesses can leverage long-term contracts with trusted suppliers to secure stable pricing and reduce market volatility. Monitoring real-time market trends allows companies to identify cost-saving opportunities and make informed procurement decisions. Additionally, exploring by-product utilisation strategies can enhance the economic value of biomethane, making it a more viable and cost-effective solution.

3. Tracking Emissions Reductions

Accurately reporting emissions reductions from biomethane consumption requires robust data tracking. The Greenhouse Gas Protocol (GHGP) is currently revising its standards to provide clear guidance on biomethane certificates for emissions accounting, particularly for non-segregated RNG supply. Without proper tracking, businesses may risk overestimating or underreporting their actual emissions savings.

To streamline emissions reporting, businesses can utilise digital tracking platforms to automate data collection and verification. Aligning reporting methodologies with the Greenhouse Gas Protocol (GHGP) and other global standards ensures consistency and compliance. Additionally, partnering with third-party verifiers enhances data accuracy and credibility, helping organisations meet regulatory and sustainability requirements effectively.

4. Understanding Regulatory Incentives

Governments worldwide are implementing biomethane incentives to accelerate adoption, but navigating these policies can be challenging. In Italy, the National Recovery and Resilience Plan (NRRP) allocates €1.7 billion to support biomethane production, offering financial incentives for businesses investing in renewable gas. Understanding and leveraging these incentives can significantly lower procurement costs and enhance sustainability initiatives.

To fully capitalise on biomethane opportunities, businesses should stay informed about local, national, and EU-wide policies that impact the market. Building partnerships with industry associations and policymakers can provide access to valuable incentives and support. Additionally, consulting regulatory experts helps maximise financial benefits and ensure compliance with evolving regulations, making biomethane procurement more strategic and cost-effective.

Overcoming Biomethane Procurement Challenges

While biomethane presents a significant opportunity for emissions reduction and sustainability, businesses must address procurement challenges with strategic planning and digital solutions.