Biomethane
The government has decided to increase the price of biomethane under an Order published on 13 June, which also plans to improve its energy price indexing. The Ministry of the Energy Transition is announcing a price increase of approximately 12% compared to the last Decree in force. It also specifies that the price will be indexed twice a year, compared to just once previously.
These government measures are good news for biomethane producers, who will be able to offset the increase in production costs experienced since 2022 and the surge in energy prices. It also presents them with an investment lever, with biogas volumes expected to increase sharply.
The France Biométhane trade union stresses that the sector is set for a “major turning point” on 1 January 2024, with the entry into force of the obligation for individuals to sort their biowaste – a provision of the Anti-Waste Act (AGEC).
“This will steer very large volumes of materials towards anaerobic digestion units.”Frédéric Flipo
Spokesperson for France Biométhane
Prior to these increases, the purchase price of biomethane by gas suppliers was between €90- 100 per MWh, depending on the size of the sites. This price was regulated by a framework contract set by the State. The 12% increase should guarantee a lower limit of at least €100 per MWh.
