Romania preparing to include biomethane in gas grid

Romania has drafted a directive that would regulate the production, transportation and distribution of biomethane and its inclusion into the gas network. The change is aimed at limiting the increase in the prices of gas for household heating, expected from the upcoming introduction of the ETS 2 carbon allowance scheme in the European Union. Delaying the shift would also affect the costs of industrial production and for other non-household consumers of gas.

Biomethane produced from sustainable sources is carbon neutral under the EU Emissions Trading System (EU ETS), making it appropriate for buildings and transportation, the Romanian Ministry of Energy said in a new draft emergency ordinance. With the executive order, it intends to pave the way for utilizing the renewable fuel in the natural gas network, Profit.ro reported.

The document is set to amend several acts and regulate the production, transportation and distribution of biomethane. It would counter, to an extent, the increase in gas prices for households, which is expected from the expansion of the EU’s carbon pricing scheme to buildings and transportation, the ministry explained. Namely, ETS 2 is scheduled to be introduced in 2027.

Biomethane is usually obtained by processing biogas to get methane of the same purity as in fossil gas

Any delay in allowing biomethane in the existing grid draws a risk of increasing the costs of natural gas consumption, both for non-household and household customers, the accompanying note reads.

Biomethane is usually obtained by processing biogas to get methane of the same purity as in fossil gas. The gaseous biofuel can also be produced from clean hydrogen and carbon dioxide. The EU allows incentives for biomethane facilities. Some countries in Southeastern Europe, like Greece, are developing the legal framework for embracing the technology within their energy transition.

Share in gas network planned to reach 10% by 2050

Romania is planning a 5% share of biomethane in its natural gas network in 2030 and to double it by mid-century. The sectors of waste management and agriculture can produce an estimated 501,000 tons of oil equivalent in 2050.

The EU is imposing strict requirements on the removal of biodegradable organic matter from wastewater and the reduction of food waste, the ministry noted. Together with agricultural and organic municipal waste, they are the main raw materials for the production of biogas.

According to the proposal, publicly announced business plans can secure a share of renewable gases in the grid up to 1.5%. However, without an urgent legislative intervention, the investments can’t materialize, the Ministry of Energy warned. The draft directive would update the definitions of guarantees of origin, biogas, biomethane, natural gas, renewable gases and biomethane producers.

BSOG Energy, Engie Romania at forefront of upcoming biomethane investment wave

As for other developments in the segment, BSOG Energy (BSOGE), a subsidiary of Black Sea Oil and Gas, recently hired industrial services provider Bilfinger for a biomethane facility in Alba county in Transylvania.

Earlier, BSOGE said it would invest EUR 30 million in the construction of a biomethane plant. It has signed deals with milk producer DN Agrar Group for up to 15 MW in capacity, with the possibility of exceeding 20 MW in later stages.

In April, the firm partnered with Unigrains Trading in a project for a biomethane and organic fertilizer facility. They estimated the investment at EUR 65 million, for 57 MW of biomethane capacity and over 250,000 tons of organic fertilizers per year. Parent company BSOG is controlled by controlled by investment firm Carlyle.

Engie Romania launched plans a year ago with Heineken to build a biodigester for brewery waste

Last November, French-owned Engie Romania obtained the first license in the country for biogas and biomethane supply. Earlier it established a partnership with Heineken for decarbonization projects in three breweries in Romania, including heat pumps and one biodigestion system.

The firm is the largest supplier and distributor of natural gas in the country, as well as an electricity producer and supplier.