The Role of Biomethane in Creating a Climate-Neutral Industry
13.10.2026A new study by Common Futures and Guidehouse examines the role biomethane can play in decarbonising European industry. Prepared for the European Biogas Association (EBA), the report provides a first-of-its-kind assessment of the potential demand for biomethane across a range of industrial sectors and processes.
The analysis compares biomethane with alternative pathways such as electrification, hydrogen and carbon capture and storage (CCS), assessing where biomethane can contribute most effectively to achieving climate-neutral industrial production.
Key findings
- Significant industrial demand potential: Biomethane demand in European industry could grow from around 10 bcm in 2030 to 30 bcm by 2040 and 35 bcm by 2050.
- A solution across multiple sectors: The study identifies strong potential for biomethane in industries including steel, chemicals, glass, ceramics, paper production, and industrial heat applications.
- A competitive decarbonisation option: Biomethane can provide climate-neutral energy and renewable carbon while leveraging existing gas infrastructure and industrial assets.
- Supporting Europe’s industrial transition: The report highlights how biomethane can complement electrification, hydrogen and CCS, particularly in sectors facing technical, economic or infrastructure barriers to alternative decarbonisation pathways.
The analysis concludes that biomethane can play a major role in achieving climate-neutral industrial production, with particularly strong opportunities in primary steel production and high-temperature industrial heat.
