The journey to decarbonisation is complex, and corporate energy buyers are increasingly turning to biomethane as a key solution. But while the potential is vast, navigating the biomethane market requires a clear understanding of both its opportunities and risks. In this episode of our biomethane series, we break down what corporate buyers need to know to make strategic, informed decisions.
From price stability and operational compatibility to policy uncertainties and supply constraints, the biomethane landscape is evolving rapidly. Companies looking to integrate biomethane into their sustainability strategies must carefully assess market conditions and procurement options to ensure alignment with their long-term climate goals. Watch now to gain insights into how biomethane can fit into your decarbonisation roadmap.
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In this episode of our biomethane series, we are charting the landscape for corporate buyers, exploring both the opportunities and risks of incorporating biomethane into your decarbonisation strategy.
Let’s start with the opportunities.
- Biomethane is a renewable energy source that is chemically identical to natural gas, allowing companies to reduce greenhouse gas emissions without disrupting current operational processes.
- Biomethane supports a circular economy by monetising waste streams, turning them into valuable energy sources.
- Biomethane helps corporate buyers mitigate natural gas price volatility by securing long-term contracts, such as fixed price biomethane gas purchase agreements that provide financial stability.
- Finally, investing in biomethane demonstrates a company’s commitment to climate action, setting them apart as leaders in their industry.
These opportunities make biomethane an attractive option for companies aiming to enhance their sustainability profiles.
However, the biomethane landscape is not without its risks.
- Competition from other hard-to-abate sectors like transportation can drive up biomethane prices and reduce supply availability for corporate buyers.
- Feedstock supply can be unstable, influenced by weather conditions and geopolitical events.
- Regulatory uncertainty and the lack of harmonised standards for cross-border biomethane trade in Europe can limit procurement flexibility across different countries.
- Lastly, it’s crucial to clearly define the drivers of your organisation’s biomethane purchase in order to ensure that the product’s characteristics, such as sustainability certifications, align with your procurement goals.
Understanding these opportunities and risks, and how they apply to your organisation, is key in the biomethane market. That is why accurate climate guidance is essential to making informed decisions. Watch our other episodes or contact us to learn more about biomethane and how you can get involved.
