Lisbon, April 6, 2026 (Lusa) - Portugal needs to speed up the development of regulatory and market conditions to attract investment in biomethane, against a backdrop of European energy vulnerability exacerbated by the conflict in the Middle East, according to a study by the industry association (EBA).
According to the document containing updated sector data for 2025, biomethane is identified as a strategic pillar for the energy transition in Europe, with an estimated investment of around €28 billion by 2030, concentrated mainly in Spain, France and Italy.
The European Biogas Association (EBA) highlights Spain as the Iberian leader in capital raising, with approximately €4.8 billion in planned investment, whilst Portugal is classified as an emerging market with high potential.
The report highlights “the need to turn ambition into bankable projects”, identifying the main challenges as the creation of predictable revenue streams, faster and clearer licensing processes, transparent grid connection rules, and the strengthening of certification systems and guarantees of origin.
According to the EBA, European production of biogas and biomethane reached around 232 terawatt-hours (TWh), equivalent to approximately 22 billion cubic metres of gas, with biomethane standing out as a renewable gas capable of scaling up rapidly.
This growth takes on greater significance against a backdrop of political instability and high price volatility, where the conflict in the Middle East highlights Europe’s energy vulnerability, as noted by the association of which Floene is a member (the largest gas distribution network in Portugal).
Currently, more than half of the fuels consumed in Europe are imported, including around 90% of natural gas.
"In this context, biomethane stands out as a strategic solution, as it is produced locally, storable and compatible with existing infrastructure, and can replace fossil gas without the need for changes on the consumer side, whether residential, industrial or in the services sector," the report states.
The document also emphasises that biomethane contributes to energy security and sovereignty, playing a complementary role to other renewable sources by ensuring stability and flexibility in the energy system during periods of lower solar, wind or hydroelectric production.
According to the EBA, biomethane can meet the needs of different energy consumption sectors, namely transport (around 32%), the residential sector (approximately 26%) and industry (around 25%).
In domestic consumption, it enables emissions to be reduced without the need to adapt equipment, whilst in industry it can replace the gas used in furnaces and high-temperature processes, such as in the glass and ceramics sectors, the EBA highlights.
In transport, the report highlights the role of bio-CNG (compressed gas) for fleets and regional logistics, and bio-LNG (liquefied gas) for heavy-duty long-haul vehicles and maritime transport, where batteries face limitations in terms of range and energy density.
“Furthermore, the digestate resulting from biomethane production – used as a biofertiliser in agriculture – could replace a very substantial proportion of the synthetic fertilisers imported by Portugal and the other member states of the European Union,” it adds.
At a time of transition in the European energy system, the report concludes that Portugal could keep pace with this European trend if it creates “a stable and predictable framework that enables it to attract investment and develop large-scale projects”.
SCR/AYLS // AYLS
Lusa
