From Paris agreement to business cases for upgraded biogas: Analysis of potential market uptake for biomethane plants in Germany using biogenic carbon capture and utilization technologies

The Paris Agreement brings countries together in a combined effort to combat climate change and its effects. A key target is the reduction of energy related greenhouse gas emissions. Providing biogas from biomass is one option to provide renewable and less carbon intensive fuels. When upgraded to biomethane it may be a substitute for natural gas and thus may have many application pathways. Recognising this potential many European countries installed governmental support programmes to stimulate market growth over the last decade. However, most of the installed schemes in Europe are time-limited. Besides being time-limited most of the schemes include a degression of compensation over time, resulting in many having limited success over longer time frames. This study questions the feasibility of near-term business cases for biomethane plants and analyses options for making them less dependent on governmental support programmes. Currently a market potential is seen in the utilization of process carbon dioxide in carbon capture and utilization or carbon capture and storage pathways, because it is a widely available side product from biogas upgrading. Therefore, we examined three business cases for its utilization in across sectors. To answer the research question we use a previously developed biomethane market simulation model and added an extension for new business cases. Results indicate that there are specific business options in the field of 2160 m(3) h(-1) to 20,840 m(3) h(-1) that are economical feasible under certain circumstances.