“All of the new government’s biogas-related legislative proposals are, in our view, in dire need of improvement,” adds CFO Jörg Fischer. He adds that the fact that implementing the energy transition, including achieving the set climate targets, is no longer a top political priority is also detrimental to the entire renewable energy sector.
“All of this is leading to noticeable uncertainty and a dampened willingness to invest, not only for us as a company, but for all market participants,” says Fischer.
While the implementation of the EU Renewable Energy Directive (RED III), approved in December and intended to accelerate the expansion of renewable energies in the EU, finally provides a long-term framework until 2040 and significantly improved fraud prevention measures, there is still considerable room for improvement.
"For example, the multiple crediting of electricity and fuels of non-biogenic origin will remain in place for the time being, while it will be abolished for biomethane in the short term. This approach leads to a considerable loss of confidence and serious market distortions, as it results in significant revenue reductions for contracts already concluded and severely reduces future investment readiness."
Moreover, Fischer warns, this again clearly contradicts the technological openness and neutrality proclaimed in the coalition agreement.
Furthermore, the CFO stated that the market will again be flooded with the still-existing fraudulent GHG quotas in 2027, which will foreseeably lead to another price collapse: "We very much hope that our proposals regarding the aforementioned points will be taken into account in the further legislative process."
Furthermore, the current draft of the German Energy Industry Act (EnWG), which attempts to implement the EU Gas Directive, is yet another disappointment for the industry and, in its current form, poses an existential threat to the biomethane sector.
A new expert report shows that the current draft of the Energy Industry Act (EnWG) ignores EU regulations and thus jeopardizes investments in green gases. "Key provisions for securing market access and network infrastructure for green gases such as biomethane are missing. This poses risks under European law, jeopardizes investments along the entire value chain, and raises potential liability issues," explains Jörg Fischer.
Therefore, EnviTec, together with partner companies in the sector, is calling for an EU-compliant implementation that promotes, rather than hinders, renewable gases, fair cost sharing, protection against arbitrary network disconnection, and planning certainty for investments in green molecules.
"Biomethane is an energy carrier that will prevail in the medium term!"
“Biomethane is an energy carrier that, in our view, will prevail in the medium term, as it is already available and is the most cost-effective alternative to conventional natural gas,” said CEO von Lehmden.
“Our neighboring countries have recognized this. In contrast to Germany, the biomethane market there is developing steadily,” added Fischer. Growth markets for EnviTec Biogas include the Benelux countries, Sweden, and Spain, as well as existing markets in the Baltic states, Slovakia, Italy, France, and the UK.
New impetus is also expected from LIQVIS, acquired by Uniper a year ago, and its 18 LNG filling stations.
"One station is expected to commence operations in Holdorf, Lower Saxony, in the first quarter after relocation. With our network of filling stations, we offer the entire value chain from livestock production to biogas, biomethane for heat and electricity generation, and finally to green fuel, all from a single source through our own companies, making us a pioneer in the market," von Lehmden concluded.
