European biogas plant developer CycleØ has laid out plans to trade and supply biogas on the Spanish market after being awarded a gas shipper licence this week.
As a certified gas shipper, the company can now trade and supply biomethane, the purified form of biogas, produced at its three plants in Spain, located in Lleida and Vilnant.
CycleØ will also market biomethane from its 18 new plants currently under construction or in advanced permitting once they are commissioned.
“This licence approval gives us the ability to solidify our position … in renewable natural gas,” said Jordi Berengue, Managing Director of Spanish operations at CycleØ.
The award follows the announcement of plans for the development of 30 biogas plants in Spain, with investments totalling €200m ($227.5m). The plants are estimated to produce a combined output of around 800GWh per year.
The country’s emerging biomethane sector is underpinned by a national roadmap and EU regulations, such as the 2023 Renewable Energy Directive, which sets an EU-level renewable energy target of at least 42.5% by 2030.
According to Gas for Climate, about 85% of biomethane production by 2030 will come from agro-industrial feedstock. By March 2024, Spain had 13 biomethane plants generating around 0.5 TWh of power, mainly from agro-industrial facilities.
“Spain’s biomethane market is still in its infancy, relying primarily on private bilateral contracts, but the development of new plants suggests a promising outlook for rapid expansion,” said Juan Luis Vilchez, Senior Partner at the Madrid Office of global consultancy Roland Berger.
