MARKETS: European biomethane assessment holds steady as gas prices stabilise

(SpaceEnergy) The SE European Biomethane Assessment was virtually unchanged in the week to 5 October, slipping 0.01% to €95.30/MWh as its underlying European gas component stabilised after September's volatility.

The underlying SparkLEBA-TTF measure also eased by a marginal 0.01% to €73.63/MWh.

The latest reading extends a period of relative stability following sharp movements during September. The SE EBA climbed 11.1% to €105.35/MWh in the week to 14 September before falling 9.7% the following week. It subsequently rose 0.2% in the week to 28 September and was little changed in the latest assessment.

European gas prices also steadied around the turn of the month. EU energy regulator ACER assessed the EU gas price at €74.62/MWh on 28 September, falling to €69.69/MWh on 1 October before recovering to €71.81/MWh on 5 October.

The underlying gas market is one component of biomethane economics, alongside production costs and the value attached to renewable-gas certificates. ACER said biomethane competitiveness depends on carbon prices and the value of sustainability certificates, which allow consumers to claim the fuel's sustainability value.

ACER data put average biomethane production costs in 2025 at €60.98/MWh, compared with an average reference gas price of €37.69/MWh. Its production-cost calculation includes capital expenditure, operating expenditure and feedstock.

The European Biogas Association said European biomethane production capacity exceeded 8bn cubic metres/year in 2026 after more than 1bn cubic metres/year of capacity was added over the preceding year.

The association has identified regulatory complexity, access to feedstock, grid connections and permitting among constraints on further expansion. ACER has similarly called for action on feedstock mobilisation, cross-border trading barriers and regulatory fragmentation, alongside more consistent European rules for Guarantees of Origin and proof-of-sustainability certification.

The assessment provides a European price reference for renewable methane, a potential lower-carbon feedstock for propulsion-grade methane as methane-fuelled launch vehicles become more widely deployed.