Gas market package for biomethane: enabling growth rather than stifling investment

Biogasanlage mit Biomethanaufbereitung
Copyright: Peter Eichler / DIE GAS- UND WASSERSTOFFWIRTSCHAFT
03-25-2026

The Federal Government today approved a draft bill to implement the European Gas and Hydrogen Internal Market Package. In doing so, it is setting out the key legal framework for the market ramp-up of biomethane in Germany. Bengt Bergt, spokesperson for the Biomethane Taskforce, explains: “Whilst the draft recognises the role of biomethane as a key molecule for decarbonisation in the gas sector, it is holding back investment in existing facilities:

“Following the amendment of the Building Modernisation Act (GMG), the Federal Government is taking the next logical step with the implementation of the domestic gas market package. In doing so, it is extensively incorporating biomethane as a key pillar of the future energy system. With a view to meeting the green gas quota and decarbonising the building sector, the Federal Government is thus pursuing a highly effective approach. The draft sets ambitious targets for the transformation of the gas transport infrastructure towards climate-neutral gas, which will significantly accelerate market uptake, and grants connection priority to new biomethane production facilities.

However, the draft bill treats existing plants in particular in an extremely unfavourable manner. This is because the draft provides that, for existing installations, protection against disconnection from the gas grid will cease after ten years. However, this timeframe is not sufficient to safeguard investments in existing facilities. Due to these strict requirements for grid disconnection, the draft risks becoming a dangerous brake on investment in the ramp-up of climate-neutral gases.

Furthermore, the draft does not prevent the gas grid from becoming fragmented. This could result in existing plants being denied access to the supra-regional market. Biomethane plants are already feeding into the gas grid via the grid association and supplying customers across Germany – thereby contributing to a resilient supply of green molecules. In view of recurring geopolitical upheavals, this is a key factor for a stable energy system.

The potential of biomethane must be consistently taken into account in further legislative processes. It needs to be aligned with other pending legislation, such as the GMG with its green gas quota, the GHG Reduction Act and potential other industry stakeholders.”

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