Shell believes that the German biomethane market is growing in value

According to a top management, Shell anticipates development in the German biomethane markets, where its clientele is looking for decarbonised energy and where its fossil fuel operations may be restructured to enable future profitability from a high-value category.

In an interview at the E-World of Energy trade show in Essen, she stated that demand for methane from organic waste, such as manure, outpaces supply from industry and over 150 local power plants provided by Shell.

The more carbon emissions prices grow, the more demand there will be for biomethane, which can be stored and utilised for all the same purposes as fossil fuel petrol.

The European Commission stated that biomethane output should increase tenfold by 2030 to reach 35 billion cubic metres in order to replace a portion of the 155 billion cubic metres of gas it used to purchase from Moscow in its RepowerEU plan, which was released following Russia's invasion of Ukraine in 2022.

Germany, the largest economy in Europe, generated 10.5 terawatt hours (TWh), or 1 bcm, of biomethane last year; nonetheless, this number pales in comparison to the country's 813 TWh petrol consumption.

However, Mueller-Dib (managing director of Shell Energy Deutschland) stated that Shell's two proposed facilities, which would likely cost several hundred million euros, could each produce 200 to 250 gigawatt hours (GWh), surpassing the current normal size of 50–70 GWh.

For $2 billion, Shell purchased Danish biomethane manufacturer Nature Energy last year.

She stated, "We can use our infrastructure position to ship biogas out of Denmark," and mentioned that potential future suppliers may include the Czech Republic, Poland, France, and Spain.

(Sources: investing.com, reuters.com)