Biomethane from Manure, Agricultural Residues and Biowaste—GHG Mitigation Potential from Residue-Based Biomethane in the European Transport Sector

Biomethane from manure, agricultural residues, and biowaste has been prioritized by many energy strategies as a sustainable way to decrease greenhouse gas (GHG) emissions in the transport sector. The technology is regarded as mature; however, its implementation is still at an early stage. At EU level, there are currently two major instruments relevant for promoting the production of biomethane from waste and residues and which are likely to contribute to unlocking unused GHG mitigation potentials: the Renewable Energy Directive 2018/2001 (RED II) and the European Emission Trading System (EU ETS). Our study analyzes the effects of these two instruments on the competitiveness of biomethane as an advanced transport fuel in relation to different policy scenarios within the RED II framework and under EU ETS conditions. Within the RED II market framework for advanced biofuels, biomethane concepts that use manure as a substrate or as a cosubstrate show significantly lower GHG mitigation costs compared to advanced biofuels. With respect to the current EU ETS conditions for bioenergy, it is helpful to consider the GHG reduction potential from the non-ETS agricultural sector as a way to unlock unused potential for reducing GHG emissions.