What Is Biomethane and Why It Matters for the Energy Transition

The transition toward a cleaner energy system does not rely on a single solution. Renewable energy, efficiency, electrification, hydrogen, and advanced biofuels are all part of the same puzzle.

Within this landscape, one solution is gaining momentum across Latin America and globally: biomethane.

But what is biomethane, how is it produced, and why is it considered a strategic solution for reducing emissions in sectors where other technologies still fall short?

What is biomethane?

Biomethane is a renewable gas obtained by purifying biogas, which is produced through the anaerobic digestion of organic waste such as:

Agro-industrial effluents
Manure and slurry
Food waste
Sewage sludge
Municipal solid organic waste

During this process, biogas is first generated and then upgraded through different technologies that remove carbon dioxide and impurities, resulting in a gas with a quality similar to fossil natural gas.

This enables a key advantage: biomethane can be injected into existing gas grids and used in the same infrastructure, equipment, and vehicles—while significantly reducing carbon emissions.

Biogas, biomethane, and natural gas: what’s the difference?

Although often confused, these are distinct energy sources:

Biogas: a mixture of methane and CO₂ produced in digesters or landfills
Biomethane: purified biogas upgraded to grid-quality gas
Fossil natural gas: extracted from underground reserves, with a high climate impact

The upgrading process is what makes biomethane a direct substitute for natural gas.

Biomethane vs fossil fuels: real emission reductions

One of biomethane’s strongest advantages is its environmental performance.

According to the Panorama BioGNV 2024 report by France Mobilité Biogaz, using biomethane in transport can reduce CO₂ emissions by up to 77% compared to diesel when analyzed across the full life cycle.

Other studies show that replacing fossil natural gas with biomethane can reduce emissions by up to 83%.

This is explained by a simple principle:

The carbon released during combustion comes from recently absorbed organic matter—not from fossil sources—making it part of a near-neutral carbon cycle.

Example: emission reduction when replacing natural gas with biomethane

For an annual consumption of 10,000,000 m³:

Natural gas: 20,400 tCO₂e
Biomethane: 39 tCO₂e

That’s up to 500+ times lower impact, depending on methodology and feedstock.

Environmental benefits beyond CO₂

In addition to reducing greenhouse gas emissions, biomethane offers:

Up to 95% reduction in particulate matter
Up to 70% less NOx and 98% less NO₂ compared to diesel
Lower noise levels (ideal for urban logistics)
No visible smoke emissions

These advantages explain why biomethane is increasingly being adopted in public transport and logistics fleets.

Biomethane and the circular economy

Biomethane is a clear example of circular economy in action.

It enables:

Converting waste into renewable energy
Producing biofertilizers (digestate)
Reducing environmental liabilities
Creating local jobs
Strengthening regional economies

Where biomethane has the greatest impact

Biomethane is especially relevant in sectors that are difficult to electrify:

Heavy transport
Urban bus systems
Waste collection fleets
Logistics operations
High-temperature industrial processes

Europe as a benchmark: the case of France

While biomethane is growing globally, Europe—and France in particular—offers a strong example of scale.

According to GRDF and French Panorama of Renewable Gas:

Over 650 biomethane plants inject gas into the grid
Annual production exceeds 11 TWh
More than 1,200 projects are under development
Existing gas infrastructure enables deployment with moderate investment

France achieved this through:

Stable regulation
Financial incentives
Guarantees of origin
Long-term contracts
Support for rural producers

GRDF also highlights that biomethane will play a central role in renewable gas systems, complementing hydrogen depending on region and use case.

Why biomethane matters for Argentina and Latin America

Latin America has strong conditions that make biomethane particularly attractive:

High availability of agro-industrial waste
Intensive livestock production
Urban waste management challenges
Long-distance logistics needs
The need to decarbonize without rebuilding energy infrastructure

Brazil is already showing how bioenergy can evolve into an industrial policy, integrating biomethane, SAF, and circular economy solutions.

In Argentina, this potential is beginning to materialize. In southern Córdoba, a productive ecosystem is emerging based on biogas, biomethane, and biofertilizers—integrating waste treatment, energy generation, and agricultural inputs.

Companies like Bioeléctrica have been driving this model for over a decade, developing projects that transform agro-industrial waste into renewable electricity and, increasingly, biomethane suitable for grid injection or use as fuel.

These projects demonstrate that biomethane is not only a climate solution, but also a tool to strengthen regional economies, reduce fossil fuel dependency, and create new value chains from local resources.

Biomethane: a solution available today

International and regional studies agree on one key point:

Biomethane is not a future technology—it is a solution available today.

It enables emission reductions, waste valorization, and accelerates the energy transition in sectors where electrification is not yet viable.

Understanding what biomethane is is the first step toward anticipating how energy systems in Latin America will evolve in the coming decade.

Be part of the transition

👉 Interested in exploring whether biomethane can be a solution for your operations or industry? Let’s talk.