Sustainable and environmentally friendly: focus on biomethane

In a world that is increasingly dependent on sustainable and renewable energies, biogas production is becoming ever more important. Biogas is produced by fermenting biowaste, crops such as maize and plant or animal residues. The subsequent cleaning and separation of CO₂ produces methane or “biomethane” that can be used as a replacement for fossil natural gas.

The fuel can be used in different ways: "Biogas is used to generate electricity and heat. When processed into biomethane, it can also be fed into the gas network or used as fuel for heavy goods transport,” explains Andreas Pörtner, Team Head Circular Economy, Resources and New Energies at KfW IPEX-Bank. This versatility makes biogas a flexible, easily accessible and climate-friendly energy source. The European Union aims to increase biomethane production tenfold by 2035. Given this, KfW IPEX-Bank is active in the promotion of biogas and biomethane.

The DAH Group specialises in the production of biogas, biomethane, electricity and heat from renewable energy sources. With its 24 biogas plants, the agricultural and energy company produces around 275 million kilowatt hours of electricity annually and feeds around 560 million kilowatt hours of biomethane into the natural gas network with the biomethane plants. "The long-term financing by KfW IPEX-Bank and other banks is an important sign of confidence in the biomethane market. It enables us to expand our role as one of the leading biomethane platforms in Germany,” says Stefan Jost, CEO of the DAH Group.

“In the context of the 'tank or plate debate', it is also relevant which materials are used for the production of biogas: ideally, only residues from agriculture are used,” says Andrej Nötzel. “However, this is not entirely trivial from a technical perspective." Currently, the prevailing practice is to use a mixture of energy crops and residues.

In this way, biogas production makes a significant contribution to waste recycling, as the organic materials are converted into valuable energy. This not only reduces the amounts of waste produced, but also actively protects the environment, as the controlled fermentation and use prevents the formation of harmful methane that would be released uncontrollably on the fields. Stefan Jost describes another environmental benefit: “The fermentation residues are then reapplied to the fields as high-quality fertiliser, returning nutrients to the soil and re-introducing them into the natural cycle.” This reduces the need for chemical fertilisers while improving soil quality.

“Biomethane also offers the opportunity to replace natural gas,” says Andreas Pörtner of KfW IPEX-Bank. The existing infrastructure – from the gas pipeline network to the gas storage facilities and the heater at home – can be used for this purpose. “This is a huge cost advantage compared with other technologies.”

Biogas represents a future-proof solution that connects agriculture, waste management, environmental protection and the energy supply. Against this backdrop, companies like DAH Group are making a significant contribution to a sustainable and climate-friendly energy future.