The economic reality behind E-methane
An economic analysis of e-methane production from biogenic CO₂ and green hydrogen: costs, subsidies, and market value.
The report 'The economic reality behind E-methane' was prepared by Steef Kalsbeek, Dina Boer, Salar Mahfoozi and Ruud Paap of New Energy CoalitionThe report analyzes the technical and economic conditions under which e-methane production from biogenic CO₂ combined with green hydrogen can be feasible for Dutch biogas producers. It provides insight into cost structures, investment needs, subsidy options, and market applications.
About the report
The report covers, among other things:
- The production chain: from PEM electrolysis to methanation of CO₂ and hydrogen, including integration into an existing biogas plant.
- The cost price structure: investment costs, electricity costs and utilization rate as determining factors.
- Market applications: deployment via green gas, value of EUA in mobility and potential ETS benefits.
- Policy and subsidy instruments: including the role of the OWE scheme in the business case.
- Scenario analyses: effects of lower electricity prices, higher certification values, import of green hydrogen, and additional revenue streams.
