The biomethane market in Germany in 2025 was shaped by political uncertainty, economic pressure, and at the same time growing strategic opportunities for selected market participants. For investors, project developers, and financiers, a differentiated view of developments over the year is worthwhile for making well-informed decisions about upcoming investments.
Political and Economic Framework Conditions
Politically, the year in Germany began with a period of uncertainty: Friedrich Merz was only elected Chancellor of the Federal Republic of Germany on his second attempt on May 6, 2025. Just a few months earlier, Donald Trump had been re-elected President of the United States. The continuity of the political framework conditions required for infrastructure investments remained limited both nationally and internationally. Geopolitical conflicts, trade and tariff disputes, and disagreements within European policy – most recently in connection with the Mercosur agreement – shaped the year.
In terms of energy policy, Germany continues to find itself caught in a field of tension. Ambitious CO₂ reduction targets coincide with an industrial sector burdened by rising energy prices and increasing international competitive pressure. The economic situation is reflected in the figures: according to the Federal Statistical Office, 18,125 corporate insolvencies were filed in the first three quarters of 2025 – the highest level for this period since 2014.
Renewable Energy 2025: Biomethane in the Context of the Power and Heat Transition
While the expansion of photovoltaic and wind energy stabilized at a high level in 2025, biomethane gained greater prominence as a system-supporting complement within the energy system. The Federal Environment Agency expects additions of around 15.9 GWp of photovoltaic capacity and approximately 4.5 GW of wind power for 2025. In this context, biomethane is taking on an increasingly important role as a storable energy carrier, particularly for heat, mobility, and industrial applications.
Biomethane Market Germany 2025: Ambivalent Development
The German biomethane market in 2025 presents a heterogeneous picture. Many conventional biogas plants are reaching the end of their EEG remuneration period or are close to doing so. For plants without access to a biomethane injection point on a natural gas pipeline, a commercially viable perspective is often lacking, leading to an increasing number of shutdowns.
In contrast, plants that upgrade biogas to biomethane and can inject it into the gas grid offer significantly better prospects. This is particularly the case where a grid connection was secured at an early stage. Operators who managed to realize their connection before the expiration of the Gas Network Access Ordinance (GasNZV) benefit from greater cost certainty regarding capital expenditures. This aspect is increasingly becoming a decisive competitive factor in the biomethane market. It is therefore unsurprising that institutional investors made acquisitions in 2025 and strengthened their portfolios.
Profitability and Market Prices
However, the biomethane sector cannot be said to be experiencing a general easing of the economy. Rising construction and investment costs continue to weigh on the profitability of many projects. At the same time, biomethane prices have stabilized but remain low.
On a positive note, initial market impulses are emerging on the demand side: in particular, demand for long-term biomethane supply contracts is picking up again in the fuel market. For investors, this increases the predictability of cash flow and enhances the attractiveness of well-structured projects.
Regulation and Demand Potential in the Building Sector
The German Energy Agency (dena) identifies growing potential for the use of biomethane in the buildings sector. However, it remains unclear what concrete impulses the planned Building Modernization Act – as the successor to the Building Energy Act (GEG) – will provide. Of central importance is whether mandatory quotas for green gases such as biomethane will be maintained or further developed.
The fundamental potential itself is undisputed. A study published by the Institute for Future Energy and Material Flow Systems (IZES gGmbH) in November 2025 concludes that biogas and biomethane could replace significant shares of natural gas in the power and heat sectors as early as the mid-2030s – just as hydrogen could in selected applications.
Biomethane Market in a European Comparison
A look beyond Germany’s borders shows that other European countries, in some cases, offer significantly more investor-friendly framework conditions. In its Third EBA Biomethane Investment Outlook, the European Biogas Association (EBA) forecasts around 900 new biomethane plants across Europe over the next five years.
By contrast, developments in Germany remain moderate: according to the German Biogas Association (Fachverband Biogas e. V.), only 21 new biogas grid injection plants were commissioned in 2024. In total, Germany had 272 biomethane plants with grid injection at the end of 2024. As a result, investors and project developers are increasingly adopting an even more international focus than before.
greenValue: Consulting in the German and International Biomethane Market 2025
For greenValue, Germany remains the central market for consulting services in biomethane and renewable energy. The year 2025 was characterized, among other things, by due diligence services and the development of post-EEG strategies for existing biogas plants.
At the same time, the company’s international focus is growing. greenValue is active in technical and economic assessments, as well as in financing biomethane projects outside Germany, including South America. The German biomethane market in 2025 thus illustrates by way of example that, despite regulatory uncertainties, attractive opportunities for investors continue to exist if projects are professionally structured and strategically supported.
The authors are employed by greenValue GmbH. greenValue is a successful service provider in the renewable energy sector with many years of experience and extensive references, including in the fields of M&A and project management.
Source: December 19, 2025, www.greenvalue.de
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