In the global energy sector, biomethane is emerging as a key renewable fuel capable of decarbonizing industries and transport. However, unlocking the full potential of biomethane requires long-term market mechanisms that provide certainty for both producers and consumers.

Biomethane Purchase Agreements (BPAs) are becoming one of the most effective tools to support this transition. BPAs help secure investments, promote market growth, and contribute to corporate sustainability objectives.

In this article, we explore how BPAs work, their key components, the benefits they provide, and the role they are expected to play in the future development of the biomethane market.

What is a Biomethane Purchase Agreement (BPA)?

A Biomethane Purchase Agreement (BPA) is a contract between a biomethane producer and an offtaker to purchase a specific volume of biomethane at an agreed price, quality and duration.
There are two types of BPA:

–       Direct BPA: it is a contractual agreement between a biomethane producer and the end offtaker, and biomethane is supplied via the gas grid. It offers greater price transparency, as commercial terms are agreed directly without an intermediary, reducing intermediary margins and service fees.

–       Indirect BPA: a gas supplier acts as an intermediary between the biomethane producer and the end offtaker. In this case, the contract is signed between the offtaker and the gas supplier, which sources biomethane from one or more identified producers.

Unlike a conventional natural gas supply contract, a BPA is not solely focused on biomethane delivery. In addition to defining commercial terms such as volumes and pricing, BPAs typically include provisions related to renewable origin certification, sustainability requirements, and long-term decarbonization goals.
They often play a strategic role in supporting both project development and corporate ESG objectives.

How do Biomethane Purchase Agreements work?

The process to set up a BPA is influenced by various factors such as strategic objectives, market experience, project maturity and internal resources.
Producers typically initiate the process when they have mature project concepts to have defined contractual volumes, while an offtaker may initiate the process once it has specific predetermined decarbonisation or sustainability objectives.

The typical duration for setting up a BPA is around one year, but it may take up to 18-24 months depending on various factors. The procurement process can be divided into 5 steps:

1. Internal readiness and strategic alignment
2. Market scoping and engagement
3. Counterparty evaluation and tender
4. Contract structuring and negotiation
5. Internal approvals and contract signing.

What are the main benefits of Biomethane Purchasing Agreements?

Biomethane Purchase Agreements provide advantages for both producers and buyers. 

The advantages for the producers are:

• Financial security
  Multi-year agreements provide predictable income streams and improve revenue visibility.
• Contractual certainty
  BPAs stimulate investment and support the continued expansion of the biomethane sector.
• Biomethane valorization
  Create shared value between agriculture and industry
• Project Bankability
  Long-term offtake committments can improve revenue visibility and support project financing, particularly for new biomethane plants

The advantages for offtakers are:

• Carbon reduction
  They help companies decarbonize hard-to-abate industrial processes.
• Price predictability
  Depending on the pricing structure, a BPA can reduce exposure to energy-market volatility and improve long-term cost visibility
• Traceability
  BPAs allow consumers to verify the origin and sustainability of the energy through certification and traceability systems

What are the key components of a Biomethane Purchase Agreement?

While every agreement is unique, several components are typically included in a Biomethane Purchase Agreement:

1. Volume
   the contract specifies the quantity of biomethane that will be supplied over a defined period;
2. Pricing structure
   The agreement may include fixed–price mechanisms, index-linked formulas or hybrid approaches that combine multiple factors;
3. Contract duration
   Longer-term contracts often provide greater predictability, while shorter agreements may offer increased flexibility.
4. Delivery conditions
   The contract outlines how and when biomethane will be delivered, including any logistical, operational, or technical requirements associated with the supply process.
5. Payment terms
6. Certification and Traceability
7. Risk Management Provisions
   Many contracts include clauses designed to address production fluctuations, delivery interruptions, unforeseen events, or changes in market conditions. These provisions help define responsibilities and minimize potential disputes.

What are the main challenges of Biomethane Purchase Agreements?

Although BPAs can provide significant benefits, they also present several challenges.
One of the primary concerns is the availability of biomethane volumes: production levels may vary depending on feedstock availability, operational performance, and other factors that influence renewable gas generation, particularly the pace at which new projects are developed and commissioned.
Price volatility can also affect negotiations and contract management. Determining an appropriate pricing structure that balances stability with market responsiveness often requires careful evaluation.
Regulatory developments represent another important consideration. As renewable energy policies evolve, both producers and buyers must ensure that contractual arrangements remain aligned with applicable requirements and certification systems.
In addition, effective management of traceability and sustainability documentation is essential. Clear contractual provisions regarding certification processes and reporting obligations can help support transparency and compliance throughout the agreement lifecycle.

The future of BPAs

As governments, industries, and energy consumers continue to pursue decarbonization strategies, biomethane is expected to play an increasingly important role in the energy transition. On 24 March 2026, several European industry associations signed a Joint Biomethane Declaration, an urgent call to action structured in 10 priority actions to accelerate the biomethane market growth, reduce the EU’s reliance on gas imports by producing renewable energy and establish an enabling regulatory and economic framework.

Conclusions

Behind every long-term biomethane supply agreement must be a reliable production asset. Sebigas supports biomethane producers by developing tailored solutions designed to deliver consistent performance over time. Starting from feedstock assessment and process design, Sebigas provides engineering, construction, commissioning and biological support, helping optimise biomethane production and plant efficiency. This technical expertise contributes to creating the solid production foundation needed to meet long-term supply committments and support the development of successful biomethane projects.

For more information, email us at sales@sebigas.com

L'articolo Biomethane Purchase Agreement (BPA): How It Works proviene da Sebigas.

SEBIGAS started the construction for the revamping of an existing 1 MW biogas plant into a facility producing 500 Smc/h of biomethane. The plant’s feedstock will consist of approximately 78,000 tons per year of biomass, including pig slurry, poultry manure, olive pomace, and silage.

The project involves a complete reconfiguration of the plant, including the construction of four new tanks measuring 28×8 meters: one storage tank for olive pomace, a primary digester, and two final tanks equipped with biogas recovery systems, in line with the guidelines outlined in the 2022 Biomethane Ministerial Decree.

With this project marking its fifth reference in the field of plant revamping, SEBIGAS further strengthens its position as a strategic partner in the biomethane sector.

The company reaffirms its role as a reliable point of reference, thanks to its ability to deliver comprehensive and customized solutions, both as a technology provider and through specialized engineering services.

This achievement reflects the market’s growing trust in SEBIGAS’ technical expertise and sustainable vision, actively contributing to the development of a more efficient and innovative energy sector.

For more information, contact us at sales@sebigas.com.

L'articolo NEW BIOMETHANE PLANT UNDER CONSTRUCTION IN TUSCANY proviene da Sebigas.

• What is a biomethane plant?
• Biomethane plants: risks and pollution
• Biomethane plants in Europe: overview and growth
• Authorization for biomethane plants: regulations and requirements
• How much does a biomethane plant cost?
• Biogas vs biomethane: what are the differences?
• Why choose an agricultural biogas plant with Sebigas?

What is a biomethane plant?

Biomethane plants are a sustainable and profitable solution for renewable energy production. Biomethane is a gas obtained 100% from renewable sources through a purification process (upgrading) of biogas, which is generated via the anaerobic digestion of organic matter.

The biomass used to feed biomethane plants contains a high amount of organic material degradable by anaerobic bacteria.

In biomethane plants, raw biogas undergoes an upgrading treatment, which involves the removal of impurities and the separation of methane from all other components. The goal is to achieve a minimum CH₄ concentration of 95% and to meet the required quality standards.

The most commonly used biogas purification technologies in biomethane plants include:

• • • Membrane technology;
    • Water scrubbing;
    • Chemical absorption;
    • PSA (Pressure Swing Adsorption).

Biomethane plants: risks and pollution

Biomethane plants do not contribute to greenhouse gas emissions or air pollution. Instead, anaerobic digestion prevents the disposal of biomass in landfills, where its natural decomposition would generate greenhouse gas emissions.

The plants are designed to minimize odor production, but their management depends on several factors, including:

• • • The type of biomass used;
    • Storage and transport methods;
    • Implemented odor control technologies.

To mitigate potential odor emissions, solutions such as covers for pre-tanks and final tanks, as well as anti-emission covers for slurry storage tanks, are used. These measures reduce gas emissions and prevent their dispersion into the atmosphere caused by wind.

Biomethane plants in Europe: overview and growth

Biomethane plants in Europe are experiencing rapid growth, driven by the EU’s push for decarbonization and energy independence. With strong policy support under the Renewable Energy Directive (RED II) and national incentive schemes, the number of operational plants has steadily increased across member states.

In 2024, Europe boasts 1.548 biomethane production facilities, marking a significant increase from previous years. According to the European Biogas Association (EBA), combined biogas and biomethane production by the end of 2024 has reached 6.4 bcm/year.

Authorization for biomethane plants: regulations and requirements

The authorization process for biomethane plants in Europe varies Country by Country but generally involves compliance with EU environmental and energy regulations, including permitting for emissions, land use, and safety standards. Developers must obtain several approvals, such as environmental impact assessments, building permits, and grid connection agreements. In many EU countries, streamlined procedures have been implemented to simplify and accelerate the permitting process. Additionally, access to financial incentives often requires compliance with national renewable energy targets and sustainability criteria.

How much does a biomethane plant cost?

To determine the cost of a biomethane plant, an accurate project assessment is essential, considering various technical factors. The cost depends on the plant size, the type of biomass used, the upgrading technology, and the connection works to the national gas grid. Only through a detailed study and an economic-financial analysis of the project is it possible to accurately determine the investment value and its financial sustainability.

Generally, the cost of a greenfield biomethane plant between 200 and 500 smc ranges from €8 to €15 million, including civil works, upgrading system, and grid connection.

Biogas vs biomethane: what are the differences?

Why choose an agricultural biogas plant with Sebigas?

Choosing to design and build an agricultural biogas plant represents a strategic investment. With nearly twenty years of experience in biogas plant design and construction, Sebigas stands out as the ideal partner to deliver reliable, efficient, and tailor-made solutions.

Relying on Sebigas means choosing a company with proven expertise, capable of designing plants for farms of any size. The customized approach starts from the mass balance phase, with a detailed analysis of the energy yield of the available biomass. This process allows the optimization of biogas production, ensuring maximum plant profitability and a favorable economic return over time.

Moreover, the selection of the best technologies available on the market makes it possible to configure a highly efficient plant, optimized to ensure stable operation with reduced operational and maintenance costs.

L'articolo BIOMETHANE PLANTS: HOW THEY WORK, BENEFITS, AND ENVIRONMENTAL IMPACTS proviene da Sebigas.

At Sebigas, we believe in the transformative power of engineering. Every problem presents an opportunity, and through anaerobic digestion technology, we turn organic waste into renewable energy. This not only reduces environmental impact but also contributes to a more circular and sustainable economy.

The Role of Engineering in Sustainability

Vision – Engineering is about seeing potential where others see waste. With advancements in biogas technology, we convert agricultural, industrial, and municipal waste into clean energy.

Passion – Engineering thrives on pushing boundaries. By continuously improving efficiency, we ensure that renewable energy solutions are accessible and impactful.

Impact – Engineering is about making a difference. By closing the loop on waste and energy production, we empower communities, businesses, and industries to embrace sustainability.

Driving the Future of Renewable Energy

As the world moves toward a low-carbon future, the role of engineering becomes even more critical. Innovations in biogas and other renewable technologies pave the way for a cleaner planet, proving that sustainability and technological progress go hand in hand.

Assign your project to our technical team: we will work with passion, committment and precision.

L'articolo World Engineering Day for Sustainable Development proviene da Sebigas.

Milan, 26 February 2025 – Sebigas, an Italian company specialized in the design and construction of biogas and biomethane plants, has been selected by Genera4—a Chilean company with over 15 years of experience in the sector—for the development of two new plants: Los Laureles and Los Ciruelos. This collaboration represents a milestone in Sebigas’ international growth strategy, further strengthening its presence in the South American market, as well as a transformative contribution to Chile’s biogas and biomethane sector, which currently features only one operational biomethane plant in Santiago. Currently, all natural gas consumed in Chile is imported as LNG through the port of Quintero and distributed via pipelines or road transport.

Federico Torretta, General Manager of Sebigas, commented: “The Chilean biogas and biomethane market is in its early stages but presents significant opportunities for the advancement of renewable energy. We are proud to contribute our engineering expertise to projects that promote sustainability and energy self-sufficiency.”

The Projects

Los Ciruelos: Located in San Clemente, in the Maule region, this plant is a significant innovation as the first in the country to produce compressed BioCNG. It is designed to meet local demand while contributing to the national energy diversification strategy. The plant will produce approximately 450 Sm³/h of biomethane, processing around 90,000 tons of biomass annually, including poultry litter, fruit and vegetable waste, organic waste, sludge, process water, and olive production residues. The facility features three digesters and a secondary digester. The biomethane produced will be sold to a natural gas distributor and used to replace natural gas in industries and among consumers located within a 200 km radius of the plant.

Los Laureles: Situated in Osorno, in the Los Lagos region, this 3 MW biogas plant will process approximately 64,000 tons of biomass annually, including slaughterhouse waste, sewage sludge, salmon waste, fruit and vegetable waste, and residues from cleaning livestock pens and markets. The facility includes two digesters and a post-digester. The electricity generated will supply a nearby slaughterhouse, with any surplus fed into the electrical grid. Thermal energy, in the form of hot water, will replace LPG usage in the slaughterhouse’s operations.

Both projects have undergone stringent environmental and social approval processes to ensure no adverse impacts on the community. These plants contribute to Chile’s sustainable growth by promoting renewable energy adoption, reducing dependence on fossil fuel imports, and strengthening Sebigas’ presence in the South American market.

The selection of Sebigas by Genera4 — a client with extensive experience in plant design and a deep understanding of technology and operations— highlights the quality and value of the technological solutions offered by the company based in Italy

Sebigas Marketing & Communication Manager
Letizia Mariani – l.mariani@sebigas.it

L'articolo Sebigas brings Italian engineering excellence to Chile with two new biogas plants proviene da Sebigas.

Salera project: a cutting-edge agricultural plant

Salera, based in Castelvisconti in the province of Cremona, decided to take advantage of government incentives for biomethane production. The company was included in the rankings under the third GSE register on May 10, 2024, as an agricultural plant designated for conversion, with a production capacity of 200 scm/h of biomethane.

To achieve this goal, the company has revised the plant’s feeding, incorporating pig slurry from its own farm, along with other livestock and agricultural by-products, for a total amount of about 40.000 tons per year. Key upgrades include increasing the anaerobic digestion volume through the installation of a new final tank with gas recovery, and adding a biogas-to-biomethane purification line with the infrastructure required to inject it into the gas grid.

As the technology provider, Sebigas is designing and building the conversion works, integrating the existing plant with new facilities. Construction began in September 2024, with final testing scheduled for January 2025.

“Designing the revamping of the plant built in 2011 represents an important demonstration of trust for Sebigas. A sign that highlights that the high performance of the plan has been satisfactory. Sebigas is proud to collaborate with an innovative entrepreneurial agricultural company, strongly oriented towards sustainability” says Federico Torretta, General Manager of Sebigas.

Construction site: building of the new storage tank (site status as of September 2024)

Incentivized innovation: the regulatory context and the transition to biomethane

The biomethane industry in Italy is at a crucial stage due to the recent revisions of the incentive rates by the government. Many companies, including Salera, opted to wait or participate in the third national auction to take advantages of the new rates.

This situation led agricultural companies to a strategic choice: convert their plants for biomethane production to access new and attractive incentives or continue generating electricity under the revised rates. For Salera, the decision to upgrade to biomethane production was made based on a thorough cost-benefit analysis. The May register lists a total of 132 plants, of which 72 are new constructions and 60 are conversions. Salera stands out as one of the few companies to have promptly initiated the construction, thanks to meticulous planning and a solid business plan.

Sebigas: an outstanding technology partner

The success of projects like Salera highlights Sebigas’ ability to adapt to market demands and offer cutting-edge technological solutions in compliance with government standards. The company’s expertise extends beyond project design to complete site management and technical support, ensuring optimal long-term plant performance.

Through this collaboration with Salera, Sebigas strengthens its role as a key player in the energy transition of the Italian agricultural sector, contributing to a sustainable model based on renewable energy and circular economy.

Sebigas Marketing & Communication Manager
Letizia Mariani – l.mariani@sebigas.it

Sebigas Press Office
Mediatyche SB
Sara Orsenigo – sara.orsenigo@mediatyche.it
Elena Rabaglio – elena.rabaglio@mediatyche.it

L'articolo BIOMETHANE PLANT: SEBIGAS DESIGNS THE REVAMPING FOR SALERA AGRICULTURAL COMPANY proviene da Sebigas.

Beer is one of the most appreciated alcoholic beverages among consumers, but its production process is extremely energy-intensive. According to Assobirra‘s 2023 annual report, in Italy, 7 kWh are required to produce one hectoliter of beer. Considering that in 2023, 17.43 million hectoliters were produced in the Country, it is necessary to integrate technologies to make the industry more sustainable. One concrete and immediately actionable example could be the energetic valorization of by-products. These by-products are, in fact, a valuable resource and can be utilized for biogas production. The following paragraphs will describe the by-products, the optimal anaerobic digestion technologies for their valorization, and the benefits for a brewery that chooses the path of sustainability.

By-products to be Utilized for Biogas Production:

Brewers’ Spent Grains:

Brewers’ spent grains are the solid residue left after the wort extraction process and constitute the majority of the by-products from the brewing process. It is estimated that their production goes from 14 to 20 kg/hL of beer, depending on factors such as the recipe, the type of malt used, or the efficiency of the process. They are characterized by their residual content of proteins, aminoacids, sugars, and fats, making them suitable biomass for anaerobic digestion and biogas production.

Spent Yeast:

Although it’s an essential ingredient in the beer fermentation process, a significant amount of spent yeast remains in the fermenter at the end of the process; on average, about 1 kg of spent yeast is produced per 1 hL of beer. However, being very rich of organic substances, it is an excellent biomass for feeding a biogas plant.

Wastewater:

The brewing process requires very high quantities of water, approximately 400 L/hL of beer. Wastewater also results from the use of water for washing equipment, cleaning barrels, and cleaning facilities. Their valorization in anaerobic digestion is possible as they are rich in organic matter, sugars, proteins, and other nutrients.

Anaerobic Digestion Technologies for Breweries

Spent grains, yeast, and wastewater are three optimal biomasses for feeding a biogas plant. Depending on the type and quantity of biomass available to the brewery, SEBIGAS recommends the most suitable reactor, choosing between the CSTR and anMBBR. For solid biomasses, the CSTR reactor is preferred, as it is a flexible solution suitable for the anaerobic digestion of heterogeneous and complex biomasses, ensuring stability in biogas production. The biogas production from spent grains and yeast is estimated to be around 110 Nm³/t of fresh biomass. In the case of highly liquid effluents, the anMBBR reactor is preferred, as it is a suitable solution for on-site management of high stream volumes in reduced digestion volumes.

Which are the advantages for a brewery?

Valorizing the by-products from the brewing process offers significant advantages for a brewery, both environmentally and economically.

• Reduction in disposal costs and taxes: by managing by-products, breweries can lower the costs and taxes associated with their disposal.
• Production of renewable energy: the energy generated from biogas can be used for self-consumption, thereby reducing the economic impact of energy procurement.
• Creation of a new revenue stream: if the electricity produced from biogas is fed into the national grid, it can create an additional income source.
• Reduction of environmental impact: implementing sustainable production processes can significantly lessen the brewery’s environmental footprint.

At SEBIGAS, we can support your company through an ecological transition, turning waste into opportunities. If you’d like to learn about our case studies and discover how much energy your brewery can produce, please contact us at sales@sebigas.com or fill out the form.

L'articolo Beer and biogas: the advantages for a brewery proviene da Sebigas.

DP has a long-established presence in these regions, providing reliable waste combustion and AD expertise to a wide variety of clients.  Sebigas has also successfully implemented AD projects in South East Asia, and the cooperation agreement is aimed at furthering the conversion of waste to biogas throughout the region.

Untreated organic wastes such as OFMSW, agricultural by products, industrial by products and effluents, and sewage sludge often pose significant environmental problems. Biogas plants simultaneously address this issue as well as valorising waste to provide sustainable and reliable energy as well as economic benefits to communities and industries. The collaboration between Sebigas and DP will provide an enhanced combination of technology, knowhow and implementation capabilities with which to develop high performing plants that will fully address the market.

On signing the agreement, the General Manager of Sebigas Federico Torretta stated “We are very pleased to be partnering with DP to further develop our capabilities and interests in Asia. Our companies are fully aligned in the ambition to grow the contribution of biogas to the renewable energy portfolio through providing advanced, efficient and scalable AD plants and I am highly confident that our combined efforts will be successful”.

Responding to this, DP CEO Simon Parker remarked “This collaboration draws on the highly complementary skillsets of DP and Sebigas to support an AD proposition that will lead the market in terms of technology, expertise and implementation. We are excited to embark on this path towards further development of the market and product portfolio and I look forward to realizing the opportunities that undoubtedly exist”.

With offices in Bangkok and UAE the combined sales network will cover South East Asia and the Middle East.

About DP
Founded in 2004, DP CleanTech Group designs, engineers, manufactures and commissions biomass and waste to energy power plants, providing complete solutions for turning waste materials into clean energy. DP’s core technologies were originally developed in Denmark and are behind over 80 biomass power plants around the world. DP has significant operations in Europe and Asia and has a growing presence in Africa and South America. DP is recognised as a world leader in the biomass and waste to energy industry, with a portfolio of innovative waste-to-energy and environmental management technologies with which to lead the advancement of renewable energy and environmental protection.
For further information: sarah.blomfield@dpcleantech.com

About Sebigas
SEBIGAS is an Italian company founded in 2008, specialized in the design, technology providing, commissioning and start-up of biogas and biomethane plants that efficiently convert organic waste to energy.  Years of research, development and knowhow are embedded in the company’s advanced technology products and highly specialized skills in valorising the organic waste from complex and heterogenous sources. With a portfolio of 84 installed systems and an average track record of 8,600 operating hours per year at maximum power, SEBIGAS is well recognised as a leading provider of high-performing AD plants around the world. As part of the established TICA Group since 2020, SEBIGAS has a reputable presence in the international market, and is supported by an active sales network and business partners in developing effective solutions for clients around the world.
For further information: l.mariani@sebigas.it

L'articolo DP CleanTech and Sebigas sign cooperation agreement for Southeast Asia and the Middle East proviene da Sebigas.

L'articolo small biogas plants for livestock farms proviene da Sebigas.

L'articolo SEBIGAS HEADING TO BOLOGNAFIERE FOR CH4 EVENT proviene da Sebigas.