Biomethane Quotas Create Industry Divide
Government's Biomethane Decree Divides Energy Sector with New Gas Quotas
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Spain's government is preparing a decree that would force gas companies to include a growing share of biomethane in every unit of natural gas they sell. The Ministry for Ecological Transition (MITECO) set the quota path at 0.5% by 2028, rising to 1.8% by 2030 and reaching 6% by 2035 — roughly 10 TWh per year, according to Bolsamania.
The plan has split Spain's energy world in two. Gas distributors and producers see it as a historic business opportunity. But large industrial consumers warn it will cost them hundreds of millions of euros — money they say Spain's factories can ill afford right now.
A Mandatory Quota Born From Energy Sovereignty Goals
The push for mandatory quotas did not come out of nowhere. Spain imports 99% of its natural gas and has long been exposed to price shocks from abroad. The crisis linked to Middle East conflicts in early 2026 gave the government the final push. On March 20, 2026, the government approved Real Decreto-ley 7/2026, whose Article 26 specifically ordered the creation of a biomethane quota system, according to Diario de Mallorca.
Secretary of State for Energy Joan Groizard announced the draft decree publicly on May 21, 2026. He framed it in blunt terms: "The recipe for being better positioned against future gas crises must involve replacing imported molecules with indigenous molecules." The public consultation period closed on June 11, 2026, and MITECO is now reviewing the allegations received.
Energy Companies Call It a Historic Opportunity
The gas sector is broadly in favor. Spain's gas association Sedigas calls the decree a "historic opportunity," pointing to a technical biomethane potential of 163 TWh per year — far above the 2035 target. In 2021, Spain had just one operational biomethane plant. By early 2026, it had 23 plants injecting 1.4 TWh per year into the grid, according to Levante-EMV.
Naturgy's Vicente Gramuntell put it simply: "Green gas is not the future, it is the present." The company already has its networks connected to 13 biomethane plants, with 90 more requesting connection. Producers argue that without a guaranteed market — a quota — the high upfront costs of building new plants are nearly impossible to finance.
Industry Warns of an €800 Million Annual Hit
Large industrial users see the picture very differently. Biomethane currently costs roughly 2 to 3 euros more per MWh than conventional natural gas, according to cogenerators' association Acogen, as reported by El Periódico de Aragón. If the 6% quota is reached without government subsidies, Acogen estimates the total annual extra cost for Spanish industry at €800 million — with €400 million as a direct price premium.
GasIndustrial president Verónica Rivière warned: "Imposing quotas on a technology whose cost is double that of conventional gas means transferring an additional overcost to the industry at a delicate moment." Both Acogen and GasIndustrial submitted formal allegations before the June 11 deadline. They do not oppose biomethane itself — they want supply incentives instead of forced consumption quotas.
Fines, Exemptions, and What Comes Next
The decree includes important carve-outs. Gas used for electricity generation in combined-cycle plants, cogeneration, and the Balearic and Canary Islands are all exempt from the quota. But for everyone else, missing the target will be classified as a "very serious infraction" — meaning heavy fines for gas marketers who fall short, according to La Nueva España.
MITECO also sees the decree as a rural jobs engine. Biomethane is made from agricultural and livestock waste, so most plants would be built in depopulated rural areas. The government is expected to introduce a "Seal of Excellence" for high-impact local projects to smooth opposition. But with industry, environmentalists, and energy companies all pulling in different directions, the final text still faces a tough road ahead.
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