Biomethane is emerging as one of the most promising renewable alternatives to natural gas within the energy transition. Its development delivers significant environmental and economic benefits while strengthening Spain’s energy independence.
Biomethane can be used for electricity generation, as transport fuel, or for industrial self-consumption. One of its main competitive advantages is its injection into the existing gas grid, thereby leveraging conventional natural gas infrastructure.
What is biomethane, and how is it produced
Biomethane is a renewable gas obtained from biogas, which is generated through the decomposition of organic waste: agricultural residues, manure, food waste, or wastewater.
Through an upgrading process, impurities—particularly carbon dioxide—are removed, resulting in a gas with characteristics very similar to natural gas, but with a substantially lower environmental impact.
Due to its organic origin and its capacity to valorise waste streams, biomethane projects contribute directly to the circular economy and to the European Union’s decarbonisation objectives.
Regulatory framework for biomethane projects in Spain
Spain does not currently have a single, comprehensive regulatory framework specifically governing biomethane projects. Nevertheless, developers must comply with the applicable environmental and urban planning legislation and obtain the relevant permits and licences.
The key project-specific authorisations typically include:
- Integrated Environmental Authorisation (AAI)
- Local urban planning permits and licences
Integrated Environmental Authorisation (AAI)
Pursuant to Royal Legislative Decree 1/2016 of 16 December, approving the consolidated text of the Law on Integrated Pollution Prevention and Control, and Law 21/2013 of 9 December on Environmental Assessment, biomethane facilities are generally subject to Integrated Environmental Authorisation (in AAI), as they qualify as chemical installations producing gases.
The AAI covers all environmental aspects of the project, including:
- Water consumption limitations
- Control of discharges to water and soil
- Management of process-derived waste
The authorisation process requires the submission of detailed environmental studies, the scope of which may vary depending on the project’s location. Given its complexity, the procedure may take several months, making early planning and specialised legal and technical advice essential.
Urban planning permits
Besides environmental authorisations, biomethane projects must obtain the relevant urban planning permits, which are issued by the local municipality where the facility is located.
The most common permits include:
- Urban planning compatibility certificate, confirming that the land classification allows the intended use.
- Building permit, authorising the construction of the facilities. Once granted and following payment of the Construction, Installation, and Works Tax (ICIO), the execution of the project may commence.
Injection of biomethane into the gas grid
One of the major advantages of biomethane compared to other renewable energy sources is its ability to be injected into the gas transmission and distribution network.
Applications for grid connection are processed with Enagás, the technical manager of Spain’s gas system. Enagás assesses the technical feasibility of the connection point and issues the technical and economic conditions governing access.
Unlike photovoltaic or wind energy projects, biomethane projects are not required to post financial guarantees to request access to the gas grid. This significantly lowers entry barriers and actively promotes investment in the sector.
Opportunities and challenges for biomethane projects in Spain
The biomethane sector in Spain is experiencing rapid growth, driven by European emissions reduction targets and the strategic importance of domestically produced energy.
However, developers and investors should carefully consider:
- The absence of a unified regulatory framework
- Administrative timelines associated with permitting procedures
- The need to coordinate technical, environmental, and financial aspects throughout project development
Conclusion
Biomethane projects in Spain offer a highly attractive investment outlook, but they require rigorous planning and a thorough understanding of the applicable regulatory environment.
We advise both investors interested in acquiring biomethane projects in Spain and developers seeking legal support throughout the permitting and development process.
Frequently Asked Questions
Spain does not yet have a comprehensive biomethane-specific regulation. Projects are governed by general environmental, urban planning, and energy legislation.
Yes. Biomethane plants are generally subject to Integrated Environmental Authorisation due to their classification as gas-producing chemical installations.
Yes. Biomethane can be injected into the existing gas grid, subject to technical approval by Enagás.
No. Unlike photovoltaic or wind projects, biomethane projects are not required to provide financial guarantees to request grid access.
