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32 min ago 3 min read
Germany-based EnviTec Biogas has unveiled plans to invest around €100m ($117m) in biomethane production by 2029, expanding gas upgrading capacity as it shifts its biogas portfolio away from power generation and towards renewable gas.
The funding will support the conversion and expansion of existing Renewable Energy Act (EEG) plants, allowing them to continue operating under Germany’s new auction-based support scheme for renewable electricity while also increasing biomethane production through gas upgrading.
The investment forms part of EnviTec’s strategy to expand output from its own plant portfolio by converting existing biogas facilities to produce biomethane, with new investments planned between 2026 and 2029.
Alongside upgrades to existing assets, the company also plans to construct new facilities to support continued operations under the revised EEG framework.
The announcement follows EnviTec’s recent success in Germany’s latest EEG tender, where it secured follow-up support for around 16 MW of electrical generation capacity.
The awards extend subsidy support for existing plants by up to 12 years, providing long-term planning certainty as the company accelerates its transition towards renewable gas production.
The move comes despite a challenging regulatory environment that weighed on the company’s financial performance in 2025 and into 2026.
EnviTec said the abolition of double counting for greenhouse gas quotas in Germany and weaker activity in its plant construction business reduced earnings, although it expects revenues and profitability to recover from 2027 as biomethane production expands and demand strengthens.
The company also pointed to improving market fundamentals, noting that greenhouse gas quota prices have recovered while the implementation of the EU’s Renewable Energy Directive (RED III) provides a clearer policy framework through to 2040.
However, EnviTec warned that further regulatory certainty will be needed to unlock future investment, particularly around long-term access to the gas grid.
“Reliable and technology-neutral regulatory conditions for gas grid connections are essential for the further expansion of green gases,” said CEO Olaf von Lehmden.
“At the same time, we see significant opportunities for biomethane in the planned Building Modernisation Act, especially with the proposed ‘bio-stairs’ mechanism.”
EnviTec currently operates 91 biogas plants in Germany and is one of the country’s largest biogas producers.
Germany is the global leader in biogas production, operating around 8,600 anaerobic digesters that account for roughly 45% of the biogas plants in the EU. The country also accounts for roughly a third of the EU’s total output of biomethane.
