Traceability and Chain of Custody Powering Biogas and Biomethane in the Energy Transition

By
Marketing
January 20, 2025

Explores the role of biomethane in decarbonizing key industries and overcoming the challenges that lie ahead, such as traceability and mass balance.

Overview

Did you know that biogas could potentially replace up to 20% of the world's natural gas consumption while significantly reducing greenhouse gas emissions?

Biogas represents a renewable energy source produced through the breakdown of organic matter in an oxygen-free environment. This sustainable fuel source transforms organic waste materials into valuable energy, making it a crucial player in the global transition toward cleaner energy solutions.

As the European Union (EU) pushes towards its clean energy objectives, biomethane is poised to play a significant role in reshaping our energy landscape.

As the Biomethane sector scales-up, chain of custody traceability and certification are critical to guarantee compliance and for producers to rely on market-driven revenues; only evidence-backed certified biomethane will allow producers to rep the benefits of their investments in these plants. 

This record keeping and traceability challenges can be specially complex for new project developments. Feedstock suppliers, biomethane producers, and off takers must prioritise the implementation of digital solution to guarantee regulatory compliance and meet every demmand for transparency from customers.  

This ebook explores the crucial role of biomethane in decarbonizing key industries and overcoming the challenges that lie ahead, such as traceability and chain of custody.

What is Biogas and How is it Produced?

The production process occurs in sealed vessels called digesters, where organic materials undergo a four-stage decomposition process. During this process, bacteria break down complex organic matter into simpler compounds, ultimately producing biogas. The optimal temperature for this process ranges between 30-38 degrees Celsius, ensuring efficient bacterial activity.

Biomethane is essentially purified biogas. The upgrading process involves:Removal of CO₂Elimination of impurities (H₂S, water vapor, etc.)Compression to meet natural gas grid specifications
Biomethane Production Steps
Common upgrading technologies include:Water scrubbingPressure Swing Adsorption (PSA)Membrane separationChemical absorption
Biomethane Production Technologies

Types of Feedstock and Their Impact

The choice of feedstock significantly influences biogas production efficiency and output quality. 

Common feedstock categories include:

Feedstock TypeCharacteristicsImpact on ProductionFood WasteEasily biodegradableHigh biogas yieldLivestock ManureMore challenging to break downProvides natural microbes and bufferingAgricultural ResiduesContains lignin structureSlower degradation rateMunicipal WasteVariable compositionRequires careful monitoring‍
Types of Feedstock and Their Impact

Food waste and fats demonstrate the highest efficiency in biogas production, while livestock waste typically requires longer processing times. Many facilities employ co-digestion, combining multiple feedstock types to optimise biogas yield and ensure consistent production levels.

The effectiveness of biogas production depends heavily on maintaining proper pH levels and nutrient balance within the digester. When managed correctly, this process not only generates renewable energy but also produces valuable by-products such as digestate, which can be used as fertiliser.

Recent technological innovations have introduced several promising production methods:

  1. Biomass Gasification: This process operates at temperatures between 850-1300°C, producing up to 210 m³ of renewable natural gas per tonne of wood. The technology shows particular promise for treating dry waste materials and construction waste.
  2. Power-to-Gas Technology: This innovative approach combines CO₂ capture with hydrogen production through water electrolysis. The process demonstrates significant potential for energy storage and grid balancing.

Environmental Benefits and Sustainability

The environmental impact of biogas extends far beyond renewable energy production, offering substantial benefits for our planet's sustainability. Recent studies show that biogas systems can reduce worldwide greenhouse gas emissions by an impressive 10-13%.

Greenhouse Gas Emissions Reduction

Biogas production significantly cuts methane emissions by capturing this harmful gas from organic waste decomposition. When compared to traditional fossil fuels, biogas production achieves up to 240% reduction in greenhouse gas emissions. This remarkable reduction comes from two primary sources:

  • Preventing methane release from untreated organic waste
  • Replacing fossil fuel usage with renewable biogas

Waste Management Solutions

Did you know that in today’s world, only 2% of organic waste is treated and recycled? 

Biogas systems excel in waste management by addressing multiple environmental challenges simultaneously. The world generates over 105 billion tonnes of organic waste annually, which, if left untreated, contributes significantly to environmental pollution. 

Through anaerobic digestion, these systems:

Waste Management Benefit

Waste Management Benefit Environmental Impact Reduced Landfill Usage Prevents methane emissions Pathogen Control Improves water quality Odour Reduction Enhances air quality Nutrient Recovery Reduces chemical fertiliser need

Contribution to Circular Economy

Biogas production exemplifies circular economy principles by transforming waste into valuable resources. The process creates multiple sustainable outputs:

  1. Energy Production: Generates renewable electricity and heat, replacing fossil fuels
  2. Nutrient Recycling: Produces digestate, a nutrient-rich organic fertiliser that can reduce synthetic fertiliser usage by 10-30%
  3. Resource Conservation: Helps rebuild soil humus and enables carbon storage in soils

The environmental benefits extend to water protection as well. By properly managing organic waste through biogas systems, we prevent nitrogen pollution and harmful runoff into water resources. Additionally, these systems contribute to sustainable agriculture by providing farmers with natural fertilisers, reducing their dependence on chemical alternatives.

In the context of climate change mitigation, biogas systems play a crucial role in achieving global temperature targets. They help limit the rise of surface temperature to 1.5°C compared to pre-industrial levels, while simultaneously supporting waste management compliance with circular bioeconomy principles.

Industry-Specific Applications and Benefits

Biogas and biomethane play a crucial role in the ongoing efforts to decarbonize various industries. As renewable energy sources derived from organic waste, they offer a sustainable alternative to fossil fuels, significantly reducing greenhouse gas emissions across multiple sectors. Industrial applications of biogas demonstrate remarkable versatility, particularly in energy-intensive sectors. In 2023, industry accounted for more than a quarter of the EU's final energy consumption, with natural gas representing 23% of industrial energy use. 

Biogas applications in industry include:

Biogas applications in industry include: Manufacturing, Energy, Chemical, Transportation and Agriculture

Regulatory and Certification Scheme

The biogas and biomethane sectors are subject to a complex web of regulations and certification schemes designed to ensure sustainability, traceability, and quality standards. This chapter provides an overview of the key regulatory frameworks and certification processes that shape the industry landscape, with a particular focus on developments in the European Union and global initiatives.

European Union Regulatory Framework

Renewable Energy Directive (RED II and RED III)

The Renewable Energy Directive (RED) is the cornerstone of EU policy for promoting renewable energy sources. The latest revision, known as RED III (Directive EU/2023/2413), builds upon RED II (Directive EU/2018/2001) and sets more ambitious targets for renewable energy use in the EU.

Key points:

  • Increased overall target for renewable energy in the EU’s energy mix to 42.5% by 2030
  • Reinforced sustainability criteria for bioenergy
  • Measures to address indirect land use change (ILUC)

Union Database for Biofuels (UDB)

The Union Database for Biofuels, operational since January 15, 2024, is a critical tool for ensuring transparency and traceability in the biofuels supply chain.

Key features:

  • Tracks transactions of liquid and gaseous renewable fuels
  • Mitigates risks of fraud and double-counting
  • Supports EU decarbonization targets

However, the UDB has created challenges for non-EU biogas producers. As reported by Trade.gov, the current regulations exclude the certification of biogases produced in third countries, potentially disrupting U.S. biogas exports to the EU market.

Quality Standards for Biofuels

The European Commission, in collaboration with the European Committee for Standardisation (CEN), is continuously working to develop and improve technical quality standards for biofuels and biofuel blends. This work is carried out by CEN Technical Committee 19, which brings together experts from various stakeholder groups.

Global Certification Schemes

International Anaerobic Digestion Certification Scheme (ADCS)

The World Biogas Association has developed the International Anaerobic Digestion Certification Scheme (ADCS) to promote best practices in the biogas industry globally.

Key aspects:

  • Ensures compliance with international standards
  • Promotes sustainable and efficient anaerobic digestion practices
  • Facilitates international trade of biogas and biomethane

Other Notable Certification Schemes

  1. ISCC (International Sustainability & Carbon Certification)
  2. REDcert
  3. Better Biomass

These schemes play a crucial role in verifying the sustainability and greenhouse gas savings of biofuels and biomass fuels.

Digital Traceability in the Biogas and Biomethane Value Chain

Digital traceability refers to the ability to track and trace products and processes throughout the supply chain using digital technologies. In the context of biogas and biomethane, it enables stakeholders to monitor and verify the origin, production methods, and environmental impact of these renewable gases. 

For instance, the mass balance approach represents a significant advancement in tracking and verifying the sustainability of biogas and biomethane production. This method enhances transparency, traceability, and credibility in the renewable gas sector by allowing producers to track materials through complex supply chains, particularly when mixing certified (sustainable) and non-certified materials. It enables producers to mix sustainable and conventional feedstocks while keeping track of the sustainable portion. This approach is crucial for gradually increasing the share of sustainable materials without requiring separate processing infrastructure.

Mass Balance

Mass Balance is one of the most commonly used Chain of custody models in industrial manufacturing. However, it is not the only framework. Generally speaking, a Chain of Custody model refers to the systematic documentation and verification of the custody, control, and transfer of materials, products, or data throughout a supply chain. It ensures traceability, integrity, and authenticity by meticulously recording each step from origin to final destination.

Chain of Custody plays a vital role in maintaining transparency, demonstrating compliance with legal and regulatory standards, and supporting ethical and sustainable practices. 

It's no secret that  in the global  business environment, tracking the chain of custody is complex due to the number of trading partners and multi-party transactions involved in moving raw materials, components, and final products. However, modern digital supply chains, which use a single chain of custody model, are simplifying the process and minimizing the risk of tampering, contamination, or loss.

In addition to Mass Balance, other relevant chain of custody models that may apply to different segments of the biogas and biomethane value chain include: Identity Preservation, Segregation, and Book & Claim. Each chain of custody model has its own set of pros and cons. Traceability within the chain of custody is essential for advancing toward a more sustainable value chain. When selecting a model, you must consider the sustainability standards, certification types and the specific requirements that you need for your products.

Chain of Custody models

For a complete run-through on each chain of custody models, we encourage you to read our blog: Ensuring transparency and trust in manufacturing: the importance of chain of custody.

Key Benefits of Digital Traceability 

One of the primary advantages of implementing digital traceability in the biogas and biomethane sectors is enhanced supply chain transparency. By implementing technologies such as blockchain and IoT sensors, producers can achieve full transparency across the biogas and biomethane supply chain. This transparency builds trust among stakeholders, enables quick identification and resolution of issues, and provides verifiable proof of sustainable practices throughout the value chain. It enables accurate, data-driven life cycle assessments and real-time monitoring of emissions throughout the production process. This data can be used to optimize processes, inform feedstock management decisions, and verify the effectiveness of carbon capture technologies.

Another critical aspect enhanced by digital traceability is the potential for significant cost savings through enhanced operational efficiency. Digital traceability systems streamline record-keeping processes, replacing manual, paper-based systems with automated digital solutions. This transformation reduces administrative burden, enables real-time monitoring of production processes, ensures data accuracy, and improves decision-making through access to comprehensive, real-time data.

Beyond cost savings, digital traceability opens up new revenue opportunities for biogas and biomethane producers. By providing verifiable data on the origin and production methods of biogas and biomethane, digital traceability systems enable producers to differentiate their products, access premium markets, and participate in voluntary certification schemes that often command higher prices. Furthermore, digital traceability enables the creation of new business models, such as data monetization, sustainability consulting, and carbon credit generation.

In an era of increasing environmental consciousness, the ability to make and verify sustainable claims is a significant competitive advantage. Digital traceability allows producers to demonstrate lower carbon intensity, showcase contributions to a circular economy model, quantify waste reduction, and highlight positive impacts on local economies. These claims can be verified through third-party audits, real-time reporting, and blockchain certification, providing stakeholders with confidence in the sustainability of biogas and biomethane products. Moreover, having a digital ecosystem helps producers meet various regulatory requirements, including compliance with renewable energy directives, accurate emissions reporting, and implementation of complex mass balance systems. Digital traceability also facilitates participation in voluntary certification schemes such as ISCC, REDcert, and Better Biomass, which often require detailed tracking of feedstocks, production processes, and sustainability metrics.

Key Benefits:Enhanced transparency and trustImproved operational efficiencyBetter regulatory complianceIncreased market value and competitiveness
Key Benefits
Business Outcomes

Did you know? By 2024, EU countries will be required to collect organic waste separately under the Waste Framework Directive, creating new opportunities for sustainable biomethane production.

Opportunity for Biogas and Biomethane tracing

The implementation of digital traceability enables the creation and verification of certified biogas and biomethane products, opening up new market opportunities. These certifications, such as Green Gas Certificates, Low Carbon Fuel Certificates, and Organic Waste-Derived Certificates, allow producers to access premium markets, meet corporate sustainability goals, and qualify for government green procurement programs.

Conclusion

Looking ahead, the role of biogas and biomethane in industry decarbonization is set to expand. With ongoing technological advancements and supportive policies, these renewable gases are poised to become integral components of a sustainable, low-carbon industrial future. Their ability to provide reliable, flexible, and storable energy makes them invaluable assets in the transition towards a more sustainable and circular economy, helping industries meet their decarbonization goals while fostering innovation and economic growth.

As the biogas and biomethane industry continues to evolve, digital traceability will play an increasingly crucial role in ensuring its sustainability, profitability, and regulatory compliance. By embracing comprehensive digital traceability solutions, producers can achieve significant cost savings, unlock new revenue streams, ensure regulatory compliance, build trust across the value chain, accurately track and reduce emissions, make verifiable sustainability claims, navigate regulatory challenges, and capitalize on the growing market for certified products.

For more information and resources, visit https://www.finboot.com/oil-gas.

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