Shell aims to expand its biomethane business in Germany, and for good reason. "Our goal is to offer the green molecule in large quantities at competitive prices," said the managing director of Shell Energy Germany, Sonja Müller-Dib, in an interview with the news agency Reuters, which was published on Tuesday.
The Company Plans to Source Its Eco-Gas Not Only from Third Parties but Also from Its Own Facilities. Germany Could Play an Important Role in Becoming a Leading Supplier of Biomethane in Europe. Shell Intends to Build Two Large Facilities: One in Karstädt, Brandenburg, and One in Steinfeld, Lower Saxony.
The heading translates to English as follows:
"The two plants are expected to be commissioned this decade and produce 200 to 250 gigawatt-hours of biomethane per year, respectively. The raw materials for the biomethane will be sourced from manure and dung, and for sustainability reasons, no food or grain will be used."
Biomethane can be used in the automotive industry, chemical industry, fertilizer production, steel industry, and for decentralized heating systems - similar to natural gas. Currently, Shell Energy supplies industrial large customers and over 150 municipal utilities with natural gas and electricity. Last year, Shell acquired Europe's largest biomethane producer, the Danish company Nature Energy, for 2 billion US dollars (approximately 1.85 billion euros).
As a result, the company has access to its transport infrastructure and can thus also supply other European markets. As a consequence of the energy crisis triggered by the Russian gas supply stop in 2022, the European Union has proposed a tenfold increase in biomethane production to 35 billion cubic meters by 2030.
The German biomethane market is still relatively small, but its potential for growth seems to be large. Last year, approximately one billion cubic meters or 10.5 terawatt-hours (TWh) of biomethane were produced in Germany in 2023.
For comparison: Germany's total gas demand amounted to 813 TWh in the same year. Shell also plans to supply its customers with green hydrogen and renewable electricity. "Who says gas today, will say hydrogen in the future," Müller-Dib explained. At the London Stock Exchange, Shell's share price temporarily rose by 0.28 percent to 25.15 pounds.
