Argus launches biomethane guarantee of origin price assessments
Biomethane can be used as an alternative or as a supplement to natural gas in industry, transport and heating. The new Argus Renewable Gas Guarantee of Origin (RGGO) prices cover biomethane from two types of feedstock – energy crops such as maize, wheat or sugar beet, and waste such as dung, slurry and straw, or municipal solid waste. The prices are for biomethane produced in the UK and Denmark, two of the most developed markets.
Waste-derived biomethane commands a higher price than that produced from energy crops, which is seen as less environmentally friendly since it involves land use. In contrast, making biomethane from agricultural, municipal or food waste uses source materials that would otherwise be discarded, resulting in greater greenhouse gas savings.
RGGOs are bought and sold as proxy for the production and consumption of biomethane. Argus’ new prices will support the development of biomethane as part of the energy transition by helping market participants plan better and allocate resources more efficiently.
“Price transparency is an essential part of realising the potential of new greener fuels such as biomethane,” commented Adrian Brinks, Argus media chairman and chief executive.
“Although this market is in its infancy, there is wide scope for biomethane to make a significant contribution to efforts to restrict emissions.”
The Argus RGGO prices will be published weekly in the Argus European Natural Gas, Argus Biofuels and Argus Net Zero Europe reports.