Germany’s energy reform raises new questions for biomethane market
Germany has taken another step in reshaping its energy system with proposed updates to the Energy Industry Act (EnWG), aligning national legislation with the EU’s new gas and hydrogen market framework.
The reform is designed to prepare the country’s infrastructure for the next phase of the energy transition. It introduces updated rules for gas distribution network planning, a longer-term approach to grid development, and pathways to adapt or repurpose existing gas infrastructure. The proposal also includes specific provisions aimed at supporting biomethane projects, particularly around grid connections.
According to Greensteps Managing Director Daniel Schneider, the direction of travel is clear, but important uncertainties remain.
“The intention behind the reform is positive,” says Daniel Schneider. “Germany wants to create a framework that supports renewable gases and future-proofs the energy system. But for biomethane developers and investors, infrastructure visibility remains one of the biggest questions.”
That tension sits at the centre of the current debate. Policymakers are encouraging greater use of renewable gas, especially in heating, while uncertainty remains around the long-term role and availability of gas infrastructure itself.
For project developers, investors, and industrial buyers, that creates a difficult environment for long-term planning. Biomethane projects typically require significant upfront investment and rely on stable infrastructure access and long-term offtake certainty to become financially viable.
The concern within the market is whether biomethane can scale fast enough if infrastructure planning and policy objectives are not fully aligned.
“Our view is that ambition alone is not enough,” Schneider says. “The market needs clear coordination between policy and infrastructure planning. Without that clarity, it becomes harder for developers and investors to commit capital.”
As regulation continues to evolve across Europe, commercial structure is becoming just as important as policy direction. Long-term supply agreements, infrastructure access, and bankable offtake arrangements are increasingly central to getting projects financed and built.
At Greensteps, this is where much of the focus lies. The company works with both biomethane producers and end users across Europe to structure long-term transactions and navigate changing regulatory frameworks.
“The challenge is turning policy direction into commercially workable projects,” Schneider says. “That requires reliable supply structures, credible counterparties, and long-term visibility for everyone involved.”
