Recent developments
Renewable gas expansion
Europe advanced renewable gaseous fuels. A biomethane plant in Soncino started grid injection, using manure- and crop-based digestion with membrane upgrading. EnviTec Biogas AG also signaled growth with new contracts and market entry in Lithuania. The Netherlands funded industrial-scale wood-to-gas via a €30 million DEI+ investment subsidy for EemsGas using TNO gasification. On distribution, ORLEN delivered over 245,000 tonnes of liquefied natural gas to off-grid users, fully utilizing Świnoujście reloading capacity and expanding Klaipėda throughput.
Biomethanol capacity plans
North America saw large biomethanol plans. Perpetual Next USA will begin building three Southeast US facilities in 2026, each designed to process ~1 Mt/y of sustainable biomass using torrefaction–gasification–methanol synthesis, citing demand growth from policies such as FuelEU. In India, a bio-fuel complex in Devbhumi Dwarka was agreed as an SEZ unit, targeting fuels for aviation, shipping, and road transport, with operations expected by 2029.
Feedstock strategies
Upstream agricultural supply moved forward. Etlas, a 50:50 joint venture of Corteva and bp, plans to source oilseeds grown in fallow/cover periods to supply SAF and renewable diesel, targeting 1 Mt/y of feedstock by the mid‑2030s and initial deliveries in 2027. Positioning feedstock on existing cropland addresses scale needs while limiting land-use change and offers co-processing flexibility for refineries.
Process and technology
Cost and efficiency developments emerged. Toray validated an all-carbon CO₂ and methane separation membrane that cuts biogas moisture-removal costs by 70%, with applicability to natural gas purification and CO₂ capture. A leadership transition at Topsoe was announced for June 2026, with continuity in clean-fuels strategy spanning SOEC electrolyzers, catalysts, and SAF collaborations, including the Zaffra JV.
Finance and consolidation
Capital and portfolio moves supported transition projects. Heidelberg Materials issued its third Green Bond (€600m, 2036) to fund plant upgrades and carbon capture. Galp and Moeve will merge their downstream activities into RetailCo and IndustrialCo, with a pipeline of green-molecule projects including Andalusian Green Hydrogen Valley. In the UK, Essar boosted resilience and installed a hydrogen-ready furnace at Stanlow as part of a $350m program, while advocating CBAM coverage for refining.
Supply security context
Hydrocarbon exploration aimed to stabilize European supply. Equinor secured 35 new production licenses across the Norwegian shelf, underpinning plans to drill 20–30 wells annually, mostly near existing infrastructure. Continued gas availability informs LNG access, blue hydrogen considerations, and industrial fuel switching as alternative fuels scale.