EemsGas secures €150 million subsidy for biomethane project in Netherlands

EemsGas project receives commitment for €150 million operating subsidy for green gas production. (Image:EemsGas)

EemsGas Project has secured a €149.8 million operating subsidy from the Dutch government, providing a major boost to plans for one of the Netherlands’ largest biomethane production facilities.

The subsidy, awarded through the Netherlands Enterprise Agency’s SDE++ program, provides long-term revenue certainty for the project by guaranteeing a minimum price for biomethane production over a 15-year period. The grant follows a previously announced €30 million DEI+ investment subsidy awarded late last year to support construction of the facility.

EemsGas is a 50/50 joint venture between Perpetual Next, a producer of renewable raw materials, and Gasunie, the Dutch natural gas infrastructure operator. The partners have been developing the project since 2022 with the goal of producing biomethane from waste wood through advanced gasification technology.

The planned facility will be built at Chemical Park Delfzijl in the northern Netherlands and is expected to produce approximately 18 million cubic meters of green gas annually once operational. The developers said the output would significantly exceed that of conventional biomethane facilities.

The project represents a total investment of approximately €100 million and is scheduled to begin construction in 2027. Commercial operations are expected to start in 2029.

For the natural gas industry, the project highlights growing interest in renewable gaseous fuels as governments and infrastructure operators seek to decarbonize existing gas networks while maintaining energy security. Biomethane can be injected into existing natural gas systems and used by industrial, commercial and residential consumers without major modifications to infrastructure.

Perpetual Next CEO Rene Buwalda said the subsidies demonstrate strong government support for both the energy transition and the Netherlands’ industrial competitiveness.

“The plant will make a strong contribution to our country’s energy independence and, moreover, will help meet the globally growing demand for biomethane,” Buwalda said.

Gasunie COO Hans Coenen said the funding commitment supports commercialization of gasification technology for renewable fuel production.

“This commitment provides additional support to make the deployment of gasification technology for the production of renewable fuels such as green gas a success,” Coenen said. “Sustainable molecules have an important role to play in ensuring our security of supply.”

The SDE++ subsidy covers the production period from July 1, 2029, through June 30, 2044. Actual annual payments will vary based on market gas prices, with the subsidy acting as a revenue floor for the facility’s biomethane output.

EemsGas is partnering with the Netherlands Organization for Applied Scientific Research (TNO) to deploy the gasification technology that will convert waste wood into renewable gas. The project is part of a broader effort across Europe to increase production of biomethane and other renewable gases that can leverage existing pipeline infrastructure while reducing reliance on imported fossil fuels.

Gasunie, which operates more than 15,000 kilometers of high-pressure gas pipelines in the Netherlands and northern Germany, has increasingly focused on infrastructure supporting hydrogen, carbon dioxide transportation and biomethane as part of Europe’s energy transition strategy.

Perpetual Next is developing renewable fuels and circular economy projects in the Netherlands, Estonia and the United States, including facilities producing biomethanol and other sustainable products from organic waste streams.