Build a renewable gas procurement strategy: what to define before a biomethane tender, from specification and timing to contract length and seller checks.
Biomethane is not a standardised product. Its feedstock, carbon intensity and supporting documentation can vary significantly between volumes, influencing both price and availability. Buyers who define their requirements clearly before launching a tender are better placed to attract suitable producers and secure competitive offers. This article outlines what gas suppliers, utilities and companies purchasing biomethane should establish before going to market: the purpose of the purchase, product specifications, delivery timing, contract duration and the criteria for evaluating suppliers beyond price alone.
Together, these decisions provide the foundation for a well-structured energy procurement strategy.
| Step | What to define | When |
| 1. Purpose | Regulatory compliance, voluntary commitments, public positioning, or a combination of these objectives | At the start of internal preparation |
| 2. Specification | Required volume, budget, carbon intensity (CI), feedstock, production period, expiry date, certificates, registry | Around three months before going to market |
| 3. Timing | Tender, or invite non-binding proposals | Allow at least six months for negotiations |
| 4. Contract | Contract duration, flexibility, requirements and minimum compliance volume | Before requesting offers |
| 5. Seller | Delivery track record, financial strength, backup volumes and reputation for reliability | During supplier evaluation and negotiations |
Two volumes of biomethane may differ in four key points:
The feedstock regulatory framework is the same across transport, industry and heating.
In practice, the transport and heating sectors in CI valorising countries will primarily use manure-based biomethane due to its low carbon intensity. In replacement countries, however, a broader range of feedstocks may be used, including other waste streams, residues and energy crops.
The more specific a buyer’s requirements, the smaller the pool of producers able to meet them. Buyers that impose requirements beyond what is necessary for compliance may therefore pay a premium for specifications that provide no additional value.
The starting point should be the purpose of the purchase, not the volume or price. Is the biomethane intended to meet a regulatory obligation, support the company’s public climate commitments, or serve both purposes?
The answer determines how stringent the specification needs to be:
Producers can only provide meaningful and firm offers when the buyer’s requirements are clearly defined. Before approaching the market, buyers should specify:
| Requirement | What to define | Why it matters |
| Volume | Annual volume in MWh and required delivery profile | Determines how many suppliers may be needed to meet demand |
| Budget | Maximum price per MWh | Helps establish which specifications are commercially realistic |
| CI score | Maximum acceptable carbon intensity | Largely determines which feedstocks qualify and the resulting price |
| Feedstock | Accepted and excluded feedstocks | Each restriction further narrows the pool of potential suppliers |
| Production period | Period during which the biomethane must be produced | Must align with the relevant compliance or reporting year |
| Certificate validity | Required certificate validity and expiry date | Expired certificates can no longer be used for the intended purpose |
| Certificates | Required documentation, such as a Proof of Sustainability (PoS) | Documentation must be recognised and accepted for the intended use |
| Registry | Registry in which certificates must be issued, held and transferred | Must be compatible with the system under which the buyer reports or claims the biomethane use |
The last point is easy to overlook. Certificates only provide value if they are recognised by the system under which the buyer reports. A certificate held in the wrong registry, or one that expires before it can be used, will not help meet the requirement.
Tender specifications sometimes include requirements that limit the available supply without serving a clear purpose.
Two common examples are:
Include maximum carbon footprint thresholds and feedstock restrictions only where required by regulation or by the company’s claims. Avoid adding constraints without a clear justification.
A biomethane tender needs a longer lead time than many buyers expect. Allow around nine months for the full process: three months for internal preparation and at least six months for negotiations.
If this timeline is too tight, consider requesting non-binding proposals first. This provides an early view of available volumes, pricing and market conditions before committing to a formal tender.
Larger volumes need to be sourced from multiple producers. Finding enough supply and matching available volumes to the buyer’s requirements takes time.
Contract length should reflect the company’s procurement needs and risk appetite. Biomethane contracts are best managed as part of a balanced gas portfolio, combining long-term commitments with more flexible volumes.
Two points deserve particular attention:
A low price only has value if the contracted volumes are actually delivered. Before signing, assess the seller’s ability to deliver reliably and manage supply risks. Consider the following factors:
bGX bridges the gap between buyer requirements and market availability. We work with a network of producers to translate your needs into a specification the market can actually meet. With bGX, you secure your biomethane volumes and receive documentation that meets the compliance requirements of your intended use. Ready for your next procurement cycle?
Contact us at sales@biogemexpress.com.
Our team sources certified biomethane across European producers and structures the delivery — mass balance, Guarantees of Origin, Proof of Sustainability. We handle the complexities. You get the results.
