Biogas and biomethane: Regulation
Explosions, toxic H2S and leaks: the safety rules
What this tab covers How it is regulated and what could disrupt supply: hazard classification, rules in the EU, US and India, anti-dumping duties and other trade measures, and supply-risk notes.Hazards
| Classification | UN number | Key risks |
|---|---|---|
| flammable gas category 1; gas under pressure; raw biogas also contains toxic H2S | UN1971 (compressed); UN1972 (liquefied) | Explosion and asphyxiation in digesters and storage; H2S poisoning; methane leaks undo climate benefits. |
Main rules
| Where | Rule | Effect |
|---|---|---|
| EU | RED III, REPowerEU 35 bcm biomethane target by 2030 (indicative), Methane Regulation, Union Database for certificates | supports grid biomethane and traceability |
| US | RFS D3 cellulosic RINs (1.36 billion in 2026, 1.43 billion in 2027); California LCFS; 45Z | transport RNG demand and credits |
| Denmark | subsidised biomethane; biogases 40% of gas use (IEA) | leading national model |
India
| Rule | Effect |
|---|---|
| SATAT (2018): OMCs buy CBG from independent producers | offtake guarantee; 1,103 LoIs by Nov 2025 |
| CBG Blending Obligation for CNG (transport) and domestic PNG: 1% 2025-26, 3% 2026-27, 4% 2027-28, 5% from 2028-29; mandatory from April 2025, monitored by PPAC | creates binding demand |
| Central financial assistance for biomass aggregation machinery (revised Jul 2025); GST 5% on plant equipment | lowers capex 6-8% (IBA) |
| GOBARdhan and Sampoorn GOBARdhan scheme (Aug 2026) | village and dairy-based plants |
| BIS IS 16087 specification for CBG (indicative) | quality standard for injection and vehicles |
Trade measures
- None material; certificate recognition across borders is limited
Supply risk
Supply is local and diversified, so geopolitical risk is low. The risks are feedstock seasonality, methane leakage and policy: plants built for a tariff can close when it ends.