Transition from Cogeneration to Biogas Injection in France's Methanization Units
France's cogeneration methanization units are increasingly transitioning to biogas injection due to the expiration of electricity purchase contracts and new regulations. A ministerial decree allows for the waiving of early termination penalties, while the introduction of biogas production certificates provides a stable economic framework for these conversions, which typically take 24 to 36 months and involve significant costs. Legal support is advised to navigate the complexities of contract termination and to facilitate the transition process.
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With the phasing out of electricity purchase contracts for historical units and changing regulations, more cogeneration methanization units in France are converting to biogas injection. The ministerial decree of September 8, 2025, allows for early contract termination penalties to be waived for such conversions.
The introduction of biogas production certificates (CPB) in 2022 provides a stable economic valuation option for units no longer benefiting from subsidized purchase rates. This transition typically takes 24 to 36 months and involves replacing electricity and heat production with biogas injection into the gas network.
Key steps include verifying technical and economic viability, modifying installation classifications, and securing RED certification. The connection to the gas network, usually managed by GRDF, takes 12 to 18 months and can cost between €150,000 and €300,000.
Conversion costs range from €500,000 to €1.5 million. Legal support is recommended to navigate contract termination and avoid penalties. The preferred valuation mechanism during conversion is a biogas purchase agreement (BPA) with CPB.
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