Weekly review

Gas Prices Climb as a Biogas Builder Fails

In the first full week of October, European gas passed €80/MWh, new biomethane supply chains took shape from Sumatra to Mazovia, and a Danish contractor with 52 plants to its name went bankrupt.

The week in brief · Week 41 · 5–11 October

  • TTF rose from €73.70 to €80.25/MWh in a week
  • Indonesia breaks ground on a palm-waste biomethane plant
  • Danish plant builder Lundsby files for bankruptcy
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The week of 5–11 October pulled the biogas sector in two directions. A tight European gas market made grid-injected biomethane look more valuable than at any point since 2023, and new projects in Asia and Central Europe showed how the business model is spreading. Yet the collapse of a long-established Danish contractor and a narrowing of India's credit support were reminders that building and financing plants remains the industry's weakest link.

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Gas prices sharpen the case for biomethane

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The Dutch TTF benchmark opened the week at €73.70/MWh on 5 October and closed Friday at €80.25/MWh. That is the highest level since early 2023 and roughly 150% above prices a year earlier. Storage explains most of it. EU inventories stood at 73.1% on 7 October, according to Gas Infrastructure Europe, some 16–17 percentage points below the usual level for the season. Brussels had already relaxed the mandatory fill target for this winter from 90% to 80%, and ENTSOG, the network of gas transmission operators, published its winter supply outlook on 8 October.

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For producers, the signal works on two timescales. In the near term, higher wholesale prices lift revenue on any volumes sold at market and make buyers more willing to sign long-term offtake contracts. Over the longer term, a fragile storage position strengthens the political argument that domestic renewable gas is a security asset rather than a climate line item.

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