Meet Alex Gautschi, our Business Developer and Portfolio Manager DACH

Alex Gautschi joined Nvalue 2 years ago as Business Developer & Portfolio Manager. With his background in consulting and project management at Biogasregister International AG in Zurich, Alex has brought a wealth of expertise to the table, and he is now an expert of market trends and legislative developments of the Biogas and Biomethane Guarantees of Origin’s market. From renewable energy to sustainability initiatives, Alex shares his insights into what’s driving change in this dynamic industry.

1. Hi Alex, what motivated you to join Nvalue and what has been the professional journey on the Biomethane market so far?

I had the opportunity to encounter companies like Nvalue both due to my education and my professional experience, first as a portfolio manager and then as a project manager in companies linked to the regulation and control of the biogas market. In particular, this company struck me for its professionalism and long-term vision on the role of renewable energy, especially on the use of biogas and biomethane. So, I contacted them about the possibility of joining their team, and here I am.

2. Europe is facing an epochal challenge: the decarbonization of the energy system. In this context, biogas emerges as one of the most promising renewable sources in terms of growth. What is the current state of the biogas and biomethane market in Europe, and what are the growth prospects?

Biomethane production continued to grow in 2023 and reached 4.2 billion cubic meters (bcm) in Europe, compared to 3.4 bcm in 2022.

I think that further initiatives and investments will be necessary in the future in terms of support for production, strengthening of the network and support for research to reach the objective of 35 billion cubic meters in 2030 set by the REPowerEU plan by the European Commission.

Did you know that installations of biomethane plants have more than doubled in the last five years? They reached approximately 1300 operational plants in 2022, as documented by the EBA (European Biogas Association). I believe it’s pretty impressive. You would agree with me, that the growth trend is very significant, also taking into account the greater efficiency of the lines and the numerous gasification projects on a commercial scale.  Certainly, biogas in general will play a more important role in the decarbonisation of the European energy sector.

3. Biomethane certificates are essentially traceability certificates issued for each unit (usually MWh) of biomethane fed into the natural gas network. This guarantees the renewable origin of biomethane, encouraging an informed choice by the final consumer. What are the origins of these certificates and what aspects regulate biogas and certificates of origin at European level?

Strangely but true, currently, there is no single EU regulation, but rather a regulatory framework with key aspects including:

• Guarantee of Origin System (GO), which ensures that a certificate corresponds to each unit of biomethane.
• Sustainability criteria, which guarantee that biomethane production comes from sustainable sources and does not contribute to negative environmental impacts.
• Verification bodies, which verify that biomethane meets the criteria and issue certificates.

To achieve the 2030 target, the EU has developed a strategy and a significant set of proposals to review and update community legislation known as the “Fit for 55 package,” aiming to reduce net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. Regarding renewable gases, the package includes:

• The introduction of mandatory quotas to create more demand and offer certainty to investors.
• Through the NZIA (Net-Zero Industry Act), support for European production capacity for net-zero emissions technologies such as CCS (Carbon Capture and Storage) enabling projects.
• National and cross-border infrastructure projects to expedite concessions by speeding up authorizations.

I think that the final approval and new policy architecture of the Fit for 55 package, will certainly have a major impact on the entire biomethane value chain.

4. The use of Biomethane Certificates energy offers numerous advantages to companies in terms of sustainability, competitiveness, and reputation.
   What are the benefits for companies using those certificates, and how can this choice contribute to improve their ESG (Environmental, Social and Governance) performance and Sustainability and Social Responsibility?

Biomethane certificates present a myriad of advantages for companies.

One major benefit lies in enhanced sustainability. Biomethane allows companies to showcase a transition to renewable energy for their gas requirements, thereby diminishing their overall carbon footprint. Moreover, let’s not forget that the production of biomethane often involves the capture of waste from sources like landfills or agriculture, fostering a circular economy and mitigating greenhouse gas emissions arising from waste decomposition.

Last but not least, companies can enjoy improved competitiveness through the adoption of biomethane certificates. With consumers increasingly prioritizing environmental concerns, businesses boasting strong sustainability credentials can attract and retain eco-conscious customers and investors. Additionally, these certificates facilitate compliance with regulatory mandates concerning renewable energy utilization or carbon emission reduction. Infact Biomethane Certificates contribute significantly to the ESG objectives and forge a competitive edge in the market.

5. The Biomethane Certificates market is rapidly developing with new technologies and business models emerging continuously. What factors drive the demand for energy derived from biogas and biomethane, and how might it change in the near future?

The demand for energy derived from biogas and biomethane is being driven by several factors. First of all, the mounting concerns over climate change and the recent tumultuous fluctuations in oil and gas prices that prompted industries and governments alike to rethink their energy strategies.

In addition to economic considerations, I would mention as second point the necessity to manage organic waste effectively. Also the governmental support in the form of subsidies, feed-in tariffs, and renewable energy quotas is providing a regulatory impetus for the production and utilization of biomethane. These incentives play a crucial role in stimulating investment in infrastructure and bolstering market growth.

Looking ahead, several trends are expected to further amplify the demand for biogas and biomethane. These include the expansion of applications across sectors such as transportation, power generation, and industrial heating, as well as an increased focus on sourcing biomethane from sustainable feedstocks like agricultural residues and food waste.

On the other side, I reckon that along with these promising prospects, certain challenges must be addressed, like ensuring a sustainable and reliable supply of feedstock for biogas production, particularly for large-scale projects, as well as addressing public concerns surrounding potential odor issues associated with biogas facilities.

To sum it up, my opinion is that technological advancements, regulations becoming more supportive, and sustainability taking center stage, are making the future of the Biomethane Certificates market more promising. I believe that companies embracing this green energy transition, are not only poised to meet regulatory requirements, but also to position themselves as leaders in sustainability.

6. Last but not least, tell us a little bit about you. What are the most challenging part of your job and what are your hobbies, when you are not at work?

The most challenging aspect of my job is keeping up with the constant influx of new regulations across different countries. Take Europe, for instance, where the Corporate Sustainability Reporting Directive (CSRD) became effective in January 2023, mandating EU companies to report on the environmental and social impacts of their operations; or the Corporate Sustainability Due Diligence Directive (CSDDD), a proposal within the EU to ensure that EU companies responsibly manage social and environmental impacts throughout their supply chain. On top of that, some countries have peculiar rules, which means other technicalities. To navigate through this complex web of rules and regulations, it is not always simple, and you need a lot of patience and motivation.

When I don’t work, I find solace in engaging in outdoor physical activities such as hiking, walking, sailing, biking, swimming, or simply relaxing. After all, immersing myself in nature isn’t just a hobby, it’s also an integral part of my work.

Thank you, Alex for sharing your knowledge and perspective with us. We wish you the best of luck in your role!