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Q&A: French state auction for biomethane RGGOs

  • Market: Electricity, Natural gas
  • 06/11/24

France's first auction for state-owned biomethane renewable gas guarantees of origin (RGGOs) is due to take place on 4 December. It will be run by European Energy Exchange (EEX), which also manages the French biogas registry. Argus spoke to Aude Filippi, director of business development gas and sustainability markets at EEX, about biomethane RGGOs in France and the new auctions. Edited highlights follow:

How are RGGOs currently traded in France?

All RGGOs for biomethane injected into the French gas grid are currently exchanged via the over-the-counter (OTC) market, and the transfer of ownership is done via the French biogas registry. The RGGOs are tradeable for 12 months and usable for 18 months, and are issued in monthly intervals.

The market has been growing quite significantly. Between January and September 2024, 8.5TWh of RGGOs were issued and 7.2TWh cancelled, while in 2023 there were 9.6TWh issued. Almost all of the issued RGGOs are cancelled, with very few expiring after 18 months.

Why are the biomethane RGGO auctions being launched now?

The French state owns all the RGGOs from biomethane produced from subsidised plants where the contract was signed after 9 November 2020, and now the French state wants to sell them.

Even though the contracts were signed in 2020, it takes time to put biomethane into production, so very few of the RGGOs have expired so far. But the volume being produced is growing so it is important that we now have the auctions.

What size volumes are you expecting to be in the new biomethane GOO auctions?

We expect over 80,000MWh in the first upcoming auction, with volumes likely to increase in the following sessions.

What buyers are you expecting to participate in the auctions?

Essentially it will be the members of the French biogas registry that we have connected today. And some members connected to the French power GOO auctions at EEX might participate, so we expect that it will be a similar target group, but for gas.

Will buyers be able to export the biomethane GOOs for use in other countries?

Today we are not yet connected to a hub for the international trade of RGGOs. At the moment, we are working with the hubs to get connected.

Why do the auctions have a mechanism for certain buyers to reserve volumes in the auction?

The idea is that the operator of a production device will have the ability to buy the RGGOs produced from this particular device from the French state. They are then committing for one year at least to buy these RGGOs at the auction price plus a 30pc premium.


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15/11/25

Cop: 'Tangible' transition from fossil fuels needed

Cop: 'Tangible' transition from fossil fuels needed

Belem, 15 November (Argus) — Kazakhstan's deputy minister of natural resources Mansur Oshurbayev today called for a "tangible, not rhetorical" transition away from fossil fuels at a panel during the UN Cop 30 climate summit in northern Brazil. Nigerian and Fijian representatives at the same panel noted the need for "real alternatives" for industry and workers, and for the finance to support a transition, respectively. The topic of moving away from fossil fuels has drawn attention at Cop 30, with host country Brazil's President Luiz Inacio Lula da Silva calling for a roadmap to overcome dependence on them . But talks on the topic are moving slowly. Cop 30 chief strategy and alignment officer Tulio Andrade said earlier this week that they are not on the formal negotiation table. Almost 200 countries agreed to transition away from fossil fuels at Cop 28 in 2023. Some developing nations such as Colombia are eager for a phase-out plan at Cop 30, but others, especially in the Middle East and Africa, are concerned that it might hinder their development, according to delegates. A growing number of countries are discussing an option similar to the so-called Baku to Belem roadmap , which sets out paths to scale climate finance for developing countries to $1.3 trillion/yr by 2035. A fossil fuel phase-out roadmap could look similar, a French delegation source said. Any reduction in fossil fuel production can only come "with real alternatives for firms, workers and regions", Oshurbayev said during the panel. "We must preserve and redeploy this human capital into activities that support the climate transition and do not directly compete with the coal and oil and [natural] gas operations", he added. The phase out of fossil fuels is a "difficult conversation", the director general of Nigeria's national council on climate change Omotenioye Majekodunmi said. Around 80pc of Nigeria's economy relies on fossil fuels and the country uses about 40GW of fossil-powered generators to generate electricity, he said. But there have been some strides at the national level, such as removing taxes on photovoltaic systems, solar panels and batteries, which will allow "small mom and pop shops and homes to adopt renewable energy options other than burning gasoline and diesel", he said. The country also removed long-standing fuel subsidies in 2023. The Netherlands' vice-minister of climate and energy Michel Heijdra called on countries to reduce fossil fuels subsidies earlier in the week during a Cop 30 high-level event. And fossil fuel subsidies throughout the world are mostly "underpriced, underused or unjust", the deputy chief of IMF's climate policy division Diego Mesa said. Nigeria is also considering creating an additional tax on oil products, Majekodunmi said, which would encourage the country to "reimagine alternative energy sources to drive its economy". The country will rely on natural gas as a "transition fuel" as it winds down over-dependence on fossil fuels, Majekodunmi said. Electrification can also help countries reduce fossil fuel usage, Oshurbayev said. Bold and joint action will be needed to mitigate the consequences of irreversible climate change, including to phase out fossil fuels, the permanent secretary of Fiji's environment and climate change ministry Sivendra Michael said. And any such action will require financing, he told Argus on the sidelines. Some countries, such as India and Saudi Arabia, are pressing for the climate finance obligations of developed countries to developing countries to be addressed at this summit. This is one of four contentious topics that did not make it onto the official agenda, but that countries are discussing in consultations overseen by the Cop presidency. "The ball is [in the] rich countries' court", Michael said. The technical phase of Cop 30 is now wrapping up, as countries' ministers are starting to arrive. The talks will shift into a political phase from 17 November. By Lucas Parolin and Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Cop: 10 countries pledge to align transport with 1.5ºC


14/11/25
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14/11/25

Cop: 10 countries pledge to align transport with 1.5ºC

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More oil, gas firms have emissions action plans: OGDC


14/11/25
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14/11/25

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Norway confident power Norgepris is EEA compliant


14/11/25
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14/11/25

Norway confident power Norgepris is EEA compliant

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API pitches revamp of biofuel exemptions: Update


13/11/25
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13/11/25

API pitches revamp of biofuel exemptions: Update

Updates throughout New York, 13 November (Argus) — The American Petroleum Institute (API) is pitching the White House and biofuel groups on a total revamp of how the US exempts oil companies from a program that requires biofuel blending, according to three people familiar with the lobbying group's work. API recently withdrew its support for a bill that would authorize 15pc ethanol gasoline (E15) year-round on its frustrations with changes to biofuel policy this year that oil companies see as too friendly to farmers and to some small refining competitors. The US for instance recently granted small oil refiners generous hardship waivers from a biofuel blend mandate and proposed requiring larger companies to blend more biofuels in future years as an offset. API's pitch — shared at a White House meeting this week — would require that companies seeking program exemptions must show that economic hardship stems directly from the biofuel program, a more stringent requirement than today, according to two of the people familiar with the group's work. Exemptions would also be restricted to companies with limited collective refining capacity, cutting off larger enterprises like Delek and Par Pacific that own multiple small units that qualify now. Smaller companies like Ergon and Kern Oil could still request waivers, but the total pool of potentially exempted gas and diesel volumes would be far lower. The oil group then wants the US to prohibit hiking other oil companies' blend requirements to offset those exemptions, a tougher sell to biofuel and crop groups that fear unchecked program waivers curb demand for their products. Larger merchant refiners that do not qualify for small refinery relief have also long pushed lawmakers for updates to the program and would not benefit from this proposal. API's idea is to pass legislation pairing updates to the small refinery exemption program with year-round authorization of E15, generally prohibited in the summer without emergency waivers because of summertime fuel volatility restrictions that do not apply to typical 10pc ethanol gasoline. That's a top priority for ethanol companies, otherwise at risk from an increasingly efficient and electric light-duty vehicle fleet. Congress last year nearly passed narrower E15 legislation, which API supported at the time but no longer does without more changes. Courts have struck down past attempts by federal officials to authorize E15 without emergency declarations and to drastically restrict biofuel exemption eligibility, likely limiting what President Donald Trump's administration can do without new legislation. API made the pitch to the White House this week, the sources familiar with API's work said. The White House is hosting other groups for meetings on fuel policy, including another one on Thursday on E15 that featured biofuel groups. Officials from across Trump's administration, including the US Department of Agriculture, have attended. "Administration officials hosted listening sessions with biofuel groups, agriculture and oil refiners to discuss their proposals on year-round E15", a source familiar with the matter said. It is not clear that biofuel advocates, insistent that the Trump administration entirely offset the impact of recent refinery exemptions, are open to the attempted compromise. The ethanol group Renewable Fuels Association declined to comment on E15 talks. Regulatory tweaks to boost ethanol supply would also do little on their own to help producers of other biofuels like renewable diesel. API declined to elaborate on what was discussed at any meetings with the Trump administration. "We appreciate the administration's leadership in bringing stakeholders together to advance a practical solution on E15 and small refinery exemption reform", API said. "We look forward to continuing to work together to advance a framework that supports fuel choice, strengthens the refining and agricultural sectors, and helps ensure a stable, reliable supply for American consumers." Under the Renewable Fuel Standard, the US requires oil refiners and importers to annually blend different types of biofuels or buy credits from those that do. The administration is late setting new biofuel quotas for 2026 but is expected to do so in the coming months, kicking off a flurry of last-minute lobbying about future volumes, exemptions and potential cuts to credits from foreign fuels and feedstocks. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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