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Biomethane – An Opportunity to Reduce Dependence on Fossil Fuels
November 26, 2025
Belgrade, 26 November 2025 – Serbia has significant potential for rapid development of the biomethane sector, which would help reduce dependence on fossil fuel imports and increase energy security and stability through the use of renewable energy sources. This is shown by the Study on Biomethane Production Potential in Serbia, conducted by United Nations Development Programme (UNDP) in partnership with the Ministry of Mining and Energy and the Ministry of Environmental Protection, with financial support from the project “EU for Green Agenda in Serbia”, funded by the European Union and the governments of Switzerland, Sweden and Serbia.
The Assistant Minister for International Cooperation, European Integration and Project Management at the Ministry of Mining and Energy, Jovana Joksimović, stated that renewable energy sources play an important role in strengthening Serbia’s energy security and independence, and that biomethane has the potential to play a more significant role in the decarbonisation process in the future.
“The Integrated National Energy and Climate Plan (INECP) until 2030, with a vision to 2050, foresees the gradual introduction of biomethane into district heating systems, while the potential of this renewable source is also recognised in the decarbonisation of transport. The use of biomethane will be encouraged through the development of a regulatory framework and the implementation of demonstration projects, contributing to significant reductions in production costs and improved technical feasibility for transport through the existing natural gas system”, said Joksimović.
Biomethane is a gas produced by processing organic waste and biomass, and is playing an increasingly important role in the global energy transition. Under the REPowerEU plan, the European Commission has set a target to produce by 2030 an amount of biomethane that would cover around 10% of the EU’s current natural gas consumption. This renewable energy source helps reduce GHG emissions and pollutants, while supporting sustainable community development. In addition, it enables the use of agricultural residues and waste, further contributing to environmental protection.
“Biomethane is a domestic, locally produced, sustainable and reliable energy source that can contribute to Serbia’s energy independence, reduce waste, and lower emissions of harmful gases that cause air pollution and climate change. In partnership with relevant national institutions and international partners, UNDP supports the creation of conditions for establishing new biomethane facilities and converting existing biogas plants to biomethane production. We are committed to developing the renewable energy sector and the circular economy, recognising their importance for building an energy system that uses Serbia’s potential in a smart and climate-responsible way”, said Yakup Beris, UNDP Serbia Resident Representative.
Biomethane in Serbia can be produced from several widely available types of feedstock:
Agricultural feedstock (primarily manure, slaughterhouse waste, and crop residues)
Organic waste from households and the food industry
Sludge, a by-product of wastewater treatment. An increased number of wastewater treatment plants, which Serbia aims to achieve, will also result in more sludge. If sludge disposal is not properly organised, it poses a significant environmental and logistical problem.
What is currently considered and treated as waste can become raw material for fuel production.
According to UNDP’s findings, biomethane could replace about 6% of Serbia’s total natural gas consumption by 2030 and more than 12% by 2050. In industry and households, biomethane could cover almost 16% of natural gas consumption by 2030 and more than 25% by 2050, increasing the resilience of the economy and citizens to energy crises.
In transport, biomethane could almost completely replace natural gas as a fuel by 2028, with full substitution possible by 2030. This would contribute to decarbonising the transport sector and developing green solutions in this area. For example, public and municipal transport could switch to biomethane, and this energy source could also be used in heavy transport and logistics. Scania and Volvo Trucks are already developing heavy-duty vehicles with biomethane engines.
Furthermore, biomethane can replace natural gas in Serbia without any modification to the existing gas infrastructure.
Biomethane production contributes to:
Reduced natural gas imports: Serbia imports most of its natural gas. Domestic biomethane production decreases dependence on unstable foreign markets and energy prices, thereby reducing the trade deficit.
Local economic development: Biomethane is produced in rural areas from local feedstock, directly supporting farmers, cooperatives and small businesses.
Additional income and savings: Digestate, a high-quality natural fertiliser, is produced as a by-product of biomethane production. If the use of digestate as a soil amendment and plant nutrient were regulated, biomethane producers could generate income not only from selling energy but also from selling this natural fertiliser. The price of digestate is lower than that of artificial (mineral) fertilisers, resulting in lower costs for end users.
Reduced pollution: Gas is otherwise released uncontrollably from landfills. Capturing this gas and using it as a raw material for biomethane production reduces air, soil, and groundwater pollution.
Reduced risk of landfill fires: Fires at landfills are very difficult to extinguish. Their cause is the gas released uncontrollably during the decomposition of accumulated organic waste. Biomethane production also extends landfill lifespan.
Total investment required for the development of the biomethane sector is estimated at up to €550 million by 2030. With this investment, annual revenue from biomethane production could already exceed €250 million by then. This would create opportunities for additional income in agriculture, for greening industrial production and for creating new jobs related to the energy sector at the local level.
More information on the findings of the study on biomethane potential in Serbia (available in Serbian only) can be found at: https://www.undp.org/sr/serbia/publications/proizvodnja-biometana-u-srbiji-gap-analiza-politika-potencijala-snabdevanja-infrastrukture-i-trzisnih-trendova.
