CN Biogas: Scaling Mexico’s Renewable Gas Market

Q: What specific problem in the sector does CN Biogás address, and what have been its main achievements in recent years?

A: CN Biogás, the National Biogas Council, is often perceived as a new association but it was founded in 2018. The original perspective in 2018 was quite different from how the sector has actually evolved.

Typically, associations are created directly by companies and stakeholders within a sector. In this case, the Council emerged from a program led by the German cooperation agency GIZ. The association was initially formed through UNAM’s Engineering Institute, which gave it a strong academic foundation in its early years. After a couple of years, GIZ stepped back, once the organization was formally established, and encouraged it to continue independently.

Over time, several factors began to shift the association’s direction, particularly the interaction with companies. One of these was the incorporation of private-sector experience, including my own background through G2H Consulting and my previous role in the natural gas vehicle association. This helped move the Council from a primarily academic initiative toward a more structured organization with defined strategic priorities.

Today, CN Biogás operates around clear guiding axes focused on promoting the biogas sector. Biogas, produced through the decomposition of organic matter, is a clean fuel with significant potential. Despite this, raising awareness has not been simple.

Q: How is the association positioning biogas as a strategic domestic resource, similar to natural gas, rather than as a purely experimental technology?

A: In 2015, Mexico saw a rise in pilot biogas projects, mainly through biodigesters. Several programs supported the installation of biodigesters, particularly in central regions such as the Bajio and Jalisco, with the goal of utilizing agricultural and livestock waste. These programs were largely grant-based.

However, this coincided with the energy reform, which overshadowed many of these initiatives. Poor project management was also a major issue. Today, less than 1% of those projects are still operating, and even those often do so under suboptimal conditions. This experience is relevant because it shows that biogas is not a new or unknown technology, even if Mexico’s early implementation was limited.

Nonetheless, international experience has demonstrated that organic waste utilization remains a key anchor for energy generation. This has been reinforced in global discussions, including at the most recent COP in Brazil, where biogas once again gained attention as a strategic option.

Biogas is considered an energy vector because it connects multiple sectors. It links circular economy models, organic waste management, electricity generation, and gas markets. Raw biogas can be cleaned to produce biomethane, which is chemically very similar to natural gas. For this reason, biomethane is often referred to as renewable natural gas. Methane is the main component of natural gas, which explains the technical compatibility.

From CN Biogás’ perspective, it is important to be clear that there are no simple or universal solutions. Biogas has significant potential, but it is not a silver bullet. It will not make Mexico independent from natural gas. However, every molecule of biomethane produced locally reduces dependence on imported natural gas. That contribution is real and tangible.

Q: Deploying the necessary infrastructure can feel overwhelming, especially when returns are not immediate. Could you provide an overview of the infrastructure required and explain how multiple sectors and stakeholders can realistically be aligned to make these projects viable?

A: The biogas sector illustrates how a weakness can become a strength. Poor waste management is one of Mexico’s main challenges, but managing waste properly creates the opportunity for energy generation. To understand the infrastructure, it is necessary to start with the sources of organic waste.

When waste is not separated at the source, it usually ends up in landfills. Even in the best-case scenario, organic matter will decompose naturally and generate biogas, regardless of whether it is captured or not. The issue is that without proper management, the quality of that biogas is often insufficient for productive use. Nevertheless, landfills already represent a significant opportunity, because biogas is being generated today, even if it is simply flared, as has been the case in sites such as Bordo Poniente.

One of the main challenges is coordination. In landfill projects, ownership and responsibility are fragmented. One party owns the land, another manages the waste, another transports it, and informal actors are also involved. This complexity makes infrastructure development difficult.

A more straightforward pathway is the use of biodigesters. Technically, a biodigester is a chemical reactor, but a more intuitive way to understand it is as a stomach that is fed organic matter. This organic matter can come from many sources, including the organic fraction of municipal waste, food waste, industrial effluents, agricultural residues, livestock manure, and wastewater treatment plants.

The technology already exists in Mexico, ranging from very simple systems to highly sophisticated facilities. From an infrastructure perspective, this flexibility is an advantage rather than a barrier. If all available organic waste were utilized in theoretical terms, biomethane could substitute between 10 and 15% of Mexico’s natural gas demand. While this may seem modest from a purely volumetric perspective, its impact is significant when considering emissions reduction, waste management, and energy diversification.

Q: From a business perspective, how economically viable are biogas and biomethane projects, and how can this value proposition be communicated to investors, especially given that many projects are highly case specific?

A: This is one of the central challenges for the sector. In many countries where biogas and biomethane have already scaled, there are clear support mechanisms, such as tax adjustments, incentives, or compensation schemes. In Mexico, energy projects are typically developed under much more demanding conditions, and biogas projects face an even steeper path.

One of the main reasons is the comparison with natural gas. Mexico benefits from relatively low-cost natural gas, which has created both comfort and dependency. As a result, biogas cannot be evaluated solely on a direct cost-per-molecule comparison with pipeline natural gas. That comparison is inherently unequal. In Europe, for example, high natural gas prices and extensive infrastructure make biogas investments more attractive, often supported by public incentives. Mexico does not yet have that context.

This does not mean that biogas projects lack economic logic. On the contrary, the projects that are already moving forward have done so by building full circular economy models. Instead of paying for feedstock, many developers structure projects so that waste generators pay for proper disposal. That reverses the cost logic and creates an additional revenue stream. When combined with energy sales, this balance can make projects viable, even if biomethane remains more expensive than natural gas on a pure commodity basis.

Viability also depends heavily on location and use case. Where pipeline natural gas is readily available, it is difficult to justify investment in biogas. However, in remote areas without gas infrastructure, where energy depends on LPG, diesel, or unreliable electricity, biogas and biomethane become a competitive and resilient alternative. The same applies to mobility. Gasoline and diesel prices remain high, and biomethane can compete more effectively in those segments, particularly for captive fleets.

Another major barrier is upfront investment. Unlike a conventional fueling station, which can generate revenue almost immediately, biomethane projects require infrastructure, learning curves, and market development. This is why they tend to be bespoke solutions. However, experience is showing that scale matters. Contrary to early assumptions, the projects gaining traction today are not small pilots but large installations. Larger projects benefit from economies of scale and are more likely to reach financial sustainability. The unresolved challenge remains securing stable and sufficient feedstock, which is essential to making these projects attractive to investors.

Q: Although biogas remains a pioneering sector, you have suggested that results are exceeding initial expectations. What recent developments support this view?

A: There is a very concrete milestone that illustrates this progress. Just last week, the first national permit for the commercialization of biomethane under the new legal and regulatory framework was granted, specifically to Brimex. This is a historic development. Until now, no project in Mexico had a formal permit to commercialize biomethane under the new law. This permit is effectively the first of its kind.

To put this in perspective, countries like France have more than 1,500 biomethane projects in operation. Mexico is just beginning, but the fact that the first commercialization permit was obtained in less than three months sends a strong signal. It reflects growing institutional recognition, particularly from the Ministry of Energy, of the strategic importance of biofuels and biogas.

While this accelerated permitting process is encouraging, it also raises questions about consistency across sectors, as other industries still face significant delays. Nevertheless, at this stage, it represents a positive shift that supports investor confidence and project development.

Q: Looking ahead to 2026, what projects are on the horizon, and what excites the association most about the coming year?

A: From the Council’s perspective, we expect at least 10 emblematic projects to be submitted for permitting. These projects are designed to cover the full biogas and biomethane value chain under the new law and regulation. They are intended to function as anchor projects, demonstrating technical, regulatory, and economic feasibility.

While 10 projects may seem modest, it is important to note that Mexico currently has only a handful of production permits, with just one project operating at scale. These new projects will include landfill biogas recovery, compressed biomethane distribution by road, and eventually biomethane injection into natural gas distribution networks. Notably, the first projects to move forward will likely focus on compression and transport rather than pipeline injection, which is more complex and capital intensive.

Another development that generates significant momentum is the recent installation of the National Energy Transition Standardization Committee, led by the Ministry of Energy and involving multiple federal agencies and industry associations. This committee will begin by addressing biofuels and biogas, developing the technical standards required for injection, quality specifications, safety, and operation. This regulatory foundation did not previously exist and represents a major institutional step forward.

Q: Would certification mechanisms, branding schemes, or incentive instruments similar to CELs help unlock value for the sector?

A: Absolutely. One of the ways projects are currently improving viability is through voluntary carbon markets, particularly by monetizing emissions reductions. However, a domestic recognition mechanism would significantly strengthen the sector.

The law and regulation already mention the possibility of incentives, although their form and timing remain undefined. Creating a framework that allows biogas and biomethane projects to generate tradable value, whether through certificates, credits, or fiscal mechanisms, would accelerate investment. This would be especially relevant for sectors with high emissions obligations, such as hydrocarbons, which could use these projects for compliance or compensation.

CN Biogás is Mexico's leading civil association dedicated to the promotion, development, and professionalization of the biogas and biomethane sector. It acts as the "connective tissue" between private technology providers, academia, and the government to accelerate the use of organic waste for energy.