The integration of biomethane and bio-LNG into the European Union’s energy market is gaining momentum as regulators and certification bodies move to align renewable gas trade with sustainability and traceability requirements. Recent guidance from the International Sustainability and Carbon Certification (ISCC) system outlines how renewable gases can be reliably certified, tracked, and traded across the EU’s interconnected gas infrastructure (see here: ISCC GUIDANCE)
Speaking in a recent ISCC presentation, Dr. Marina Pasteris, Sustainability Manager within the ISCC EU team, highlighted that robust traceability systems are essential if biomethane and bio-LNG are to play a meaningful role in Europe’s decarbonisation strategy. With increasing volumes of renewable gas being injected into shared networks, traditional physical tracking is no longer sufficient. Instead, ISCC relies on a chain-of-custody model supported by sustainability documentation at every step of the supply chain.
Under this approach, biomethane can be traced from its point of origin such as farms, plantations, or waste-processing facilities through gathering points, processing units, traders, and finally to the market. Each economic operator issues or transfers a sustainability declaration, while formal Proof of Sustainability forms accompany certified volumes. These documents ensure that renewable attributes are neither duplicated nor overstated as gas changes hands, including in cross-border transactions.
A major development under the ISCC EU framework is the application of mass balance within the EU’s interconnected gas infrastructure. Because biomethane molecules mix with fossil gas once injected into the grid, ISCC permits sustainability characteristics to be allocated administratively, rather than requiring physical segregation. This mass-balance system operates within clearly defined infrastructure boundaries, covering gas pipelines, storage facilities, LNG terminals, and market exit points consistent with the definitions in the Implementing Regulation (EU) 2022/996. Please see the summary of changes here (ISCC EU Mass Balance Changes): ISCC EU 203-02 Mass Balance Guidance v1.2, 22 Dec 2025).
The guidance also addresses the growing interest in bio-LNG, particularly for heavy-duty transport and maritime applications. ISCC recognises two routes for producing certified bio-LNG. In the first, biomethane is physically liquefied at a liquefaction plant or LNG terminal, maintaining a direct link between the renewable gas and its sustainability attributes. In the second, sustainability characteristics from biomethane injected into the gas grid are transferred to LNG using mass balance. This second process of uncoupling the physical production of bio-LNG from sales of bio-LNG enables flexibility within the gas to grid to effectively exchange the form and calculated quantity to another. Please note this is only permitted under ISCC if the LNG terminals are part of the interconnected infrastructure only and physically connected to the gas grid. In both cases, the ISCC certified Processing Unit issues a bioLNG PoS (Proof of Sustainability) and cancels biomethane PoS. The liquefaction unit must be certified as a processing unit. This is not a chemical change, as bio-LNG, to those that are not wholly familiar, is biomethane (gas) cooled to around -162oC and liquified for use as in the transport and maritime sector as bio-LNG has higher energy density and mobility. ISCC has also clarified the status of biomethane produced outside the EU. Certification of non-EU biomethane value chains is permitted under ISCC EU, on the proviso supply chains are segregated or recognised mass-balance systems are used. However, biomethane injected into non-EU gas grids cannot currently be recorded in the Union Database under RED III, limiting its eligibility for EU compliance reporting which is a well-known industry ongoing point of contention. ISCC do note the situation may evolve if the UDB expands.