Spain scales up biogas & cogeneration with €50 million support

Spain has unveiled a €50 million grant programme to accelerate the shift of power and heat production plants from fossil fuels to renewable energy sources, reinforcing its broader energy transition strategy. Announced by the Ministry for the Ecological Transition, the funding forms part of two new schemes totalling €405 million aimed at cutting emissions while strengthening Spain’s domestic clean-technology industry.

The €50 million programme, known as RENOCogen, is targeted at operators of cogeneration and waste-treatment facilities that currently rely on natural gas, diesel or fuel oil. Backed by the European Union’s NextGeneration recovery fund, the scheme supports projects that replace fossil fuels with renewable alternatives for electricity and heat generation.

Under RENOCogen, grants can cover up to 65% of eligible project costs, with a maximum of €15 million per project and a minimum investment threshold of €50,000. Companies of all sizes, public entities and business consortia are eligible to apply. Beneficiaries can also access advance payments of up to 80% of the approved aid. Projects must be located within 10 kilometres of existing installations and completed by June 30, 2029.

Eligible technologies include biomass and biogas for cogeneration, as well as biomass, biogas, geothermal, aerothermal and solar thermal systems for heat production.

Applications for the new call will be accepted from January 26 to March 2. The scheme comes as Spain witnesses rapid growth in biogas and biomethane projects, driven by supportive policies and rising investment from major energy companies.

Mega Plan for Clean Energy Tech Manufacturing

Alongside RENOCogen, Spain is launching a separate €355 million programme to expand domestic manufacturing of clean-energy technologies, including solar panels, wind turbines, electrolysers, batteries and heat pumps, aligning with the EU’s Clean Industrial Deal and REPowerEU goals.

Spain’s key biomethane target, set in its Integrated National Energy and Climate Plan (PNIEC), is to reach 20 Terawatt-hours (TWh) of biogas production by 2030, aiming to meet 10% of its gas demand and reduce reliance on fossil fuels, with long-term goals to replace up to 30% of gas consumption by 2050.

Recently, Verdalia Bioenergy secured €671 million corporate financing to build and operate a portfolio of projects across Spain and Italy with an aggregate production capacity in excess of 3 TWh per year. Similarly, Naturgy has vowed to add at least 20 biogas plants in Spain.