France Gaz Launches Annual Report on Industrial Growth in Renewable and Low-carbon Gases
By Ndubuisi Micheal Obineme
Paris, Tuesday, January 28, 2025 – France Gaz and its partners have launched their bi-annual report focused on the renewable and low-carbon gas sector in the French territory. The report offers a comprehensive analysis of the challenges, and growth opportunities for the companies specialized in the conception, construction, development, and management of the renewable and low-carbon gas production units in France. This report, however, does not deal with the renewable and low carbon gas production sector in itself, which is well connected in France with the agricultural world.
According to the report, the French renewable and low-carbon gas companies make 91% of their production in France, while 85% of the commodities were consumed in the French territory. The French companies studied by these reports use for their production 70% of national equipment, while 24% was imported from other European countries.
In a statement made known to The Energy Republic, the renewable and low-carbon gas companies generated an overall turnover of 1.1 billion euros, which is one-third of the global overall turnover, with the “production” part representing the other two-thirds (2.2 billion euros).
The report also highlighted that 2% of the turnover was dedicated to R&D and 34% of companies developed at least one patent, with a total of 400 patents have been proposed for methanization and in new production sectors.
Notably, the renewable and low-carbon gas sector contributed 11,000 direct and indirect jobs to the French economy since 2023, with an expected growth of 18.4% in terms of job opportunities by 2026, particularly for the recruitment of qualified executives and engineers.
France gaz forecasted that renewable and low-carbon gases will account for 20% of the French gas mix in 2030 and 100% in 2050, due to the rapid development of new production sectors, such as pyrogasification, hydrothermal gasification, and power-tomethane. These sectors will develop through the innovation capacity of large groups and hundreds of VSEs/SMEs and start-ups based in the French territories.
Speaking at a press conference in Paris, covered by The Energy Republic, Frédéric Martin, President of France Gaz said, “France has committed to an energy transition based on low-carbon, local, sustainable and innovative solutions. In the coming years, players in the renewable and low-carbon gas sector will play a growing and essential role in achieving the carbon neutrality objectives of France and Europe set by the Paris Agreements in 2015. Tomorrow’s gas mix will be 20% decarbonized in 2030 and 100% decarbonized in 2050, thanks to the development of methanization and new production sectors, such as pyrogasification, hydrothermal gasification, and Power-to-methane.
“Our sector demonstrates that the energy transition is not just a challenge, but also a major economic opportunity to reindustrialize France. Above all, most of the production and value created remain on French territory and enable the development of the local economy.
“The expertise of French companies is increasingly recognized internationally, particularly thanks to the equipment manufacturing sector, present both in Europe and the North American market. With many companies involved and sustained annual growth, we are today building the energy ecosystem of tomorrow, creating industrial jobs and value for our territories.
“These companies have experienced significant growth in recent years, enabling the creation of a genuine green industrial sector “made in France” which, in 2023, will have contributed more than 3 billion euros to the French economy and created several thousand direct jobs”.
In his words, Martin stated that the outlook for renewable and low-carbon gas is positive both in France and the country’s capabilities to export these commodities to the international market.
However, he pointed out several measures to position France among the leaders of decarbonization in Europe, underscoring the need for government support in stabilizing the regulatory framework and creating dedicated training programs to enable the sector to achieve its ambitious target.
He noted that the last few years of regulatory instability have led to a slight slowdown in the commissioning of new projects, adding that several measures will also be necessary to keep France among the leaders of decarbonization in Europe and to strengthen a green, local, attractive and competitive French industry.
Martin called on the French government to provide an enabling environment, which includes more access to land, particularly within the framework of the ZAN law, develop a framework for a post-2028 CPB trajectory to ensure stability and visibility for industry players, simplify permitting procedures that generate significant additional costs during project development, and promote the development and use of biogenic CO2, a co-product of mechanization.
