Sonja Mueller-Dib, managing director of Shell Energy Deutschland, said the company is planning two biomethane plants at Karstaedt and Steinfeld.
This has the potential to meet up to 5% of current national biomethane consumption by the end of this decade.
During an interview at the E-World of Energy trade fair in Essen, she said demand outstrips supply.
Over 150 local power plants seek organic residue-derived methane, such as manure, which is supplied by Shell.
"Our motivation is to supply the green molecule in large quantities and at competitive prices," Mueller-Dib said.
"The value of such products is higher than a pure natural gas product and that allows us the investment."
She emphasised there was no intention to use food crops for biomethane applications, which reach the transport, chemicals, automotive, steel and heat sectors, due to food security guidelines.
