Mechanisms for supporting biomethane production and consumption

The development of biomethane production is the result of political will and reliable, long-lasting financial support mechanisms and investment subsidies, as biomethane cannot compete with natural gas in today’s market conditions. Many European countries have already established mechanisms to support biomethane.
Different countries use different support mechanisms to develop biomethane technologies. These mechanisms operate at different points in the biomethane value chain.

Germany and Sweden were the pioneers in this area. Germany actively used, from 2000 to 2014, a green tariff for electricity from biogas, additional bonuses for enriching biogas to the quality of natural gas and the use of energy crops (corn silage). From the very beginning, Sweden encouraged the use of biomethane as a motor fuel and exempt use of biomethane from carbon and energy taxes.

In recent years, biomethane production has been actively developing in France, Italy, Denmark, the United Kingdom and the Netherlands.

National support schemes include measures such as Feed-in-Tariffs (FIT) for produced biomethane or produced electricity from biomethane, investment support, quota systems or tax incentives. In addition to financial support, there are incentives in licensing and legal aspects to reduce project risks.

Mechanisms for supporting biomethane production and consumption. Yurij Matveev. The platform of sustainable agribusiness SAF Ukraine. August 15, 2019.

The Bioenergy Association of Ukraine since 2019 is a partner of the platform of sustainable agribusiness SAF Ukraine.