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The European Union is currently undergoing a transformation towards a more sustainable and low-carbon energy mix. The cornerstone of this process is the development of renewable energy sources. These include biogas and biomethane (a purified form of biogas), the combined potential of which could reduce global greenhouse gas emissions by up to 10-13%. What are the benefits of biomethane production and what role can it play in Poland's energy transition? This is discussed in Strategy& latest report: Biomethane in Poland. The growing role of biomethane in the energy transition
Biomethane in Poland
The growing role of biomethane in the energy transition
Bartosz Safiejko
Director
Strategy& in Poland
Wojciech Słowiński
Partner
Strategy& in Poland
Energy transition is one of the key challenges for the European Union and many companies operating in its Member States. Transformation efforts are the result of adaption to environmental regulations emerging to combat climate change, but they are also heavily influenced by the current geopolitical situation and the desire to become independent of fossil fuel supplies from Russia
Biomethane - the key to a low-carbon energy transition
The successful completion of the energy transition process will be one of the most important factors that will determine the possibility of maintaining the competitiveness of both the Polish and the European economies. Renewable energy sources are to play a key role in this process. One of these is biomethane, which is a low-carbon alternative to natural gas.
Biomethane is also an important element in achieving energy independence. According to the European Commission's projections, it is capable of replacing as much as 20% of the gas previously imported from Russia by 2030.
Biomethane is an opportunity to decarbonise transport, which, according to the IEA (International Energy Agency), is responsible for more than one-third of global CO2 emissions. With the possibility of achieving negative carbon emissions, all that is needed is:
- 80% share of bio-LNG fuel mix of a heavy vehicle to achieve climate neutrality.
- 20% share of bio-LNG in shipping to reduce CO2 emissions by one-third (compared to all-diesel-powered vessels).
EU emission reduction targets for heavy transport*
EU emission reduction targets for bus transport**
EU emission reduction targets for heavy duty transport*
EC proposal, provisionally approved by the European Council and the Europarliament, reduction compared to 2019**
European leaders in biomethane production
The potential of biomethane in the energy transition was recognised by Western European countries some years ago, resulting in the gradual introduction of appropriate policies and regulations. The example of France highlights the key role played by a long-term strategy in achieving this transition.
In France, a series of multiparty debates on environmental policy and sustainable development took place in 2007. The aftermath of the 'round table' was the two Grenelle Acts, which successively set out the environmental strategy and objectives and how they should be implemented. On their basis, a tariff mechanism for biomethane injected into the grid and certificates of origin were introduced. Subsequently, policies and programmes were introduced to reinforce Grenelle's message, as well as further incentives, including a failed tendering system and a subsidy for gas grid connection costs. The latter has had a particularly strong impact on the rapid development of green gas production.
As a result of the consistent implementation of the adopted strategy, biomethane development is progressing faster than expected in France and the 2023 target of 6TWh of biomethane fed into the grid has been met more than a year in advance.
Biomethane production in France
2022 - Another tariff update
2020 -Tariff update
2017 - Financing for connection
2016 - Tendering system
2015 - LTECV
2011 - First procurement tariffs for biomethane
2010 - Grenelle 2 - biomethane support
2009 - Grenelle 1 - definition of biomethane
The role and potential of biomethane in Poland
The European Union's ambitious plans for the development of renewable energy are forcing member states to increase the pace of work and investment in this area. A great chance for our country to catch up with European leaders may lie in betting on biomethane. Unlike solar and wind energy, Poland is one of the countries with the greatest potential for biomethane production in the European Union.
Total annual biomethane production potential (via methane fermentation and timber gasification) in 2050:
Poland's huge potential as a biogas producer includes:
High level of demand
Extensive natural gas distribution and transmission network
High number of rural farms
Highly developed transport industry
Despite this, only 22% of Polish biogas market participants are interested in expanding the value chain of a biogas plant to include biomethane. There is a lack of an appropriate investment climate based on a national biogas and biomethane development strategy along the lines of the Polish Hydrogen Strategy to 2030 or the Polish Nuclear Power Programme.
The survey was conducted by PwC between 30.08.2023 and 26.09.2023 among 50 operators representing more than 10% of the domestic biomethane market.
Download report: Biomethane in Poland
The growing role of biomethane in the energy transition
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