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18 min ago 2 min read
The European Commission has approved a €3.7bn ($4.36bn) Czech government funding scheme to scale sustainable biomethane production amid the net-zero emission push.
The Czech government’s scheme is targeting mostly small and medium-sized farms, to support production of 350 million standard cubic meters of sustainable biomethane before the end of 2030 for use in transport, heating, and industry.
It will support new capacity from newly-built biomethane stations and existing biogas plants that could be upgraded to biomethane.
Fund will be awarded with two-way contracts for difference with a bonus for megawatt-hour of biomethane produced over 15-years based on a strike price.
If market prices for natural gas are lower than the strike price, the state will pay producers. If they are higher, producers will pay back the difference.
Winners will be selected through a competitive bidding process. Biomethane producers must hold a Czech gas production license and comply with the to receive aid.
Competitions Commissioner Teresa Ribera said the scheme will help the Czech Republic meet its emissions reduction target.
The Czech Republic has a large preexisting biogas infrastructure, which produces heat and electricity through cogeneration units.
Biogas is produced through the anaerobic digestion of waste material, and biomethane is achieved by upgrading biogas through the removal of carbon dioxide and other impurities.
In March, 11 leading European industry associations signed a to push for its use in the industrial sectors to support climate efforts.
