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19 min ago 2 min read
Czechia’s inaugural auction for biomethane operational support has attracted almost four times more capacity than the government made available, according to the country’s Ministry of Industry and Trade.
63 projects entered the auction, offering a combined capacity of 176.4 million cubic metres per year. This was almost four times the competition volume of 45 million cubic metres per year.
“The interest exceeded even our most optimistic expectations,” said Minister Karel Havlíček. “This confirms that we have set up the support for biomethane correctly and that this sector has a strong future in the Czech Republic.”
The auction follows the in April of a €3.7bn ($4.3bn) Czech government funding scheme to scale sustainable biomethane production as part of the push towards a net-zero economy.
The scheme is targeting mostly small and medium-sized farms, supporting the production of 350 million standard cubic metres of sustainable biomethane by the end of 2030 for use in transport, heating and industry.
To be eligible for aid, participating biomethane producers must hold a Czech gas production licence and comply with the EU Renewable Energy Directive (RED).
Support is delivered through 15-year, two-way contracts for difference, with payments determined through competitive auctions to reduce market volatility and provide revenue certainty for producers.
The number of biomethane plants in the country is expected to reach 100 by 2029, following the Action Plan for the Development of Biomethane in the Czech Republic.
At the end of 2024, the number of biomethane plants had risen to 10, with their total installed capacity amounting to 17.7 million cubic metres per year. Production in 2025, however, reached only 7.5 million cubic metres. By comparison, natural gas consumption in Czechia stood at six billion cubic metres in 2024.
“A key constraint on biomethane sales is its production costs, which have so far been significantly higher in the Czech Republic than the price of imported biomethane, and higher than operators would need for their operations,” said the Ministry of the Environment.
