The European Commission has given the green light to a €3.7bn (around $4.36bn) Czech government funding programme aimed at scaling up sustainable biomethane production.
The scheme primarily targets small and medium-sized farms, with a goal of supporting the production of 350 million standard cubic metres of biomethane by the end of 2030 for use in transport, heating and industry. Funding will cover both newly-built biomethane stations and existing biogas plants that can be upgraded.
Support will be delivered through two-way contracts for difference, with a bonus per megawatt-hour of biomethane produced over a 15-year period, based on a set strike price. Where market prices for natural gas fall below the strike price, the state will compensate producers; where they exceed it, producers will return the difference.
Recipients will be selected through a competitive bidding process. Eligibility requires producers to hold a Czech gas production licence and comply with the EU Renewable Energy Directive.
EU Competitions Commissioner Teresa Ribera said the scheme would help the Czech Republic meet its emissions reduction targets.
The country has an extensive existing biogas infrastructure, producing heat and electricity through cogeneration. Biogas is generated through the anaerobic digestion of organic waste material, with biomethane produced by removing carbon dioxide and other impurities from the resulting gas.
EU approves €3.7bn Czech biomethane subsidy scheme
