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Swedish Government announces biogas investment plan

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Sweden’s government has announced a long-term investment plan for biogas production.

The new regulation means those who produce biogas can receive a subsidy of up to 30 ore (€0.02) per kWh if the biogas is upgraded to the same quality as natural gas. Liquefied biogas can receive an additional 15 ore (€0.01) per kWh in support. In the long term, it is hoped this can reduce the country’s dependence on imports of fossil natural gas.

“The current situation shows the need for an accelerated energy transition and phasing out of fossil fuels, partly to reduce the need for imports of fossil fuels from Russia, partly for the sake of the climate,” said Minister of Energy Digitisation, Khashayar Farmanbar.

In the budget bill for 2022, SEK 500 million (€47.9 million) was set aside to increase biogas production and strengthen producers’ competitiveness. In 2023 and 2024, it is proposed that SEK 700 million (€67 million) per year be provided for the same purpose. The investment could continue until 2040.

Maria Malmkvist, CEO of biogas industry organisation, Energigas Sweden, commented: “We are very happy that the government is now implementing this investment in biogas. With increased production and use of biogas, we build up Swedish security of supply while contributing to climate and environmental goals.

“Energigas Sweden has worked hard to make this investment a reality and we are now eagerly waiting to see details of the ordinance.

“We see an increased interest in using biogas and also in investing in biogas production. The government’s investment will be of great importance for the development of the Swedish biogas market.

“Expanding biogas production is also completely in line with the European Commission’s plan, REPowerEU, where increased biogas production has been identified as an important measure to phase out dependence on Russian gas.”