Biomethane as a local alternative to natural gas produced from biodegradable waste is one of the key components of the transition to sustainable energy. It contributes not only to decarbonisation but also to energy self-sufficiency. Yet, in the Czech Republic, the biomethane support system is not effective enough to allow its full development. Production thus remains below the expectations of the state.
While biomethane production is growing in many European countries and is becoming a priority for meeting the EU's target of 35 billion m³ by 2030, we are lagging behind in its production in the Czech Republic. Compared to Denmark, for example, which produces 97.3 Nm3 of biomethane annually, we produced only 0.6 Nm³ of green gas this year, according to interim data. This also reflects the lower level of investment in its production, which is linked to a poorly functioning system of subsidy support.
Biomethane has long been overlooked in the Czech Republic. It was only last autumn that the European Commission approved a domestic operational support programme aimed at covering the costs associated with biomethane production, worth CZK 60 billion until the end of 2025. It was only this year that producers were able to start drawing on operating support allocated by the state for 20 years in the form of a green bonus linked to a reference gas price. The Energy Regulatory Office (ERO) has set the amount of the bonus for this year at CZK 973/MWh, and for next year it will increase up to CZK 1,525/MWh. However, the disbursement of this support is currently hampered by uncertainty about its setting from 2026," explains Tomáš Voltr, Managing Director of EFG Group.
The current setting of operational support for biomethane producers in the Czech Republic may not be motivating enough in itself, especially when compared to the prices that can be achieved by selling so-called green gas to some foreign countries where the market is more developed and creates sufficient demand. One of the elements of the RES trade in the Czech Republic is the guarantee of origin (for example, of biomethane), a certification issued by the state, which serves to prove emission reductions and green energy production. "However, if biomethane meets the sustainability requirements, it can also be traded with international certification such as ISCC, which, for example, our Rapotín plant has successfully defended for the fifth year. However, this partly clashes with the interests of the state, which should strive to reduce its own carbon footprint and encourage the biomethane produced here to be used on the domestic market," adds Tomáš Voltr. He also adds that the support does not apply, among other things, to biomethane stations commissioned before 2023, i.e. the EFG Rapotín BPS station, which was the first production site in the Czech Republic and heralded the development of the local market.
The form of support for biomethane stations from 2026 onwards is now the subject of discussions within the framework of the amendment to the Energy Act lex RES III. According to the proposals of the Ministry of Industry and Trade of the Czech Republic, it should no longer take the form of a green bonus, but an auction bonus. Producers would therefore compete with each other in auctions for the amount of support. This is a method that may introduce more market elements and reduce costs, but at the same time may create further uncertainty for investors who will spend money upfront without certainty of success in the auction. Such a system therefore risks slowing down the development of biomethane, and experts suggest rather maintaining the current support model.
"Although, given our strategy, we are not dependent on subsidies for biomethane production and have not drawn on them for any of our plants, we perceive that the absence of an effective system severely limits the ability of producers and investors to plan projects in this area. If the situation is not resolved, the Czech Republic may lose its competitiveness in biomethane production, where it has a high potential. Moreover, clearly defined support will ensure that the gas produced remains on the domestic market and contributes to reducing the national carbon footprint," concludes Tomáš Voltr.
Photo: source Energy financial group
