The Swedish government decides on support for biogas

The government has decided on an ordinance which means that those who produce biogas can receive support, if the biogas is upgraded to the same quality as natural gas. In the long run, this can reduce dependence on imports of fossil natural gas, as biogas can then, for example, replace natural gas in industries or be used as fuel in gas cars, heavy trucks and sea transport.

– The current situation shows the need for an accelerated energy transition and the phasing out of fossil fuels, partly to reduce the need for imports of fossil fuels from Russia, partly for the sake of the climate. Increased production of biogas plays an important role in achieving this.

In the budget bill for 2022, SEK 500 million (approx. 50 MEUR) was set aside for the purpose of increasing biogas production and strengthening producers’ competitiveness. In 2023 and 2024, it is proposed that SEK 700 million (approx. 70 MEUR) per year be provided for the same purpose. The investment is proposed to continue until 2040, with a control station 2024.

The government has now decided on an ordinance for what support for biogas should look like. Production of biogas that is upgraded to the same quality as natural gas must be given a support of no more than 30 öre (approx. 3 Eurocent) per kilowatt hour. Such biogas can, for example, be used in gas cars or replace natural gas in industries. Biogas that is converted to liquid form can receive an additional 15 öre (approx. 1.5 Eurocent) per kilowatt hour in support. Liquid biogas is used in heavy trucks and shipping, among other things. The Swedish Energy Agency will be responsible for the support.