11 bidders succeed in first Czech biomethane operating support auction

A total of 11 entities will receive the first operating support for biomethane production in Czechia, securing 45 million cubic metres of biomethane annually. They succeeded in the first domestic auction. The Ministry of Industry and Trade (MPO) announced this today. The state plans further auctions in the coming months, with nearly CZK 90 billion in total set to support the construction and operation of biomethane plants.

The ministry launched the first auction to support biomethane in Czechia in May this year. It concerns plants that will be commissioned by the end of 2029 at the latest. The European Commission approved the Czech programme to support the construction of biomethane plants, worth EUR 3.7 billion (CZK 89.5 billion), in April.

In the first round, 63 applicants entered the competition, offering a combined energy output of nearly 176.5 million cubic metres of biomethane per year. Interest in the auction therefore almost quadrupled the auctioned volume.

Ultimately, 11 entities succeeded in the auction. The state will pay them support ranging from CZK 2,346 per megawatt-hour produced to CZK 2,879 per MWh of combustion heat. Five of the winning projects are biomethane plants to be built on greenfield sites, while the remaining six projects will be developed alongside existing biogas plants.

"Interest exceeded even our most optimistic expectations. This confirms that we have set up biomethane support correctly and that this sector has a strong future in Czechia. I am pleased that, in cooperation with the Energy Regulatory Office, we have managed to create conditions that give investors a clear incentive for further development," said Minister of Industry and Trade Karel Havlíček (ANO).

The high level of interest was also welcomed by Adam Moravec, director of the CZ Biom association. "It has clearly shown that investors had long been waiting for a functional and predictable market mechanism and have quality projects ready. Every cubic metre of biomethane that we produce domestically from agricultural residues or biowaste means one cubic metre less gas imported from abroad," he said.

The MPO plans to continue holding auctions in 2026 and in subsequent years.

Three new biomethane plants were established in Czechia last year. The country now has 14, the CZ Biom association said at the start of the year. Output from these plants also increased, rising year on year by 9.5 million cubic metres to a total of 17 million cubic metres of gas. Under current state plans, the Czech Republic aims to have around 100 biomethane plants by 2030, with production expected to reach up to 491 million cubic metres annually.