Analysis: Czech biogas plants to lose support, biomethane is the solution

The first biogas plants in Czechia will see their state operating support end at the end of next year, and by 2031 more than half of biogas plants will lose it. In an analysis, experts from the consultancy EGÚ Brno said that owners of these facilities would be wise to invest in converting them to biomethane in time. According to the experts, biomethane has the potential to replace some imported natural gas.

Biogas plants produce biogas by heating organic material, then generate electricity and heat by burning it in combined heat and power units. While biogas contains around 55 percent methane, 40 percent carbon dioxide and other substances making up the remainder, biomethane contains at least 95 percent methane. Its advantage is that it has properties comparable to those of natural gas.

„There are currently more than 600 biogas plants of various types in Czechia, and so far there are nine biomethane plants. Biogas plants receive support for 20 years of operation. However, this support is gradually coming to an end, with the first plants losing it at the end of 2025. The support is expected to end altogether by 2033,“ said Michal Kocůrek, managing consultant at EGÚ Brno.

According to Kocůrek, biomethane will play an important role in decarbonising Czechia in the future by replacing natural gas in heating, transport and industry. The Czech Republic’s plans envisage producing 500 million cubic metres of biomethane a year by 2030, equivalent to around 330 biogas plants converted to biomethane production.

Thanks to generous operating support, which allows biogas plants to receive up to 4444 crowns per megawatt-hour of electricity supplied, combined heat and power generation is currently half as profitable as biomethane production. But that will change when operating support ends. According to analysts, selling electricity at market prices alone may no longer guarantee sufficient returns.

„When converting a plant to biomethane production, its owner can access investment and operating subsidies and secure support as before. The existing cogeneration unit can also be used to provide balancing services. The owner can receive two payments for these services: one for offering capacity and keeping it available, and the other for the volume of balancing energy actually supplied when activated,“ said Kocůrek.