European Commission approves €3.7bn in Czech support for biomethane production

Brussels, April 14 (ČTK correspondent) - The European Commission has approved a Czech programme worth €3.7 billion (CZK 90.2 billion) to support the construction of biomethane plants. The money will not come from the EU budget, but from Czech sources - the Commission merely assessed and authorised the programme under competition rules. The measure is intended to contribute to the transition to a net-zero economy. Sustainable biomethane can be used in transport, heating and industry. Support will be available until the end of 2030. The Commission reported this in its statement.

"The programme will support new capacity both in newly built biomethane plants and in existing biogas plants that will be converted to biomethane production," the Commission said.

Biomethane producers holding a gas production licence in the Czech Republic will be eligible to apply for support. To qualify, biomethane production must meet the requirements set out in the EU Renewable Energy Directive. The measure is expected to help mainly small and medium-sized agricultural businesses.

"Thanks to this €3.7 billion programme, the Czech Republic will increase the production of sustainable biomethane in the EU, to be used in transport and heating. The programme will also help the Czech Republic meet its emission reduction targets," said European Commission Executive Vice-President Teresa Ribera.

According to her, the measure will contribute to a cleaner, safer and more resilient energy mix, while preserving a level playing field in the market and minimising possible distortions of competition.

Three new biomethane plants were commissioned in the Czech Republic last year. The country now has 14, the CZ BIOM association said in a statement in January. 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 reaching up to 491 million cubic metres per year.

"The European Commission's notification of the Czech programme opens the door to auction-based support for biomethane production, which has long been discussed. It is intended to target production from advanced feedstocks and guarantee an offtake price for biomethane producers for 15 years," said Tomáš Voltr, executive director of Energy financial group (EFG).

EFG is currently the largest producer of biogas in the Czech Republic.

According to Voltr, the investment predictability of the sector will improve, making it more bankable and therefore making individual projects easier to finance. "At EFG, we already have several projects ready that we intend to submit for auction support. We also expect that this programme, notified today, will enable us to more easily meet our 2030 biomethane production target, corresponding to an annual installed production capacity of 400 to 500 GWh," he added.