The biogas sector is steadily growing in Europe and biomethane production is following gaining momentum. Through my review of literature I recognised the major barrier of finance when it comes to implementation of AD.
Biogas plants come with an initial large capital cost which needs finance support from governments. Feed in tariffs and tax exemptions can present incentives for farmers to engage with biogas production.
I was quite interested in how the support systems offered in some countries for biogas plants influence the way in which the biogas is used. Feed-in tariffs for electricity present in the UK, Germany and Austria means biogas is primarily used for electricity production. Tax exemption in Sweden favours the use of biogas for transport fuel . Other financial support can support injection of biomethane into the gas grid. Cuts in these support schemes can slow the biogas industry while promotion of renewable energy and reduction of incineration and landfill can support the biogas industry.
It is currently not hugely profitable to supply biomethane to the gas grid. Markets for renewable energy need to become more established and should do so as we continue to decarbonise.
References:
1) International Energy Agency
2) Torrijos, M. (2016). State of development of biogas production in Europe. Procedia Environmental Sciences, 35, 881-889.
3) Gloy, B. A., & Dressler, J. B. (2010). Financial barriers to the adoption of anaerobic digestion on US livestock operations. Agricultural Finance Review.