There are a total of 60 biogas plants in Denmark that feed their gas into the gas grid. Of these 60 plants, 44 chose to produce partially subsidy-free in 2024. In 2023, it was only half that. This has also led to the share of subsidy-free biogas being fed into the gas system growing from five to ten percent during the period. This is stated by Energinet in a press release.
The reason for the decrease is mainly a greater demand for biogas in Germany, where the gas is primarily used for green transport.
The German transport sector must be able to document to some of its customers that the transport is both CO2-neutral and has not received any form of state aid. And the Germans can do that with Danish biogas, because it is documented with guarantees of origin.
The demand for Danish-produced biogas that has not received state support has also increased after the Danish Energy Agency and Energinet introduced a more flexible way of determining the amount that producers want to receive support for.
- In 2024, we have made it possible for producers to wait to state how much biogas they want to produce without support until one month after the biogas has been produced. This has given biogas sellers greater flexibility to sell more without support than if they had to estimate in advance how much support-free biogas they thought they could sell, says Dorte Kristiansen, senior market developer at Energinet.
All biogas produced in Denmark is provided with guarantees of origin. The guarantees of origin both help to enable the sale of support-free biogas and help to reduce production support for the plants.
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