Biomethane as a local alternative to natural gas produced from biodegradable waste is one of the key components of the sustainable energy transition. It contributes not only to decarbonisation but also to strengthening energy self-sufficiency. Yet, in the Czech Republic, the biomethane support system is not effective enough to allow biomethane to develop to its full potential. Production thus remains below the expectations of the state.
While biomethane production is growing in many European countries and is a priority for meeting the EU target of 35 billion m³ by 2030, the Czech Republic is lagging behind. Compared to Denmark, for example, which produces 97.3 Nm3 of biomethane annually, we produce only 0.6 Nm³. This also reflects the lower level of investment in its production, which is linked to an insufficiently functional system of subsidy support.
Biomethane has long been overlooked in the Czech Republic. It was only last autumn that the European Commission approved a domestic operational support programme aimed at covering the costs associated with biomethane production, worth CZK 60 billion until the end of 2025. It was only this year that producers were able to start drawing on operating support allocated by the state for 20 years in the form of a green bonus linked to a reference gas price. The Energy Regulatory Office (ERÚ) has set the amount of the bonus at CZK 973/MWh for this year, rising to CZK 1,525/MWh for next year.
“Unlike the investment aid, which is a one-time subsidy intended for the construction or modernisation of biogas plants for the purpose of biomethane production, the operating aid is paid continuously and is intended to ensure the economic sustainability of the operation. However, the disbursement of this support is currently hampered by uncertainty about its setting from 2026,” explains Tomáš Voltr, CEO of EFG Group.
The current setting of operating support for biomethane producers in the Czech Republic may not be motivating enough in itself, especially when compared to the prices that can be achieved by selling so-called green gas to some foreign countries where the market is more developed and creates sufficient demand. One of the elements of operational support in the Czech Republic is the guarantee of origin of biomethane, a certification issued by the state that serves to demonstrate emission reductions and renewable energy production.
“However, if the biomethane meets the sustainability requirements, it can also be traded with an international certification such as ISCC, which, for example, our Rapotín plant has successfully defended for the fifth year. But this partly clashes with the interests of the state, which should strive to reduce its own carbon footprint and encourage the biomethane produced here to be used on the domestic market,” adds
He also adds that the support does not apply, among other things, to biomethane stations commissioned before 2023, i.e. the EFG Rapotín BPS station, which was the first production site in the Czech Republic and heralded the development of the local market
The form of support for biomethane stations from 2026 onwards is currently being discussed in the framework of the amendment to the Energy Act lex RES III. According to the proposals of the Ministry of Industry and Trade of the Czech Republic, the operating support should no longer take the form of a green but an auction bonus. Producers would therefore compete with each other for the amount of support in auctions. This is a method that can introduce more market elements and reduce costs, but is also slow and inflexible. Investors have to spend considerable money upfront to participate in the auction and go into it with uncertainty about whether they will succeed. The auction therefore risks slowing down the development of biomethane and experts suggest rather maintaining the current support model.
“Although we are not dependent on subsidies for biomethane production due to our own financing options and have not drawn on them for any of our plants, we perceive that the lack of an effective system severely limits the ability of producers and investors to plan projects in this area. If the situation is not resolved, the Czech Republic may lose its competitiveness in biomethane production, where it has a high potential. Moreover, clearly defined support will ensure that the gas produced remains on the domestic market and contributes to reducing the national carbon footprint,” concludes Tomáš Voltr.
