Further support for biogas and other green gasses

A report has now been provided on the bill on promotion of renewable energy, act on natural gas supply etc. Among other things, the bill increases significantly the incentive to use biogas and the bill is consequently expected to get a great impact on the Danish biogas industry in respect of negotiation, planning and establishment of biogas facilities.

As part of the EU regulation on the use of green energy, the Danish parliament has now provided a report on the bill on incorporation of gas from renewable energy, etc.

The bill is to promote the use of renewable energy sources and determines, among other things, that consistent and coherent planning, operation and development of the gas system must be ensured.

In addition to the EU regulation, the climate agreement of June 2020, which was concluded by the Government and a vast majority of the Danish parliament, also forms part of the background of the bill. The climate agreement runs until 2030 and contains, among other things, the ambition that biogas and other green gasses are to supplement and contribute to the green power transition.

On the conclusion of the climate agreement, it was decided that in order to accommodate this ambition in the best possible manner funds are to be set aside for calls for tenders for price surcharges on upgraded biogas etc in the period 2022-2030. It was also decided that a financial framework of DKK 200 million in 2024 and 2025, DKK 350 million in 2026 and DKK 678 million in 2030 (2020 prices) be set aside.

These not insignificant contributions to green gasses are to contribute to increased competition and lower costs. They are estimated to reduce emissions of greenhouse gasses by approximately 0.2 tonnes of CO2e in 2025 and 0.7 tonnes of CO2e in 2030 and at the same time they must be expected to boost further the establishment and extension of biogas facilities in Denmark.

Skau Reipurth & Partnere provides specialist advice on all aspects of the gas industry, including on drafting, negotiation and interpretation of all agreements in the area.

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If you require further information, please contact Attorney and Partner Peter Holm Larsen (phl@skaureipurth.com).