Biogas legislations and funding opportunities: Where do I start looking?

Governments have put in place RNG/biogas legislations and funding opportunities in Canada, United States and Europe. In many cases, governments have established grants, incentives and policies for industry suppliers to support the industry’s growth, new product commercialization and innovation. Others aim to help developers and farmers finance their biogas projects. In addition, in Canada, government has recently developed promising programs and laws to oversee such initiatives. Here is a general overview of legislations and funding opportunities available now.

Please note: This article was written as a general source of information using publicly available documentation referenced at the end of this article. If you are planning a biogas project, we are encouraging you to contact professional companies to discuss the applicable regulations in your country.

• Europe
• Canada
• USA

Europe: Biogas legislations and funding opportunities 

In Europe, various levels of government offer funding for biogas or have put into place policies to support the industry:

• European Union
• National governments
• Regional governments

Here are some examples of those offered.

European Union 

European Fund for Strategic Investments (EFSI)

Managed by the European Investment Bank and the European Investment Fund, the EFSI provides subsidies for economically viable projects with higher risk. This fund targets several sectors, including:

• education, research, development and innovation
• renewable energy and energy efficiency
• small and medium companies

Visit the website of the European Investment Bank for more information.

Horizon 2020 Program – The European Commission

Horizon 2020 is the largest program supporting research and innovation in Europe. The funds available amount to nearly 80 billion euros over 7 years and will be distributed until 2020. It aims to encourage research and innovation and to reduce the obstacles hindering their accessibility.

The industries that can benefit from this funding opportunity include:

• biotechnology
• energy, including bioenergy
• environment and fight against climate change
• key enabling technologies

Learn more about the Horizon 2020 Program on the European Commission’s website.

Find other subsidies for anaerobic digestion offered on the portal of the European Commission .

National governments

Denmark – The New Energy Agreement 2020

This policy, implemented by the Danish government in 2012, puts energy as a driver to fight climate change. The government aims to reduce CO2 emissions by 34% below 1990 levels by 2020.

Several measures, accompanied by grants, affect sectors such as:

• greener heating through the use of biomass or renewable energies
• renewable energy and the use of greener systems by businesses and buildings
• biogas, through the use of combined heat and power (CHP), biofuel and other

Such funding support for the biogas industry will enable stakeholders to take advantage of business opportunities created by anaerobic digestion, among others.

Read more about this Energy Agreement.

United Kingdom – Renewable Heat Incentive (RHI)

This incentive, which encourages the use of renewable energy sources for heating, is aimed at energy suppliers, businesses and residences. The systems installer, the plant, the owner and the heating system involved must meet certain requirements to get funding support.

Eligible regions are England, Scotland and Wales.

Check the Ofgem website for more information.

France – Investments for the Future Program

This grant program for biogas was set up by ADEME. It supports green growth and strengthens competition from business sectors with strong potential.

In total, € 57 billion has been allocated to this program since 2010. This funding opportunity targets sectors such as energy, transport, mobility and the circular economy.

Here are some strategic areas covered by this program:

• valorization of research and transfer to the economic world
• development of innovative SMEs and ETIs and consolidation of the sectors of the future
• sustainable development

For more information, visit the ADEME website.

Canada: Biogas policies and funding opportunities

Some provincial governments in Canada are proposing biogas policies and funding opportunities to catalyze the industry on the territory. Here are some examples for both suppliers and project developers:

Renewable gas innovation program

In October 2018, the Canadian Gas Association submitted a policy proposal to the Canadian government to support innovation in the renewable natural gas sector. Funds of up to $ 750 million will soon be available for:

• deployment of renewable energy projects
• commercialization of new technologies
• research and development

Next steps to reach acceptance of the program:

• launch of the tender for projects: Summer 2019
• grant of funds: summer 2020

Read the news release from the Canadian Gas Association for more information.

Alberta – The Climate Leadership Plan

The Alberta government has put this strategy in place to combat climate change and accelerate the transition to greener energies. Some components of the strategy include diversification of the economy and support for companies that specialize in green energy, including bioenergy.

An important place is left to the financing of:

• research
• development
• technological innovation in companies
• realization of renewable energy projects

Check out Alberta’s Climate Leadership Plan here.

Quebec – 2030 Energy Policy

In 2015, the Québec government set up a new energy strategy for 2030. It proposes measures and funding support for, among other things, sectors such as biogas, renewable energies and other kind of bioenergy.

This strategy allows, in Quebec, to:

• promote the transition to a lower carbon economy
• support the development of anaerobic digestion projects
• develop the production of renewable natural gas
• promote the technological innovation of companies in the sector

Take a look at Quebec’s 2030 Energy Policy.

British Columbia – BC Tech Fund

This venture capital fund reaches $ 100 million. It’s a grant aimed to emerging technology companies. Listed sectors include the environment and clean energies, among others.

For more information, visit the web page of the organization managing the fund.

More generally, you can also benefit, in British Columbia:

• grants to businesses in all sectors
• up to 10% tax credits for scientific research and experimental development of technologies

The goal is to encourage investment and competition, as well as to increase business opportunities.

Visit the page about Biogas Grants in British Columbia. Note that this web page also indicates some federal government grants available through the country.

Other programs and laws to support biogas in Canada

In Canada, several laws support the activity of the biogas industry. For example:

The ban on organic materials from landfills

In Canada, several provinces or municipalities have implemented the ban on organic materials from landfills while others are in the process of doing so. Quebec plans to avoid, as early as 2022, burying materials such as green residues, table scraps, municipal and industrial sludge.

Metro Vancouver has had such a policy since 2015, while Nova Scotia has done so since 1997.

The Clean Fuels Standard

The Clean Fuels Standard aims to encourage producers to favour low-carbon fuels and alternative technologies. This new standard would increase business opportunities for project developers, but also for biogas suppliers by stimulating the industry.

The regulatory framework is expected to be completed by 2019, and the standard is expected to come into effect as early as 2023.

Read our article on the Clean Fuel standards for more information.

United States: Biogas legislation and funding opportunities

In the United States, several levels of government are offering grants to help biogas companies find new business opportunities and grow. Many subsidies also support the developers working to implement biogas projects.

On a national level

At the national level, the Departments of Agriculture (USDA), Energy (DOE) and Environmental Protection (EPA) provide grants for, among others:

•  encourage the use of biogas and its by-products
• support research to optimize the manufacturing processes and equipment for biogas and its by-products
• encourage investment in biogas projects
• develop the market for biogas and its by-products
• facilitate coordination of research and development among the various actors

To find out more about grants in biogas offered by the US government, you can search this complete directory.

Also check out our article about financing biogas projects in North America. Many of the grants mentioned are for both project developers and suppliers.

At the state level

In addition, several states have established biogas subsidy initiatives. For example :

California – RNG Pipeline Integration Grants

In September 2018, California signed a bill to facilitate the transportation of natural gas by pipeline. It will require the California Public Utilities Commission to fund the development and construction of infrastructure to connect the RNG producer and the consumer. This obligation would come into effect on July 1, 2019.

Read this article to learn more about the California RNG pipeline integration law.

Oregon – Clean Fuels Program

The Clean Fuels Program aims to reduce the carbon intensity of transport fuels by 10% by 2025. The calculation is based on annual CO2 intensity standards by fuel type.

Importers and producers selling fuel generate deficits or credits according to their compliance with CO2 standards. This program helps biogas project developers in clean fuels, in addition to creating business opportunities for suppliers.

Learn more about the Clean Fuels Program at the Oregon Government website.

Feel free to check the state websites for other programs and grants available.

Bring your business to the next level!

Many governments around the world are taking action to support the activity of the industry. Biogas legislations and funding opportunities are, without a doubt, a real booster for biogas suppliers and project developers.

Many other tools can help you navigate the sometimes stormy waters of seeking financing for your business or project. To facilitate the search for relevant tenders for your company, regularly consult our BiogasBids section.

We also invite you to contact us to get personalized support according to your needs – to receive more details about the financial support offered in a given region, for example.

To know more:

• European Commission website
• Website of the French Environment and Energy Management Agency (ADEME)
• Website of the European Investment Bank
• Department of Agriculture website (USDA)
• Department of Energy website (DOE USA)
• Website of the Environmental Protection Agency (USA EPA)
• Government of Canada website – Enterprise and Industries