BIOMETHANE INCENTIVES AND ITALIAN MARKET POTENTIAL :BiogasWorld

By Sebigas | 2023-03-07

What does this decree mean for the industry?

It is recent news that the decree with biomethane incentives has been approved.

With the publication of the 13 January 2023 n.13 decree, the Ministry of Environment approved the GSE (Energy Services Operator) application rules governing participation in the tender of the Ministerial decree of 15 September 2022.

The goal of the decree, which is supported by 1,73 billion of euro provided by the PNRR, is to incentivize biomethane production in Italy to cut down CO2 emissions into the atmosphere and to reduce our country dependence from foreign energy sources. With these incentives the Ministry of Environment estimates that by 30 June 2026 it will be possible to achieve an additional production of biomethane equal to at least 2,3 billion m 3 , ten times greater than the current production.

The incentives are aimed to new or converted plants, powered by agricultural matrices or OFMSW (new plants only) which complete the construction of the works eligible for financing by 30 June 2026 and for which the interventions have not been started before the publication of the reference ranking.

What does this decree mean for the industry?

Roberto Salmaso, Sebigas General Manager, states: “Considering the persistence of the energetic crisis, the Biomethane Decree represents a key measure to unlock a sector that has remained in the shadows for too long. The application rules presented by the GSE must be a tool to enhance the growth of the biomethane market through new plants and the revamping of existing ones, providing companies in our territory with an opportunity to create and/or increase a virtuous production cycle. Although biomethane cannot cover 100% of currently imported gas supplies, it will certainly constitute a fundamental element in achieving energy independence from fossil sources. In addition, the recent incentives process for energy communities will also be decisive in terms of decentralization and widespread production for local use.”

What is the current gas production in the EU?

Nowadays, the amount of natural gas production in Europe is less than 15% compared to demand: particularly at national level, the strong dependence on foreign supplies has caused a clear increase in the cost of energy, with repercussions on businesses and families.
The production of “Made in Europe Biomethane” and a growing independence, in this regard, would allow not only the reduction of energy costs, but also the production ones with the important production goal, made explicit at community level, equal to 35 billion cubic meters by 2030.

Biomethane in Italy: a solution supporting businesses and citizens?

The instant application of PNRR’s measures could grant the production of over 4 billion cubic meters of biomethane by 2026, approximately equal to 30% of our government’s goal to replace natural gas imported from Russia. Just consider that the existing agricultural plants could guarantee an increase in production of 600 million cubic meters of biogas in the energy mix, corresponding to around 15% of current production.

Which are the future scenarios?

Increasing biomethane production in Europe could bring at least 35 billion cubic meters of renewable gas by 2030 if properly supported by a legislative framework and a simplification of the authorization processes. This amount would represent around 10% of the total gas demand in the EU by 2030. But not only that, by 2050 it could reach 30-50% and cover over 100 billion cubic meters.

SEBIGAS at BiogasItaly

SEBIGAS will be a sponsor of Biogasitaly, an event organized by Consorzio Italiano Biogas, which will be held in Rome on 8 and 9 March. “Being in the front row at Biogasitaly is an opportunity for dialogue and discussion for us – claims Roberto Salmaso, Sebigas General Manager – to affirm our presence on the Italian market and bring out our initiatives, emphasizing the value of our technology and plant solutions. After the last edition organized in 2021, we expect a dynamic event with a large turnout, to affirm the issues related to agricultural biomethane development on our territory. We are ready to present our technological proposals and our services, because we too as SEBIGAS, together with our customers, want to and can make a difference.”