Biomethane: why the government will increase its price

by time news

2023-06-13 16:20:07

The government has decided to increase the price of biogas, this gas produced from organic waste and injected into the natural gas network, according to a decree published on Tuesday which also plans to improve its indexation on variations in energy prices. . “The revaluation reaches approximately 12% compared to the decree in force”, indicates the Ministry of Energy Transition, which specifies “that the tariff will now be indexed twice a year, against only once previously”.

These measures have been welcomed by biomethane producers, who see them as compensation for the increase in production costs they have suffered since 2022 and the soaring energy prices. For them, it is a lever to invest while the volumes of biogas are expected to increase sharply.

The France Biomethane union stresses that the sector must experience a “big turning point” on January 1, 2024, with the entry into force of the obligation for individuals to sort their bio-waste, a provision of the Anti-waste law (Agec).

The State compensates the difference with the price of natural gas

“This will drain very large volumes of materials to the methanizers”, also fed by agricultural waste, underlines Frédéric Flipo, spokesperson for France Biomethane. Companies will therefore have to make “additional investments” to receive and store more materials, he explains.

In recent times, the sector has been affected by inflation, in particular the cost of electricity used to purify biomethane and be able to inject it into the networks as a substitute for fossil natural gas. Despite government aid, she says she has experienced a fivefold increase in her energy bill, alongside rising salary expectations and transport costs.

Much less greenhouse gas emissions

Currently, the purchase price of biomethane by gas suppliers is between 90 and 100 euros depending on the size of the sites, a price regulated by a framework contract set by the State. The price is already well above the market price of natural gas, but this difference is compensated by the State with buyers.

“Renewable” since it is non-fossil, this green gas reduces greenhouse gas emissions by 80% compared to natural gas, according to the firm Carbone 4. Conversely, when the price of biomethane is lower, as has been could have been the case after the start of the war in Ukraine, it is the State that takes the gap.

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