Page 23 - bne IntelliNews monthly magazine November 2024

bne November 2024 Companies & Markets I 23
With its large agricultural sector and still heavy dependence on coal, biogas is the perfect solution to Poland’s environmental and energy needs. / bne IntelliNews
bne:Green
LNG and bio-LNG: which gas will be the pillar of Poland’s energy transition?
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Poland stands at a critical juncture in its energy landscape, facing pressures to transition away from fossil fuels and enhance energy security thanks to geopolitical disruptions to the global energy markets and the accelerating Climate Crisis.
The war in Ukraine and the European Union's climate mandates means biogas – especially in its liquefied form as bio-LNG – has emerged as a potential game-changer in this transformation.
Traditionally Poland has long been depended on coal, which has historically provided a substantial portion of
its energy supply. However, this reliance poses significant environmental and regulatory challenges, especially in light of the EU's ambitious climate targets and a pledge to phase out coal completely. The UK became the first European country to meet that challenge at the end of September and green energy has recently overtaken coal in both the EU and China. Poland's commitment to reducing greenhouse gas
emissions and transitioning to renewable energy sources is now more pressing than ever to keep up with its peers.
According to the International Energy Agency (IEA), the global LNG market is growing at an annual rate of 6%, while Poland has seen a 15% increase in demand for LNG fuel over the past two years, after cutting itself off from Russian gas entirely.
On November 23, 2021, the Ministry of Climate and Environment initiated the "Agreement on Cooperation for the Development of the Biogas and Biomethane Sector," aiming to establish a stable and integrated platform to foster collaboration and support the dynamic growth of these sectors in Poland.
The country’s agricultural sector, which occupies about 60% of its land, presents a ripe opportunity for biogas production and a potential output of 8bn cubic meters of biogas a year. Poland is positioned to develop a robust biogas industry that could significantly contribute to its energy mix.
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