Page 24 - bne IntelliNews monthly magazine November 2024

24 I Companies & Markets bne November 2024
A transformative opportunity
Bio-LNG, as a refined product of biogas, is particularly relevant for the transport sector, which is one of the largest sources of emissions in Poland. With heavy-duty vehicles and maritime transport contributing significantly to greenhouse gases, bio-LNG offers a low-carbon alternative that could help achieve substantial emissions reductions.
Projections indicate that by 2050, bio-LNG could comprise approximately 21.7% of energy consumption in transportation. This aligns with the EU’s Renewable Energy Directive, which mandates that renewable energy must account for at least
14% of transportation fuels by 2030. Given this regulatory framework, Poland is encouraged to invest in bio-LNG to meet these targets and enhance its energy diversity.
The economic implications of developing a biogas industry are considerable. While the initial investment required for bio-LNG infrastructure – estimated between PLN29.98mn and PLN34.1mn (€6.6mn-€7.5mn) for a typical facility – is substantial, the long-term benefits can outweigh these costs. Increased job creation, energy independence, and lower carbon footprints are significant potential outcomes of this investment.
The growth trajectory for bio-LNG facilities across Europe is promising. The number of installations surged nearly 600% from 2018 to 2022, and forecasts suggest that Poland could see its installations rise from 34 in 2022 to over 100 by 2025. This rapid expansion offers Poland an opportunity to establish a competitive position in the European bio-LNG market.
Challenges to overcome
Despite the favourable outlook for biogas, several challenges could impede its development in Poland. Regulatory uncer- tainty is a primary concern. The current lack of clear policies and state support during the nascent stages of the biogas market could stall progress and deter potential investors.
Moreover, concerns about indirect land use change (ILUC) complicate the expansion of agricultural land for biogas produc- tion. If not managed carefully, this could negate some of the environmental benefits that biogas is expected to deliver.
Infrastructure investment is also critical. While Poland has a functioning LNG terminal in Świnoujście, expanding this to accommodate bio-LNG will require extensive coordination across various sectors. Proposals like Gaz-System's plans for a floating storage regasification unit (FSRU) by 2027/2028 are steps in the right direction but will need additional support from the gas transmission networks.
To maximize the potential of biogas, Poland must foster strategic partnerships with nations that have successfully integrated biogas into their energy frameworks. Countries such as Germany and Sweden offer valuable lessons in best practices and technological innovations that could facilitate Poland's transition.
Collaborative efforts among government, industry stakeholders, and academia will be essential in developing a comprehensive strategy for biogas. Regulatory reforms, alongside increased public and private investment, will be key to overcoming current barriers.
Ukraine ready to export biogas as biomethane plant uses the national gas pipeline system for the first time
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AUkrainian company has, for the first time, transported biomethane via the country’s domestic gas transmis- sion system, marking a significant step towards its ambition to export the renewable energy source to Europe, UBN reported on October 2.
VITAGRO, a group with interests in agriculture, energy, and construction, supplied biomethane into Ukraine’s gas grid, positioning the country to begin exporting the fuel.
“This is the first and only such event in Ukraine's entire energy industry,” the company said in a statement.
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The €6mn biomethane plant is currently operating at 60-70% capacity, delivering around 6,000 cubic metres of gas daily. Full capacity is expected by the end of October, and VITAGRO is poised to begin exporting biomethane once sufficient volumes are accumulated, with sales possibly starting in November.
Ukraine’s Regional Gas Company (RGK) was the first biometh- ane plant to its gas network last year. This plant, located in the Chernihiv region, will produce approximately 3mn cubic metres of gas each year, which will be used to supply nearly 1,500 customers, from the circa 20bcm of gas that Ukraine already produces domestically.