The European Commission has approved a €3.7 billion (approximately $4.36 billion) Czech government funding programme designed to scale up sustainable biomethane production in the country, Bioenergy Insight Magazine reported.
The scheme primarily targets small and medium-sized farms and is aimed at supporting the production of 350 million standard cubic metres of biomethane by the end of 2030. The fuel produced under the programme is intended for use across transport, heating, and industry. Funding will be available for both newly built biomethane stations and existing biogas plants that can be upgraded to produce biomethane.
Financial support will be delivered through two-way contracts for difference, offering producers a bonus per megawatt-hour of biomethane produced over a 15-year period, based on a set strike price. Under this mechanism, the state will compensate producers when market prices for natural gas fall below the strike price, while producers will be required to return the difference when market prices exceed it.
Recipients will be chosen through a competitive bidding process. To be eligible, producers must hold a Czech gas production licence and comply with the European Union’s Renewable Energy Directive.
EU Competitions Commissioner Teresa Ribera said the scheme would help the Czech Republic meet its emissions reduction targets.
The Czech Republic has an extensive existing biogas infrastructure, with many plants currently generating heat and electricity through cogeneration. Biogas is produced through the anaerobic digestion of organic waste material, with biomethane obtained by removing carbon dioxide and other impurities from the resulting gas.
