Biogas is a renewable fuel. Produced from food waste, manure or agricultural residues, biogas is part of the circular economy and is considered one of the most advanced forms of renewable energy and is being actively developed in many European countries. Biogas is produced from biodegradable waste, much of which is still landfilled. As they decompose, they release not only CO2 but also methane gas, which depletes the ozone layer and accelerates climate change. Biogas plants prevent these gases from entering the environment and generate renewable energy - clean electricity and heat, and fuel for vehicles.
Biogas is made up of between 45 and 75% methane, with the remainder being mainly CO2 and other impurities. Once the biogas has been purified to natural gas quality (<95% methane), i.e. biomethane, it can be used as a substitute for natural gas and fed into gas transport networks. The European Commission's REPowerEU plan envisages an important role for biomethane in reducing the EU's dependence on Russian fossil fuels, as well as in addressing the significant volatility in energy prices. The plan aims for the EU to produce 35 bcm/year of biomethane by 2030.
In Lithuania, interest in investing in biomethane production is also growing rapidly. Large industrial companies and new entrants are actively exploring the possibility of installing biomethane plants, connecting them to the gas transmission system, and supplying the biomethane produced to the domestic and foreign markets through the Green Gas Guarantee of Origin (GO). The integration of biomethane into the common energy system is now a key energy objective for European countries, and is therefore a major future opportunity for Amber Grid's customers.
The development potential of the Lithuanian biomethane sector is reinforced by the adoption of the Alternative Fuels Law in 2021. It sets a target of 15% renewable energy use in the transport sector by 2030, by increasing the electrification of transport, promoting the use of gaseous fuels and hydrogen gas produced from biomass, and increasing the blending requirements for biofuels. This will encourage investors to build biomethane plants, connect them to the gas grid and produce green energy.
Connecting a biomethane plant to the gas transmission system may require an additional section of gas pipeline from the grid to the production facility. It is also important to secure land and the consent of the population to build the new energy production facility and the necessary infrastructure on all land between the biogas plant and the gas transmission system.
We are interested in the development of biogas in Lithuania, which can be fed into or transported by the natural gas system, so if you are planning to develop such a biomethane business, we invite you to consult with us.