Commentary by Lina Rudzianskienė, Renewable Energy Project Manager, Amber Grid
As Lithuania's economy grows and the country moves towards achieving the European green energy transformation goals, there is a need to look for possibilities to utilize renewable energy resources in the country. Recently, the emergence of biomethane in the gas system has played one of the most significant roles in this context . Scandinavian and some European countries have already achieved excellent results in the production of biomethane and its supply to transmission or distribution networks. This new wave of opportunities for energy has reached Lithuania as well. With Amber Grid focusing on promoting the development of the biomethane market and completing all the preparatory work, biomethane first was supplied to Lithuania's gas transmission network in the second half of 2023. Amber Grid is creating favourable conditions for biogas business developers to connect biomethane production plants to the gas network and deliver the produced biomethane to customers.
In 2024, the four biomethane plants operating in Lithuania produced and injected about 130 gigawatt-hours (GWh) of renewable gas into the transmission network. It is expected that within five years, the amount of biomethane will increase tenfold. By 2025, six more biomethane producers are planned to be connected to the network. According to signed connection agreements, by 2030, the production of biomethane injected into the gas transmission system in Lithuania is expected to reach 1.4 TWh (with the potential to reach up to 2.5 TWh if other biogas producers decide to develop this business), and by 2040 – 3.4 TWh.
Map: Operational and planned biomethane injection points and production plants in the transmission network.
Biomethane produced from organic waste and agricultural residues is a clean and renewable alternative to fossil fuels. Its production not only helps reduce greenhouse gas emissions but also stimulates economic growth and enhances energy security. With a favourable environment, growing investments, and increasing interest from businesses and end consumers, Lithuania has the potential to become one of the leaders in sustainable energy in the region. The integration of biomethane into the overall energy system is now an essential goal for European countries in their renewable energy strategies, which provides a significant opportunity for Lithuania as well.
The Lithuanian government has recognized the potential of biomethane and has already implemented certain policy measures to support its development. For example, the Alternative Fuels Act sets ambitious goals for the use of renewable fuels in the transport sector, providing a strong incentive to build new biomethane plants. Currently, 99% of the biomethane is used as fuel for buses, while 1% is used by companies for their green energy consumption. The government has allocated funds to support biomethane projects, demonstrating its commitment to transitioning to a more sustainable energy system. Since 2020, around €70 million has been allocated to support biomethane production in Lithuania.
Photo: "Tube Green" Biomethane Plant.
In the development of the biomethane business, a significant benefit comes from the ability to trade biomethane guarantees of origin. This became available after completing the international GIPL gas pipeline interconnection between Poland and Lithuania, which has connected our system to the European gas network. The physical pipeline interconnection between the Baltic States region and the rest of Europe opens opportunities for the exchange of guarantees of origin with EU countries.
Amber Grid has developed and administers the system for guarantees of origin for green gas in Lithuania. The system is necessary for the accounting and traceability of the green gases injected into the transmission system. The system for guarantees of origin is beneficial for energy consumers who want to use renewable energy produced in Lithuania or another EU country in their activities. Amber Grid is a member of organizations uniting European issuing bodies for guarantees of origin, such as the AIB (Association of Issuing Bodies) and ERGaR (European Renewable Gas Registry).
In 2023, more than 40 GWh of green gas was imported into Lithuania via the guarantees of origin system, and in 2024, more than 50 GWh. This biomethane is used as fuel in transport, and the guarantees of origin are used in the renewable fuel unit system to to cover the obligations of fuel suppliers regarding the share of renewable fuels in the final fuel mix.
In 2023, guarantees of origin were issued for all biomethane produced in Lithuania and supplied to the transmission network (more than 47 GWh), and in 2024 – 130 GWh. In 2024, nearly 60 GWh of biomethane with guarantees of origin were exported to other EU countries.
Graph: Guarantees of origin transactions in 2023-2024.
As the production of biomethane in Lithuania grows, there are even greater opportunities for export of biomethane with guarantees of origin to other EU countries. Currently, the exchange of guarantees of origin is possible through the AIB and ERGaR platforms operating in the EU, which Amber Grid plans to join in 2025 to ensure the possibility of exporting green gas to other Member states.
With Lithuania continuing to expand its biomethane production capacity, significant potential is seen in developing a virtual liquefied biomethane injection at the Klaipeda LNG terminal. A market survey is currently being conducted for this service. If this service is offered, it is expected that biomethane will also be used as fuel in the maritime sector.
