New biomethane law

25 September 2023 | Knowledge, News

The European Union has set ambitious biomethane production targets. By 2030, biomethane production in the EU is expected to reach 35 bcm, equivalent to ca. 15% of the EU’s gas demand. We therefore examine the relevance of the new regulations for the implementation of biomethane investments in Poland.

New biomethane rules: summary

The potential for electricity generation from biomethane is estimated to be more than 2,500 times greater than the increasingly booming biogas market, with biomethane also having potential for use as a renewable gaseous fuel.

Poland’s potential in terms of land, raw materials and highly skilled labour makes it an attractive destination for investors seeking the best locations for biomethane projects. The regulations governing, among other things, biomethane production and transmission are key to the realisation of this type of investment.

The main conclusions of the newly adopted legislation are as follows:

  • Biomethane and biomethane production activities will be legally defined
  • Biomethane production will be a regulated activity, which means that registration in the register of agricultural biogas producers kept by the Director General of the National Agricultural Support Centre (KOWR) will be required – in the case of biomethane production from agricultural biogas – or in the register of biogas producers kept by the President of the Energy Regulatory Office (URE) – in the case of biomethane production from biogas
  • The support scheme will cover biomethane installations with an installed capacity of up to 1 MW
  • Gas distribution system operators will be obliged to indicate an alternative closest location for biomethane installations in case of refusal to issue connection conditions at the location indicated by an applicant
  • Transmission or distribution system operators will be obliged to issue conditions for the grid connection of agricultural biogas plants with a total installed electrical capacity of up to 2 MW within 90 days
  • The administrative procedure for biomethane installations with a capacity of up to 8.4 mcm per year will be simplified and accelerated. It will be possible to locate agricultural biogas plants independently of the local zoning plan, provided that they do not contradict municipal studies on zoning conditions and directions or resolutions on the creation of a cultural park, and that municipal councils adopt appropriate resolutions on the location of an agricultural biogas plant
  • In the case of biomethane injected into gas networks, the range of permissible differences between the average calorific value of gaseous fuels for a given day and the calorific value of gaseous fuels determined at any point in a given area will increase from 3% to 4%

If you are interested in legal support for a comprehensive biomethane investment, please do not hesitate to contact us.

Wojciech Wrochna

Jacek Kozikowski

Aleksandra Pinkas

Source: Magazyn Polska Chemia

Date: 20.09.2023

Latest Knowledge

A revolution in the existing rules for alternative investment companies (AICs)

With the adoption of the Warzywniak act, the lawmakers introduced both minor and significant changes to the regulations governing investment funds and the management of alternative investment funds, which had unfortunate consequences for the operation of AICs, the Polish capital market and the very institutions that create this market.

EU greenwashing ban moves closer

Customers, investors and business partners are increasingly interested in products and services that respect the environment.

Defence-side litigation finance

Third-party funding (TPF) has been used successfully in arbitration and litigation for many years, and in our experience, has recently been increasingly used by Polish companies.

First AI legislation in the US

President Joe Biden has signed an executive order on safe, secure and trustworthy AI, imposing a series of obligations on the AI technology sector based on the principles of transparent and responsible machine development.

Contact us:

Wojciech Wrochna, LL.M.

Wojciech Wrochna, LL.M.

Partner, Head of Energy, Infrastructure & Environment Practices Group

+48 734 189 743

Jacek Kozikowski, PhD, LL.M.

Jacek Kozikowski, PhD, LL.M.

Attorney at Law, Partner, Head of Infrastructure and Asian Desk

+48 660 765 914