The Czech biomethane market has reached an important milestone. The first auction for operational support for biomethane, announced this year by the Ministry of Industry and Trade, has already delivered results that confirm strong investor interest in expanding the production of this renewable gas. A total of 63 projects were submitted, 11 of which were successful with their bids. The total energy output competed for in the auction corresponds to a volume of 45 million m³/year, or roughly 426 GWh of energy per year. Three production facilities belonging to the EFG group were also among the selected projects. These will achieve a total production volume of approximately 7.4 million m³ of biomethane per year.
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Auction Support Provides Economic Stability for Biomethane Production
The auction system provides producers with long-term economic stability, which is essential for investments in new production capacity. Successful bidders received support for a period of 15 years, with the auctioned price increasing by two percent annually from the date the biomethane production facility begins operations until the end of the support period.
The maximum reference auction price for the first round was set at 3,000 CZK/MWh. The auction was open to new biomethane production facilities, conversions of existing power plants into biomethane production facilities, and facilities for converting biogas into biomethane. However, the facilities must be commissioned no later than December 31, 2029.
“The results of the first auction are an important signal for the continued growth of the biomethane market and show that the potential of this renewable gas is gradually being transformed into tangible projects. We are very pleased that our production facilities in Vysoké Mýto, Vyškov, and Rapotín are among the successful projects. This means we achieved a 100% success rate in the first round of auctions.
This new state support program proves that the Czech Republic is serious about biomethane and that the government is committed to the successful development of the entire sector. We at EFG want to be a part of this, and the first round of auctions shows that we are on the right path,” says Tomáš Voltr, CEO of the EFG group.
The Eligibility Requirements Can Be a Challenge for Inexperienced Applicants
In addition to the bid price, successful projects had to meet other auction requirements focused on the quality and actual benefits of the biomethane produced. One of these is the required proportion of advanced biomethane and emission parameters.
The proportion of advanced biomethane—produced exclusively from biodegradable waste, not from crops grown specifically for this purpose—must exceed 35% from the time the production facility begins operations. This proportion will continue to increase—to more than 45% starting in 2035 and to more than 55% starting in 2040. At the same time, it will be necessary to meet emission intensity limits below 17 g CO₂ eq./MJ, which will gradually become stricter.
“The auction requirements can be a major challenge for many entities without extensive experience in the industry. The EFG group’s current operations already meet these requirements, so we are well-positioned to meet them in new projects as well. In this regard, our 10 years of experience and the know-how we’ve built up in the industry are proving to be a major competitive advantage,” adds Voltr.
Producers that are successful in the auction will also be required to ensure a minimum monthly volume of biomethane supplied to the gas grid, corresponding to 75% of the facility’s maximum power output. Failure to meet these conditions will result in the loss of eligibility for support for that month.
A Sector That Will Grow
The current auction-based support for biomethane production underscores the significance of this sector and its importance in the areas of efficient waste processing, reducing emissions, and, last but not least, strengthening the Czech Republic’s energy self-sufficiency. The Ministry of Industry and Trade is expected to announce the second round of auctions in November, with the same target volume of biomethane production and conditions very similar to those of the first round. By 2026, the government will thus be seeking, through auctions, a total annual production of 90 million m³ of biomethane. Next year, this figure is expected to rise to an additional 110 million m³, and in 2028, to 150 million m³.
