Circular economy: the EU package, the Polish roadmap and the role of biogas plants

The circular economy assumes that raw materials and materials remain in use as long as possible, and that waste is the last, not the first, link in the chain. In EU law this is expressed by the waste hierarchy and recycling targets, and in practice biogas plants close the loop for biowaste and agricultural by-products: on the one hand they provide renewable energy, on the other — digestate returning organic matter and nutrients to the soil.

The EU framework: from the action plan to the directives

The first EU action plan for the circular economy was published in December 2015, and a new one in March 2020. The legal foundation is the so-called waste package of 2018, that is, among others, Directive (EU) 2018/851 amending Framework Directive 2008/98/EC and Directive (EU) 2018/850 on the landfill of waste. They set:

• preparation for re-use and recycling of municipal waste at a level of at least 55% by 2025, 60% by 2030 and 65% by 2035;
• a limit on landfilling of municipal waste to 10% by 2035;
• an obligation to collect biowaste separately or recycle it at source by 31 December 2023 at the latest.

The hierarchy and the biogas plant

Digestion of biowaste is therefore a dual tool for the circular economy: it supplies renewable energy and an organic product. The condition for "closing the loop", however, is the quality of the digestate — digestate contaminated with plastic, heavy metals or pathogens will not be accepted by farmers or by the regulations. That is why separation of waste at source and appropriate pretreatment are important.

The national architecture

In Poland the counterparts of the EU assumptions are: the Act on waste of 14 December 2012 (implementing the waste package after amendments), the National Waste Management Plan adopted by the Council of Ministers, voivodeship waste management plans adopted by the sejmiks and strategic documents, including the 2019 roadmap for the transformation towards a circular economy. In November 2022 the National Waste Management Plan 2022 was in force, adopted by a Council of Ministers resolution of 1 July 2016 and later amended; the next plan was being prepared.

For biowaste, the provisions on separate collection (the regulation on the manner of separate collection of selected waste fractions) and the restrictions on landfilling biodegradable waste are also important.

Closing the nutrient loop

Digestate and compost contain nitrogen, phosphorus, potassium and organic matter. Using them in place of part of the mineral fertilisers reduces dependence on imported raw materials and the emissions associated with fertiliser production. The limitations are:

1. Fertiliser regulations — digestate must have a settled status (R10 recovery, a fertiliser with a permit, or an EU fertilising product with the CE marking, available since July 2022).
2. The nitrates programme — the 170 kg N/ha limit from natural fertilisers limits the capacity of the receiving fields.
3. Quality — contaminants (packaging, glass, heavy metals) and pathogens.
4. Logistics — transporting overly dilute digestate over long distances is costly.

A sample loop for kitchen waste

1. Catering and retail collect kitchen waste separately.
2. The collector takes it to an approved installation, where it undergoes depackaging and hygienisation.
3. Digestion yields biogas (electricity, heat or biomethane) and digestate.
4. The digestate, after being separated into fractions and meeting the legal requirements, returns to the fields as a fertiliser or soil improver.
5. The nutrients return to food production — the loop is closed, provided that every stage has a settled legal status.

Each link requires different documents: from the BDO and the permit, through veterinary approval, to digestate tests and agreements with farmers. That is why a "closed loop" is in practice a well-executed sequence of formalities, and not only technology.

What the circular economy changes in assessing profitability

Recycling targets and the limit on landfilling increase demand for biowaste installations and raise the value of well-sorted streams. At the same time the requirement for end-product quality is growing: even perfectly run digestion will not close the loop if the digestate finds no recipient. When analysing an investment it is therefore worth counting not only revenue from energy sales, but also the costs of managing digestate and rejects and the risk of changes in the regulations.

What this means for the investor

• When choosing a location and technology, check the voivodeship waste management plan: what is planned for biowaste.
• Design the way digestate will be managed in parallel with the technology (recipients, store, legal status).
• Take care over the cleanliness of the feedstock (depackaging, selection), because it decides the quality of the end product.
• Consider synergy: heat from cogeneration for drying or hygienisation, energy for own needs.

Indicators worth tracking

• The share of separately collected biowaste in total municipal waste and the quality of this stream (contaminants).
• The recycling level achieved by a municipality or region and progress towards the targets for 2025.
• The quantity of digestate and compost actually managed on land.
• The share of renewable energy produced from biowaste in the installation's balance.

Interpretive pitfalls

The circular economy is not an "additional" legal obligation, but a set of targets and principles that translate into specific provisions: recycling levels, the hierarchy, and the criteria for end-of-waste status and by-products. In the recycling calculation, what counts is material actually put back into circulation, so the "green" status of an installation does not follow from the mere fact of digestion, but from what then happens to the digestate.

This text is for information purposes only and does not constitute legal advice; before an investment or formal decision, check the current wording of the provisions and consult a lawyer or the competent authority.