Sweden: the government extends support for biogas from slurry (gödselgasstöd) for Q4 2023

On 27 June 2023 the Swedish government announced that in Q4 2023 it intends to offer support equivalent to the existing gödselgasstöd, that is, premiums for biogas from slurry. The current support period ends at the end of September 2023.

What this support is

Gödselgasstöd is a pilot programme launched in 2014 to increase biogas production from slurry. According to information from the government and the minister's answer in the Riksdag, the maximum level of support is 40 öre per kWh of biogas produced. Unlike the support for electricity discussed in this series, this premium is calculated on the gas, and so does not depend on whether the biogas goes to a cogeneration engine or to upgrading.

According to the communication from the ministry for rural affairs and infrastructure (minister Peter Kullgren), the government intends to propose, in one of the forthcoming draft budgets, an increase in funds so that budget limits do not restrict the level of support for businesses. The rules for administering support from 1 January 2024 were at that time still being prepared in the Government Offices.

Why slurry

Biogas from slurry has a double benefit: it produces renewable energy and reduces methane emissions from the storage of livestock manure. Slurry, however, has a low dry matter content, so the gas yield per tonne is small, and the installations are less profitable than those based on silage. A premium per kWh of biogas compensates for this difference by directing support to a feedstock whose use is beneficial for the climate.

What the extension means

• Producers of biogas from slurry have support assured until the end of 2023, before the new model starts from 2024.
• The support does not depend on how the gas is used, unlike electricity certificates, which concern electricity (see the analysis of the Swedish elcertificate system).
• The government declared an increase in funds so that the budget does not limit the level of premiums.
• The future of support after 2023 depended on decisions in the budget being prepared for 2024.

Context

Sweden applies tax exemptions to biogas, and since 2014 also premiums for biogas from slurry. The 2023 extension filled the gap between the existing pilot and the target solution, which was to be run by the agency Energimyndigheten.