Tuesday, 19 January 2021
The Polish Power Exchange (TGE) and major natural gas market player PGNiG (Polish Oil and Gas Company) have signed an agreement to develop a biomethane market in Poland, which would lead to biomethane certificates being a commodity in the Eastern European nation.
The agreement was signed on 12 January 2021 and essentially signals cooperation in supporting the national biomethane industry, including the creation of a biomethane market.
‘For over 20 years, TGE has been supporting all transformation processes on the energy market and actively contributing to its development by offering its participants comprehensive solutions and products. The cooperation with PGNiG in creating a biomethane market is an opportunity for the Exchange to further develop the RES segment. Certainly, our registers have a key role to play in this project’ said Piotr Zawistowski, President of the Management Board of TGE.
TGE is in an ideal situation to embark on a market creation project, given they already administer the market-enabling national GO register for renewable electricity, with a biomethane certificate program likely to be an extension of this system.
While Poland does not have a mature biomethane industry, biogas usage is well established where it is used for heat and electricity applications. According to the 2020 European Biogas Barometer, Poland ranked eighth in biogas production in 2019 producing just under 300 ktoe of biogas, or just under 3.5 TWh.
In July 2020, Jerzy Kwieciński, the former president of PGNiG suggested that the biogas potential in Poland could eventually be as much as 14 bcm, half of which could be converted to biomethane which would amount to approximately 70 TWh/year biomethane supply. An interim goal of 7 bcm biogas by 2030 was also suggested. Such expansion would likely require investment exceeding 15 billion Euro however.
Monetary commitments to a 'biomethane revolution' are currently unclear but Poland remains active in the biogas field; they are represented in the EBA (European Biogas Association) by PIGEOR (Polish Economic Chamber of Renewable and Decentralised Energy) as well as UPEBI (Union of Producers and Employers of the Biogas Industry). Additionally, Green Gas Poland has hosted Biogas and Biomethane Producers conference the last three years, attracting international sponsorship as well as cooperation from the EBA.
Existing gas infrastructure in Poland should facilitate international transactions with countries such as Denmark, Germany and Switzerland, countries with active biomethane registries already conducting international biomethane certificate trade.
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