Friday, 12 August 2022
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The renewable gases, biomethane and green hydrogen, are set to play an important role in greening our energy usage. However, in comparison to their fossil mainstays, these sustainable gases have historically had high production costs. Green certificates can help compensate this.
While support via subsidies can help bridge the cost gap, a possible solution to reduce government aid required is to recognise and monetise the green attributes of these renewable products. Certificates representing these attributes would be issued to green producers, who could then sell these to discerning consumers, with the price determined by the market.
A major factor in determining a suitable certificate price on the supply side is production costs.
Current production costs for biomethane in Europe are somewhere bet...