Biomass price as a key factor for the further development of biogas and biomethane use – Methodology and policy implications

Abstract

Intentionally planted biomass is one of the important possible sources for biomethane production. The production cost of biomass plays a key role in both a farmer's decision to grow it and the efficiency of biomethane production. Unlike conventional agricultural crops, biomass grown for biogas or biomethane plants does not have a direct market price. The paper presents a methodology for determining the limit of biomass production price based on modelling lost revenue from planting conventional crops over the lifetime of the biogas or biomethane plant, considering local agrotechnical practices and soil and climatic conditions. The application of the methodology is demonstrated by providing maize biomass for a reference biogas plant and conditions of the Czech Republic. The production price of maize silage is in the range of 25.6–29.4 EUR/tFM for base line scenario of conventional crop prices. The increase in commodity prices in 2021 and 2022 leads to an increase in the biomass production price up to 34–43 EUR/tFM. The paper also discusses the influence of the biomass input price on the cost of biomethane production.