The biogas market is changing, and this is affecting farmers across the country. Many have already invested, or are considering investing in biogas, either in the form of a larger plant in partnership with others for the production of upgraded compressed biogas (CBG), or as an individual on-farm plant for the production of electricity and, in some cases, heat. Regardless of the approach, there are challenges related to profitability, the market and logistics.
As the segments that have historically consumed CBG become increasingly electrified, demand is falling. At the same time, demand for liquid biogas (LBG) is growing.
In Habo, Biofrigas, together with Långhult Biogas, has demonstrated that it is now possible to produce liquid biogas locally, all the way from farm to tank.
Over the next four Tuesdays, we will highlight some of the most common challenges facing the agricultural sector and share our perspective. Join us in this series – from challenge to opportunity.
CHALLENGE:
Many farmers who produce biogas use it for electricity and heating, a solution that has long been viable. But today, it is becoming increasingly difficult to make this model profitable. Electricity prices fluctuate significantly and the heat is often difficult to utilise fully, particularly throughout the year. Without a good outlet for the heat, the efficiency of the solution is also low.
Furthermore, the energy must be used immediately upon production, which limits the potential to optimise the business. For many, this means that the investment does not yield the return they had hoped for.
BIOFRIGAS' PERSPECTIVE:
The challenge is not just about how biogas is produced, but how its value is harnessed.
Liquefying biogas opens the door to more and more profitable markets. There is clearly growing demand for liquefied biogas (LBG), particularly in heavy transport, shipping and industry – sectors that are difficult to electrify but where there is a significant need for renewable, high-energy fuels.
Liquid biogas offers a more efficient logistics solution, meaning it can be sold to customers across a wider area. For the farmer, this represents a shift from having to adapt to the system to being able to control the business themselves. The result is better conditions for more stable income and a higher value per unit of energy produced. Quite simply, a better deal!