Biogas costs must decrease for €7 billion investment, says French government

The French government is prepared to invest €7 to 9 billion of subsidies for renewable gas, but only if the industry can ‘substantially’ lower its cost, Reuters reports.

According to the report, biogas costs an estimated four times the amount of natural gas imported using pipelines or LNG tankers.

Under the draft 10-year plan, titled PPE, France’s government has set a target for biogas to account for 7 to 10% of gas consumption by 2030 from its current-day sub-1% value if costs decrease.

Gas grid operator GRTgaz told Reuters in a statement that the government’s goal to reduce costs to €67 per MWh per 2023 from it’s present €90-95 per MWh was too ambitious.

“No other renewable energy sector that is mature today has seen its development conditional on such terms,” GRTgaz told Reuters.

“As it is, the PPE trajectory threatens the development of this young industry.”

The French biogas sector has seen a major rise in interest and investment. In November, Bioenergy Insight reported that French electric utility group ENGIE were looking to invest €2 billion into biogas by 2030.

Government has also been adamant in its commitment to biogas, wanting to boost the amount of biogas produced in France from 5.4TWh in 2016, to 14 TWh by 2023 and 24 to 32TWh by 2028.