Poland Energy Biogas industry market growth
Poland’s energy transition will likely depend on biogas and biomethane. “The development of both energy sources is in the interest of investors who build weather-dependent units, i.e. those based on solar and wind energy,” says Lukasz Tomaszewski, director of the Renewable Energy Department at the Ministry of Climate and Environment. As early as November’ 2024, the Polish parliament will discuss the Law on Biofuels and Biocomponents. It has already been approved by the Government.
The development of the biogas market in Poland is linked to the introduction of a support system for renewable energy sources less than 20 years ago, first in the form of certificates and later auctions. Today there are about 400 biogas plants operating in Poland with a total capacity of 300 MW, or less than 1 percent of the system’s installed capacity. However, efforts are being made in the ministry and the broader administration in general to increase the share of biogas in the national energy mix.
For the development of the industry, the FEnIKS program (European Funds for Infrastructure, Climate, Environment) provides over $93 million, but other plans envisage that the current perspective of EU funding for biogas investments will reach $322 million. On top of that, there will be $750 million to support various types of installations under the “Energy for the countryside” program, as well as $750 million from the pool for intelligent energy infrastructure.
There are currently 30 biogas plants in Poland in the development phase, after the environmental decision. This number has appeared within the last year. Previously, projects at this stage were lacking. The first auction is expected to take place in 2026. In contrast, there are about 150-200 less advanced projects. 14 large companies, which are associated by the Polish Biomethane Organization, are planning investments of $4.3 billion.
High hopes are being pinned on biomethane by the road transport industry, from which the European Union is demanding decarbonization. On September 9 of this year, the first refueling of bioLNG into a truck in Poland was carried out at a gas station in Rzepin owned by E-Logis. The fuel was filled into the tanks of an Iveco S-Way Natural Gas. The bioLNG station was supplied by Duon.
The Polish biogas market is becoming increasingly attractive to foreign investors. In March 2023 French TotalEnergies acquired the Polish main biogas producer, Polska Grupa Biogazowa (PGB). BGB currently owns and operates 18 biogas plants with a total capacity of 19 MW. Two more are under construction.
In October 2024, Swiss Axpo has acquired a biogas plant in the West Pomeranian province. Poland is one of five countries in Europe where Axpo has decided to enter the biogas market. The company plans to develop more biogas projects in Poland in the coming years.
Also, in October another investor announced its plans: the Polish Neo Energy Group together with the Dutch investment fund Perpetual Next have just finalized a joint venture agreement. The cooperation will create a network of biogas plants throughout Poland. The companies plan to process about 80,000 tons of biowaste annually in the first two projects,
Poland’s biomethane sector can play a key role in accelerating the energy transition and reducing Poland’s dependence on imported fossil fuels. According to the report recently published Report-From-natural-gas-to-biomethane.pdf the real potential for production in Poland could be about 3-4 billion cubic meters per year. It has strong support from European Union funds, as well as a positive reputation among bank lenders such as the EBRD, EIB and World Bank, not to mention major commercial banks. This much anticipated increase in interest in biogas should create many opportunities for U.S. companies to enter the Polish market.
U.S. energy firms have a strong reputation for innovation and after-sale service, making them competitive in the Polish energy market. Key partnering opportunities for U.S. expertise include biogas technology, equipment, consulting, and design and construction.
For more information, please contact Commercial Service Poland at office.warsaw@trade.gov