REPORT
Report premiered at 10th Energy Congress
September 25, 2024



Ladies and Gentlemen,
We are handing over to you the next DISE Energy report on the role of gaseous fuels in the energy transition ‘From Natural Gas to Biomethane. Decarbonising the Polish gas industry’. This time we have comprehensively analysed the potential for the use of biomethane in Poland as an alternative fuel to natural gas. This study is the result of a project carried out by DISE Energy in cooperation with the European Climate Foundation, and I would like to take this opportunity to thank the ECF team for their support and very good and creative cooperation.
In previous studies, we have focused on analysing the legitimacy of using natural gas as an interim fuel in Poland’s energy transition process. Following Russia’s attack on Ukraine, and the ensuing energy crisis, significant risks related to Europe’s dependence on gas supplies from eastern directions materialised and the issue of security of supply became a priority. In response, the European Commission proposed ambitious targets for the use of renewable fuels, including biomethane, as a local fuel and alternative to natural gas in the REPowerEU package. This approach, based on the diversification of supply and the use of local resources and synergies between the agricultural and energy sectors, is also crucial from the point of view of Poland, which has so far obtained most of its natural gas for energy purposes from Russia.
We are convinced, which is also confirmed by the analysis conducted in our study, that Poland has very good conditions for the development and production of biomethane and its use in the process of decarbonisation of many sectors of the economy. Therefore, we have attempted to formulate strategic directions of actions necessary for the development of this RES sub-sector. We sincerely hope that the conclusions of our report will be used by the Polish government in the process of updating strategic documents concerning energy and climate policy and will serve to formulate a sectoral policy aimed at systemic support for the efficient production of energy from biomethane in Poland.
Over the last 20 years, there has been much talk about the potential that agricultural biogas has in Poland, and successive governments have made ambitious plans to use biogas for energy purposes in Poland. Unfortunately, this ended mainly in assumptions and declarations. Meanwhile, in European Union countries such as Germany, Denmark, France and the Czech Republic, the development of biomethane has become a viable economic programme, resulting in the establishment of hundreds of biogas and biomethane plants. The key success factors for the development of this sector in these countries are synthesised in this report.
As a gas produced from renewable raw materials, biomethane meets the taxonomic criteria of ‘’sustainable development‘’ and, in terms of its physical and chemical characteristics, is directly suitable for replacing natural gas. Electricity generation from biomethane, in conjunction with other sources of ‘green energy’ such as wind and photovoltaic power plants, has a positive effect on increasing the flexibility of RES energy supply due to the possibility of stable production independent of the time of day and year, as well as weather conditions.
Biomethane is a valuable and limited resource that should ultimately be used mainly to generate electricity or heat directly for end-users. In this way, biomethane energy can make a real contribution to the decarbonisation of Poland’s energy mix and respond to the new demand that will be generated by the growing trend of electrification of many sectors of the economy. For this to happen, however, concrete solutions are needed to create a regulatory framework and provide effective financial support to stimulate investment in the initial phase of this process. In addition, biomethane production will positively influence the transformation of the agricultural sector and, in the long term, provide additional financial transfers to farmers, who will be able to gain a tangible benefit from the economically optimal use of waste from agricultural production for energy purposes.
I wish you a pleasant reading of our report, and I invite decision-makers to take advantage of the good practices and recommendations presented in the report, the implementation of which will help to create a well-operating biomethane energy subsector in Poland.
Yours sincerely,
Remigiusz Nowakowski
President of The Lower Silesian Institute for Energy Studies
AUTHORS OF THE REPORT

Marcin Sienkiewicz, PhD
Research fellow at the Institute
of International and Security Studies,
University of Wrocław, Gas Market Expert
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Expert of the Eastern Policy Forum and assistant professor at the Institute of International and Security Studies, University of Wrocław. From 2008 to 2010, he worked with the Office of National Security and the Office of the President of the Republic of Poland in the field of national security and energy. From 2016 to 2018 he was President of the Board of the Lower Silesian Institute of Energy Studies. Since December 2015, he has been involved with the Polish Power Exchange, where he is responsible for the development of the gas exchange market. In 2013, he completed a teaching internship at VŠB – Technical University of Ostrava. From December 2013 to January 2014, he was an intern at the Gas Studies and Projects Office GAZOPROJEKT S.A. Author of the conceptual study on the establishment of a gas hub in Poland. Publicist and reviewer of Wiadomości Naftowe i Gazownicze, a monthly magazine published by the Association of Engineers and Technicians of the Oil and Gas Industry. Participant and co-organiser of many conferences on energy issues. Author of more than a hundred scientific publications and expert studies on energy security, energy policy of modern states, operation of international energy markets.

Remigiusz Nowakowski
President of DISE,
Vice President of the Management Board of QAIR Poland SA,
Energy Transformation Strategy Expert
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He has many years of experience in building and implementing business strategies, managing large companies and investment projects in the energy and district heating industry, as well as excellent knowledge of the specifics of the energy sector and the principles of the electricity and natural gas market. Proven leadership skills in practice and the ability to lead teams in an international environment. Remigiusz received a thorough education in management, law and energy from prestigious universities including: Stanford University, Sustainable Banking Initiative, Certificate Course – Poland Energy Sector Executive Workshop, California, USA, Certificate Course in Leadership and Managerial Effectiveness at the International Institute of Management, New Delhi, India. He holds a master’s degree in economics from the Wrocław University of Economics and a law degree from the University of Wrocław. He is currently the President of DISE and Vice President of the Management Board of QAIR Poland SA. In the past, he held top management positions in energy companies. From 2018 to 2020, he was the President of the Management Board of PILE ELBUD S.A. (construction of electricity infrastructure). From 2015 to 2016, he was President of the Management Board of TAURON Polska Energia (a leading Polish energy company) and Member of the Management Board of PKN ORLEN S.A. From 2016 to 2019 he was a member of the Board of Directors of EURELECTRIC. From 2008 to 2015 and 2020, Executive Director at Fortum, Heating & Cooling, Poland and the Baltics.

Prof. Jacek Dach, D.Sc.
Head of Ecotechnology Laboratory,
University of Life Sciences in Poznań
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Founder and head of the Ecotechnology Laboratory at University of Life Sciences in Poznań – the largest Polish biogas and compost laboratory (more than 260 reactors). He was the only Pole to sit on the scientific board of the DBFZ in Leipzig (a federal institute for monitoring the German biogas market) in 2015-19 and has been a member of the scientific board of the Key Laboratory for Clean Renewable Energy Utilisation Technology, Ministry of Agriculture, located at China Agricultural University, since 2018. This unit, monitors the world’s largest biogas market (more than 45 million installations) and develops analyses for the Ministry of Agriculture of China on development directions, preferred technologies and suggesting the introduction or revision of legal standards in this field.
Founder of the scientific school of methane fermentation and composting and, more broadly, of biological methods of waste-to-energy conversion. Co-author of more than 300 publications.

Urszula Zając
Director of the Energy Transformation Department,
Board Representative for Energy Transformation,
Polska Spółka Gazownictwa sp. z o.o.
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At present, Urszula manages the work of the Energy Transformation Department at Polska Spółka Gazownictwa Sp. z o.o. (PSG), she is also the Board’s Plenipotentiary for Energy Transformation. In April 2023, she was appointed to the Coordinating Council for the Development of the Biogas and Biomethane Sector at the Ministry of the Environment. Ursula joined PSG in 2020 as Board Representative for Low Carbon Energy Development, but it quickly became apparent that the scope of her activities goes far beyond her designated tasks, and her knowledge and experience is a great support to the Company in the field of energy transformation and setting new directions for the Company. She is the author of a number of new initiatives in the Company, including the Spatial Database, where, for the first time, professional entities that want, will want or use gaseous fuels were shown on the gas network. This tool has become the Company’s main tool for development analysis. Urszula is also the Director of the Energy Transformation Programme established at PSG to prepare the Company for the challenges of the energy transition.

Maciej Burny
Expert in energy and climate policy analysis and policy,
CEO of Enerxperience Sp.z.o.o.
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He has 20 years of experience working in energy sector regulation at national and EU level.
Between 2010 and 2020, he held managerial positions in the area of regulation and international affairs at PGE Polska Grupa Energetyczna S.A.. During this time he was, among others, Department Director and Director of the PGE Office in Brussels.
From 2012 to 2018, he was at the same time Secretary and member of the Managing Board of the Polish Electricity Committee. Prior to that, he worked as a civil servant responsible for the regulation of EU climate and energy policy from 2005 to 2010.
Since 2020, he has been running his own consulting company: Enerxperience spółka z o.o.

Dr.-Ing. Agata Romanowska
Project manager,
DISE ENERGY
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Urban planner and expert on sustainable spatial development, project manager.
Previously associated with Wrocław University of Technology, where she conducted research on sustainable urban development and urban light pollution. Popularises knowledge on sustainable lighting and energy efficiency in strategic and spatial planning. Professionally involved in the energy sector and energy transition issues.
She is a member of the Planning, Law and Property Rights Academic Association and International Dark-Sky Association

Aleksandra Pinkas
Lawyer at Kochański & Partners in the Energy,
Infrastructure & Environment Department
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Lawyer, graduate of the Faculty of Law, Administration and Economics at the University of Wrocław, where she is currently preparing her doctoral thesis. She is a lawyer at Kochański & Partners in Warsaw in the Energy, Infrastructure & Environment Department.
She specialises in legal services for energy projects, in particular in the field of renewable energy sources, hydrogen and biomethane. She supports companies in reporting according to ESG standards, conducts due diligence of RES projects and provides training on energy market regulation.
Co-author and lecturer on the postgraduate course ‘Energy and Climate Transformation. Law of renewable energy sources’. Winner of the Rector’s Scholarship for the best students for scientific achievements (2020). Author of several dozen scientific and professional publications in the field of energy law and climate protection law, including, among others, co-author of the expert report of the Lower Silesian Institute of Energy Studies entitled ‘Natural gas in the process of energy transformation in Poland’ (2020) and the diagnostic study for the Energy Strategy of Lower Silesia ‘Recommendations for legislative changes in the scope of carrying out the energy transformation and achieving climate neutrality’ edited by Prof. Jerzy Korczak (2021).
Review of the DISE Report
1. Report structure.
This report is a comprehensive analysis of biomethane, in terms of sector decarbonisation, diversification of energy supply and optimisation of operating costs of electricity and district heating systems. The authors present conclusions and recommendations, which are the result of an in-depth analysis of statistical data, technology and legislative development trends, an assessment of the direction of changes in the domestic and European markets, and take into account macroeconomic factors. The report includes a number of own analyses and complements previous studies, providing the latest information in an accessible manner, supplemented by expert commentary. The combination of economic analyses with an assessment of trends in the development of biomethane supply and demand clearly positions gas in the context of its viability as an alternative energy carrier.
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Chapter one is a compendium of the most important knowledge on the parameters and characteristics of biomethane, its production, purification and application technologies. This chapter presents the potential of biomethane as a tool to decarbonise sectors of the national economy. Chapter two is oriented towards presenting the regulatory and legal framework that operates in the domestic biomethane market. The chapter includes a discussion of targets as well as guidance documents, which are not legally binding. The chapter discusses, inter alia, the European Green Deal, the EU Methane Strategy, REPowerEU, the positioning of biomethane in the national energy and climate strategy, including the National Energy and Climate Plan 2021-2030 and the Energy Policy of Poland until 2040. The authors complement the presentation of the documents with a commentary, which makes it possible to clearly indicate the relationship between the development of the biomethane market in Poland and the selected documents and policies. Of particular importance is the presentation of the evolution of the national legislation, while the chapter’s conclusions, which are also recommendations, comprehensively present the importance of biomethane in the coming decades. Chapter three is a case study, being a meticulous analysis of data on biomethane potential and production capacity in selected EU countries, the number of existing biomethane plants and support systems (mechnisms) for biomethane production. The quantitative and qualitative discussion of the biomethane market at EU level is then complemented by specific examples of selected German, French, Danish and Czech markets. Chapter four analyses the production potential of biomethane and the demand for this gas in Poland. A very valuable element of this part of the report is an overview of the feedstock category and its geographical dispersion. The chapter presents a reference case study of investment in biomethane production.
Infrastructural opportunities and constraints for the development of the biomethane market in Poland are discussed in Chapter five, which details the technical conditions and opportunities for the integration of biomethane facilities into the gas system. The technical characteristics of the natural gas distribution network in the context of its feasibility for biomethane are discussed in great detail. This aspect is also complemented by an analysis of the absorptive capacity of the gas network for biomethane and an analysis of the DSO’s efforts to increase it. An important component of the chapter is the quantification of potential customers and the evolution of the market in the next three decades. Chapter six is dedicated to an analysis of the economics of biomethane, including the costs of generating heat and power from biogas and biomethane in context. The chapter presents the criteria for the competitiveness of biogas and its potential for decarbonisation of the power and heat sector, indicating in the conclusion that in Poland in 2035, the LCOE for biomethane sources may be comparable to the averaged LCOE for gas sources.
2. Report evaluation.
DISE’s expert report comes at a time when we are in the process of updating PEP2040 and the National Energy and Climate Plan. This is the most appropriate time to present a synthetic but factually supported assessment of the potential of biomethane as a tool for decarbonising the economy. The report combines an interdisciplinary approach and the conclusions take into account the three key components of policy-making and policy documents: climate neutrality in a broad sense, the importance of new sectors for economic development and energy security issues. DISE’s experts present clear recommendations, supported by the findings developed in the study. The cost perspective presented in the Report, including the presented possibility of equalling, by the middle of the next decade, the cost of electricity generated from biogas to that of natural gas, foster optimism and draw attention to the significant market potential.
An in-depth review of the markets provides an understanding of the multifaceted dimension of biomethane, which can be sourced from multiple feedstocks and used in a variety of sectors. The complexity of the issues surrounding this gas is also demonstrated by the recommendation to consider developing a dedicated biomethane sector strategy. The report is an analytical piece presenting an expert assessment of the current situation of the industry, including an indication that such a strategy could be part of defining a transformational path for the Polish gas industry. The expert assessment and statistical analysis of the data form the basis of the conclusions and recommendations formulated. It is hard not to agree with the authors that we should give biomethane a role as one of the main tools for decarbonisation of the gas industry and the national economy; this is backed up by extensive analytics and hard facts.
The DISE study is a comprehensive, multi-dimensional document, a comprehensive analysis of the importance of biomethane, which takes a closer look at the basic information about the technology, critically examines the state of market development, the technological readiness of the infrastructure and economic issues. This makes the Report an important voice for many industries and the economy, and a must-read for the gas industry.
Prof. Jakub Kupecki, D.Sc.
Institute of Energy – National Research Institute
EUROPEAN CLIMATE FOUNDATION



