After a long delay

Biogas supply law finally on track

After several months of delay, the government has finally put the planned Renewable Gas Act (EGG) on track. A corresponding government bill passed the Council of Ministers on Wednesday. The aim is for gas suppliers to supply mandatory and gradually defined quotas of biogas instead of conventional natural gas from 2024.

The review of the EGG draft already came to an end at the end of March 2023, but negotiations between the ÖVP and the Greens then dragged on even longer. The government bill will now be sent to parliament, where majorities for the two-thirds matter will be sought.

Massive expansion of domestic biogas production
The aim of the project is to expand domestic biogas production. From 2030, at least 7.5 terawatt hours of "green gas" are to be fed into the gas grid every year. Suppliers must ensure that they supply customers with at least 9.75% green gas from then on (in 2024, the proportion will be 0.35%). Compared to today, this means a more than fifty-fold increase in domestic biomethane production (0.14 TWh to 7.5 TWh). A gradual increase with fixed percentage targets per year is planned for the years 2024 to 2030.

More biogas from Austria, less natural gas from Putin
In addition to protecting the climate, the law is also intended to strengthen Austria's energy independence. "Because domestic biomethane can directly replace Russian natural gas and thus reduce dependence," according to the government documents.

Only biogas from 2040
By 2040, domestic gas consumption is to be completely covered by biogas. This is to be used primarily in those areas for which there are no other solutions, above all in industry. Biogas is produced by recycling wood residues, agricultural waste or organic waste. According to the government, the entire process binds the same amount of climate-damaging CO₂ as is produced during incineration.

Penalties for non-compliance with quotas
Compared to the review draft, the penalties for non-compliance with the quotas, which the gas industry had objected to, have been reduced. The penalties stipulate that suppliers must pay 15 cents per missing kilowatt hour as a compensation contribution to the EGG settlement body (the draft still envisaged 18 cents from 2025). This revenue is then to be used as funding for the construction of biogas plants and plants for the production of renewable hydrogen.