Sweden: High hopes for the Swedish biogas market

The Swedish Government has presented its plan for a taxation policy of biofuels in relation to the EU regulation.

In a special application to the European Commission the government will ask for a continued tax exemption for biogas as a fuel until the end of 2020. If this approach is approved by the European Commission it is good news for the Swedish biogas industry.

“This is the good news that we have really fought for. The recent years of uncertainty and sudden changes in fiscal terms for biofuels have been stressful for the whole market. A five-year extension of the current regulatory framework now provides a few years of stability. It means that renewable biogas can continue to be a competitive alternative to fossil products like petrol and diesel,” says Anders Mathiasson, Head of office, Swedish Gas Association.

More than 50% of the produced biogas is today used as transport fuel in Sweden and represents over 70% of the total sold CNG. Sweden represents a global front runner and many countries see Sweden as an inspiring green model.

“I believe that the decision by the Swedish government shows that it wants to see a continued Swedish biogas venture, where waste and residues are converted into a resource for the community. We see this in many other initiatives from the government, for example, reduced benefits for gas cars, production subsidies, investment programs where biogas is believed to be an important part of the environmental and climate policies,” continues Anders Mathiasson.

With the continued demand for five more years of the tax exemption, the biogas industry believes that the political focus must now be directed towards the Swedish 2030 target and the goal of a fossil-independent vehicle fleet.

Source: Energigas Sverige