subject: BP Could Mean "Biogas Promotion" for 2011 [print this page] In addition, there are at least 10 other factors that favour long-term biogas development.
1. Above all, the price volatility in the cost of fossil fuels makes the renewable energy
sources and second generation biofuels relatively more profitable. In the case of
biogas, the profitability improves also in absolute figures as the plants grow in size
and the technology becomes more economical
2. Leading countries are supporting biogas with subsidies such as feed-in-tariffs, cash
injections and tax reliefs. On the other hand, there is no relief in sight for the
production and purchase of fossil fuels.
3. The large scale plants and increasing utilization of technology are pushing down the
production costs.
4. The existing infrastructure and technology for natural gas is robust and provides a
low threshold for upgraded biogas to enter the market.
5. The energy out of biogas can be utilized flexibly either as electricity, heat or fuel.
6. The current use of natural gas within the transportation industry is driving the use of
biogas as well.
7. Biogas offers superior fuel yield per cultivated area compared to other biofuel
production processes, which makes it the most sustainable of biofuels.
8. The non-food sources of raw material such as landfills, dairy farms and wastewater
plants help reduce their methane emissions.
9. Biogas production provides "green jobs" and additional income in rural areas.
10. Countries dependent on foreign sources of natural gas may start producing a share
of the gas themselves.
As a result, more companies are entering the biogas market. These include chemical
companies such as Rhodia, equipment manufacturers such as General Electric,
distribution companies such as Gaz de France and gas companies like GASUM.
By entering such a nascent market however, these businesses face the challenge of
deciding on their operating models, market focus, technologies to use and their long term
plans, amongst other considerations.
The final implications of the Gulf of Mexico disaster for the energy sector are yet to be
seen but one thing is for sure: from now on BP will always remain as a strong argument
in any energy debate, particularly for biogas promotion.
