Biogas upgrading plants and biogas or biomethane pipelines; application for funding

The BioMeth Bavaria funding program promotes the construction of new, environmentally friendly biogas upgrading plants and also biogas and biomethane pipelines.

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Purpose

The construction of new, environmentally friendly biogas upgrading plants and biogas and biomethane pipelines promotes the direct use of biogas on site and the use of biomethane to generate electricity, heat and fuel. The funded projects are expected to save up to 9,000 tons of CO2 annually.

Object

The Free State of Bavaria supports investments in new, environmentally friendly biogas upgrading plants and in the conversion of existing biogas plants into new biogas upgrading plants. Funding is also available for investments in biogas and biomethane pipelines in accordance with the guidelines set out below.

Recipients of funding

Natural persons and legal entities under private law, partnerships, church institutions and legal entities under public law of the indirect state and federal administration with their own legal entity (in particular local authorities, institutions, foundations, chambers) that make the investment are eligible to apply.

Eligible costs

Eligible costs for the construction of a biogas upgrading plant:

Eligible costs are the investment costs for the biogas upgrading plant and for the conversion of the existing biogas plant.
In detail, these can be the costs for the following measures:
- Biogas-specific plant components (upgrading plant, transfer station)
- Structural facilities and development
- Planning costs (up to 10% of the eligible investment costs)

Eligible costs for the construction of biogas or biomethane pipelines

The share of investment costs and costs pursuant to Section 33 (1) GasNZV for biogas or biomethane pipelines and gas transfer stations that do not have to be borne by the network operator is eligible for funding.

Type and amount

Funding for biogas upgrading plants: The grant amounts to between 30 and 40 percent of the eligible investment costs. The grant is provided as a subsidy in the form of pro rata financing.
- For the construction of a new, environmentally friendly biogas upgrading plant with a raw gas upgrading capacity of 350 Nm³ per hour or more, the upper funding limit is €500,000.
- For the construction of a new, environmentally friendly biogas upgrading plant with a raw gas upgrading capacity of 700 Nm³ per hour or more, the upper funding limit is € 800,000.
- For the conversion of an existing biogas plant into a new, environmentally friendly biogas upgrading plant, the upper funding limit is € 700,000.
Funding for biogas and biomethane pipelines: Funding is provided in the form of a fixed amount of €100/m line length and €50,000/gas transfer station

Key funding requirements:

The project may not commence before approval has been granted. The conclusion of a supply or service contract attributable to the execution of the project (e.g. order, purchase contract) is deemed to be the start of the project. Planning services may be provided before the application is submitted.
When submitting the application, gas supply contracts or preliminary contracts must be submitted for at least three years for 100 percent of the forecast energy sales per year.
The subsidized plant must be built within Bavaria and must be operated at the location specified in the application for at least 6 years after commissioning (earmarking).
A subsidized biogas upgrading plant must achieve a calculated capacity utilization of at least 4,380 full operating hours per year in accordance with the application concept.
According to the application concept, the biogas upgrading plant may not exceed a maximum methane emission into the atmosphere of 0.2 percent (in accordance with the Gas Grid Access Ordinance - GasNZV) and a maximum electricity consumption of 0.5 kilowatt hours per standard cubic meter of raw gas.
For the production of biofuels, biogas (including biomethane), only biomasses may be used where the promoted fuels meet the sustainability criteria and the criteria for greenhouse gas savings of Directive (EU) 2018/2001 and the associated implementing acts or delegated acts and are produced from the raw materials listed in Annex IX of the Directive. Permissible input materials are, for example, manure, slurry and residual or waste materials from biomass. Non-permissible input materials are, for example, whole plant silage made from maize, cereals or grass.
Neither remuneration under the EEG nor remuneration under the KWKG may be claimed for the marketing of the biomethane produced in the biogas upgrading plant and the electricity generated from it.
Biogas pipelines that feed into combined heat and power plants are not eligible for funding if the electricity feed-in is remunerated as part of a tender won by the Federal Network Agency

Brief description of the project
Planned input materials and calculated CO2 reduction for the biogas upgrading plant
Cost plan
Proof of financing
Information on cost structure and profitability
Gas supply (pre)contracts
Construction plan/site plan/route
Documentation offer comparison
Information on company size
De minimis declaration

A project meeting with the Technology and Funding Center at the Competence Center for Renewable Resources (TFZ) is always required before submitting an application.
The application documents can be downloaded from the Internet (see "Further links").
Applications must be submitted to the TFZ, which is also responsible for approval.
The project may not begin before approval has been granted. The start of the project is deemed to be the conclusion of a supply or service contract attributable to the execution of the project. Planning services may be provided before the application is submitted.