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Poland Commissions Its First Biomethane Plant: Is a Market Breakthrough Imminent?
Until recently, Poland was the largest gap on the map of European biomethane plants. Despite a strong agricultural sector and dependence on gas imports, there were no biomethane production facilities in Poland, and the number of biogas plants still did not match the local potential. With the commissioning of the first biomethane plant in Poland, we take a look at the current legal and market conditions for this type of activity.
Introduction
In September, the first cubic meter of biomethane was fed into the grid of Polska Spółka Gazownictwa, Poland’s largest natural gas distribution network operator. The company officially announced the connection of Poland’s first biomethane plant, built at the sugar factory in Strzelin, to the gas grid. According to the investor, the biogas obtained from sugar beet residues will be used for the Strzelin sugar factory’s own needs, while the surplus, in the form of biomethane, will be fed into the grid via a 9-kilometer gas pipeline.
(Un)Tapped Potential
The investment in Strzelin is the first large-scale biomethane plant in Poland. Previously, only a pilot plant in Brody, commissioned in February 2025 by scientists from the Poznań University of Life Sciences (capacity: 0.499 MW), was operational for research purposes.
According to a report by the National Centre for Research and Development, the total technical potential for biomethane production in Poland is 8 billion m3. The investment potential is conservatively estimated at 3.2 billion m3, which corresponds to 40 percent of the technical potential. ¹ To balance its energy system, Poland needs between 1.5 and 2 billion m3 of biomethane annually, while industry – particularly the chemical industry – has a high demand for this raw material. 2
So far, the entire potential mentioned above is served by a single biomethane plant. For comparison, Germany currently has 270 biomethane plants in operation, feeding 1.4 billion m3 of renewable gas into the grid annually. In 2024 alone, 21 biomethane plants were commissioned.3
However, this does not mean that there are no projects in Poland. According to a report by the Polish Biomethane Organization, 105 investment projects at various stages of development, with a total production capacity of approximately 349 million Nm3 per year, were identified for the first quarter of 2025. Medium-sized plants (1–5 MW) dominate.
Reasons for the Current Weakness of the Biomethane Market
Inadequate legislation was almost unanimously cited as the main reason for the stagnation of the Polish biomethane market to date.
Investors highlighted significant difficulties in connecting to the gas grid. These concerned both the lack of information about the gas grid’s capacity and the regulations imposed by operators regarding the minimum calorific value of biomethane (above 38 MJ/m3).
Biomethane plants were also hampered by lengthy administrative procedures during the investment phase, including environmental decisions, building permits, and operating permits. Another major weakness was the lack of a support system that would offer biomethane producers reliable revenue prospects, even though support systems successfully operate for biogas projects in Poland.
Improving Investment Conditions
In recent months, however, the legal and regulatory situation for the construction of biomethane plants in Poland has significantly improved. An important step was the publication of gas grid absorption maps by Polska Spółka Gazownictwa (“PSG”), which for the first time allowed investors to assess the actual possibilities for connecting plants to the grid. PSG also changed its approach regarding biomethane quality parameters, including calorific value requirements, which significantly facilitates plant planning. According to PSG, 970 decisions regarding the connection of biomethane plants have already been made – both conditions and opinions on the possibility of connecting to our grid – and 12 connection agreements have been concluded. 4
Link to the absorption map:Polska Spółka Gazownictwa – Ready for Biomethane
For a year now, Poland has had a support system for biomethane plants with a capacity of up to 1 MW, based on a feed-in premium mechanism. This mechanism allows for the sale of electricity on a competitive market with the right to cover the negative balance, which represents a subsidy equal to the guaranteed fixed purchase price.
Under the current regulation, the reference price for biomethane from biogas for renewable energy generation plants is approximately 126.30 Euros per 1 MWh, and for biomethane from agricultural biogas, it is 127.93 Euros per 1 MWh. Importantly, the system only applies to biomethane fed into the gas grid.
Further Changes in Sight
The observed direction of legislative changes in Poland appears to favor biomethane.
A series of provisions aimed at improving the situation of biomethane producers was included in the draft amendment to the Onshore Wind Farms Act. Among other things, it was proposed to introduce a support system for biomethane plants with a capacity exceeding 1 MW based on an auction formula. Separate auctions are planned for biomethane plants with an installed electrical capacity of less than 2 MW and 2 MW or more. It was also proposed to allow biomethane producers to build direct gas pipelines to end-users, bypassing gas grid operators.
Admittedly, the aforementioned provisions have not yet entered into force due to the President’s veto. However, it seems that the Presidential Office’s resistance primarily concerned the distance rule for onshore wind energy, and there is broad consensus in Poland regarding the development of biomethane. Therefore, representatives of the biogas industry, led by the Polish Biomethane Chamber, are calling for the biomethane provisions to be separated into a distinct draft law, which is likely to gain presidential approval.
Summary
The direction of energy legislation and policy development indicates that the biomethane market could become one of the fastest-growing segments of the energy sector in Poland.
According to the draft National Energy and Climate Plan, Poland plans to achieve biomethane production of 1.5 billion m3 by 2030 and 3.9 billion m3 by 2040. This opens up significant investment opportunities – both for greenfield projects and for the acquisition of already developed plants with permits and connection conditions.
The structure of the Polish energy mix and EU requirements suggest that biomethane will become an integral and strategic component of Poland’s energy mix.
The biogas and biomethane market in Poland is continuously monitored by RÖDL’s lawyers, who support investors and entrepreneurs at every stage of project development – from planning and implementation to operation.
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From the Newsletter “E|News: Renewable Energy”
Sources:
1 National Centre for Research and Development, Real potential for biomethane production in Poland. Version dated May 20, 2024, p. 10.
2 Ibid.
3Biomethane: Why Germany is Losing Ground in the Energy Transition
4 Polska Spółka Gazownictwa – First Biomethane Plant in the Country Connected to the Gas Grid