Hungary allocates 99 million euros to boost biogas and biomethane production

Under the Jedlik Ányos Energy Programme, the government is launching a call for proposals for Hungarian companies to build and expand biogas and biomethane production capacity. 18 billion forints (about 44,5 million euros) will be earmarked out of the total budget for the construction and modernisation of small-scale plants, primarily to support green energy production for self-consumption.

“It is crucial for energy sovereignty, security of supply and climate protection that the vast majority of domestic demand is met through domestically produced clean electricity and heat. This should rely on Hungary’s steadily expanding green energy production alongside low-variable-cost nuclear power. In addition to solar energy and geothermal heat, biogas and biomethane represent the country’s strongest potential. The government is also promoting a green shift in molecules by increasing their use for electricity, heat and fuel (bioLNG, bioCNG), replacing natural gas,” the Ministry of Energy stated on its Facebook page.

According to the ministry, Hungary currently produces around 200 million cubic metres of biogas per year across more than 100 sites. The goal is to triple this amount by 2030, reaching 184 million cubic metres of biomethane production. The latter can be specialised in by larger plants, as the cost efficiency of biogas purification improves with higher processing volumes. Smaller plants are encouraged to focus on self-sufficiency by using green energy locally.

Under the Jedlik Ányos Energy Programme, 40 billion forints (about 99 million euros) will be available for investments and equipment purchases covering the entire production process, from raw material collection to the utilisation of residues and by-products. Of this, 18 billion forints will be allocated to plants producing less than 500 cubic metres of raw biogas per hour. Large installations will only be eligible for funding if the budget is not fully used by small-scale producers.

Large companies can receive grants covering less than half of their investment costs, while micro and small enterprises can access funding for up to two-thirds of their investment. Generally, the available aid per application ranges between 500 million forints (1.2 million euros) and 5 billion forints (about 12.3 million euros), while for small businesses, the lower and upper limits are 200 million forints (about 494,000 euros) and 800 million forints (about 1.9 million euros). All projects must be completed by the end of 2028. In line with environmental sustainability and circular economy principles, the biological by-product of production must be used as a soil amendment material in agriculture.

In total, the Hungarian government is providing 440 billion forints under the Jedlik Ányos Energy Programme to support businesses. The ten calls for proposals will fund initiatives aimed at improving energy efficiency in companies, advancing energy research and development and modernising district heating systems. One key objective of the programme is to reduce energy costs for domestic businesses, thereby improving their competitiveness.