Ryan
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The energy crisis in Europe, as a result of the war in Ukraine, has had the EU considering all possible avenues for meeting its gas demands. The import of biomethane (RNG) serves to meet its low carbon gas goals, in addition to the bloc’s gas needs.
There’s considerable variation between project costs, with many factors influencing the total CAPEX of a project. In addition, often low CAPEX technologies result in a higher OPEX, which requires it’s own considerations. In BiogasWorld’s report on best practices for reducing the costs of bigoas production, some costs are analysed for various projects: https://biogasworld-5799596.hs-sites.com/ad-costs-eccc
biogasworld-5799596.hs-sites.com
Download the report prepared by BiogasWorld for ECCC on AD costs and the ways to reduce them.
Biomass that is lignocellulosic (very fibrous) is still considered difficult to digest conventionally. Some facilities add some of these materials to a digester, but not as the primary feedstock. There are a number of companies/researchers developing processes for breaking down these materials, whether a pre-grinding step, or an additive to breakdown cell walls.
At the moment, the Canadian government promotes these efforts via grants for supporting R&D and ‘next generation’ feedstocksI think our first few big wins came this year with the new Federal Budget, the expansions to the CFR, Clean Fuel Fund, and Canada Infrastructure Bank. Some details will be expanded on in the fall economic statement, but the industry is definitely on the radar of Ottawa. The industry, and the CBA, continue to voice the request for a Federal ITC, however, we don’t have an answer for certain on this. My prediction is the fall economic statement will be a sort of litmus test for further support in the 2025 budget.
With regard to a change of government, among the changes a PC government might bring, it is uncertain whether biogas/RNG incentives might be targeted. The industry benefits from a wide reach of support, apart from just the renewable space, from waste management (and waste operators), to energy utilities, to farms and WWTPs. Governments in Canada, of any stripe, respond to these various interest groups. Perhaps this is my own optimism on the matter, but I don’t believe a federal change of government of any kind will negate the progress the industry has made over recent years.