Yesterday, at the Antunović Hotel and in the organization of Energetika Marketing and Croatian Expert-Scientific Association for Energy Machine Engineering Technologies and Renewable Energy Sources (HESO), the 22^nd Gas Forum was held. Although this event is traditionally devoted to fossil energy sources, the organizers, because of the energy and gas crisis, included in the program alternative solutions, production technologies and the distribution and use of gas. Precisely for that reason and at the invitation of the organizers RESC participated in two topical themes at yesterday’s forum.

Within the first topical group “The Future of Gas, Gas Techniques and Gas Economy”, Krešimir Milorad, a RESC member and CEO of Energija Gradec, Ltd. participated in the round table where discussions were held o gas, energy transition, renewable sources and the development of the gas economy in the coming years. Along with him, the participants at the round table included Robert Bošnjak, engr. (Plincro Ltd.), prof. dr. sc. Vladislav Brkić (Faculty of Mining, Geology and Oil), prof., dr. sc. Neven Duić (Faculty of Machine Engineering and Shipbuilding), eng. Dean Gnjidić (E.ON Croatia Ltd. and eng. Goran Popović (Municipal Gas Works Zagreb Ltd.

Krešimir Milorad spoke of the current state of the biogas sector in Croatia, obstacles that are faced and possibilities of developing the production of biomethane and its integration in the existing and planned gas flows. He emphasized that biogas plants in Croatia are currently operating under unsustainable conditions because of the problems they have with the growth of prices of all inputs, particularly raw materials, and are still receiving the electric energy they produce, in line with the supply agreement with HROTE, an amount which is below economic sustainability. He also pointed to all the priorities and positive effects achieved by the work of biogas plants for the energy sector, as well as for agriculture, including the reduction of CO2 emissions. The biogas producers who terminated their contracts and came out to the market are troubled by the fact that the enormous growth of input prices has not been recognized while the selling price of electric power is limited for them at 180 EUR/Mwh, which is not the case in some other countries. It was pointed out at the Forum that if that does not change there is a possibility of the production of biogas being shut down. Among other, it was concluded at the round table that the current technological readiness of the existing flows is high and can accept the bio-methane produced by anaerobic fermentation which is in line with the EU efforts to reach the REPowerEU 36 billion cubic meters of produced bio-methane by the year 2030. In addition, as a new hub of gas distribution, Croatia through two new flows can open up the possibility of a broader placement of produced bio-methane.

Furthermore, within the framework of the theme “Challenges of the Gas Economy”, Mislav Kontek, RESC member, and head of technology development in the company Energovizija Ltd. gave a presentation titled “The Prospects of Biogas and Bio-methane in Croatia”.

In the course of the lecture, he acquainted the participants with data relating to the production of biogas as well as with the technologies and purification methods through the use use of bio-methane. In addition, along with the presentation of the priorities of using and developing the biogas sector, primarily through the possibility of stabilizing the energy network and local and rural circular economy, he emphasized the importance and role of biogas in the economy.

He presented the EU guidelines and strategies on the goals of bio-methane production by the year 2030 and activities based on which these goals will be reached. He underscored the ways other member countries exempted energy produced from biogas from the application of measures from the Directive on the urgent intervention for solving the issue of high energy prices and pointed out the unfavorable implementation in the Republic of Croatia.

He also presented the current status of the development of the sector in Croatia, explained the factors which caused most of the capacities to abandon the incentive system, and presented the guidelines and strategies of the Republic of Croatia concerning biogas and bio-methane through the integrated national energy and climate plan, Strategy of low carbon development and Common agricultural policy.

In conclusion, among others, he emphasized that space for further development exists and that the EU policies and strategies are oriented in that direction. He also touched upon the greatest obstacles, such as limitations of market prices, high prices of inputs and an unclear, slow and complicated bureaucracy.

RESC has been warning the relevant ministries of the problems that have been apparent since the end of 2021. However, in early 2023 the Directive on the Law on Urgent Interventions for Solving the issue of high electric power prices came into force. The Directive relates to extra profit due to which biogas plants are at a loss. If they stop operating, Croatia will be left without the production of electric power from those facilities. Accordingly, it also means without the possibility of beginning to produce bio-methane at all.

“The European Directive leaves the possibility to every member state to prescribe measures in a way that is sustainable for it and which will not jeopardize its economy. Those that understand the importance of biogas plants have exempted them from the application of measures and they include, for example, Germany, Poland, Ireland, and Sweden. The competent bodies in Croatia should have thought out what kind of impact the Directive would have on biogas plants. It is, therefore, necessary to align the Croatian Directive with the European one and implement Article 8 which takes into consideration the specificities of technologies, which undoubtedly relate to biogas facilities. Only in this way, with the necessary correction of prices for biogas plants that are still under contract with HROTE can the biogas sector continue operating. This is at the same time the only road that leads to the production of bio-methane” – excerpt from a RESC text included in the Compendium of the Gas Forum.