Methanisation contract increased to 20 years

22 Nov 2017
Methanisation contract increased to 20 years

Methanisation is the natural biological process of degradation of organic matter in the absence of oxygen.

French Government support electricity purchase contracts produced by methanisation.

Methanisation begins slower than expected. With currently only 260 methanisers in France, the target of 1,000 methanisers in 2020 will be difficult to achieve. Regulation for the Green Growth Act has set a 10% biogas target for French natural gas consumption in 2030.

The Government has decided to increase the duration of the contract from 15 to 20 years. The amounts paid to the producers are capped from the 16th year of the contract from 7500h/year for a 250 kW installation, to 6500 h/year for an installation between 250 kW and 500 kW and to 5500 h/year for a 500kW installation.

This decision adds to the new prices announced in December 2016, which incorporate the operating costs of the first units and are more in line with economic realities.The raising effluent bonus (representing more than 60% of the inputs) is increased by 5 cents on kWh sold. The obligation to upgrade heat in cogeneration projects is also eliminated. Heat valorization allows a better electricity price, but often requires the creation of another workshop (greenhouse, barn etc) and therefore generates additional investments and more work.

The Minister of Environment notes that this will enable methanisers to become more profitable.

Article by Thibaut Clavier, Commissaire aux comptes at Cogep, member of HLB's Agriculture Group. Contact Thibaut at This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

 

 

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