
Financial viability of biogas and RNG (biomethane projects)
Financial viability of biogas and RNG (biomethane projects)
Posted by Natalia Bourenane on 26 May 2025 at 5:54 amWhat are the market conditions that are necessary for biogas and RNG projects become financially viable? What factors influence project’s viability?
Fabian replied 1 month ago 5 Members · 6 Replies- 6 Replies
@seamark_terry thank you for sharing this question during your registration. Are there any insights you want to share? @Maxime any insights from you?
Well, I can speak for the Quebec market. Regulations can drive the cost higher (e.g., specific design or regulatory requirements). Also, the time it takes to develop a project can increase the cost. It takes between 3 to 7 years from the idea to the start of the construction. More knowledgeable developers and policymakers will help the market.
In addition, since Quebec’s natural gas pipeline network does not yet cover the entire province, opportunities for RNG injection can be more limited in certain remote or rural areas. This makes on-site or local use of biogas particularly important in those regions, and highlights the need for flexible, context-specific solutions. Supporting developers through knowledge-sharing, streamlined regulatory processes, and thoughtful infrastructure planning can help foster a more inclusive and resilient biogas market across the province.
To add to Hatem’s point, in the case that injecting RNG into pipeline is not a feasible option ( due to logistics), more support for Carbon removal projects from the policymakers should be happening. For instance, It is a shame that a program like CFR is still not taking into consideration CCS projects.
Very True Nikan,
In several energy cost analysis reports, it is noted that Quebec has fewer opportunities to generate low-cost CC1 credits, primarily due to its limited local oil and fuel production. Since many CC1 credits come from reducing emissions in fuel production and refining, and Quebec relies mostly on imported fuels, these options are limited. Also, Quebec’s clean energy system means there are fewer large fossil fuel projects to improve. As a result, Quebec tends to depend more on credits from cleaner fuels and advanced vehicle technologies, which are generally higher in cost.
Note:
Since Quebec has limited local oil production (fewer CC1 opportunities), it relies more on these CC2 and CC3 credits. However, these tend to be more expensive to produce or procure, which means overall compliance costs can be higher for Quebec compared to provinces with more CC1 credit opportunities.
Bio-gas and Bio-methane are fuels which should be treated differently from other renewables. Like we prefer to call it a ” waste water treatment plant” WWTP. By that approach , you would have solve 50% of the cost of ownership. Every participants from Solar panel or Wind Turbine renewable are all will be confront a rude shock if they thinks its all and well like solar panel or Wind Turbine. To rub it in , these Biogas are not renewables for the faint hearted. Alot of discipline have to be incalcuted. Its a look simple operation, but it is far from it.. Walking a tight ship is not an option but a must, and a good understanding of physics, , science and chemistry even electricity are a bonus but should not lacking of it .. To keep the plant well oil, the cost of discipline are never to be compromise., and the sweet spotting of the right balance is the end- game .
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