Smart infrastructure

How biogas functions in the gas network

Biogas and natural gas have essentially the same chemical composition – they are mainly methane. Natural gas has a higher energy content, although by upgrading/purifying the biogas, it is possible to distribute both gases in the same network. Gas network customers can then choose to purchase biogas using the Green Gas Principle.

Virtual trading using the Green Gas Principle

The Green Gas Principle allows biogas producers and consumers who are connected to a gas network to trade virtually in biogas in the same way that trading takes place in renewable energy. The principle is based on tax exemption and sustainability features being linked to the biogas via agreements and not via its physical route. As the infrastructure has not yet been developed to the same extent as in many other European countries, the Green Gas Principle has been established in Sweden to facilitate biogas trading between different gas networks.

The Green Gas Principle also applies when the gas networks are not connected physically. A company can feed biogas into one network in Sweden and then sell it to a consumer who can access the gas via another network. This works as long as there is an agreement between the two networks. This is equivalent to the principle set out in the Sustainability Act, where a company can transfer sustainability features between volumes stored in different locations as long as they are classified as being in the same ‘geographical space’. In Sweden, ‘geographical space’ is defined as being the area enclosed by the national borders.