Green value of biogas

Denmark | April 2013 - August 2013

Ea Energy Analyses has carried out an investigation of future willingness-to-pay (WTP) for biomethane certificates in Denmark. The investigation is based on a general analysis of voluntary willingness to pay for ‘green’ alternatives, followed by an exploration of the regulatory and market situation of biogas and biomethane in three benchmark countries (Sweden, Germany and the Netherlands).

The analysis distinguishes between and assesses the the ‘voluntary’ WTP and the ‘regulation-induced’ WTP. The ‘voluntary’ WTP, which denotes the monetary value of the premium the consumers are willing to pay in the absence of obligation or support to purchase specifically the more expensive, more environmentally friendly gas product. The ‘regulation-induced’ WTP, encompassing the monetary value of support schemes, subsidies and tradable quota systems that enable the more expensive biomethane products to be sold and purchased.

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