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Envitecpolis participates in preliminary study project for a biogas plant in Ranua

The farmers from Ranua region established Pohjois-Suomen Biokaasu Oy in order to make an investment to farmer-owned biogas plant.

Envitecpolis Participates in preliminary study Project for a Biogas Plant in Ranua

Envitecpolis Oy is consulting farms in Ranua and Pudasjärvi for a preliminary study project aimed at investigating the establishment of a biogas plant in Ranua again. The project is led by Mika Impiö, who hails from Ranua. This was reported in an article by Business Ranua.

Many farmers are interested in utilizing wasted energy from hay and manure. The biogas produced from these materials can be used as vehicle fuel or to generate electricity. The last investigation into establishing a biogas refinery in Ranua took place in 2018, but at that time, biogas production was not economically viable.

Interest in Biogas Production

Approximately 40 farms from Ranua and Pudasjärvi participated in the preliminary study project consulted by Envitecpolis, indicating a high level of interest in biogas production. The preliminary study is funded by farms.

There have been certain bottlenecks associated with biogas, such as the high cost of plant investments and poor profitability during times of cheap energy. However, the situation has changed, at least regarding energy prices. Additionally, the deepening agricultural crisis makes biogas production increasingly appealing to farmers.

One new factor improving profitability is the ticket trading system for distribution obligations. This means that producers of cleaner biogas can sell ticket rights to those whose product is not as clean. Ticket trading has been possible since the beginning of 2022.

In 2022, biogas as a transportation fuel cost approximately 120-140 euros per megawatt-hour, with ticket trading potentially adding an additional 60-65 euros per megawatt-hour. Thus, ticket trading significantly enhances profitability.

Profitability is further increased by participating in the emissions trading system, which requires entrepreneurs to verify that their gas is produced sustainably.

Preliminary study lays foundation for biogas plant

The preliminary study lays the foundation for the farms on which the biogas plant will be established. Some farms may opt out, which is quite natural. The study includes a cost estimate for building the plant and a proposal for its location.

Farms that are not part of the ownership can still supply feedstock to the plant in the future. One major challenge for the biogas project is the long distances between farms.

The biogas plant will not be built without investment support. Support is not granted if the plant's biogas is not produced sustainably. A more sustainable production method also reduces the taxation of biogas.

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