Danish Agro Seeks Approvals for Multi-Billion Investment in Biogas Projects
Danish Agro plans to invest billions in new biogas plants in Denmark to support livestock production amid an upcoming CO2 tax. However, lengthy regulatory processes and unclear framework conditions are delaying project approvals. The biogas sector has seen a slowdown, with no new plants operational since autumn 2022. Danish Agro aims for five projects to produce biogas from 3 million tons of biomass, crucial for the agricultural sector's climate transition. Urgent action is needed to accelerate biogas development for energy independence.
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Danish Agro is preparing to invest billions in new biogas facilities in Denmark to support livestock farming following the introduction of a CO2 tax. However, progress is hindered by prolonged regulatory approvals and insufficient framework conditions, causing delays and uncertainty.
Since autumn 2022, there have been no new biogas plants coming online, contrasting sharply with the previous year’s growth. The Danish biogas sector accounts for about 40% of the gas in the national grid, with ambitions for it to constitute all gas consumption by 2032.
Danish Agro holds stakes in five biogas projects expected to utilize 3 million tons of biomass, but these projects lack the necessary approvals despite extensive preparations. The urgency for approvals is emphasized as vital for the future of agriculture.
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