Biogas Plants in Denmark: Technological and Economic Developments

Biogas plants are one of the important elements in the Danish energy-policy of having reduced CO2 emissions by 20% by 2005. Since 1984, development efforts concerning centralised biogas plants in Denmark have been carried out, and Denmark now has approximately 20 large centralised biogas plants. All Danish biogas plants have increased gas production as a result of admixing industrial organic wastes with manure. This is predominantly regarded as a great advantage for both biogas plants and waste suppliers. The paper will describe the technological development of this renewable energy source in terms of biogas production prices. The price has dropped dramatically during the last 15 years. Based on this analysis, the paper discusses the socio-economic costs of technology development including state budget and employment effects. Also the paper refers to socio-economic feasibility studies from the early 1990s, when biogas production prices were much higher than natural gas. Still, employment effects made the development feasible in socio-economic terms.