Biogas can play an important role as a climate measure by replacing fossil energy and reducing emissions from livestock manure storage. In addition, biogas can contribute to a circular economy by using organic waste in a resource-efficient way. The use of biowaste, the residual product of biogas production, can have climate benefits when it replaces mineral fertilizers. The events of the last few years indicate that cross-border biogas trade in biogas in the Nordic region is likely to increase in the future, also for Norway. This assumption is based on the fact that the development of liquefied biogas (LBG) has made the transport of biogas cheaper and that the revised renewable energy directive may facilitate increased trade in biogas across national borders.
The CO2 tax on mineral products is a sectoral instrument whose purpose is to trigger profitable reductions in greenhouse gas emissions. The tax contributes, among other things, to making renewable energy carriers (including biogas) and other energy uses not covered by the tax more competitive. The tax is applied to all forms of non-taxable emissions derived from the combustion of fossil energy and at approximately the same rate. Biogas is exempt from this tax
The government has started work to establish Bionova, a financing mechanism to support climate action in agriculture. Among other things, Bionova will ensure the development of the bioeconomy linked to agriculture, forestry and aquaculture, including a bio-based circular economy and the development of solutions so that waste from the aquaculture industry can be used as a resource. In addition, Bionova will guarantee greater value creation and jobs linked to the use of biomass in Norway.
In the economic plans of the Government of Norway, Biogas is a cheaper fuel than natural gas extracted from the earth, so the price of Biogas to the consumer tends to be cheaper