Biogas and biomethane production could triple in five years

The Ministry of Energy offers support to domestic companies for the construction and expansion of biogas and biomethane production capacities under the Ányos Jedlik Energy Programme, the Ministry of Energy is offering support to domestic companies for the construction and expansion of biogas and biomethane production capacities. The final call for proposals is now available from Tuesday, and applications can be submitted from 28 October 2025, according to a statement sent to MTI by the Ministry of Energy.

From the total budget, HUF 18 billion will be earmarked for the construction and modernisation of small-scale plants, primarily to promote the production of green energy for own use.

The spring report of the International Energy Agency (IEA) was recalled in a statement from the Department of Energy, which said that the sustainable production potential of biogas could meet a quarter of global natural gas demand. The government aims to meet as much of the domestic demand as possible from domestic and clean sources. The trend is positive, with a steady increase in domestically produced energy from 2021.

In addition to solar energy and geothermal energy, the domestic conditions are the most favourable for the application of biogas and biomethane in the field of renewables.

By increasing electricity, thermal energy and fuel use, and replacing natural gas, biogas is also helping to promote the green transition in molecules, the Communication stressed.

Production could triple

In Hungary, around 200 million cubic metres of biogas are produced annually, with a target of three times that by 2030. The production of biomethane is expected to reach 184 million cubic metres by the beginning of the next decade. Smaller producers should think about securing as much of their consumption as possible with their own means, locally, using green energy. The largest plants in particular can specialise in biomethane production, as the cost-effectiveness of biogas purification improves in proportion to the volume processed," the EM pointed out.

40 billion forints will be spent on support, which can be used for investments and equipment purchases covering the whole process, from the collection of raw materials to the further use of residues and by-products. Of the total amount of funding, HUF 18 billion will be reserved for plants producing less than 500 cubic metres of raw biogas per hour. The development of large installations will only be eligible under the earmarked envelope if they are not fully met by the needs of smaller producers.

Large companies can draw down less than half of the value of their investment in grants, while micro and small enterprises can draw down almost two thirds.

As a general rule, aid ranging from HUF 200 million to HUF 5 billion per application can be applied for; the lower and upper limits for modernising small-scale plants are HUF 100 million and HUF 800 million respectively.

Energy research and development call for proposals to be launched soon

The deadline for the implementation of the expected 15 to 30 developments supported is the end of 2028. In the spirit of environmental sustainability and circular farming, the biological end product should be used in agriculture as a soil amendment material, they added.

In the statement, Attila Steiner, Minister of State for Energy of the Hungarian Ministry of Energy, stressed that "the developments supported by the Yedlik Ányos Energy Programme will reduce the energy costs of Hungarian businesses, thus improving their competitive position. A tender for the greening of district heating systems is currently open and the call for proposals for energy research and development will soon be launched. Small municipalities have until the end of September to apply for non-reimbursable funding to modernise local street lighting. The total amount of applications received so far for the already announced programme elements exceeds HUF 128 billion. Further opportunities will be opened up in the future, for example for the installation of industrial energy storage facilities or the increased use of geothermal heat," the State Secretary said. He added:

"Thanks to the positive reception of the diverse package of programmes, green energy can play an increasingly important role in strengthening energy sovereignty and security of supply".