Prospects for continued use and production of Swedish biogas in relation to current market transformations in public transport

Abstract: Biogas is largely utilised as vehicle fuel in public bus transport in Sweden today. This study investigates opportunities and barriers for continued domestic use and production of biogas, in relation to the ongoing electrification of public bus transport. The analysis is based on interviews with actors in public transport and the biogas sector, experts on biogas systems, and representatives for alternative user segments. Three regions were chosen as case-studies for investigations of prospects in public transport, i.e. Stockholm, Västra Götaland and Skåne, though alternative uses were studied from a national perspective. In addition to public transport, considered uses include road transport, sea transport, industries, and electricity and heat production. The study identifies a broad agreement among stakeholders that renewable resources should be implemented where they provide most benefits from a system perspective. Therefore, electric public buses are valued in urban environments, while biogas solutions are found suitable for regional routes. Biogas is further viewed as environmentally beneficial in all user segments except continuous electricity and heat production, where it largely would replace renewable rather than fossil sources. Regarding costs and competitiveness, probable future uses are identified within light and heavy-duty road transport, and in consumer-oriented industries, i.e. the food industry. Economic support in policy instruments is further considered essential for continuous development of the Swedish biogas sector, though current influential instruments, e.g. the tax exemption, are described as short-term and unpredictable. The willingness to pay for the collected societal benefits of biogas further decrease in transitions from public to private consumers, and as biogas solutions simultaneously are linked with limited or uncertain competitiveness in these sectors, risks prevail that such transitions could imply stagnations and declines in biogas use and production, given today’s situation.