In Germany CNG (Compressed Natural Gas) costs approx. 1 euro/kg (which is about half of the cost in Sweden) and there are no instruments targeted for the use of biomethane in the transportation sector. However, there are instruments (feed-in tariffs) that promote the use of biogas for production of renewable electricity. Approx. 30 % of the energy content in the biogas becomes electricity when used for electricity production while 100 % of the biogas is utilized when it replaces fossil fuels in the transportation sector. The above indicates that there are market possibilities in Sweden for upgraded German biogas.

In a study ordered by Nawaro AG the costs and conditions for different types of biogas distribution were investigated by Renewtec and several distributors of biomethane and operators of filling stations as well as one trading company were contacted for further discussions.