Direct Supply of Biogas for City Gas to Expand 30-Fold... Government Eases Restrictions on Direct Supply Regulations

by Ju Sangdon

Published 01 Sep.2024 11:00(KST)

Expansion of Direct Supply Between Businesses from 10,000 to 300,000 m³ per Month

The allowable scale for direct supply of 'biogas'?gas refined and produced from biomass such as organic waste?will be expanded to a maximum of 300,000㎥ per month.

On the 1st, the Ministry of Trade, Industry and Energy announced that it will ease the restrictions on direct supply of biogas for city gas use through the amendment of the Enforcement Rules of the City Gas Business Act (effective September 2).

Direct Supply of Biogas for City Gas to Expand 30-Fold... Government Eases Restrictions on Direct Supply Regulations

Under the City Gas Business Act, biogas is gas (mainly methane) refined and produced from biomass such as organic waste. Currently, biogas producers are required to either consume the biogas themselves or supply (sell) it to city gas operators. However, as an exception, biogas producers were allowed to directly supply (sell) up to 10,000㎥ per month to consumers. This amendment significantly expands that limit to a maximum of 300,000㎥ per month.

Accordingly, biogas producers will be able to effectively supply directly to demand sites without going through city gas operators. The Ministry of Trade, Industry and Energy expects that this will further promote the production and use of biogas utilizing domestic waste resources and contribute to the country’s carbon neutrality in the long term.

In particular, if direct supply of biogas between businesses expands, post-processing such as calorific value adjustment and odorant addition will not be necessary when producing hydrogen using biogas, enabling simplification of the production process. This is expected to enhance the economic feasibility for businesses and play a positive role in expanding domestic hydrogen production.

Yoon Chang-hyun, Director General of the Resource Industry Policy Bureau at the Ministry of Trade, Industry and Energy, said, "This improvement in the direct supply system for biogas used in city gas is a good example of deregulation for businesses prepared through consultations with related ministries based on opinions from the biogas and city gas industries. We will continue to pay attention to and support the development of the domestic biogas industry."