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Biomethane, the decree

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The decree approved on March 2nd called Promotion of bio-methane gas and other bio – fuels in the transportation sector was published on the Gazzetta Ufficiale n. 65 dated March 19th.

This law was particularly awaited not only by the agricultural sector and by the waste cycle management companies, but also by the operators in the automotive gas sector. It has been in force since March 20th and introduces incentives for bio-methane producers.

Fuel that can be obtained from a bio gas processing process. This law also offers new possibilities for fulfilling the obligations related to the release of bio fuels for consumption. This law has been under the scrutiny for a long time by the European Commission.

Finally on March 1st it was signed by the Minister of Economic Development. He commented: “With this decree, Italy, which is already at the forefront in Europe in the consumption of renewable energy in the transport sector, sets the target of 10% in 2020; a target within which has been set the national sub-target for advanced bio-methane and other advanced bio fuels equal to 0,9% in 2020 and to 1,5% in 2021”. This decree represents a fundamental stepping stone in order to start the bio methane production process in Italy. It provides for a system of obligations for the release of advanced bio fuels into transport consumption, based on the Certificate of Input for Consumers (CIC) and foresees 4,7 billion euros as an incentive in the new production plants that will enter into production between 2018 and 2022. This mechanism won’t affect in any way gas and electricity bills but it will be financed exclusively by the obliged subjects (petrol and diesel operators who will be obliged to add on sales a quota of bio fuel that has been already calculated into the final price to the consumers). It is also planned to replace the majority of imported bio fuels (bio diesel) with bio-methane produced by promoting the national supply chain, helping farmers and the waste cycle (Forsu). Amongst the main points of the definitive law, there is an increase in the period of access to the investments extended over the previous 2020 limit. There will be a guarantee in the payoff to producers through a mechanism of CIC “collection” by the GSE (manager of energy services) at a price of 375 each. In this way, even farmers will be able to invest in the production of bio fuel using animal and other types of waste. Moreover, the decree introduces an improvement in the prospects for bio-methane conversion of bio gas plants and new ways to employ bio-methane in the form of Liquefied Natural Gas (LNG) that can contribute to an additional increase of the gas in the transport sector.

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