Big challenges in this sector: not production volumes, but low local consumption
The local biomethane production sector in Lithuania faces significant challenges due to low domestic consumption and a lack of gas-powered vehicles.
The Lithuanian biomethane production sector is currently experiencing considerable challenges, primarily due to low local consumption rather than production capabilities. As highlighted by industry expert J. Polujanskas, recent legislative changes aim to encourage the emergence of vehicles using local biomethane, but the sector remains heavily reliant on exports. Current production levels are satisfactory, with sold products successfully reaching countries that have well-developed gas transport systems such as Germany, the UK, and the Netherlands.
One of the key issues flagged by Polujanskas is that the development of gas transport has been misaligned with the current energy policies in Lithuania, which have veered towards electrification. As a result, it limits the potential local market for the available biomethane, affecting not only producers but also the broader energy economic landscape. Without a significant push toward gas infrastructure and support for gas vehicles, the country risks becoming overly dependent on imports and may not fully utilize its local resources.
Overall, the industry's survival and growth will greatly depend on the effectiveness of proposed legislative changes and the willingness of the government and investors to pivot towards developing a supportive environment for gas-based transportation options. Addressing these challenges is crucial for establishing a sustainable biomethane market that can benefit local consumers and drive the economy forward.