Recent trends in biogas value chains explained using cooperative game theory

Finally, it is found that biogas plants prefer to upgrade their biogas for several reasons. First, if the natural gas price is expected to be high, it is preferable to upgrade biogas than to use it directly in a local combined heat and power plant (CHP). Second, if the natural gas price is expected to be low, it is preferable to upgrade because the CHPs have better alternatives and therefore better bargaining power before investments (ex ante). Third, when the value chain contains an upgrading plant, the biogas plant has a greater bargaining power-in particular ex post.