The impact of CO2-costs on biogas usage

Several CO2-cost estimates are investigated; hereunder a high estimate for the expected CO2-externality costs. We find that system costs increase with CO2-costs in most cases, while the biogas target becomes socio-economically cheaper. In the case of a very high CO2-cost, system costs decrease and biomethane becomes the primary fuel. Furthermore, biomethane functions as regulating power and the Danish fuel consumption increases due to a higher electricity export.