How to trade Biomethane (BNG)
Bio natural gas (BNG) is the Danish term for biomethane and Energinet welcomes everyone to become a BNG seller in the Danish gas market. A BNG seller links the produced amounts of biomethane to the shipper on the gas market.
Biomethane = Bio Natural gas
Bio natural gas is the Danish term for biomethane and everyone is welcome to become a Bio Natural Gas Seller in the Danish gas market.
This means that the owner of an upgrade facility, a biogas producer, gas suppliers, shippers or anyone else looking to enter the Danish gas market are eligible to register as a bio natural gas seller with Energinet.
Same gas quality = same market price
Biogas producers in Denmark have access to inject biogas that has been upgraded to conventional gas quality - aka “biomethane” - directly from the upgrade facility into the local gas distribution system or the transmission system.
Once inside the flow of the gas system, it is no longer meaningful to distinguish between biomethane and conventional natural gas.
The streamlined process widens the market potential for gas produced from a renewable energy source by making it possible to sell biomethane in the conventional gas market at the regular market price for gas.
The road from biogas producer to the conventional gas market
To trade biomethane in the gas market, the biogas producer or owner of the biogas upgrade facility must enter into an agreement with a bio natural gas seller – or decide to register as a bio natural gas seller with Energinet’s which allows biogas producers and upgrade facility owners to act as sellers of biomethane in the gas market.
The bio natural gas seller must in turn enter into a player relationship with a shipper, because shippers are responsible for transporting the biomethane to the gas market.
Once a shipper enters the biomethane into the commercial flow of the gas market, the shipper may buy and sell the biomethane on the same terms as conventional natural gas.
A bio natural gas seller must enter into a number of agreements with other players in order to act as a bio natural gas seller in the Danish gas market.
You may act as a bio natural gas seller in the Danish market once you have completed the following steps:
1) Framework agreement with Energinet.
2) Bio natural gas seller agreement with network owner
4) Gas transport agreement with shipper
Once Energinet has listed you in our register of players, you will receive a bio natural gas seller identification number for each network area in Denmark
The identification numbers are called bio natural gas "portfolios". Each portfolio is identified by a GSRN. The bio natural gas seller must use her or his GSRN when communicating about a bio natural gas portfolio, such as information about metering points and supply of bio natural gas.
Additional “Green” Certificate Value
Energinet registers and issues certificates to Danish biogas producers who upgrade biogas to biomethane and inject the biomethane into the gas distribution system.
Energinet’s biomethane certificates document that the upgraded biogas injected into our system is produced from biomass. Biomass – such as liquid manure and other types of biodegradable waste – is a renewable and CO2-neutral source of energy that impacts the environment less than fossil fuels.
Energinet’s “green” certificates are accepted by the EU Emissions Trading System as an offset for carbon reporting purposes and may be traded commercially.
Injected biomethane is also eligible for certain subsidies in Denmark. Additional information is available in Danish only.