A farm or company planning a biogas plant will quickly face a key question: what should be done with the gas that is produced? There are several options, but the right solution depends primarily on local conditions, market opportunities, and customer demand.
Bioenergy expert Manu Holmén presented different alternatives at the Bio Circular Economy Afternoon, organized by Prizztech and Business Kristinestad on 5 October 2026. According to Holmén, there is no single correct answer. The most profitable business model depends on the specific strengths and circumstances of each project.
Generating electricity and heat is a practical solution, especially when the energy can be used on-site. A combined heat and power solution generally requires the lowest investment, but profitability largely depends on whether there is a continuous demand for the heat. Selling electricity alone may not provide an attractive return, and larger generators significantly increase investment costs.
Another option is to use raw biogas directly for heat or steam production. This is often the simplest solution if there is a nearby customer with a steady energy demand who is willing to pay for it. In this case, the gas does not need to be upgraded to biomethane, reducing both investment costs and operational complexity.
Increasingly, however, attention is turning to upgraded biomethane. Biomethane can be used as a transport fuel, supplied to local customers, or injected into the natural gas grid. In Finland, one challenge is that the number of gas-powered vehicles and machines remains relatively low, making it difficult to build a profitable business model based solely on local transport demand. However, on-farm refuelling linked to the producer’s own operations can be an attractive supplementary solution.
The natural gas network also creates significant opportunities. New possibilities are being developed in western Finland for connecting to the methane network. Biomethane can be transported in containers to gas grid injection points and then distributed through the network. Once injected, the gas can be utilised by customers connected to the network, including industrial heat and steam users.
Another factor increasing the attractiveness of biomethane is the availability of guarantees of origin. Gas produced from manure, in particular, can achieve substantial additional value through these certificates. The quality of the feedstock directly influences the value of the guarantee of origin, making manure and various industrial and agricultural by-products especially attractive raw materials.
Holmén emphasised that an optimal biogas plant should be located close to its feedstock sources, keeping transportation costs low. In addition, the site should have a year-round demand for heat or process steam. An especially attractive business case emerges if the carbon dioxide generated by the plant can be utilized, for example in greenhouse production.
However, the biogas business is about much more than energy production. Permitting, logistics, gas sales, guarantees of origin, sustainability requirements, and regulatory compliance create a complex framework that can be challenging for an individual farm to manage alone. For this reason, the presentation highlighted the importance of collaboration. Joint projects, centralised upgrading facilities, and shared organisations can make both investments and market access easier.
Ultimately, the decision to produce electricity, biogas, or biomethane depends on customers and market conditions. If heat can be efficiently utilised locally, combined heat and power generation may be the best solution. If there is a stable nearby user of heat or steam, raw biogas may be the simplest option. If the goal is to maximise market potential and benefit from the added value provided by guarantees of origin, biomethane often offers the most attractive opportunities. In the end, success depends on how effectively production, markets, and cooperation networks are brought together.
Read all presentations from the event here (in Finnish):
https://www.prizz.fi/kehittamisteemat/bio-ja-kiertotalous/circular-bio/biokiertotalouden-iltapaiva.html