Biogas can be treated as a distributed resource like solar roofs.
Osaka Gas Co. (TSE:9532) said Wednesday that it will double its maximum price for biogas purchases starting next month in a bid to encourage production of the promising alternative energy resource.
Under legislation enacted last August to increase renewable energy supplies, gas companies are required to use a certain amount of biogas -- which is derived from organic material such as sewage -- in their city gas supplied to customers.
But since they first unveiled criteria for purchases in 2008, no purchases have taken place. To encourage sewage treatment facilities and others to sell the biogas they produce, Osaka Gas is overhauling its price calculation methods.
Currently, Osaka Gas offers 73.6 yen (US$0.83) per cu. meter of biogas for amounts of at least 500,000 cu. meters but less than 2 million cu. meters. Under the new pricing structure, the price will be doubled to 123.6 yen per cu. meter.
Some sewage treatment facilities already use biogas derived from the waste they process as in-house sources of energy. But in order for the biogas to be sale-ready, producers need to have special equipment on-site to remove impurities.
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