Serbia has strong potential for biogas development but faces regulatory barriers

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European countries are increasingly replacing natural gas with biogas. The director of the “Biogas Serbia Association”, Lidija Zelić, told RTS that Serbia has significant potential for building biogas plants and that investor interest exists, but the sector still faces legal and regulatory obstacles.

Zelić emphasized that the benefits of biogas and biomethane are primarily environmental, with the added advantage of producing heat and electricity. Biogas and biofuels are renewable energy sources derived from waste, and the number of biogas plants across Europe is rapidly growing. Denmark, for example, plans to replace 100% of its natural gas consumption with biogas by the end of the decade.

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Despite its strong potential, Serbia remains in the early stages of developing biogas production. Zelić explained that biofuels are derived from biomass and used as substitutes for fossil fuels. Biomethane, obtained by refining biogas to methane quality, can be injected into the national gas grid or used in transport, contributing to decarbonization in both the gas and transport sectors.

“Biomethane is recognized in Europe as a key element of the energy transition because it connects the energy, agriculture, and environmental sectors,” Zelić said.

Biogas is produced from organic waste — mainly from agriculture (manure and crop residues), as well as from the food industry, slaughterhouses, and expired food from supermarkets. “A single one-megawatt biogas plant can process between 70 and 100 tons of such waste per day, significantly reducing the burden on landfills,” she noted.

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Energy from waste can be used in two ways — for producing electricity and heat, with around 50% energy efficiency, or by purifying it into biomethane, achieving 100% energy utilization.

Serbia currently has 45 fully operational biogas plants and 55 more under construction with temporary privileged producer status. The biogas sector has been active in the country for over 16 years. Most plants are located in Vojvodina, near large farms to minimize transport costs.

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Zelić pointed out that Serbia’s agricultural character gives it great potential for biogas expansion, but incomplete legislation remains a major barrier. There are no auction mechanisms for new plants, preventing investors from entering the incentive system.

She added that Germany leads Europe in both the number of biogas facilities and technology, while Denmark serves as an excellent example of a smaller country achieving energy independence through biogas.

“The main benefit of biogas and biomethane lies in waste management — producing electricity and heat is simply a valuable consequence of processing organic waste,” Zelić concluded.

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