Hungary's strategic push for biogas and biomethane – key developments and opportunities for producers

Key takeaways:

·         Hungary aims to triple biogas production by 2030, targeting 600 million m³ annually, with 184 million m³ to be converted into biomethane.

·         The government is supporting the sector through the brown premium subsidy, non-refundable CAPEX grant scheme (approx. EUR 100m) to be launched in 2025 Q3, as well as a new system for guarantees of origin (GOs) for renewable gases.

·         Regulatory changes and funding opportunities are designed to encourage both large-scale and smaller-scale biogas and biomethane projects.

Hungary's policy framework and targets

Hungary has made notable progress in renewable energy, reaching a 15.2 % share of total gross final energy consumption by 2022. The government's Recovery and Resilience Plan and National Energy and Climate Plan both prioritise the expansion of green technologies, with a particular focus on biogas and biomethane. The Biogas and Biomethane Action Plan, published in 2024, sets out the goal of tripling biogas output by 2030 and converting a significant portion to biomethane.

The plan calls for the establishment of 25 new plants, each with an average capacity of 1,000 m³/hour. Larger facilities will focus on biomethane production, while smaller plants are intended to stabilise existing capacities and support local renewable heat markets.

Support schemes and funding opportunities

METÁR brown premium: The primary support mechanism for biogas and biomass power plants is the brown premium subsidy, available under the METÁR tender scheme. This subsidy, which can be requested from the Hungarian Energy and Public Utility Regulatory Authority (MEKH) without a tender for five years, is designed to offset the higher variable costs of biogas production compared to natural gas. The current scheme is approved until 2026, but the government has indicated the need for its continuation and for a more transparent, competition-based allocation process in the future.

Non-refundable CAPEX grants: In April 2025, the Ministry of Energy announced a call for proposals under the Jedlik Ányos Energy Programme, offering HUF 40bln (approx. EUR 100m) in non-refundable CAPEX grants (with aid intensity between 45 % and 65 %) to support investments across the biogas and biomethane value chain. The eligible projects include collection and storage of raw materials and end products, preparation and processing of organic materials, anaerobic conversion (biogas production), as well as production of heat and/or electricity from biogas.

The programme places particular emphasis on smaller facilities (less than 500 m³/hour), with HUF 18bln (approx. EUR 45m) earmarked for such projects. Eligible applicants must be domestic entities with at least one closed business year. The application window is expected to run from mid-July to mid-September 2025.

Guarantees of origin (GOs) for renewable gases: A new trading system for guarantees of origin (GOs) is being established to certify and incentivise the production of renewable and low-carbon gases. GOs are tradable electronic certificates issued by the MEKH, verifying that a specified quantity of gas qualifies as renewable. From 1 April 2025, GOs may also be issued for low-carbon gases.

To participate, producers must undergo an audit and certification process by MEKH-approved independent auditors. The GO system is still under development, with the MEKH evaluating applications for auditors and working to join the European Energy Certificate System (AIB) to enable international trading. All transactions will be managed through the G-REX IT platform.

Outlook

Biogas and biomethane are increasingly recognised as reliable, weather-independent energy sources that can foster collaboration between the agricultural and energy sectors. While unlikely to dominate the energy market, they are set to play a crucial role in Hungary's energy transition, supporting the achievement of a 21 % renewable energy target by 2030 and full climate neutrality by 2050.

As highlighted during the Biogas Summit in Budapest in May 2025, biomethane represents a practical solution for reducing carbon dioxide emissions today. It is among the most cost-efficient methods for meeting the European Union's decarbonisation objectives. A significant benefit of biomethane is that it can be transported using the current natural gas infrastructure without requiring any alterations. Nevertheless, its production is more costly than that of natural gas, making a stable system of government support and a dependable regulatory environment essential for the sector's growth. Effective support schemes are also crucial for the bankability of new biogas projects in Hungary. Thus, the envisaged continuation of the METÁR brown premium subsidy is particularly important, as it strengthens the financial foundation necessary for securing project financing.

Clients active in or considering entry into the Hungarian biogas and biomethane sector should closely monitor regulatory developments, prepare for new compliance requirements and consider the upcoming funding opportunities. Our team is available to advise on all aspects of project development, regulatory compliance and participation in support schemes.

authors: Viktória Hiesz, Gergely Horváth