Stakeholders seeking tax free fiscal status for biomethane

France

The French Department of Industry is expected to grant bio-methane producers the authorization to use the natural gas networks for distributing biomethane. BioGazMax reports that the decision is expected by summer 2008. The organization also reports that the Lille Metropolitan Community Authorities (LMCU) is in the process of introducing 70 biomethane fueled refuse trucks and that stakeholders in France are hoping to have favorable taxation regimes in place to recognise the renewable status of biomethane. 

Network distribution

The French Department of Industry has commissioned AFSSET (French Agency for Health Security of Environment and Work) and INERIS (National Institute of Industrial Environment and Risks) to evaluate the application for network distribution, including an onsite analysis of the process in the City of Lille. The City of Toulouse is also seeking permission to distribute biomethane via natural gas networks, as is done currently in Sweden, Switzerland and Germany.

Garbage in, garbage out

Meanwhile LMCU’s refuse collection contractor, Esterra has begun the process of introducing 70 refuse trucks powered by biomethane. Four of the trucks and 100 buses will be operating on biomethane by the beginning of 2008, with BioGazMax assisting with evaluations using experience gained on similar projects in Stockholm. The 70 biomethane fuelled trucks are expected to be operational by 2013.

Fight for Renewable Tax Status

Earlier this year France’s Environmental Ministry granted biomethane the same taxation status as natural gas. Though this move was welcomed by stakeholders, moves are under way to stretch the status further to grant biomethane tax-free status, due to it being 100% renewable. LMCU is spearheading the approach to the French Government.