Agricultural Biogas Systems for Eligible Entities

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Which entities can benefit from the “fast-track” procedure for implementing an agricultural biogas system?

To streamline administrative procedures related to the implementation of agricultural biogas systems, the Act of 13 July 2023 on Facilitating the Preparation and Implementation of Investments in Agricultural Biogas Systems and Their Operation (Journal of Laws 2023, item 1597) was introduced. It enables shortening the steps preceding the commencement of construction.

To benefit from the accelerated procedure for building an agricultural biogas system, the investor must meet all the conditions listed below.

Entity-related conditions – the investor must belong to one of the following groups:

A natural person, an organizational unit without legal personality granted legal capacity by law, or a legal person who, as part of agricultural activity, operates a farm or a special branch of agricultural production;
A natural person referred to in point 1 above, registered in the Central Register and Information on Economic Activity (CEIDG), whose business activity includes the generation of electricity, heat, agricultural biogas, or biomethane from agricultural biogas;
A group of agricultural producers recognized under the provisions on agricultural producer groups and their associations;
An entity conducting business in the production, storage, or packaging of agri-food products, registered in the central register of entities operating in the agri-food market;
An entity that is a wine producer, as defined in Article 2(23) of the Act on Wine Products, producing wine or must exclusively from grapes obtained from vineyards registered in the vineyard register located in the territory of the Republic of Poland, as referred to in Article 21(1) of that Act;
An entity that is an energy cooperative under Article 2(33a) of the RES Act, a cooperative under Article 1 § 1 of the Cooperative Law, or a farmers’ cooperative under Article 4(1) of the Act on Farmers’ Cooperatives;
An entity referred to in Article 7 of the Act on Higher Education and Science (universities and other institutions forming the higher education and science system);
A commercial company in which shares or stock are held by at least one of the entities listed in points 1–6.

Location-related condition – the biogas system must be located on a property to which the eligible entity holds legal title:

Operating a farm or a special branch of agricultural production or conducting activities specified in Article 3(1)(4) or (5) of the Act on Facilitating the Preparation and Implementation of Investments in Agricultural Biogas Systems and Their Operation;
Being a legal person or an organizational unit without legal personality granted legal capacity by law, in which shares or stock are held exclusively by an eligible entity operating a farm or a special branch of agricultural production;

- from which at least part of the substrates used in the biogas system will originate.

Technical parameters condition – the “fast-track” procedure applies only to biogas systems whose activity involves the generation of:

Electricity – total installed electrical capacity not exceeding 3.5 MW;
Heat – total achievable thermal capacity in cogeneration not exceeding 10.5 MW;
Agricultural biogas – annual production capacity not exceeding 14 million m³;
Biomethane – annual production capacity from agricultural biogas not exceeding 8.4 million m³.

Substrate-related condition – the “fast-track” procedure applies only to biogas systems that use exclusively:

Agricultural products and agricultural by-products, including animal manure;
Products from the processing of agricultural-origin products and by-products, waste, or residues from such processing, including food processing and production, originating from industrial plants;
Plant biomass collected from areas other than those registered as agricultural land;
Animal manure obtained from non-agricultural activities.

The precise list of these substrates is specified in the Regulation of the Minister of Agriculture and Rural Development of 12 October 2023 on the detailed list of substrates that may be used in an agricultural biogas system.

The substrates indicated in the regulation must be used in the agricultural biogas system benefiting from the facilitation throughout the entire operation of the system.

What changes in the investment process have been introduced for agricultural biogas systems under the “fast-track” procedure?

Local Spatial Development Plan (MPZP):

For agricultural biogas systems with an installed capacity greater than 1 MW or generating an equivalent amount of heat, biogas, or biomethane, it is permitted to locate the biogas system by way of an exception to the provisions of the MPZP, through a resolution of the municipal council (Resolution on the Determination of the Location of an Agricultural Biogas Plant);

For agricultural biogas systems with an installed capacity not exceeding 1 MW or generating an equivalent amount of heat, biogas, or biomethane, if the land use designation in the MPZP allows for development related to agriculture, production, or storage, it also permits the location of an agricultural biogas system (with exceptions provided for by law).

Decisions on Land Development Conditions:

For agricultural biogas systems with an installed capacity not exceeding 1 MW, the decision should be issued within 65 days, and failure to meet this deadline will result in a financial penalty for the authority;

For agricultural biogas systems with an installed capacity not exceeding 1 MW, a closed list of parties to the proceedings has been established to accelerate the process.

Connection to the Electricity Grid:

The electricity distribution company is obliged to issue connection conditions for an eligible entity within 90 days from the date of submission of the application for connection to the grid. This applies to agricultural biogas systems with an installed electrical capacity not exceeding 2 MW.

Construction Permit:

The deadline for issuing a construction permit has been shortened from 65 to 45 days, and exceeding this deadline will result in a penalty for the authority.

Waste Processing Permit:

Publication by the minister responsible for climate of a list of substrates that may be used in an agricultural biogas system (in certain cases, no need to obtain a waste processing permit);

Additionally, there will be no need to conduct proceedings before the relevant voivodeship marshal to confirm compliance with the conditions for recognizing an object or substance as a by-product.

Use of Digestate:

Possibility to place on the market or use for own purposes digestate products from substrates specified on the above-mentioned ministerial list.

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