HBE route for gas producers

The new revenue model

According to the revised Renewable Energy Directive, RED I, a minimum of 14% of energy to be used in transport must be renewable energy from 2030. With renewable fuel units (HBEs), transportation fuel suppliers can meet these new guidelines. Green gas producers can obtain HBEs with proper certification. This price of HBEs has risen considerably recently, so it may be interesting to convert some or all of your production to HBEs. Trade information shows that a HBE has recently been worth between € 13.00 and € 16.00 (per GJ). After double counting, this exceeds compensation from the SDE subsidy. The reimbursement for green gas can thus reach more than € 1 per Nm³.

Renewable fuel units (HBEs)

One HBE represents 1 GJ of renewable energy supplied to the transport sector. There are three different types of HBEs (conventional, advanced and other). The type of HBE is determined based on the feedstock used. The feedstock from which the biofuel is produced also determines whether the biofuel qualifies for double counting. It is therefore important for the producer that the plant has a sustainability certificate (e.g. ISCC or NTA8080), which shows the origin of the biomass. If a company cannot demonstrate the origin of biofuels, it will not receive HBEs. 

Convert installations to green gas

Many installations will run out of SDE subsidy in the coming years, which means that (without a new decision) the unprofitable top will no longer be reimbursed. Due, among other things, to rising biomass costs, in most cases it is not feasible to keep the installation running without an SDE subsidy if the gas is marketed in the traditional way. In the traditional way, the green gas was sold at the market price and a fee was also paid for the Guarantees of Origin.

As a result of the blending obligation, the HBE route offers an increasingly attractive alternative for biogas producers. By upgrading and/or blending the biogas into Bio-LNG, several opportunities arise to meet the blending obligations in the transportation sector. Ekwadraat is closely involved in facilitating the conversion of CHPs to green gas. Due to the possibility of potentially double counting HBEs and the rising value of HBEs, the first producers have now made the decision to convert the current installation to renewable gas and sell it on the HBE route. By taking advantage of the opportunities with HBEs, existing biogas plants can remain in operation after the SDE subsidy period ends. 

Getting started with the new HBEs

Questions about the new HBE subsidies? Need help applying for HBEs? Then please contact us.

No obligation answer   Within 1-2 business days

"I can help with the switch to HBE."

Mark Maljaars

Adviseur SDE subsidie & PPA