Stimulating biogas in the transport sector in a Swedish region – An actor and policy analysis with supply side focus

Highlights: • Opportunities to support biogas development with policy instrument. • Barriers are stagnated vehicle gas demand and low predictability of policy support. • Biogas production can increase based on waste and residues. • Digestate handling may improve. • Gas distribution infrastructure may expand. -- Abstract: This article addresses incentives and barriers for the development of biogas production and use in transport. It is based on statistics, interviews with biogas actors in a Swedish region, as well as a literature study. These actors perceive that the stagnating vehicle gas demand is the major barrier for biogas development. Policy support could stimulate the vehicle gas demand to strengthen incentives for investments along the entire biogas value chain. There are opportunities on the supply side to increase biogas production based on waste and residues, to improve digestate handling, and to expand the gas distribution infrastructure. However, the sector perceives a high risk in biogas investments partially due to the low predictability of Swedish policy instruments and this, together with the stagnated demand for vehicle gas, are identified as the main barriers for biogas development. Thus, policy makers should focus on these barriers if the intention is to develop the use of biogas in transport.