Economic Impact of using Biomass for Biogas Production in the
Context of Sustainable Development
PETER BIELIK1, STEFANIIA BELINSKA2, ZUZANA BAJUSOVÁ3,*,
IZABELA ADAMIČKOVÁ3, TATIANA BULLOVÁ4, YANINA BELINSKA5,
PATRÍCIA HUSÁROVÁ3
1Department of Economics and Management,
Pan-European University,
Tematínska 10 851 05, Bratislava,
SLOVAKIA
2Grant Thornton Audit s.r.o.,
Hodžovo námestie 1/A. SK-81106, Bratislava,
SLOVAKIA
3Department of Economics and Management,
Slovak University of Agriculture,
Trieda Andreja Hlinku 2, 949 76 Nitra-Chrenová,
SLOVAKIA
4Bioeconomy Cluster,
Radlinského 11, 949 01 Nitra,
SLOVAKIA
5International Economic Relations Department,
State Tax University,
Universitetska St, 31, Irpin, Kyiv Oblast, Ukrajina, 08200,
UKRAINE
*Corresponding Author
Abstract: - The negative effects of fossil fuels use on the environment and their non-renewability force
economists to think about other options and ways of obtaining energy, on the one hand, from sources that are
quickly renewable and, on the other hand, from those that during the process of obtaining energy do not cause
excessive environmental pollution. The importance of the circular economy as a new direction of economic
development is increasingly contributing to sustainable development. The diversification and expansion of
economic activities are considered through biofuel production to be an effective way of increasing the share of
renewable sources in solving the world's ecological problems. For governments to guarantee clean home energy
access, biogas energy must be produced and used sustainably. The production of biogas from biomass has
various economic effects that can significantly support sustainable development objectives. Strategic planning,
cooperation, and innovation are required to optimize these economic gains to overcome governmental and
regulatory difficulties, market dynamics, technological restrictions, and budgetary restraints. Market risks—
classified as political, economic, social, technological, legal, and environmental (PESTLE)—impact this. To
determine the PESTLE restrictions and evaluate their effects on the sustainable development of technology in
the EU, this study reviews peer-reviewed literature. The Pestel method is used to identify strengths,
weaknesses, opportunities, and threats because the market is subject to constant changes and is characterized by
dynamics. PESTEL analysis can detect new opportunities in the biofuels market that a company can use for its
growth and overtake potential competition in strategic steps.
Key-Words: - Circular Economy, Pestel analysis, Sustainable Development, Sustainability, Renewable energy,
Biogas, Biomass.
Received: December 12, 2023. Revised: June 11, 2024. Accepted: July 7, 2024. Published: August 9, 2024.
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2024.21.138
Peter Bielik, Stefaniia Belinska, Zuzana Bajusová,
Izabela Adamičková, Tatiana Bullová,
Yanina Belinska, Patrícia Husárová
E-ISSN: 2224-2899
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1 Introduction
In the EU countries, the bioeconomy is considered
the "knowledge-based economy," and in the US, the
"bio-source-based economy". The bioeconomy has
moved from a theoretical concept to the level of
reality of the modern economy, in which renewable
biological sources, their wastes, and biotechnologies
are used for the production of high-tech products
and clean types of energy.
The shift towards the biological economy,
mostly connected with the production of farms from
renewable sources (biomass), follows the concept of
deepening agriculture and provides further scope for
diversification along the primary production and
agro-food-energy system, [1].
Biomass is used for the production of feed,
food, raw materials, pulp, and paper (fibers
originating from crushed biomass). Biomass is also
the primary raw material for biofuel production
from oilseeds, starch, and sugar crops. It can also be
used for the production of heat, electricity,
combined heat and electricity, and a wide variety of
gaseous and liquid fuels for transportation, [2].
These represent 13% of the world's final energy
consumption (other renewable energy sources add
another 5% to the total final energy consumption).
Currently, the dominant global trend is the use
of biomass to replace expensive gas and reduce
carbon emissions into the atmosphere, which is
gaining momentum. Increasing the use of biomass
will contribute to the reduction of CO2 emissions
and the reduction of fuel consumption for various
purposes, which corresponds to the strategic
objectives, [3]. In addition, the EU set a goal of zero
greenhouse gas emissions by 2050. Biomass is an
alternative to fossil fuels and its transformation into
food, feed, and bioproducts such as bioplastics,
biofuels, and bioenergy, [4].
Biogas production is also a prospective area of
biomass utilization. At the beginning of the 21st
century, many countries realized that many
problems could be solved by producing biogas. The
current potential of renewable gases in the world
remains largely unused. The International Energy
Agency (IEA) estimates biogas and biomethane
could meet a fifth of global natural gas demand by
2040. The IEA agency has published a special
report on the prospects of biomethane and biogas
until 2040. The report is based on scenarios and data
that are part of the latest edition of the World
Energy Outlook, [5].
Biomass-based bioenergy production is
widespread in many countries with developed
economies, including Austria, Brazil, Denmark,
Finland, Sweden, India, the USA and Great Britain.
Back in 1998, authors proved the need to transition
to the use of alternative energy sources and
indicated that the potential sources of bioenergy in
this area are significant, especially in countries rich
in forests and in highly developed countries where
there is an excess of agricultural land, as well as in
many other countries where high biomass yields are
possible, [6].
According to the Bioenergy European
Association, bioenergy provides approximately 60%
of the renewable energy consumed in EU countries,
and thanks to it, 66 million European households are
heated. Poland, Germany, Sweden, and Greece are
the leaders among EU countries in terms of the total
area of energy crop cultivation, [7].
Almost all EU member states consider power
plants to be a promising area of bioenergy, and they
already have about 118,000 hectares of plantations
in their territories. In general, the use of biomass for
energy purposes is entirely in line with the
objectives of sustainable development, as it covers
economic (reduction of costs), environmental
(reduction of greenhouse gas emissions), and social
(job creation and rural development) aspects. A
multifunctional and integrated approach to the use
of biomass will help solve global environmental
problems such as climate change and environmental
pollution, [8].
The manuscript aims to review the use of
renewable energy resources as well as identify the
potential development factors and components
affecting the formulation of the strategy of
biogas/biofuels from agrobiomass.
2 Methodology
To define the object of research, scientific
contribution is focused on analyzing and
investigating the economic impact of using biomass
for biogas production in the context of sustainable
development. The subject of the analysis is the
development of renewable energy sources in the
EU. The material for processing the scientific
contribution is the available data obtained from
Eurostat and IEA statistical databases. The analysis
resulted in determining the competitive advantage of
the monitored renewable energy sources in the
conditions of the European Union based on selected
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Peter Bielik, Stefaniia Belinska, Zuzana Bajusová,
Izabela Adamičková, Tatiana Bullová,
Yanina Belinska, Patrícia Husárová
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indicators. To provide deep analysis and thus meet
the paper's aim, the analysis method was used to
closely examine the market for agricultural
commodities and their development over time. A
comparison method was used to compare the
markets between selected countries. The graphic
representation method was used to create graphs and
tables using Microsoft Excel and Microsoft Word
programs.
Biogas production is influenced by many
external factors that can support or hinder its
development. Understanding these factors through a
PESTLE analysis helps stakeholders make informed
decisions and strategically navigate the complex
landscape of the biogas industry.
According to the literature, the PESTEL
framework generally shows the most significant
strategic topics, observes constraints and strategies,
and identifies potential and trials for implementing
something new, [9]. PESTEL framework consists of
6 related but different areas – 1) political area, 2)
economic area, 3) social area, 4) technological area,
5) environmental area, 6) legal area. It can help with
making decisions within a company. However, since
it helps with the identification of macroeconomic
factors in particular areas, it can even impact the
observed industry as a whole, [10]. This framework
is a great tool to point out the areas to be improved,
[11]. The guidance for making high-quality
PESTEL analysis is offered in the following points:
1. Brainstorming ideas, consulting and gathering
opinions,
2. Researching information for each area in the
framework,
3. Evaluation of the size of the impact and refining
ideas, [12].
In the past, authors saw the biggest advantages
of the mentioned analysis as having enough
information about potential opportunities and threats
and understanding external trends, [13]. Nowadays,
it is a valuable tool in decision-making, even in
wide and complicated areas, such as the healthcare
system, [14], [15]. Also, some of the dimensions
included in the PESTEL framework can be even
more interesting than before, minding the
environmental problems in the world that affect not
only the environment and its dimension but also
society as a whole, which is also related to the legal
dimension, these relations, and their impacts show
us even different perspective on this analysis and its
meaning, [16].
3 Results and Discussion
Biomass is considered a renewable energy source
because it takes a relatively short time to restore the
used stock. In the case of using plant biomass, it is
important that the carbon returns to the natural cycle
through photosynthesis so that the burden of
greenhouse gases on the environment will be
minimal. This means biomass has energy,
economic, and environmental effects, which is
highly accurate.
In the EU, almost 59% of biomass is used for
feed and food production, followed by the
production of bioenergy (21%) and biomaterials
such as wood products and wood pulp (20%). Total
biomass production in the EU represents 9% of
world biomass production. The EU is almost self-
sufficient in biomass supply and use but remains
highly dependent on fossil fuels.
According to the source of origin, biomass used
for energy purposes can be divided into the
following sectors:
1. agricultural biomass - cereals, rapeseed, corn
straw, hemp, animal excrement, garden and
vineyard waste, and specially grown energy
crops (willow, poplar, licorice, sorrel...).
2. Forest biomass - firewood, branches, stumps,
roots, bark, chips, fast-growing wood.
3. waste from the woodworking industry -
shavings, chips, sawdust.
4. municipal waste - solid combustible waste,
biodegradable waste, landfill gas, and sludge
gas.
From the point of view of the intended purpose,
agricultural biomass can be divided into three main
groups:
1) combustion and production of heat for heating,
heating hot water and processes, drying of
products, and producing electricity. These
include plant phytomass (straw), dendrimers
(waste from gardens and vineyards, woody
encroachment on permanent meadows, and fast-
growing trees grown on agricultural land),
energy crops (Chinese sorghum, sorghum, sap,
hemp, etc.).
2) production of liquid biofuel in the form of
methyl esters of vegetable oils as a component
of diesel fuel (rapeseed, grain), in the form of
bio-oil and bioethanol as a component of
gasoline (corn, cereals, sugar beet, potatoes).
3) production of biogas with subsequent combined
production of heat and electricity by
cogeneration (cattle excrement, green plants,
silage, food waste), [17].
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Peter Bielik, Stefaniia Belinska, Zuzana Bajusová,
Izabela Adamičková, Tatiana Bullová,
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The geopolitical problems of the current world,
as well as the high costs of fossil fuel sources on the
one hand and the development of technological
progress on the other, have stimulated the creation
of energy systems from biomass, which make it
possible to obtain energy directly or indirectly
through combustion, pyrolysis or gasification
processes. These systems are becoming more and
more efficient, reliable, and ecological, enabling
efficient disposal of agricultural and municipal
waste.
Among the bioenergy sources, the most
important in the EU-27 was wood and other solid
biofuels, which accounted for 47.0% of primary
renewable energy in 2021 (Figure 1).
Fig. 1: Structure of renewable energy sources in the
EU-27 in 1990-2020 [18]
Figure 1 shows the increase in the production of
biogas, wind and solar energy, and other renewable
sources in the years 1990-2021, which represented
6.76%, 15.14%, and 6.24%, 7.00% of the share of
renewable energy in the EU-27 produced in 2021. In
2021, the share of energy from renewable sources in
gross final energy consumption in the European
Union (EU) reached 21.78% compared to 17.82% in
2015 and more than double the share in 2004 (9.61
%). The structure of energy sources of EU-27 in
comparison to the world in 2021 is presented in
Figure 2.
Fig. 2: Structure of energy sources of EU-27 and the
world in 2021, [19]
In 2021, EU-27 generated 5% of the world's
natural gas production, 3% of the world's coal
production, 32% of the world's nuclear energy, and
26% of the world's renewable energy. Regarding
biofuels, European countries generated 5% of total
world biogasoline production and 34% of total
world biodiesel production.
Table 1. Ranking of countries for the production of
bioethanol and biodiesel, [20]
Ranking of countries by
production
The main raw material
country
Biodiesel
Bioethanol
Biodiesel
USA
2
(19.5%)
Corn
Soybean
oil
EU
1
(34.1%)
Sugar
beet/wheat/co
rn
Rapeseed
oil/fats
used
Brazil
4
(12.0%)
Sugar
cane/maize
Soybean
oil
China
8 (2.2%)
Maize/cassav
a
Consumed
fats
India
11
(0.4%)
molasses
Used oils
Canada
10 (0.7
%)
Maize/wheat
Rapeseed
oil/soybea
n oil
Indonesi
a
3
(12.3%)
Molasses
Palm
oil/soybea
n oil
Argenti
na
5 (6.6%)
Molasses/corn
Soybean
oil
Thailan
d
6 (3.6%)
Molasses/cass
ava
Palm oil
Colomb
ia
9 (1.4%)
Reed
Palm oil
Paragua
y
17
(0.03%)
Reed
Soybean
oil
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
Renewable municipal waste
Biogases
Primary solid biofuels
Water energy
Wind energy
Solar energy
Other renewable resources
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The USA is the leader in bioethanol and
biodiesel production (1st respectively 2nd place),
the EU is the leader in biodiesel production and 4th
in bioethanol (Table 1).
In order to achieve the EU's climate and energy
goals, it is necessary to increase the share of
renewable energy sources. The revised Directive
2009/28/EC of the European Parliament and the
Council introduced a new mandatory EU renewable
energy target of at least 32% of the whole energy
mix will be produced from renewables by 2030,
including a revision to raise the target at the
European Union level by 2023. Amendments to the
European Parliament Directive and Council
2012/27/EU set a target to improve energy
efficiency at the Union level to at least 32.5% by
2030, including a provision for a review to increase
the targets at the Union level. This goal is
distributed among the EU member states and
included in national action plans developed to
determine the direction of renewable energy
development in each member state.
The share of renewable resources in gross final
energy consumption has been identified as a critical
indicator for measuring progress under the Europe
2020 strategy for smart, sustainable, and inclusive
growth. This indicator can be considered an estimate
to monitor Directive 2009/28/EC. The share of
energy from renewable sources is divided into three
different components: the share of electricity, the
share of heating and cooling, and the share of
transport. The 2030 energy and climate framework
for the Union is based on four key objectives at the
Union level: to reduce greenhouse gas (GHG)
emissions across the economy by at least 40%; a
target to increase energy efficiency by at least 27%,
which should be revised to 30% by 2030; the share
of renewable energy consumed in the Union is at
least 27%; and electrical - not less than 15%. It
states that the renewable energy target is mandatory
at the Union level and will be achieved through
Member States' contributions, guided by the need to
achieve the Union's target collectively. Figure 2
shows the share of renewable energy sources in
gross final energy consumption and the targets set
for 2020 for EU countries.
One of the prospective areas of using biomass
for the production of biofuels is the production of
bioethanol, which is an alternative to petroleum
gasoline. Currently, bioethanol production is the
most dynamic branch of the biofuel industry in the
world. It represents 85% of the world's production
of biofuels. The properties of bioethanol make it
possible to increase the octane number and
eliminate the use of toxic anti-knock agents such as
tetraethylol, benzene, toluene, etc. This reduces the
toxicity of exhaust gases. In the Figure 3 is shown
real and target share of renewable energy sources in
gross final energy consumption in European
countries.
Fig. 3: Real and target share of renewable energy
sources in gross final energy consumption in EU-27
countries, [5], [20]
It can contribute to lower emissions of
greenhouse gas into the atmosphere (mainly
methane released into the atmosphere from
untreated manure storage), can be a source of
renewable energy (electricity, heat, or for the
transport sector), and can lead to a reduction in the
effects of pollution from waste accumulation. It is
crucial that while processing, the waste is converted
into a product (biogas) and a valuable organic
fertilizer, thus closing the cycle from soil to crop, to
product, to waste, and back to soil.
Renewable and decarbonized gases are at the
intersection of today's critical challenges: the need
to lessen CO2 emissions from the growing amount of
organic waste. In practice, the principle of the
circular economy is applied, in which the demand
for energy services can be satisfied and, at the same
time, bring environmental benefits. According to the
available data, the global production of biogas and
biomethane in 2018 was approximately 35 million
tons of oil equivalent (Mtoe), which, according to
IEA estimates, is only a fraction of its real potential.
According to analysts, if it could be fully utilized, it
would be possible to cover up to 20% of global
demand in this way. The global potential for
biomethane is 730 Mtoe. In the case of biogas, it can
reach 570 Mtoe, [21].
0
10
20
30
40
50
60
70
2021 2020 target
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Understanding the circular nature of processing
biomass into biogas led to a fast rise in the biogas
sector over the past two decades, driven by
legislative changes to various renewable energy and
greenhouse gas reduction targets worldwide.
Biogas technologies have developed
significantly in North America, Europe, and Asia,
[22]. At the same time, the question of finding raw
materials - biomass in sufficient volume - arose.
After all, a crucial imperative for a country's success
in the transition to biofuels is the availability of
local resources (biomass, energy equipment, waste)
in a particular area.
The acceleration in the number of European
biogas stations in the last years indicates the
industry's sustainable development. By the end of
2018, almost 18,202 biogas stations were operating
in EU countries, which is by 2% (419 units) more
than in 2017. The total installed electric power of
biogas stations was 11,082 MW, and the total biogas
production was 63,511 GW per year, [23]. Among
the EU countries, the leaders in the number of
biogas stations are Germany (11 084 units) and Italy
(1 655 units), followed by France (837 units), Great
Britain (715 units) and Switzerland (634 units),
[24].
Undoubted advantages of biogas production
include: 1) low toxicity, 2) possible rise in the
efficiency of the agricultural resources use, 3)
reduction in dependence on oil, and reduction of the
greenhouse effect. On the other side, the most
considerable drawbacks of this direction are the
following: 1) high cost of production, 2) unstable
yields of some types of biomasses, and 3)
hygroscopicity and raised fuel consumption.
Biogas consists of 60–70 % of methane gas and
carbon oxides, hydrogen sulfide, nitrogen, and
hydrogen. The materials that can be used in the
biogas production process include the waste
materials of livestock and poultry farms, animal
waste materials, vegetable materials, solid waste
materials, organic waste, solid materials, and waste
from food processing factories, [24].
Methods used in the biogas controlling biogas
that come from biomass should be merged, [25].
Also, there is a need to unify the methodology to
understand the advantages and disadvantages in the
context of the environment of chosen methods in
biogas production. The crucial factor is a suitable
evaluation process of social and environmental
areas.
As shown in Figure 4, European countries
produce the most significant proportion of biogas
from agricultural crops compared to China, the
USA, and other countries. China leads the biogas
production from sewage and produces a similar
proportion of biogas from livestock waste and
household waste as Europe.
Fig. 4: Biogas production by region and type of raw
material in 2020, Mtoe, [5]
The global biogas market was valued at 8
billion USD in 2020, and it is projected to reach
13.8 billion USD by 2027 at a compound annual
growth rate (CAGR) of 8.1% from 2020-2027. In
2020, the US biogas stations market was valued at
2.4 billion USD. China, the world's second-largest
economy, is expected to reach a projected market
size of 2.4 billion USD by 2027, representing a
7.6% compound annual growth rate over the period
2020-2027, [26].
The market for biogas technologies in the EU is
estimated at 3 billion USD. The statistics on using
raw materials for biogas production are as follows:
75% of biogas is produced from agricultural waste;
17% – from the organic waste of private households
and businesses; and 8% - from wastewater treatment
plants. In total, EU countries produced 30.9 billion
m3 of biogas with an energy equivalent of 0.71 EJ
in 2018. Biogas production in Europe accounted for
more than half of world biogas production, while
Asian countries ranked second with a share of 32%
(19.3 billion m3). The third place in the world in
2018 in terms of biogas production was occupied by
the countries of North and South America (8.34
billion m3), [27].
It is worth mentioning the use of biogas stations
for electricity production. A new fuel type was
introduced – liquids originating from biomass,
which accounted for 19.7% of electricity production
from renewable sources in 2020. The largest share
0
2
4
6
8
10
12
14
16
18
20
United
States of
America
China Other
countries
Europe
Agricultural crops Livestock waste
Household waste Sewage
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of electricity production from renewable sources
comes from biomass (28.1%), photovoltaic energy
(25.6%), and biogas (23.2%).
The average installed capacity of biogas stations
in European countries was 0.61 MW, and the total
amount of electricity produced from biogas was
63,511 GWh in 2018. Electricity production from
biogas is growing in many countries, including
Croatia (234 GWh), France (116 GWh), Serbia (71
GWh), Denmark (29 GWh), and Greece (26 GWh)
(Figure 5).
Fig. 5: Number of biogas stations in European
countries and electrical output, [25]
The advantages of using individual biogas
stations in rural areas are undeniable, as evidenced
by the experience of countries that have introduced
biogas technologies. Among these countries are the
USA, China, India, Denmark, Austria, Sweden,
Germany, the Czech Republic, and many others. For
example, the US Energy Information Administration
estimates that in 2019, 25 large US dairy and
livestock operations produced approximately 224
million kWh (or 0.2 billion kWh) of electricity from
biogas . About 28 million biogas plants have been
installed in China, producing 18 billion cubic meters
of biogas per year; in India - 3.8 million biogas
stations; in Germany - 8 thousand, including
hundreds in the Netherlands, Canada, Russia,
Belarus, Kyrgyzstan, and Kazakhstan, [28], [29].
Table 2. Possibilities and limitations of biogas
production, [30]
Topic
Discussion point
Sources
Change of perspective: from the use of the best
raw materials for energy production to the
optimal use of all biomass sources
Better use of residual biomass: combining the
efficient treatment of organic waste streams with
the creation of added value through the extraction
of valuable components and the production of
renewable energy
From today: using all available biomass for
currently feasible processes, thereby mobilizing
biomass and creating a springboard to a more
integrated use of biomass sources
Products
Context: adapting the choice between biogas and
green gas to the local and regional landscape
Function in the energy system: from inflexible
renewable energy source to system service
provider, using biogas where it offers advantages
over other renewable sources, e.g., benefit from
flexibility and application for heavy energy
carriers
Multiple products: no longer just energy, but
multiple products that integrate into bioeconomy
concepts such as biorefinery
Technologies
Shifting focus: from increasing biogas yields to
improving the front and back of the production
chain
More variety: more products and more diverse
business cases. Fermentation as a processing step,
creating technologies enabling the bioeconomy
Unclear logistics: appropriate dimensions,
logistics, and integration into the country need
more attention
Financing
and
regulation
Grant-related funding: focusing on specific
technologies or products leaves little room for
experimentation and innovation
Same conditions: subsidies prefer energy
production over new or additional products, and
inflexible financing options hinder innovative
business cases
Complications: bureaucratic obstacles and
international differences hinder expansion and
innovation
The general possibilities and limitations of
biogas production from biomass are shown in Table
2. Also, there are issues related to the inconvenience
of transport cost or seasonality of agri-food waste
availability. However, characteristics of the areas
with small farms may cause input instability and can
be clarified by cooperation between farmers,
0
2000
4000
6000
8000
10000
12000
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
Installed electric capacity (MW)
Number of biogas plants
Biogas plants Installed electric capacity
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producing different biomass, [31]. Therefore, the
decision regarding the selection of the place for the
biogas installation should consider the social aspect
in addition to the technological, environmental, and
legal issues. Following PESTEL FAMILY analysis
of potential development factors and components
affecting the formulation of the strategy of
biogas/biofuels from agrobiomass consists of these
factors:
1) Political
Political factors significantly influence the
development and success of biogas production.
These factors encompass government policies,
regulations, political stability, and international
agreements, which can either support or hinder the
biogas industry.
Contributing factors: State support for energy
supply and the transition to alternative energy
sources. Financing, grants, government regulations,
and implementing measures for introducing biofuel
production and improving the waste management
system. It is becoming increasingly clear that
structural changes in the states are necessary for the
development of the bioeconomy. Cooperation with
international organizations and partner countries.
Support for agricultural production. Development of
international cooperation
Obstacles: Low interest in the development of the
bioeconomy and high preferences for the
automotive industry. Insufficient subsidy system for
the development of the bioeconomy. Unresolved
ownership relation to agricultural and forest land.
Insufficient anti-erosion measures. Lack of
coordination of rural development. Frequently
changing legislation. Lack of circular agricultural
policy measures.
2) Economic
Contributing factors: Strengthening energy and
economic security by increasing the share of energy
from renewable sources. Economic efficiency of
biofuel production from crops and waste. Transition
to a circular economy. Availability of building
materials, forests, and water resources. Constant
increase in energy prices. Long-standing tradition in
waste management. Status forestry. The established
first and second generation of bioethanol
production.
Obstacle factors: Predominance of export of raw
materials and import of finished products. Lack of
investment funds. Insufficient subsidy systems for
the installation of equipment for the processing of
biogas stations. High dependence on foreign chains
of food sales. Limitation of agriculture and
reduction of building materials. Low investments in
ecology and eco-technologies.
3) Social
Social factors are essential in understanding the
broader impact of biogas production on
communities and society as a whole. These factors
encompass public perception, community benefits,
health impacts, and social equity considerations.
Contributing factors: Availability of trained
employees. Lower incomes of farmers compared to
average wages. Possibility of creating new jobs by
introducing energy production from renewable
sources. The activity of young and highly qualified
employees and ambition to create positive changes.
Possibility of using available bio-raw materials for
bioconversion with the involvement of labor
resources and the possibility of obtaining other
financial benefits. Increasing the qualifications of
employees and the level of satisfaction of social
needs. Obstacle factors: The European population is
aging, and there is an increase in the number of
older people. Migration processes, the departure of
the working population, and youth abroad. Lack of
qualified human capacities in the field of eco-
innovation.
4) Technological
The successful implementation and operation of
biogas-generating systems heavily relies on
technical considerations. Optimizing processes,
managing feedstock well, utilizing strong
monitoring and control systems, and leveraging
technological advancements are all critical to
optimizing biogas yield, guaranteeing operational
effectiveness, and getting scalable. The potential
and sustainability of biogas generation are further
enhanced by ongoing innovation and integration
with other energy systems.
Contributing factors: The development of new
technologies for the production of biogas/biofuels
from bio-raw materials and agricultural waste. The
rapid pace of development of scientific and
technological progress and innovations.
Automatization and mechanization of all production
processes.
Obstacle factors: Weak links between science
and technology in the real sector of the economy.
Low supply level for the conversion process line.
5) Ecological
Ecological factors play a significant role in the
biogas production process. These factors relate to
the environmental impact and sustainability of
biogas production.
Contributing factors: General ecological
situation in the country and regions. Ecological
efficiency of the use of fuels obtained from
agricultural crops and waste. Reduction of the
negative impact on the environment due to the
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reduction of emissions of carbon dioxide (CO2),
methane (CH4), and other greenhouse gases. The
possibility of obtaining organic fertilizers. Safe
processing and disposal of agricultural waste and
producer responsibility. Favorable climatic
conditions. Biogas production uses organic waste
materials such as agricultural residues, animal
manure, and food waste, helping to manage waste
effectively and reduce landfill use. Biogas systems
can support climate adaptation strategies by
improving agricultural resilience through enhanced
soil fertility and water retention.
Obstacle factors: Insufficient effectiveness of
incentives to reduce negative impacts on the
environment. Insufficient recycling of municipal
solid waste.
6) Legal
A key aspect in determining how the biogas
production landscape is shaped is law. The
development and management of biogas projects
depend heavily on the following: managing
contractual agreements, preserving intellectual
property, navigating land use and zoning laws,
maintaining health and safety standards, and
adhering to energy and environmental regulations.
Comprehending and tackling these legal factors aids
in risk reduction and promotes an atmosphere that is
favorable for the production of biogas.
Contributing factors: Legislative and regulatory
documents in the field of alternative energy and
biofuels. Special tax conditions for the support of
biofuels. Implementation of programs and support
for the use of biofuels in transport. Introduction of
additional tax incentives for the production of
biogas/biofuels for own use. in the domestic
environment for bioenergy production. Future
policies should focus on clusters: pairing innovation
centers with industry and the state.
Obstacle factors: No new policies and
legislation specific to the bioeconomy (status quo).
Ignoring awareness raising about the need for
structural changes in policy
7) Financial
In order for biogas production initiatives to be
successful, finances play a critical role. Many
factors are important, including high startup and
operating costs, capital accessibility, financial
incentives, revenue possibilities, and market
dynamics. Enhancing the sustainability and
feasibility of biogas production can be achieved by
efficient financial management, risk reduction, and
utilization of relevant economic incentives.
Contributing factors: Introduction of financial
incentives and support for investments and
innovations in biogas/biofuel production. Lower
costs of produced biofuel compared to oil.
Possibility of obtaining additional funds for
introducing organic waste processing technologies
into biogas/biofuels. Strengthening the energy
security of the enterprise by using additional funds
obtained for energy production from its own
resources.
Obstacle factors: Difficulties in finding
additional funds for investments in biotechnology.
High dependence on the state, low competition, and
low productivity, especially in agriculture and
subsequent processing industries. Low transparency
of structural funds. Gradual increase of the landfill
tax. Absence of a capital market. Financial
restrictions prevent the broader use of modern
technologies. A lot of money is needed for
investments in technology wood biomass. Low
access to finance and low level of synergies in
public-private funds and investments.
8) Managerial
Projects aimed at producing biogas must be
successfully planned, carried out, and operated, and
this requires managerial elements. Strategic
planning, project management, operational
effectiveness, stakeholder involvement, and
continuous improvement are all included in this list.
Contributing factors: The possibility of
implementing the Strategy for the production of
biogas/biofuels from agrobiomass. The optimal
possibility of biofuel production must be determined
by considering territorial and raw material factors.
The high potential of available organic raw
materials for conversion into an energy source and
the built network of facilities for treating organic
waste. Obstacle factors: Insufficient number of
effective strategies and tactical plans for the
development of energy independence of agricultural
enterprises. Insufficient manager's awareness of the
strategy for the production of biogas/biofuels from
biomass and waste. Strong financial competition
with foreign companies.
9) Marketing
Marketing elements are essential to the
manufacturing of biogas because they create
demand, establish brand awareness, and guarantee
consumer satisfaction. To acquire and expand the
market for biogas products and services, one must
employ strong distribution networks, competitive
pricing, strategic branding, efficient market
research, and focused marketing initiatives.
Contributing factors: Advertising and public
relations, public awareness of the benefits of
biotechnology, support for the sale and use of
biofuels (television, transport, internet, etc.). High
potential of available bio-raw materials for
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transformation into an energy source.
Diversification of production activities and access to
new markets. Stimulating the use of energy
produced from bioresources to reduce the negative
impact on the environment in order to obtain state
support. The creation of regional development
programs with the definition of priorities for
regions.
Obstacle factors: Low efficiency of the
marketing network of biogas/biofuels in the
domestic and foreign markets. Lack of long-term
contracts for the supply of raw materials to
conversion to biofuels. Competition with producers
of petroleum fuels.
10) Innovative
In order to advance biogas production and overcome
its obstacles, innovation is essential. Enhanced
microbial processes, feedstock pretreatment,
advanced digester technology, biogas upgrading,
and system integration all lead to increased
sustainability and efficiency. The viability and
impact of biogas production are further enhanced by
digitalization, circular economy techniques, new
applications, economic innovations, and
environmental advances.
Contributing factors: The innovation potential
of the biogas/biofuel production sector. The
opportunity to attract foreign investment. The
possibility of producing biogas/biofuels for own use
in agriculture. The potential for the growth of
professional knowledge and skills. An extensive
network of adult education institutions. Research
and educational activity at the national research
centers.
Obstacle factors: Innovators, intellectual assets,
and attractive research systems are developing
slowly. Countries lack qualified human resources in
the field of eco-innovation. Decline in the quality of
vocational education and employment. Negative
development in the practice of educational
institutions and other population groups.
11) Logistic
Logistics factors are essential for the efficient
management of feedstock supply, biogas
distribution, and by-product utilization in biogas
production. These factors encompass transportation,
storage, handling, and coordination of materials and
resources throughout the production process.
Contributing factors: Gradual streamlining of
agrobiomass waste management. Ability to export
fuels made from renewable raw materials.
Telecommunications market bringing above-
standard innovations. International transport
corridors - highways, ports, railway network.
Obstacle factors: Low efficiency of supply
logistics agricultural waste for the production of
biofuels. No liquid biofuel mixing system; high
level of export of biofuels, which may lead to the
conclusion of long-term contracts with biofuel
producers. Unstable supply of raw materials for
conversion into energy. Increased costs for
maintenance of railway infrastructure and road
infrastructure
12) Risk factors
For biogas production projects to be developed and
run successfully, these risk concerns must be
addressed and mitigated. Ensuring the long-term
sustainability and viability of biogas production
requires robust risk management techniques that
include detailed feasibility evaluations, contingency
planning, regulatory compliance, and stakeholder
involvement. These measures are important to limit
the impact of hazards.
Economic competition (export of raw
materials/processing for biogas/biofuels, oil fuels).
Unpredictable impact of natural phenomena
(climate change, drought, storms). Non-compliance
with certain deadlines for the implementation of
strategic, tactical, and operational planning. Quality
standards. Obstacle factors: Low level of power
supply to the conversion line. Financing of
development activities in forestry and agri-business.
Insufficient grant, capital, and loan funds for
biological initiatives. Transport of exported raw
materials, e.g., cereals, over the export of domestic
biological products.
4 Discussion
Sustainable development is an approach to
development that takes the finite resources of the
Earth into consideration. This can mean many
different things to different people, but it most
commonly refers to using renewable energy
resources and sustainable agriculture or forestry
practices. The necessary goals are to achieve
economic and environmental benefits through
sustainable projects for resource recovery and
utilization, as well as programs for developing
countries, [32]. In contrast to fossil fuels like natural
gas, which is produced through a geographical
process, biogas is produced by the biological
process of organic materials decomposing through
bacteria. Up to 60% of biogas [33] and 90% of
natural gas [34] are made up of methane. Biogas has
a calorific value of 5000 kcal/m3, while natural gas
has a calorific value of 8600 kcal/m3, [35].
Furthermore, compared to fossil fuels, biogas
has less influence on the environment. For example,
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the CO2 emissions from biogas are 81.5 g CO2/MJ
energy, while the CO2 emissions from coal and
liquefied petroleum gas (LPG) are 682 g CO2 and
139 g CO2, respectively. Additionally, biogas emits
0.11 g CO, as opposed to 26.2 and 0.82 g CO from
coal and LPG, respectively, [36]. These
characteristics point to biogas's potential to displace
natural gas in many applications.
The ecological factors associated with biogas
production highlight its potential to contribute
positively to environmental sustainability. Biogas
production supports both environmental protection
and sustainable development by managing organic
waste, reducing greenhouse gas emissions,
enhancing soil health, and providing a renewable
energy source.
From the above-discussed discussion, it is clear
that biogas has several advantages over natural gas
and has already shown a strong potential to replace
natural gas in various applications, from household
use to large-scale industrial electrical generation,
such as power plants.
5 Conclusion
At the end of this study, it can be concluded that
Using biomass for biogas production can have
significant economic impacts within the context of
sustainable development. In rural and agricultural
areas, where biogas facilities are frequently located,
job opportunities are created by the need for staff
for plant operation, maintenance, and management
associated with biogas generation. They generate
extra income for farmers and farming communities
by selling feedstock materials, such as energy crops,
animal dung, and crop leftovers, and providing a
locally produced, renewable energy source that may
take the place of fossil fuels for transportation,
heating, and electricity production, saving money
for both businesses and consumers and generating
chances for the production of biogas by-products
with additional value, such as bioplastics, soil
additives, and organic fertilizers, to boost economic
activity even further. Provides funding for
constructing biogas infrastructure, such as
distribution networks, biogas plants, facilities
upgrades, and storage infrastructure. By leveraging
the increasing demand in both local and
international markets for sustainable products and
renewable energy sources, biogas may be positioned
as a cost-effective and eco-friendly energy
alternative.
1. Technologies for the use of biogas are changing
rapidly, opening up the possibilities for more
efficient use of biogas in the agricultural sector
and energy. In the field of renewable energy, the
transition to green gas could become a
commodity for the system service provider, but
the biogas business faces technical, financial,
and logistical challenges.
2. Technical development is mainly focused on
using cheaper and more complex resources and
adapting biogas processing technology to
produce several products that fit well into the
bioeconomy policy.
3. Subsidy schemes and bureaucratic rules for the
use of biogas stations prevent their active
distribution. The use of alternative residual
sources of biomass is hindered by the limited
possibilities of farm financing.
4. World experience and used practices allow us to
state that biogas technologies are developing
relatively quickly; they are widely used not only
on an industrial scale but also on a farm level.
There is a positive trend in the growth of
production volumes in the development of
biogas technologies and an increase in the
number of biogas stations. Most countries do
not plan to reduce the volume of biogas
production. Their plans include developing new
types of raw materials, increasing the efficiency
of methane fermentation, and transitioning to
waste-free innovative technologies.
5. Biogas production and market development
fulfill the goals of several policies – energy,
environmental, agricultural, and innovation.
Business practices offer many possibilities for
expanding the use of biogas. However, to
achieve this, barriers such as bureaucracy and
inflexible financing systems need to be reduced,
and subsidy systems must be based on the
development of alternative business options in
agriculture, including different opportunities for
biomass use.
Declaration of Generative AI and AI-assisted
technologies in the writing process
During the preparation of this work the authors used
Grammarly in order to improve the readability and
language of the manuscript. After using this tool the
authors reviewed and edited the content as needed
and take full responsibility for the content of the
publication.
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Izabela Adamičková, Tatiana Bullová,
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WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2024.21.138
Peter Bielik, Stefaniia Belinska, Zuzana Bajusová,
Izabela Adamičková, Tatiana Bullová,
Yanina Belinska, Patrícia Husárová
E-ISSN: 2224-2899
1696
Volume 21, 2024
Contribution of Individual Authors to the
Creation of a Scientific Article (Ghostwriting
Policy)
The authors equally contributed to the present
research at all stages, from the formulation of the
problem to the final findings and solution.
Sources of Funding for Research Presented in a
Scientific Article or Scientific Article Itself
This research was funded by Agrotechna s.r.o.
Michalovce; grant number NI/1-69/2023/SPU,
project titled Possibilities of increasing the
economic efficiency of crop production.
Conflict of Interest
The authors have no conflicts of interest to declare.
Creative Commons Attribution License 4.0
(Attribution 4.0 International, CC BY 4.0)
This article is published under the terms of the
Creative Commons Attribution License 4.0
https://creativecommons.org/licenses/by/4.0/deed.en
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WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2024.21.138
Peter Bielik, Stefaniia Belinska, Zuzana Bajusová,
Izabela Adamičková, Tatiana Bullová,
Yanina Belinska, Patrícia Husárová
E-ISSN: 2224-2899
1697
Volume 21, 2024