Subsidy call goes live: grid access streamlined for Hungarian biogas and biomethane projects

As highlighted in our previous legal alert, the Ministry of Energy announced in April 2025 a new subsidy scheme under the Jedlik Ányos Energy Program, offering HUF 40bln (approx. EUR 100m) in non-refundable CAPEX grants with aid intensities between 45 % and 65 %. The programme aims to support investments along the biogas and biomethane value chain.

The relevant call for proposals has now been made public – slightly later than originally expected:

·      Smaller facilities (less than 500m³/hour) may apply for support between HUF 100m (approx. EUR 250,000) and HUF 800m (approx. EUR 2m).

·      Larger facilities (above 500m³/hour) may receive between HUF 200m (approx. EUR 500,000) and HUF 5bln (approx. EUR 12.5m).

Eligible activities include the collection and storage of raw materials and end products, the preparation and processing of organic feedstocks, anaerobic digestion (biogas production), and the production of heat and/or electricity from biogas. Applicants must be companies registered in Hungary, or companies registered in the European Economic Area with a Hungarian branch and tax number, each with at least one full, closed financial year.

The main technical and financial requirements include (but are not limited to):

·        a minimum 10 % increase in biogas production capacity;

·        a five-year commitment to maintain the project;

·        possession of the necessary permits;

·        compliance with applicable environmental regulations, etc.

Applications will be evaluated based on specific investment costs, professional competence, technical compliance, financial viability, the justification of expenses and the extent of local material use.

Applications may only be submitted electronically through the application portal by completing the required forms (in Hungarian) and attaching the necessary documents. The submission period runs from 28 October 2025 to 30 January 2026.

Guaranteed grid access to biomethane producers

To complement the state subsidies and to support the integration of biogas into the natural gas system, Government Decree 19/2009. (I. 30.) on the implementation of Act XL of 2008 on Natural Gas Supply has been amended to introduce detailed and preferential rules relating to the connection of biogas producers. Key points include:

·      Biogas producers must submit their connection request to the transmission system operator (FGSZ), which – in cooperation with the relevant gas distributor – must complete the assessment within 75 days. Previously, no separate, detailed procedure existed for biogas producers.

·      The same strict connection conditions apply to distribution networks as to high-pressure transmission pipelines.

·      Connection cannot be refused if the injected natural gas changes the calorific value by no more than 5 % compared to the average of the previous gas year, and if the injected biogas of natural gas quality (biogas upgraded to biomethane) meets the statutory quality standards.

Outlook

This combined regulatory and funding framework represents a significant advance for Hungary's biogas and biomethane sectors, opening the door to new investments by established players and newcomers alike. For those considering entry into the Hungarian biogas market, now is an opportune moment.