| Summary: | Swedish state has been promoting alternative renewable fuels like biogas to reduce the dependency on fossil fuels and to curb related greenhouse gas emissions. Owing to many policies like subsidies and tax exemptions for using biogas, the country has seen a surge in demand for biogas. Meanwhile, the increase in production of biogas in Sweden has been modest in recent years, though many studies have estimated substantially higher potentials from many sources. Agricultural feedstock/biomass is one among these sources where production and use of biogas could address many challenges faced by farmers like agricultural waste management, soil nutrient management, methane emissions from manure etc. while closing the nutrient cycle and contributing to sustainability.This work is an investigation on how to stimulate the growth of biogas production based on agricultural feedstock/biomass production in Sweden. Since policies give different results in different states/countries depending on the local preconditions, locally developed policies, national policies and EU policies should integrate well in all the policy sectors in that particular region to give the intended result. The current production capacity is about 2 TWh worth of biogas/year but the theoretical potential is estimated to be up to 15 TWh that has been claimed by many researches and literature works like in (Westlund, et al., 2019). Much of the potential has not been explored especially in the field of agriculture. It is asserted in many articles that the true potential of biogas production from Swedish agriculture is far greater than what is produced today. Yet, all the regulations, financial and other financial instruments failed to stimulate local biogas production in Sweden to attain its full theoretical potential. The results presented in this study show where these policies failed and what else apart from the policies could be improved in order promote biogas production.Farmers are hesitant to invest in biogas production because of the complexity and unpredictability of the existing policies. There has been significant negative impact from lack technological training of anaerobic digestion (AD) technology. This is also reflected as difficulties in finding trained and dedicated staff for biogas plant operations. Low profitability of biogas business exists ever since the production started and the financial aids are insufficient. Strict digestate regulations along with worsening substrate competition also creates problems. Permits to run the biogas plants are perceived to be expensive alongside increasing investment costs and taxes, affecting already low profitability. There is also a lack of infrastructure in terms of electricity/gas grid connectivity. Feed in tariffs for electricity produced from renewable sources are not bringing enough profitability to the business. Technological improvements are needed in terms of agricultural machinery that can use upgraded biogas as fuel and treatment of digestate to eliminate heavy metal content. Producers need more long term, sure market for their biogas. === Biogasmarknadsutredningen of BRC
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