In order for biogas to be injected into the transmission network, it must be of a quality similar to that of natural gas. To comply with the distribution companies' requirements, it must therefore be upgraded to so-called bio natural gas.

Biogas market model
Biogas is produced at a biogas plant and subsequently upgraded to bio natural gas at upgrading facilities through the removal of CO2. The quality of the bio natural gas is now comparable to that of natural gas.

Trading in bio natural gas in Denmark and across borders is conditional on the biogas being commercially injected into the transmission network, thus making it possible to sell bio natural gas produced in West Jutland to consumers in Zealand or Sweden, for example.

It is therefore the shippers that are responsible for handling the transport of bio natural gas in the transmission network and trading it in the Danish and European gas markets.

In the market model, access to the transmission system is provided through a bio natural gas entry point (BNG entry point).

The injection of bio natural gas into the transmission network is based on the principle of commercial backhaul and is therefore 'virtual'. This means that the bio natural gas is not physically injected into the gas transmission network but stays in the distribution network. As such, the production and consumption of the physical bio natural gas take place in the distribution network.

When a shipper commercially or 'virtually' has injected bio natural gas into the transmission system via the BNG entry point, the shipper may trade the gas in all existing points on the same terms and conditions as apply to other types of natural gas. And thus sell bio natural gas in the entire system.