"Green Combustion Engines": Bio-CNG Exempted from CO2 Tax

Since the beginning of the year, drivers of "green combustors" running on bio-CNG have been exempt from the new CO2 tax. This is pointed out by the Munich NGO CNG Club e.V. With bio-CNG, i.e., regeneratively produced CNG, CO2 emissions can be reduced by up to 90 percent, promotes the club. "Green combustors" thus have a future, believe the officials, who feel validated by the recent decision of the federal government. According to this decision, biomethane or the fuel bio-CNG, which can be produced from renewable raw materials and green electricity, and thus has a significantly better climate balance than fossil fuels, is exempt from the introduction of the CO2 price.

"The federal government is honoring the significant CO2 savings of up to 90 percent compared to gasoline and diesel," the initiative is pleased to say.

The exemption from the CO2 surcharge for bio-CNG initially applies for a period of two years. After that, the CO2 price varies depending on the raw material base for the production of biomethane. In the best-case scenario, such as when fully sourced from residual and waste materials, bio-CNG as a fuel will remain exempt from the CO2 price even then, the club predicts.

"Switching to a 'green combustor' with bio-CNG as fuel is therefore worth it at the latest now. This applies equally to cars and trucks. After all, operators of CNG stations who switch their fuel offering to biomethane also have a clear competitive advantage," explains Miklós Graf Dezasse, president of the CNG Club e.V., with a view to the new CO2 tax and the associated higher costs, especially for gasoline and diesel drivers.

Here, the pricing has led to gasoline now costing around 7 cents more per liter and diesel nearly 8 cents more. CO2 pricing has a signal effect. A CO2 price has been levied on fossil fuels such as heating oil, natural gas, gasoline, and diesel in Germany since the beginning of the year. It currently stands at 25 euros per ton. By 2025, the price is to gradually climb to 55 euros per ton. As a rule, this surcharge is passed directly on to the pump customer.

"This means a hefty price increase for drivers who fill up with gasoline and diesel. The additional burden is somewhat lower for CNG drivers who fill up with fossil natural gas. Clearly at an advantage, however, are those who travel with the bio-CNG fuel exempted from the CO2 tax," explains the club. 

For Federal Environment Minister Svenja Schulze, the newly introduced instrument has a signal effect. "The CO2 price sends a very clear signal: emitting CO2 will reliably become more expensive compared to climate-friendly alternatives." The minister further believes, "This influences investment decisions." Thus, the CO2 price will support the trend that more and more citizens are switching to renewable energies and thus climate-friendly alternatives.

Already half bio-CNG in the tank

With the federal government's decision not to introduce a CO2 tax on bio-CNG, the initiative once again sees the climate advantage of the 130-octane fuel confirmed and its long-standing commitment rewarded.

"With the existing 'green combustors' we have the best technology ever. Bio-CNG-powered combustion engines are environmentally friendly, cost-effective, and consumer-friendly," thinks CNG Club board member Birgit Maria Wöber. 

Already now, the share of climate-neutral, regenerative bio-CNG amounts to more than 50 percent of the total CNG fuel sales, and more than half of all CNG filling stations in Germany offer the fuel bio-CNG - with a rising trend, promotes the club board member.