Green gas projects from all over Europe
Jeni Fulton
Biogasrat + e.V.
Berlin 13.06.2014
+
Contents
•
The Biogasrat+
•
What is biomethane?
•
Biomethane in the EU
•
Biomethane trade
•
Next steps
2
What we do:
actively shaping the future of the industry.
The Biogas Council+
• acts in the name of the decentralized renewable gas and energy industry in
Germany and Europe
• represents the interests of key stakeholders and major market participants to
decision makers and policy developers
• aims to develop the decentralized energy supply as the leading strategy for the
future through market mechanisms on a national and international level toward
more ecological and economical efficency
• aims to develop a cross-border market of biomethane in the European Union
• creates economical growth through stable and sustainable demand by
developing all usage applications of biogas: transportation, heat and energy
supply
• Contributes to EU-level policy initiatives and partnerships
Biomethane is green heat, green electricity and green mobility!
Revenue for agriculture
Agricultural
raw biogas
production
Value through versatile applications = electricity,
heat and vehicle fuel!
Through injection into the gas grid, biomethane
can connect rural production with decentralised
CHP in urban areas!
Can be traded cross-border
Upgrading to
biomethane and
injection into
the gas grid
permits
decoupling of
production and
usage
4
The advantages of biomethane
•
Biogas is upgraded and injected into the natural gas grid, same quality as
natural gas and can be used in all the natural gas sector
–
•
Diverse, abundant feedstock: sewage sludge, municipal bio-waste, residues and
crops from the agro-food sector, residues from food and agriculture
–
–
–
•
•
Adapts to existing infrastructure
High availability throughout Europe
Contributes to security of supply
Decarbonisation of gas grids
Low-carbon, low-emissions, low-noise transport, heating and power
Balances renewables with renewables
5
Production and injection of biomethane
Grid
control
Biogas
feed
Biogas
cleanup &
upgrading
module
Propane
injection
module incl.
blender
Reject/Recycle
Gas
Methodology of biomethane production and injection,
source Green Gas Grids
Gas analysis,
pressure,
control, odorant
and injection
module
Connection
pipeline
Gas Grid
Onsite
propane
storage
Reject Gas
Biomethane Producer
Gas distribution
network
6
Biomethane production in Europe
•
~ 214 producing units
•
Biomethane Grid injection in > 14
countries:
AT, CH, DK, DE, ES, FI, FR, HU, LU, NL,
NO, SE, SK, UK
•
865 bcm per annum
•
Mainly waste and sewage, some
energy crops
•
Transportation fuel use in > 9
countries:
AT,CH,DE,DK,FI,HU,IS,NO,SE
7
Biomethane production in selected EU countries
Biomethane production per annum, source Biogasrat+
mcm/Jahr
700
140
132
600
120
500
100
400
80
300
60
200
40
22
100
8
0
AT
20
12
1
DK
2
FI
4
FR
0
DE
IT
NL
0
PL
12
4
SE
CH
0
UK
8
Biomethane production in Europe to 2020
Injection in selected EU Member states, source: Biogasrat+, GreenGasGrids
TWh
2012
2015
2020
25
20
15
10
5
0
AT
HR
DE
IT
HU
SE
NL
SK
ES
PL
UK
FR
9
EU policy framework
EU support for biomethane
EU Fuel Quality Directive (2009/30/EC)
• Stipulation of a GHG reduction target for transport fuel of at least 6% in 2020 compared to
2010
Renewable Energy Directive (2009/28/EG)
•
•
•
•
Creation of a common framework for the promotion of energy from renewable resources
Creation of set targets for the total percentage of renewable energy (18%) and for
renewable fuels (10%) in Germany
Creation of sustainability criteria for renewable fuels (including biomethane)
Double counting for biomethane from residues
Infrastructure proposal SWD 2013/0012 (COD) –
• one CNG fuel station every 150 km
•
Proposal for an energy taxation – no tax on biomethane until 2023
2030 GHG reduction target
•
Biomethane fully included in the 40% reduction obligation.
10
Promoting a biomethane market
1. Sustainability: environmental production of biomethane must be ensured, and
take place as part of a cycle
2. Common rules for certification: a cross-border market for biomethane requires
common, reliable standards for production and use for bioenergy, guaranteed
through guarantees of origin. Including sustainability criteria
3. Reliable political framework: for investments, standards and framework
conditions, including green tariffs and subsidies
4. Increase cooperation mechanisms: nationally and internationally
5. Economics: need to cover production cost of 6,7 – 8,1 ct/kWh HHV for waste
fermentation and for energy crop fermentation
6. Grid connection: TPA access must be guaranteed, priority access to grid. Who
covers costs?
7. Unified quality standards: energy content, H20, oxygen, Mercaptans etc
11
Trading biogas - principles
1. The gas transmission network can be used for transporting renewable energy in the form of
biomethane – biogas upgraded to methane standard
2. Shippers are responsible for handling the transport of bio natural gas in the transmission
network and trading it in the European gas markets
3. In the market model, access to the transmission system is provided through a bio natural gas
entry point (BNG entry point).
4. 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.
5. The documentation of injection and offtake data by the DSO acts as proof of mass-balance
6. Due to availability of biogas plant, biomethane producers are granted balancing y margins:
a. Denmark: 15 per cent
b. Germany: 25 per cent within a year
12
Registries and Labels in the EU
Conditions for
biomethane
trade:
Recognition of
‚green‘
characteristic of
biomethane
Biomethane
registry
Currently:
case by case
Planned:
Automated,
registry
cooperation
13
Obstacles and challenges
•
•
•
•
•
No overall EU
strategy for
biomethane
Future
developments
promising but need
commitment to
single market
EU price for
biomethane 6,1 – 8,9
ct/kWh, gas price
3ct/kWh
Harmonised support
structure
Transport fuel
market as target
•
•
Economics
Registry
•
EU Policy
Massbalance
•
•
No European
requirements for
registry
Bilateral agreements
increase in
significance
Currently only as
LNG
Reason for lack of
cross-border trade
Registry club working
on EU definition of
mass-balance
14
Future developments
GGG Roadmap goals
2015
2020
2025
• NG Network – single mass-balance system
• CEN biomethane standards
• Biomethane registry club operational
• Biomass gasification – industrial scale
• EU biomethane strategy to 2050
• Single biomethane registry regulating cross border
• Biological methanisation – industrial scale
• Biomethane integrated in ETS
• 2 bcm biomethane used in transport, significant Bio-LNG activity
15
Conclusions
•
In 2030 18-20 billion m3 of biomethane could be produced in Europe, 3% of the
present natural gas consumption of the European Union.
–
–
–
•
Biomethane production will differ between EU countries according to support
schemes
–
•
It could make a major contribution to the transport, power and heat sectors, balancing
renewables with renewables
It can ensure security of supply
It can contribute to CO2-free gas grids to 2050
Encourage MS to set biomethane strategies
Develop a European market for biomethane
–
–
–
–
Harmonised EU Roadmap for biomethane (targets, sustainability, uses)
Coherent policy framework
National policies to support biomethane trade
Injection standards and acceptance for biomethane at grid level
16
Any questions?
+