Biomethane in Denmark September 12 2013 Biogas production in Denmark - Present and future By Bruno Sander Nielsen Danish Biogas Association April 23 2012 Danish Biogas Association Joint biogas plants Farm scale biogas plants Research Consultants Secretariat: Chairman: Aksel Buchholt Secr.: Bruno Sander Nielsen Agriculture Energy sector Waste handling Sub-suppliers Danish Biogas Association Constructors Biogas production 2012 April 23 2012 20.5 Wastewater % 4.2 Industrial 4.6 Landfill Manurebased 70.7 898.393 184.3 TJ 203.31 3096 Wastewater Industrial Landfill Danish Biogas Association Manurebased Biogas – Danish model April 23 2012 Organic ”waste” Manure Biogas Plant Digested biomass Danish Biogas Association Renewable energy April 23 2012 25 years of Danish biogas experience Manure - from a farmers problems to an opportunity for the whole society Danish Biogas Association April 23 2012 Biogasproduction 1990-2012 Manurebased biogas plants 3500 2½ MT livestock manure Target: 15+ MT 3000 2500 2000 Centralized Fællesanlæg TJ Farm scale Gårdanlæg 1500 1000 500 0 Danish Biogas Association Total Danish biogas plants September 2013 April423 2012 Number of plants 22 centralised biogas plants 60 farm scale biogas plants Biomass in biogas plants Manure 2½ mill. t Organic residues 0.5 mill. ton Total 3.0 mill. ton Danish Biogas Association September 2013 April423 2012 Biogas – currently and potential 70 60 SOEC opgrading 50 Landfill gas Gardens and park 40 PJ Household/kitchen waste Meat and bone meal Industrial waste import 30 Industrial waste DK Sewage sludge 20 Livestock manure 10 0 Current Potentiale Danish Biogas Association September 2013 April423 2012 Biogas – currently and potential 70 60 SOEC opgrading 50 Landfill gas Gardens and park 40 PJ Household/kitchen waste Meat and bone meal Industrial waste import 30 Industrial waste DK 20 10 5 % of energy consumption 20–25 %. af natural gas 20–25 % of road transport 0 Current Potentiale Danish Biogas Association Sewage sludge Livestock manure September 2013 April423 2012 Biogas – currently and potential 70 60 SOEC opgrading 50 Landfill gas Gardens and park 40 PJ Household/kitchen waste Meat and bone meal Industrial waste import 30 Industrial waste DK 20 10 5 % of energy consumption 20–25 %. af natural gas 20–25 % of road transport 0 Current Potentiale Danish Biogas Association Sewage sludge Livestock manure September 2013 April423 2012 Biogas – currently and potential 70 60 50 App. 90 % of natural gas for Co-generation or Industry/households/service SOEC opgrading Landfill gas Gardens and park 40 PJ Household/kitchen waste Meat and bone meal Industrial waste import 30 Industrial waste DK 20 10 5 % of energy consumption 20–25 %. af natural gas 20–25 % of road transport 0 Current Potentiale Danish Biogas Association Sewage sludge Livestock manure September 2013 April423 2012 Biogas – currently and potential 70 60 50 App. 90 % of natural gas for Co-generation or Industry/households/service SOEC opgrading Landfill gas Gardens and park 40 PJ Household/kitchen waste Meat and bone meal Industrial waste import 30 Industrial waste DK 20 10 5 % of energy consumption 20–25 %. af natural gas 20–25 % of road transport Sewage sludge Livestock manure Energy crops Organic biogas 0 Current Potentiale Danish Biogas Association Habitats Aquatic biomass April 23 2012 Restrictions in energy crops Without limits • Fodder residues • Organic • Crop residues Danish Biogas Association April 23 2012 Restrictions in energy crops Without limits • Fodder residues • Organic • Crop residues Danish Biogas Association April 23 2012 Restrictions in energy crops Without limits • Fodder residues • Organic • Crop residues Danish Biogas Association April 23 2012 Restrictions in energy crops Without limits • Fodder residues • Organic • Crop residues Danish Biogas Association Gaspotential 26. juni2013 2012 12. september Clovergras Beet Maize Beet tops Household waste Aquatic Garden and park Ditches Randzoner Natural habitats Catch crops Straw Extra organick waste Zero! 50 pct. livestock manure Kilde: AgroTech 2013 0 100 200 Mio. m3 metan 300 400 April 23 2012 Energy agreement 22. marts 2012 DKK/GJ CHP Gas grid Proces Transport Basis Suppl. 79 79 39 39 Temporary Total 26 26 26 26 10 10 10 10 115 115 75 75 26 DKK regulated according to natural gas pris 10 DKK will be stepped out with 2 DKK per year from 2016 – 20 El. payment into force from juli 1 2012 (if approved in Bruxelles) Same subsidy when injected in gas grid as to CHP Gascompanies owned by municipalities can invest in production Task force to examine and guide projects If not enough development in 2014 – perhaps obligatory purchase April 23 2012 Payment electricity El. payment 1995 - 2030 1,6 1,4 Before 2003 1 After 2003 After 2008 0,8 After 2012 0,6 Incl proces 0,4 0,2 2029 2027 2025 2023 2021 2019 2017 2015 2013 2011 2009 2007 2005 2003 2001 1999 1997 0 1995 DKK pr. kWh 1,2 April 23 2012 Expectations to development Danish Ministry for Climate and Energy App. 40 projects – different stage of development all were implementet +8 PJ – total 12 PJ Projection from 2012: 17 PJ in 2020 If expectation not met in 2014 the politicians will assess the situation If Risk for delayed or cancelled Notification of agreement delayed (at least to oct.) Construction subsidies (aug. 2015) Other: economy, gas sale, planning, localization Danish Biogas Association 26. juni 2012 1. Will we get the expected development? Hopefully – but not without new initiatives Current situation Notifikationen delayed – a basal precondition! We got 1.15 DKK pr. kWh / 115 kr. pr GJ, BUT The 10 will be phased out quickly The 26 and 10 are not regulated for inflation NOx-, methane-, energy-, ”forsyningssikkerheds”/biomass taxes Construction subsity 20 30 pct. ??? Increasing natural gas prises erodes the electricity price We are far from 1.15 DKK/kWh Expensive and fluctuating cost for injection to gas grid August 2015 is very soon (construction subsidy) Environmental approval takes long, long time Danish Biogas Association 26. juni 2012 2. If not, what should be done? 1. LONG TIME FRAMEWORK CONDITIONS Ensure the economy is not eroded a) b) c) 2. Aktive integration into energy system a) b) c) 3. The value should be secured on 2012 level Construction subsidies in the future – or alternative to this Facility to guarantee to facilitate loan Gassystem has the cost except to nearest 4 bar net Promote new utilisation of biogas such as transportation Rådigheds-/backupkapacitets-/stabiliseringspræmiering Smooth administration of environmental approvals a) b) Follow the national rules Fast appeal proces Danish Biogas Association Public support for biogas! April 23 2012 The government wants to increase subsidies to biogas. Is this a good idéa?" Don't know No Yes 0 10 20 30 40 50 60 70 Procent From: Altinget 19. januar 2011 Danish Biogas Association September 2013 April423 2012 Government Green Growth Plan 2009 Promotion in biogas through From currently 5 % to 50 % of manure into biogas in 2020 Co-ordination plan for construction of biogas plants Plan for integration of biogas into the energy sector Obligation for municipalities to point out where to build plants Distribution in natural gas grid on equal terms as direct co-generation Equal opportunities for biogas to earn money as natural gas suppliers Financing 20 % construction subsidy (in total 300 mill. DKK from 2010 to 2012) loans guaranteed by municipalities Capital from investors Danish Biogas Association April 23 2012 Danish ressource strategy Delayed for more than a year Internal discussions in government ressources vs. economy What do we expect? • • • • • • • Prevention of waste From incineration to reuse/recirculation Source separation Wet fractions to biogas April 23 2012 Household waste – several koncepts Mixed REnescience/DONG Source separated Aikan/Solum Ecogi/Komtek Danish Climate Plan April 23 2012 From 50 to 60 per cent of manure digested App. 130,000 tonne reduction in GHG CHP: 400 – 700 DKK per tonne CO2-eq. Upgrading 1200 DKK per tonne 45 mill. DKK in 3 years for 30 % of extra cost for heavy duty cars on methane compared to diesel GHG reduction tonne CO2-eq. DKK/tonne 100 % natural gas 317 941 50 % biogas 50.000 466 100 % biogas 100.000 411 Danish Biogas Association Alternative fuels 1,387 Elbiler April 23 2012 1,777 1,512 ETOH 2G 1,656 Socio economic costs 1,518 1,57 ETOH 1G 1,383 1,421 Biogas SØK omk. 2020 SØK omk. 2010 1,394 1,369 Naturgas 1,44 1,417 Benzin 1,462 1,44 Diesel 1 1,1 1,2 1,3 1,4 1,5 1,6 1,7 1,8 DKK/km From: Energistyrelsen 2012 Alternative fuels April 23 2012 CO2 emissions for small cars 2020 and 2030 From: Energistyrelsen 2012 Biogas – a flexible fuel April 23 2012 Fits into the energy system in many ways Decentralised co-generation Distribution in gas net (biogas/mixed/natural gas) Individuel or district heating Process fuel in industry Transportation fuel Engines, boilers, fuel cells Danish Biogas Association Conclusion April 23 2012 Development steady for 10 years – few new plants Substantial improvement of framework conditions Waiting for notification proces in EU Economy still challenged New iniatives necessary to reach 50 % manure Task Force report end of 2013 – political proces 2014 Main focus on manure and organic residues Household waste could end up in wastewater treatment plants Until now all used in CHP plants – in future also upgrading Transportation – have gas grid - need filling stations and vehicle fleets With the right long term framework conditions we will se a substantial increase in biogas/biomethane production Danish Biogas Association April 23 2012 Thank you for your attention www.biogasbranchen.dk bsn@lf.dk Danish Biogas Association Flexibility required to integrate fluctuating wind/wave power April 23 2012 … increasing towards 2025 4500 4500 2010 4000 4000 3500 3500 3000 3000 2500 2500 2000 2000 1500 1500 1000 1000 500 500 0 0 Wind power Demand 2025 Wind power Demand Need for up/down grading of production within hours/minutes/seconds Danish Biogas Association Kilde: Energinet.dk Flexibility required to integrate fluctuating wind/wave power April 23 2012 … increasing towards 2025 4500 4500 2010 4000 4000 3500 3500 3000 3000 2500 2500 2000 2000 1500 1500 1000 1000 500 500 0 0 Wind power Demand 2025 Wind power Demand Need for up/down grading of production within hours/minutes/seconds Danish Biogas Association Kilde: Energinet.dk Current gassector Danish Biogas Association April 23 2012 Future gassector? Danish Biogas Association April 23 2012 Why promote biogas? April 23 2012 Supply security Stabilising windpower dominated energy system Efficient and cheap reduction af GHG emissions Environmental protection (eutrophication, smell) Recirculation of nutrients from residuals and waste Jobs Export of food and technology Danish Biogas Association April 23 2012 Renewable energy in Denmark 140 120 100 PJ 80 60 40 20 0 1980 '81 '82 '83 '84 '85 '86 '87 Wind '88 '89 Straw '90 '91 Wood Danish Biogas Association '92 '93 Biogas '94 '95 '96 '97 '98 Biodegradable waste '99 '00 '01 '02 '03 Heat pumps etc '04 '05 '06 '07 '08 Danish energy policy From oil to coal, natural gas and renewables Widespread natural gas grid From centralised power plants to decentralised cogeneration of power and district heating Transportation is fossil No April 23 2012 tax reductions on biofuels High share of windpower in power system Renewable but unpredictable and unreliable Backup systems needed Danish Biogas Association April 23 2012 Biogas -stable and flexible Biogas production Continous, stable and predictable Up/down regulation through seasons Biogas utilisation Adaptation to demand Storage on biogas plant Injection into gas grid Back-up for windpower Danish Biogas Association September 2013 April423 2012 30 years of incentives in Denmark Society Decrease dependency on imported fossil fuel Protection of drinking and surface waters Decrease emission of greenhouse gases Fossil free and stable energy supply Agriculture Improved utilisation and storage capacity Relations to neighbours Redistribution of manure Extraction of surplus of nutrients New business Development promoted by Legislation regarding handling of manure and energy Subsidies for research, demonstration, documentation, etc. Framework conditions – construction and feed in tarifs Danish Biogas Association Biogas plants April 23 2012 Not only for production of renewable energy But a multifunctional tecnology for Renewable energy and energy supply security Sustainable agricultural development Environmental protection Rural development Danish Biogas Association Farmers advantages April 23 2012 Better relations to neighbours Improved nutrient value Redistribution of nutrients Removal of excess of nutrients Alternative to slurry soil injection equipment Handles all manure from small and large farmers Delivers more goods to society than just food Danish Biogas Association Societal advantages Greenhouse gas reduction Protection of aquatic environment Rural life quality (smell) Pathogen reduction Energy security Optimal biomass utilisation Danish Biogas Association April 23 2012 April 23 2012 Danish biogas - conclusions Biogas is now a top priority in Danish politics as a tool to solve societal challenges (climate, less fossil dependent energy supply, security of energy supply, jobs etc.) Based on conversion of residues into energy and fertilisers manure, waste from industry, households, natural habitats to be used for power, heat and transportation Biogas utilisation will be diversified Currently locally in CHP plants Future part of national and international grids (power, gas) Development is dependent on long term steady framework conditions Danish Biogas Association Biogas and separation Danish Biogas Association April 23 2012 Biogas and separation Fiberfraction April 23 2012 Digested slurry Decanter 15 – 20 % of volume 70 pct. P Most of organic nitrogen Danish Biogas Association Liquid fraction 80 – 85 % of volume 80 % of nitrogen Almost all ammonium Low P content Biogas and separation Fiberfraction April 23 2012 Digested slurry Decanter Soil improver or biofuel 15 – 20 % of volume 70 pct. P Most of organic nitrogen Danish Biogas Association Liquid fraction Environmental and social friendly fertiliser 80 – 85 % of volume 80 % of nitrogen Almost all ammonium Low P content Biogas and separation April 23 2012 Utilisation of Nitrogen in winter wheat 100 90 80 70 60 50 40 30 20 10 0 Cattle slurry Danish Biogas Association Pig slurry Digested slurry Liquid fraction September 2013 April423 2012 Biogas – perspectives and challenges Perspectives Huge potential (manure, organics) Climate protection, energy supply Decentralised infrastructure Export of know-how and technology Existing centralised plants Required new plants (ex) Challenges Huge increase in production Development based on experience Less waste dependent plants Integration in energy sector Ressource primarily in Jutland Danish Biogas Association Map: Con Terra