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Bioenergy in DenmarkMichael Persson 13. sep. 16

Bioenergy in Denmark

Michael Persson,Danish Bioenergy AssociationE-mail: [email protected]

Danish Polish Bioenergy Seminar13. September 2016, Copenhagen, Denmark Photo: DONG Energy

Bioenergy in Denmark 13. sep. 16Michael Persson

Agenda

1. DI Bioenergy – Danish Bioenergy Association

2. Danish bioenergy market statistics

3. Danish energy and climate policy

4. Danish bioenergy development

5. Conclusion

2


Danish Bioenergy Association

The voice and forum of the Danish bioenergy industry, working for:

• an optimal regulatory environment for bioenergy,

• strengthening the business of its members, and

• cohesion and visibility for bioenergy and the bioenergy industry

Members include technology producers and suppliers, consulting engineers, utilities and developers

Members activities are combustion, biofuels, biogas and biorefining

DI Bioenergy is an industry association within the Confederation of Danish Industry and member of the European Biomass Association

3


Key Issues

• “Bioenergy Counts”, bioenergy is important to reduce CO2 emission

• Bioenergy is a cost-effective contribution to energy transition

• Bioenergy+ for the future, bio-economy and bio-refining

• Biogas can contribute to greening of the gas system

• Maintain and develop platform for competencies

• Export promotion and internationalisation

4


Production of Renewable EnergyBioenergy is biggest

PJ

5

Windpower Straw Wood Waste, biodegradable part Other

Source: Danish Energy Agency

Biogas

0

20

40

60

80

100

120

140

160

1990 '95 '00 '05 '10 '14

Vindkraft Halm

Træ Biogas

Affald, bionedbrydeligt Øvrige


Consumption of Renewable Energy

PJ

6

0

20

40

60

80

100

120

140

1990 '95 '00 '05 '10 '14

Vind Biomasse Biogas Andet


Wind Biomass Biogas Other


Growing Imports of Renewable Energy

PJ

7

Windpower Straw Wood Waste, biodegradeable OtherProduction of Renewable Energy Net Import of Renewable Energy

(note: table only updated to 2013)Source: Danish Energy Agency


Almost all pellets used in Denmark are imported

• Domestic production approx. 100,000 tons

• Imports approx. 2,100,000 tons

• Consumption will continue to grow due to conversion of central CHP plant from coal and gas to biomass

• Some production of wood chips from Danish forests and wood industry

8

Source: FORCE Technology


Danish energy and climate policy

• Ambitious climate and energy policy, starting 1985 with a decision not to use nuclear energy and later adding incentives for biomass and wind

• Based on energy agreements in parliament adopted by vast parliamentary majority, lasting usually two terms

• Instruments are a mix of non-financial regulation and taxes and subsidies

• Present agreement from 2012 includes a vision of an energy system independent from fossil fuels by 2050

• Lately increased focus on cost-effectiveness

9


Denmark’s climate targets

10


Five scenarios 2035 / 2050

11



Fossil-free scenarios only marginally more expensive

• Fossil-free scenarios cost 5-20% more (EUR 0.8-4bn) per year

• Biomass scenario is the cheapest scenario

• But the difference is only marginal and uncertainty substantial

12

Source: Danish Energy Agency, 2014

Hydrogen

Fuel

Savings

Oper & maint


Taxes and subsidies in power production and co-generated heat

13


Taxes

Su

bsid

ies

----- Biomass ------- Gas --Windpower--CoalBio

TotalSubsidyCO2 quota price

NOx taxSO2 taxCO2 taxEnergy tax

Ta

xe

s a

nd

su

bsid

ies f

or

pow

er

pro

du

ction

-D

KK

0.0

1/K

Wh

Decentral

CHP

woodchips

Decentral

CHP

straw

Decentral

CHP

biogas

Decentral

CHP

Upgraded biogas

Decentral

CHP

natural gas

Central

CHP

wood pellets

Central

CHP

coal

Wind

land

Wind

Off-shore

Wind

near-shore


Conversion of central power plants from coal to biomass

• Danish power plants are in a historic conversion from coal to wood pellets

• Result of the energy agreement 2012

• The map shows the plans as of 2012 and towards 2020. Most of the plan have been executed or are in process

14

Source: Ingeniøren, 2012


New biogas plants for upgrading and injection into the gas-grid

Improved support for biogas and upgrading to natural gas quality since 2014

Support 2016-2020:

CHP 15.5 €/GJ

Gas grid 15.5 €/GJ

Industry 10.1 €/GJ

Transport 10.1 €/GJ

Other (heat) 4.9 €/GJ

For all 1.4€/GJ will be phased out towards 2020

Most new biogas plants are built for upgrading to natural gas quality for the gas grid

More new plants are in the pipeline

15

Source: Ingeniøren, 2014


Industry agreement to ensure sustainable biomass

• CHP plants recognise sustainability

• Preference for EU-wide criteria

• Industry agreement adopted to ensure sustainability of wood pellets and chips

• Inspired by similar regulation or voluntary agreements in Belgium, the Netherlands and particularly the UK

• Valid for all plants above 20MW capacity

• Plants oblige themselves to document sustainability with implementation from 40% in 2016 to 100% in 2019

16

Industry agreement presented to the Danish climate and energy minister by heads of Danish Energy Association and District Heating Association in December 2014


New development: Cellulosic Ethanol / Biorefinery

• Plans for a biorefinery based on DONG Energy / Inbicon technology

• Local utility companies with Novozymes & DONG Energy

• Integrated with local CHP and biogas plant

• Received NER300 grant of €39m

• Investment decision subject to blending requirement for cellulosic ethanol and financing model

17

Input: 300,000 t wheat straw

Output: 80 mill. liter ethanol70,000 t lignin90,000 t vinasse


Side benefit of Danish policy: Massive export of energy technology

18

0,0%

5,0%

10,0%

15,0%

20,0%

0

10

20

30

40

50

60

70

80

1996 '00 '05 '10 '14

Eksport af energiteknologi og -udstyr

Andel af Danmarks samlede eksport (højre akse)


DKK 1,000 millions

Export of energy technology and equipment

Share of total Danish export (right axis)


Conclusion• Fossil-independence in 2050 is the political goal for Denmark.

• Bioenergy will account for most of Denmark’s renewable energy many years ahead

• Ambitious energy and climate policy has laid the ground for strong energy industry and export of energy technology

19

Photo: DONG Energy

Bioenergy in DenmarkMichael Persson 13. sep. 16

Danish Bioenergy AssociationMichael Persson, Head of Secretariat, e-mail: [email protected]

For more information:

www.energi.di.dk/dibioenergi – Danish Bioenergy Association

www.energi.di.dk – Danish Energy Industries Federation

www.stateofgreen.com – State of Green, projects and companies

www.ens.dk – Danish Energy Agency

www.basisbioenergy.eu – Overview of the bioenergy market in selected EU countries

http://www.energi.di.dk/dibioenergi

http://www.energi.di.dk/

http://www.stateofgreen.com/

http://www.ens.dk/

http://www.basisbioenergy.eu/

Bioenergy in Denmark - energi.di.dk - DI Energi og... · Michael Persson Bioenergy in Denmark 13....

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