Challenges and Opportunities of Biomethane
Transcript of Challenges and Opportunities of Biomethane
Challenges and Opportunities
of Biomethane
Global Biomethane Congress 2012
Werner Hipper
Landwärme GmbH
9.10.2010
© Landwärme GmbH
Project developer & consultancy
focused on biogas
Founded in 2007 in Munich
15 employees
Main business area
Development of biogas and
biomethane projects for utilities and
bioenergy investors
Service Portfolio
Feasibility studies
Project acquisition
Upgrade and feed-in plants
engineering
Biomethane sales and marketing
Contract and project management
Certification
Financing strategies
Landwärme at a glance
2
© Landwärme GmbH
Biomethane market
natural gas
CHP plants
natural gas
stations
gas
customers
upgrading as
grid interface
Over 7.000
biogas plants
gas grid
Over 50 TWh/a biogas
already available
European potential
of over 1.000 TWh/a
Gas consumption in
Europe at 3.000 TWh/a
German Biomethane
Goal:
60 TWh/a until 2020
Only ca. 100
upgrading
projects
3
© Landwärme GmbH
Steps from biogas to biomethane
Raw biogas
55 - 65 % CH4
35 - 45 % CO2
< 2% air
H2S
Amoniac
Water steam
CO2 - separation
Desulphurization
Drying
Filtering
Biomethane
>96 % CH4
< 2% CO2
< 2% N2
Steps for grid feed-in
LPG addition
Pressurizing
Odorization
Upgrade
Around100 projects currently feed biogas into the German gas grid
Average feed-in capacity of 700 m³ / h biomethane
4
© Landwärme GmbH
Biomethane – A solution for the future
Contributes to climate protection
Reduces import dependency
Stimulates regional development
Is eco-friendly (multi-feedstock)
Secures material flow at local level
Is a natural process
Stabilizes the energy system
Uses existing infrastructure
Offers a variety of applications
Promotes CHP use
Is a highly efficient biofuel
5
© Landwärme GmbH
Complex value chain: Both opportunity and challenge
6
© Landwärme GmbH
German biomethane targets 2020: necessary projects
60 TWh
by 2020
1,000 plants
with 700 Nm³/h
Biomethane
(3,0 MWel)
2,000 plants
With 350 Nm³/h
Biomethane
(1,5 MWel)
6,000 plants
With privileged permit
(500 kWel)
or or
7
© Landwärme GmbH
Costs & potentials of biomethane
Biogas Potentials in CEE
Biowaste usage in Germany:
– 0,5 TWh per 1 Mio. inhabitants
Agricultural waste & manure
– CEE ~ 35 TWh
– CIS ~ 50 TWh
Dedicated biomass on 10% of
agricultural area
– CEE: 4 Mio. Ha ~ 200 TWh
– CIS: 12 Mio. Aa ~ 600 TWh
Price range
fossil gas
Biomethane production costs
8
© Landwärme GmbH
Biomethane Market
9
© Landwärme GmbH
Green gas market
Voluntary green gas products
Main Markets are Germany,
Netherlands, Switzerland,
Belgium & UK
Players are mainly independent
green electricity provider
Country regulations
Quota obligations for gas
customers, utilities or biofuels
Feed-in tariffs for biomethane
Feed-in tariffs for electricity from
biomethane
Tax reduction for biomethane as
fuel
Demand driven by green gas market & regulations
10
© Landwärme GmbH
Voluntary green gas products
10% Quota obligations for gas customers
according to EWärmeG (BaWü)
30% Quota obligations for gas customers
according according to EEWärmeG
Tax reduction for biomethane as fuel
Quota obligations according to BioKG
Feed-in tariffs for electricity from biomethane
according to EEG
Demand drivers in Germany
11
© Landwärme GmbH
Overview sales channels in Germany
Price at trading
point Amount Comment
Fuel Add on to natural gas of
up to 80 € / MWh
Up to 3.000
GWh / a
Sale of quota
complicated
EWärmeG ca. 60 € / MWh ca. 30 GWh / a Only in Baden-
Württemberg
Green gas ca. 60 € / MWh ca. 80 – 150
GWh / a Limited growth
EEG crop: ca. 75 € / MWh
waste: ca. 55 € / MWh
Serveral
thousand
GWh / a
12
© Landwärme GmbH
History of German regulation supporting biomethane
Year Regulation Feed-in projects
2004 EEG: Feed-in tariffs for electricity from biomethane 0
2007 Energy concept: Biomethane goals: 60 TWh by
2020 and 100 TWh by 2030 4
2008
GasNZV: Privileged grid access & cost sharing with
grid operator
EEWärmeG: Quota obligations for new built houses
11
2009 Biofuel-quota: Biomethane can be used to fulfill
normal fuel quota, too 25
2010 EWärmeG: Quota obligations for renewed houses in
Baden-Württemberg 48
2012 EEG 2012: Higher feed-in tariffs for electricity from
biomethane 100
13
© Landwärme GmbH
Gas network access and tariff ordinance
Preferred network access
grid operators obliged to grant preferred grid access
grid access costs are split between grid operator and biomethane
supplier: 75 % to 25 %
For grid access with connecting pipeline of less than 1 km length, the
biomethane supplier’s access costs are never to surpass 250.000 €
avoided network costs due to the decentralised injection of 0.7 ct / kWh
from the grid operator
Preferred network entry & transportation
grid operators are to grant preference to biomethane transport clients
extended accounting balance
– flexibility of up to 25 percent
– biogas accounting time span of 12 months
14
© Landwärme GmbH
Regulations have different requirements for the production
Renewable heating
Limited methane emissions
According to G260, G262 & DIN 51624
Maximum methane emissions of 0,2 % during
upgrading of biogas
Only biomass according to the
biomass regulations
Certified sustainable biomass
15
© Landwärme GmbH
Overview of different requirements of German subsidies
EEG EEWärmeG
(Germany)
EWärmeG
(BW) Biofuel-quota
Biogas from landfills or
sewage - X - -
Feed-in X Not defined X Not defined
Renewable heating - X - -
G260 & G262 indirect X indirect indirect
DIN 51624 - - - X
Sustainable biomass - - - X
Usage limitation German CHP plant - German
fuel station
Gas production
outside Germany - X X X
16
© Landwärme GmbH
Overview of regulation for Biomethane
Country Germany Italy France Nether-
lands UK
Feed-in tariff No planned Yes Yes Yes
Fuel quota Yes planned No No No
Quota
obligations Yes No No No No
tariff for
electricity from
biomethane
Yes planned No No No
17
© Landwärme GmbH
Visuals
Vielen Dank
Landwärme GmbH
Ungererstr.40
80802 München
18
© Landwärme GmbH
Location Kaposvár, Hungary
Biomass Sugar beat
Biogas unit 2 fermenters á 13.500 m³
Gas
production
8.000 Nm³/h biogas for power plant
during harvest (Sep. - Dec.)
Upgrading
& feed in 1000 Nm³/h biomethane feed-in
Quality
criteria
G 260 und DIN 51624
Biomass sustainability criteria
Biomethane project in Kaposvár, Hungary
19
© Landwärme GmbH
Projects in Germany
BGA Gangkofen
Biogas: NawaRo
Capacity: 350 Nm³/h
BGA Gröden
Biogas: Reststoffe
Capacity: 450 Nm³/h
BGA Alteno
Biogas: Reststoffe
Capacity: 350 Nm³/h
BGA Feldberg
Biogas: NawaRo
Capacity: 350 Nm³/h
BGA Wittenburg
Biogas: NawaRo
Capacity: 350 Nm³/h
BGA Zülpich
Biogas: Reststoffe
Capacity: 350 Nm³/h
BGA Schulzendorf
Biogas: NawaRo
Capacity: 350 Nm³/h
BGA Osterby
Biogas: NawaRo
Capacity: 700 Nm³/h
BGA Marktoffingen
Biogas: NawaRo
Capacity: 350 Nm³/h
BGA Reimlingen
Biogas: NawaRo
Capacity: 700 Nm³/h
BGA Schwaigern
Biogas: NawaRo
Capacity: 350 Nm³/h
20
© Landwärme GmbH
Introduction
21
© Landwärme GmbH
Overview of the legal situation in Germany
Special regulations on renewable energy
– Renewable Energy Sources Act ( Erneuerbare-Energien-Gesetz – EEG)
– Renewable Thermal Energy Act ( Erneuerbare Energien Wärmegesetz –
EEWärmeG)
– Biofuel Quota §37 BImSCHG ( Biokraftsoffquote laut §37 BImSchG)
– Market Incentive Programme ( Marktanreizprogramm – MAP)
Special regulations in biomass
– Biomass regulation (Biomasseverordnung – BiomasseV)
– Sustainability regulation ( Nachhaltigkeitsverordnung – BioNachV)
General energy law regulations
– Gas network access regulation ( Gasnetzzugangsverordnung – GasNZV)
– Gas network tariff regulation ( Gasnetzentgeltverordnung – GasNEV)
– DVGW regulations ( DVGW Regelwerke)
– Energy Industry Act ( Energiewirtschaftsgesetz – EnWG)
– Federal air pollution control act ( Bundes-Immisonsschutzgesetz – BImSchG)
22
© Landwärme GmbH
EEG for Biomethan-CHP
23
© Landwärme GmbH
General criteria
Biogas from biomass
Usage in CHP unit
Yearly balance of feed-in and gas
consumption
Feed-in in German gas grid
Gas quality according to G260 and
G262
For feed-in bonus
Maximum methane emission at the
upgrading of 0,2 %
Maximum electricity demand of the
upgrading of 0,5 kWh / Nm³
Heating of the biogas plant by
renewable heat
Criteria for EEG
24
© Landwärme GmbH
Key facts on the EEG 2012
The commission of the electricity is guaranteed for the year of initial
operation and the subsequent 20 years at a fixed rate
Rohstoffklasse I: usual energy crops
Rohstoffklasse II: manure & material from environment protection
Direct usage of the electricity possible (market bonus)
Flexibility bonus of 130 € / kW per year for additional “over” capacity of
the electricity generating unit
25
© Landwärme GmbH
EEG 2004 in € / MWh for biomethane
Item up to 150 kW or
1.314 MWh
up to 500 kW or
1.315 - 4.380 MWh
/ a
up to 5 MW or
4.381 - 43.800
MWh / a
up to 20 MW or
43.801 - 175.200
MWh / a
Base tariff* 116,7 99 89 84
Bonus for
dedicated crops 70 70 40 0
Feed-in bonus 20 20 20 0
CHP bonus 30 30 20 20
Total 236,7 219 169 114
26
© Landwärme GmbH
EEG 2009 in € / MWh for biomethane
Item up to 150 kW or
1.314 MWh
up to 500 kW or
1.315 - 4.380 MWh
/ a
up to 5 MW or
4.381 - 43.800
MWh / a
up to 20 MW or
43.801 - 175.200
MWh / a
Base tariff* 116,7 91,8 82,5 77,9
Bonus for
dedicated crops 70 70 40 0
Feed-in bonus
for 350 Nm³/h 20 20 20 0
CHP bonus 30 30 30 30
Total 236,7 211,8 172,5 107,9
27
© Landwärme GmbH
EEG 2012 in € / MWh for biomethane
Item up to 150 kW
or
1.314 MWh
up to 500 kW or
1.315 - 4.380
MWh / a
up to 750 kW or
4.381 – 6.570
MWh / a
up to 5 MW or
4.381 - 43.800
MWh / a
up to 20 MW or
43.801 - 175.200
MWh / a
Comment
Base tariff 143 123 110 110 60 Digression of 2%p.a.
+
Einsatzstoff-
vergütungs-
klasse I 60 60 50 40 0
Either
Klasse I or II Einsatzstoff-
vergütungs-
klasse II 80 80 80 80 0
+
Feed-in bonus
for 700 Nm³ / h 30 30 30 30 0
only for
biomethane
28
© Landwärme GmbH
Bonus depending on the input
EEG 2004 & 2009
Nawaro (crops)
Not Nawaro = other biomass
EEG 2012
other biomass
Einsatzstoffklasse I
Einsatzstoffklasse II
Bonus depending on the size
of the upgrading
EEG 2004
No differences
EEG 2009
2 ct / kWh bonus up to 350 Nm³ / h
1 ct / kWh bonus up to 700 Nm³ / h
EEG 2012
3 ct / kWh bonus up to 700 Nm³ / h
2 ct / kWh bonus up to 1000 Nm³ / h
1 ct / kWh bonus up to 1400 Nm³ / h
Price relevant attributes of biomethane according to EEG
29
© Landwärme GmbH
Green gas and EEWärmeG
30
© Landwärme GmbH
Renewable Energies Heat Act („EEWärmeG“)
Buildings erected after January 1st, 2010, are obliged to employ
renewable energies for their heat supply
Biomethane is one way to fulfill this obligation
Baden-Württemberg has its own version of this law (EWärmeG), applying
also to existing buildings
31
© Landwärme GmbH
Demand generated by EWärmeG
Current form of EWärmeG in Baden-Württemberg:
Growth of demand for biomethane of 10 - 30 GWh per year
Demand of 0,1 - 0,3 TWh biomethane by 2020
Copy of BW-EWärmeG to national level:
Growth of demand for biomethane of 70 - 200 GWh per year
Demand of 0,5 - 2 TWh biomethane by 2020
32
© Landwärme GmbH
Market situation
Green gas in Germany
ca. 100.000 customers
ca. 1.500 GWh sold in 2011
Of which ca. 80 - 150 GWh was biomethane
Competing green products like „climate gas“
Market share
LichtBlick is leader with a market share over 60%
Naturstrom, EnBW and Saubergas each with few thousad customers
33
© Landwärme GmbH
Biomethane as fuel
34
© Landwärme GmbH
Usage of biomethane for quota fullfillment
Usage Market volume Pricing
Avoidance of
penalty up to 5 TWh / a penalty at 68 € / MWh(Hs)
Replacement of
biodiesel quota
biodiesel quota from B 100
around 2 - 3 TWh / a
minimum price at
30 - 35 € / MWh(Hs)
Reduction of
biodiesel
blending
up to 5 - 8 TWh / a
difference of buying biodiesel
to intern cost of producing
diesel
ca. 40 – 55 € / MWh(Hs)
35
© Landwärme GmbH
Price level for usage of biomethane
Max. Price depending
on penalty
0
10
20
30
40
50
60
70
Vermeidung von Pönalenzahlung
Ersatz von B100-Tickets
Reduktion der Biodieselbeimischung
Pre
is B
iom
eth
an
ticket in
€/
MW
h(H
s)
Market price
Avoidance of
penalty
Replacement of
biodiesel quota
Reduction of
biodiesel blending
36
© Landwärme GmbH
MÖK MÖK
Structure
trader Quota
MÖK MÖK Gas
station
Sale of
quota
Quota fullfillment
Sale of
biomethane
4,5 ct / kWh
2,5 ct / kWh
Biomethane
producer
37
© Landwärme GmbH
Netherlands
Biomethane injection is supported by the stimulering duurzame energie
(SDE+) scheme, the most important measure promoting renewable
energy in the Netherlands. The SDE + scheme, replacing the former SDE
scheme, provides a feed-in subsidy covering the difference between
production costs and income such as energy price.
The subsidy tariffs are adjusted annually according to the market price
development of fossil natural gas every year to ensure the plant operator
receives the same feed-in tariff for 12 years.
38
© Landwärme GmbH
UK
Biomethane combustion, except from landfill gas gets 7.1 p / kWh
HI payments are made to the owner of the heat installation over a 20 year
period and tariff levels have been calculated to bridge the financial gap
between the cost of conventional and renewable heat systems. The
scheme is administered by Ofgem.
39
© Landwärme GmbH
Sweden
Biogas and biomethane producers also benefit from measures such as
requirement of retailers to sell at least one renewable motor fuel or 5
years exemption from vehicle tax for environmental cars (meaning
vehicles emitting below 120 g/km CO2).
40
© Landwärme GmbH
Italy
Förderung von Biomethan:
1. Das eingespeiste Biomethan unter den Bedingungen von Art. 20
soll wie folgt gefördert werden:
a) durch Stromproduktionvergütung wenn Biomethan genutzt wird
wenn dieses Strom in KWK-Anlagen benutzt wird
b) durch die Quotenerfüllung laut Dekret von Januar und März 2006
solange Biomethan dafür eingesetzt wird und dieses Biomethan
dann für den Transport genutzt wird
c) Einspeisevergütung wenn das Biomethan ins Gasnetz eingespeist
wird
41
© Landwärme GmbH
France
The principle for purchase obligation of biomethane when injected into the
natural gas grid was adopted by the French Parliament on the 12th of July
2010 as part of the Grenelle 2 law.
15 Jahre
http://www.injectionbiomethane.fr/
Tarif liegt zwischen 4,5 und 9,5 ct/kWh, nach der Größe der Anlage.
Bonus für bestimmte zwischen 2 und 3 ct/kWh.
42