POTENTIAL FOR SUSTAINABLE BIOMETHANE PRODUCTION IN ITALY. raw materials, markets, investments

Transcription

1 POTENTIAL FOR SUSTAINABLE BIOMETHANE PRODUCTION IN ITALY raw materials, markets, investments Lorenzo Maggioni, R&D

2 Consorzio Italiano Biogas (Italian Biogas Consortium) MEMBERS The CIB - Italian Biogas Consortium, formed in March 2009, has national coverage and aimes to be the reference point in the italian biogas and biomethane sector. European projects

3 CONTENTS BIOGAS IN ITALY Number of plants, subsidies, potential, etc. BIOMETHANE POTENTIAL AND RAW MATERIALS BIOGAS DONE RIGHT

4 BIOGAS IN ITALY Third biogas in the world

5 BIOMETHANE IN ITALY Number of plants Upgrading plants ( ) Roma 6 Modified by New upgrading plants ( ) San Giovanni Persiceto (BO) Pinerolo (TO) Ozegna (TO) Pieve Fissiraga (LO) Mantova (MN)

6 BIOMETHANE AS BIOFUEL Opportunities 1 biomethane tractor (bio-cng) Dual Fuel: Biomethane + diesel Biomethane Italian Gas Grid infrastructure data: Primary transport network: 34,000 km; Distribution: km networks. Dies el engi ne Around NGV High interest from industrial groups

7 7 BIOMETHANE AS BIOFUEL Opportunities ADVANCED BIOFUELS MANDATE biofuels (actually 92% = biodiesel. Only 5% made in Italy) Advanced biofuels In 2018 it means ~225 Mm 3 biomethane (compressed or liquified)

8 BIOMETHANE IN ITALY Decree 05 Decembre 2013 Entry into force (art. 9 of the Decree) : 18 december 2013 Duration: upgrading plants that will be in service by 17 december 2018

9 BIOMETHANE IN ITALY Feedstock Agriculture Organic Fraction Municipal Solid Waste

10 BIOMETHANE IN ITALY Decree 05 Decembre 2013 The new rules will apply to different kinds of plant NEW UPGRADING PLANTS (new sites) EXISTING BIOGAS PLANTS (you have to add the upgrading unit) incentive reduced compared to new plants

11 BIOMETHANE IN ITALY Decree 05 Decembre 2013 <The natural gas grid includes not only the transport and distribution grids of natural gas, but also other useful systems for the transport of biomethane as dedicated grids, the CNG trailers and distributors (gas station), including the agriculture, also not connected to the networks of transport and distribution of natural gas>.

12 BIOMETHANE IN ITALY Decree 05 Decembre 2013 DIFFERENT SCENARIOS DEPENDING ON FINAL USE OF BIOMETHANE CASE 1: Biomethane injected into the natural gas grids PREMIUM TARIFF linked to the market price of natural gas Duration of the incentive: 20 years Supplementary incentives for use of by-products and if < 500 m 3 CH 4 /h In the best scenario (< 500 m 3 CH 4 /h, use of 100% by-products, single buyer = GSE): 79,6 /MWh FOR THE MOMENT, ISN T POSSIBLE

13 BIOMETHANE IN ITALY Decree 05 Decembre 2013

14 BIOMETHANE IN ITALY Decree 05 Decembre 2013 CASE 3: Biomethane used in high efficiency cogeneration plants Decree 6 July 2012 Waiting for the new scheme (not very different from this one)

15 By-products? Decree 06 July 2012 For example: manure; olive pomace; marc; hulls tomato; molasses; middlings; etc.

16 By-products? Decree 06 July Electricity production: if by-products >70%, > 2. Biomethane production (injection without specified destination) if by-products = 70%, +50% 3. Biomethane production (for transport sector) if by-products > 70%, double counting (1 CIC every 5 Gcal)

17 By-products? Decree 06 July Biomethane production (for transport sector) if by-products > 70%, double counting

18 Biomass supply Italian situation (2012) The last survey of the type of biomass used in Italian biogas plants dates back to 2012 thanks to the work done by the CRPA. TYPE OF BIOMASS n. of biogas plants % Mwe % only manure Manure & agroindustrial byproducts + energy crops Manure & energy crop Manure & agroindustrial byproducts energy crops & agroindustrial byproducts data not obtained TOTAL

19 Biomass supply Lombardy Region situation (2013) <The results obtained by the Italian biogas production in the last years unquestionably confirm that these goals are realistic and likely to be achieved both for utilization of manure and by-products, as proved by the study done by Lombardy Region and Milan Politecnico (following chart), and for the reduction of the needed land area for first harvest UAL (Used Agricultural Land) used for Mwel>.

20 By-products and biomass supply A new overview (2016) CIB will produce a detailed overview on the biogas situation in Italy; In this study the number and type of plants, technology involved, year of construction, MWel production, quantity and quality of biomass / by-products used will be described.

21 BIOMETHANE IN ITALY Potential (2020) According to Italian Biogas Consortium a realistic development plan of methane/biomethane within 2020 should include: doubling service stations to 2000; Doubling current means of transport consumption of CNG methane (preferably LNG) up to about 2 billions Nm 3 by 2020; Increasing biomethane consumption up to 25% of the total consumption, about Nm 3 /year (bio-cng or bio-lng)

22 BIOMETHANE IN ITALY Maximux theoretical potential (2030) We estimated the potential production of 8 billion Nm 3 of equivalent biomethane to be achieved by 2030 using ha land by using the potential of a large proportion of so called integrative biomass, Necessary to use the BIOGASDONERIGHT model! To reach this production goal it is necessary to consolidate a land efficiency of 100 ha used agricultural land / MW el (i.e. 45 ha first harvest for each million of Nm 3 biomethane/year).

23 The BIOGASDONERIGHT model

24 Biogas Done Right Purpose Improve the traditional farming and livestock activity with agro energy production Environmental sustainability (reduction of CO2 and NH3 emissions, soil and water use efficiency, closing C cycle in soil) Efficient practices in agriculture Economic and social development (new green jobs, valorisation of agriculture products) Bioenergy without lowering food and feed Multifunctional, Sustainable and C negative Agricolture

25 Biogas Done Right Circular Model and Rural synergies G.Bezzi, 2015

26 Biogas Done Right Agricultural Ecological Intensification FROM SINGLE TO DOUBLE CROPPING SYSTEM High soil use efficiency One harvest for food market or livestock One harvest for anaerobic digester Digestate as fertilizer that substitutes chemical fertilizers S. Bozzetto et al., 2015 Digestate in a driver for organic matter to restore soil fertility Valorization of farm by products and degradated soils

27 Biogas Done Right Positive impacts conservative agricolture Mitigation of livestock effluents and by products GHG emissions Whole year soil coverage Increased crop rotation instead monocropping Double cropping with minimum tillage with techniques mutuated from conservative and precision farming Greater increase of Organic Matter to the soils Reduction loss by evaporation Increased soil yields (10 15%) Conservation soil structure High water use efficiency Water saving (up to 10%) thanks to recycling water in fertirrigation with liquid fraction of digestate

28 Biogas Done Right Biogas crops diversification Sulla (Hedysarum coronarium) silage Pecorino Farm Sicily Traditional mediterranean Nitrogen fixing crop useful to avoid durum wheat monoculture and soil desertification. Nowdays this crop is without market demand due to sicilian livestock industry decline. In the background Etna Europe's tallest active volcano Consorzio Italiano Biogas 28

29 Biogas Done Right Pre seeding umbelicale digestate fertilization instead fossil Urea Artegiani Farm Verona Consorzio Italiano Biogas 29

30 Biogas Done Right Drip irrigated Corn after Triticale Cazzola farm Verona Fertilized with Renewable Ammonium Sulphate made by digestate evaporation Less watering Less Nutrients More nutrients vegetables intake 50% more yields More predictable yields Simply less riskly&costly more sustainable corn farming Consorzio Italiano Biogas 30

31 Cooperative, founded in 1956, with 248 shareholders owning farms with milk production. 50,000 head of Friesian and Brown Swiss cows, with an average milk production of liters/day 8000 hectares of forage farm land turnover (2014) and 330 employees. 2 cheese factories with a totale covered surface of m 2.

32 ARBOREA PROJECT LBM production In Sardinia there are not natural gas grids. The Cooperative Assegnatari Associati Arborea - 3A is already using LNG (100 m 3 storage at the milk factory in Arborea) with a 1 MW el and 1,2 MW th CHP. They decided to produce LBM and not bio-cng. The preference is for a cryogenic upgrading system with full recovery of the CO 2 produced but other solutions will be evaluated too. The project includes, also, the construction of 3 bio-lcng filing stations, one closed to the cheese factory and two located in the province of Cagliari and Sassari. The LBM and the bio-cng will be used to refuel company trucks and vehicles of other companies. If there were problems with the use of LBM in the transport sector, it can replace LNG.

33 ARBOREA PROJECT milestones The Cooperative Arborea has decided to carry out a tender inviting 13 qualified European companies with proven expertise and references. A technical committee is evaluating the bids received in order to identify the one that would be more deserving to win the contract. The Cooperative Arborea commissioned the Engineering Studio Corrao (based in Cagliari) to study the tender documents and specifications of the project. MILESTONES March 31, 2016: closing terms for the tenders presentation. End of May 2016: contract signature and start authorization process. End 2016: start of construction of the plant. End 2017: completion of work and first LBM production.

34 ARBOREA PROJECT numbers Average amount of manure to be treated: 335 m 3 / day. 3 anaerobic digesters with a total volume ~ m 3. Raw biogas production: 500 m 3 /h di biogas. Expected CH 4 average content: 55% Expected biomethane production: 275 m 3 /h Expected LBM production ~4,5 t/d Average amount of Nitrogen to be removed: ~ 580 Kg / d. Total investment for the construction of the plant (anaerobic digestion, LBM production, distribution and LBM digestate treatment): ~ 10 million Euro.

35 THANKS FOR YOUR ATTENTION! CIB Consorzio Italiano Biogas c/o Parco Tecnologico Padano Via Einstein, Loc. Cascina Codazza Lodi (LO) +39(0) Fax +39(0) Lorenzo Maggioni, PhD