Comparative assessment of framework conditions for biogas production in Norway and Denmark

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1 Downloaded from orbit.dtu.dk on: Dec 20, 2017 Comparative assessment of framework conditions for biogas production in Norway and Denmark Lyng, Kari-Anne ; Klinge Jacobsen, Henrik Publication date: 2014 Link back to DTU Orbit Citation (APA): Lyng, K-A., & Klinge Jacobsen, H. (2014). Comparative assessment of framework conditions for biogas production in Norway and Denmark [Sound/Visual production (digital)]. Joint BioChain and BioValueChain workshop, Foulum, Denmark, 27/10/2014 General rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. Users may download and print one copy of any publication from the public portal for the purpose of private study or research. You may not further distribute the material or use it for any profit-making activity or commercial gain You may freely distribute the URL identifying the publication in the public portal If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim.

2 Comparative assessment of framework conditions for biogas production in Norway and Denmark Kari-Anne Lyng, Østfoldforskning Henrik Klinge Jacobsen, DTU

3 GWh/year Biogas production in Norway and Denmark Ref: IEA task Denmark Norway

4 GWh/year Biogas production in Norway and Denmark Denmark Norway (Norway export) Export of organic waste

5 GWh/year Biogas production in Norway and Denmark Feedstock in Denmark Denmark Sewage sludge Biowaste Agriculture Norway Industrial Landfill

6 GWh/year Biogas production in Norway and Denmark Feedstock in Denmark Feedstock in Norway 0 Denmark Sewage sludge Biowaste Agriculture Norway Sewage sludge Biowaste Agriculture Industrial Industrial Landfill Landfill

7 GWh/year Utilization of biogas Utilization of biogas, Denmark % 21% 0 Denmark Electricity Heat Norway Vehicle fuel Flare 69% Unknown

8 GWh/year Utilization of biogas Approximately 60 % of the biogas is used at the production plants Utilization of biogas, Denmark 21% % Denmark Electricity Heat Norway Utilization of biogas, Norway 9% 18% 19% Electricity Heat Vehicle fuel Vehicle fuel 69% Flare Unknown 2% Flare Unknown 53%

9 Utilization of digestate No statistics found General impression: Denmark: Fertilizer (restrictions on sewage sludge) Norway: Normally dewatered and composted New plants: Fertilizer

10 Framework conditions Demography (logistics) and population density Norway: 13 inhabitants/km 2 Denmark: 128 inhabitants/km 2 Ref:Eurostat Farm sizes Average livestock units per farm Norway: Small farms: 23 Large farms: 61 Denmark: Small farms: 86 Large farms:681 Organic waste Norway: about 2/3 of inhabitants have source separation of organic waste Denmark:?

11 Share of renewables in gross final energy consumption, 2012 and 2020 (%)

12 Share of renewable fuels for transport

13 Electricity prices for households consumers 2013 Ref:Eurostat

14 Transport fuel prices

15 Financing the biogas support in DK Support to biogas for CHP is provided as support for the electricity output, which is financed via the PSO payments of all electricity consumers - main driver Support to upgraded biogas will be financed via PSO payments of all natural gas consumers - main driver Investment support for manure based biogas plants is financed by the government budget (only temporary main driver) Indirect support is provided through the regulation of farmers input use and manure treatment (manure, fertilizer, nitrogen, phosphor) - minor effect

16 Regulatory incentives in Norway Banned landfilling of biodegradables from Investment support for biogas plants Tax exemption for transport purposes Local initiatives: Østfold County tender for bus transport: Biogas as fuel

17 Large scale biogas plant in DK based on manure and upgrading biogas to grid (BioChain case) 8,000,000 Output related costs 7,000,000 Opex 6,000,000 Capex 5,000,000 4,000,000 Transport 3,000,000 Invest support 2,000,000 Gas subsidy 1,000,000 0 Average annual income Scale t/annually input Average annual cost Scale t/annually input Net digestatefeedstock Market revenue (Gas, electricity, heat)

18 Euro Large scale biogas plant in NO (organic waste) preliminary results 4,000,000 Output related costs 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 Opex Capex Transport Invest support Gas subsidy Net digestate feedstock 500,000 - Average annual income Average annual cost Market revenue (gas, electricity, heat) Gate fee waste

19 Revenue composition in DK (BioChain case, new support) and Norway 100% 90% Invest support 80% 70% Gas subsidy 60% 50% Net digestate feedstock 40% 30% 20% 10% Market revenue (gas, electricity, heat) Gate fee waste 0% DK NO

20 Comparison on the drivers for biogas development in Norway and DK Biogas development in DK is driven by the high support level for upgraded biogas to natural gas grid The risk involved in CHP based projects are higher even though support is at similar level as for upgrade For a limited amount of time the additional investment subsidy (manure) triggered the fast expansion

21 Biogas in Denmark and Norway Denmark Norway Drivers Replacement of fossil energy carriers Distribution of phosphorus Waste (water) treatment Typical plants Farm based plants Central plants Main substrates Manure Food waste, sewage sludge Use of biogas Elecricity/heat Natural gas grid Transport (new plants) Heat (existing plants) Use of digestate Fertilizer Dewatering and composting