CONPONENT 3 REGIONAL STUDY OF SUSTAINABLE MOBILITY

Transcription

1 CONPONENT 3 REGIONAL STUDY OF SUSTAINABLE MOBILITY THEMATIC: BIO-FUELS REGION: SMÅLAND (SWEDEN)

2 BEST PRACTICE 2 MORE BIOGAS SMÅLAND AB.

3 DATA COMPILATION TEMPLATE Identifying data of the practice: Name of the practice/project. MORE BIOGAS SMÅLAND AB Issue tackled by the practice. How to introduce a large-scale production of bio-methane, in an area where sustainable alternatives to fossil fuels are wanted, but where the potential market is rather uncertain. Name of the contact person. Pelle Hallén Position of the contact person. Project Manager at More Biogas Småland AB Contact details. +46 (0) Objectives of the practice: Prime objectives Prove the demand and potential for a local production of bio-methane from manure, to facilitate parts of the regional transport sector Find the business model that is most suitable and an efficient for such production Secure a local demand for bio-methane in order to get the production started Sub objectives (that will probably follow automatically if the upper are achieved) Secure a regional access to bio-methane Increase the possibilities to have a fossil fuel independent transport sector by 2030 Pag. 2

4 Process and detailed content of the practice (Description): The project process started as an initiative form a business development group within The Federation of Swedish Farmers (LRF) in The initiative incentivized the local LRF branch, LRF Southeast, that together with 20 farmers conduct a feasibility study, on their potential to produce bio-methane for the transport. For the farmers the production of bio-methane holds two benefits. The first is a potential to expand business into energy production by gathering up the methane from manure before spreading it on the cropland. The second is that the process of extracting the methane also lowers the levels Phosphorous and Nitrogen in what will be the rest product or digestive that goes back on the cropland as a fertilizer. Because the spread of Phosphorous is limited to 22 kilos per hectare, a less Phosphorous digestive can substitute some use of artificial fertilizers. The study conducted that the most economical and efficient production, lowering the prize for both the producers and the consumers, would be a larger co-owned plant. This is not only due to the economies of scale, but more so by consideration to the importance of having mixed input of agricultural residues and manure, in order to produce as high quality bio-methane and fertilizers as possible. The pre-study was voted the best LEADER-project in It results encouraged 18 of the 20 farmers to form More Biogas Småland AB, as a joint venture companies together with Famax AB, KSRR and Läckeby Waters. The aim of More Biogas was to build an AD and an upgrading plant in order to produce and sell the bio-methane to the transport sector. However, as there no grid in the region, to inject an eventual overproduction into, More Biogas Småland AB had to assure a guaranteed local demand in order to be provided with loanes. This was perhaps the most difficult part in the process as it took a lot of computing, puzzling, and meetings with authorities to bring the parts together. When it finally succeeded, it was because E.ON agreed to be the financial intermediary, ensuring to cover the risks through buying the bio-methane produced at the facility. By the 29 of January 2013 the building of a plant with the ambition to produce biomethane for the transport sector was finally announced. The scale of production is estimated to reach 2 million Nm3/year in the first face, and 4 million in the second face. That is equality of 2,2 respective 4,4 million liters of petrol or 20 GwH in the first and 40 GWh in the second face. The facility is expected to start producing bio-methane in Origin: The initiative originated in the farmers interest to develop their business by producing bio-methane for transport sector and at the same time better fertilizers for their cropland. The project is unique in that the farmers co-own the plant instead of just delivering to it. Pag. 3

5 Bodies involved /Implementation More Biogas Småland AB (owned by: 18 farmers, Famax AB, KSRR and Läckeby Waters) Almi (providing loans) E.ON (Financial intermediary taking the risk of buying the entire production of bio-methane and distribute it) Financial Framework (Funding): Private. Entity. More Biogas Småland AB (owned by: 18 farmers, Famax AB and Läckeby Waters) Amount % Bank loan 40% Common equity (including a minor investment support) Public Entity None Amount None Legal Framework (current law and incentives system): The vehicles using bio-fuel benefits from a 40% lower taxable value of fringe from and a 5-year tax-free allowance. Target group addressed by the practice: Biogas Småland AB estimates that public transport vehicles, garbage trucks and other vehicles bought by authorities through public procurement will use approximately 75% of their production. The remaining 25% is expected to be used by private persons in their biocng vehicles. Currently there are approximately 100 passenger cars and service vehicles, 12 garbage trucks and 15 busses running on bio-methane in the Municipality of Kalmar ( However, by ensuring the availability for bio-methane those numbers are expected to increase. Pag. 4

6 Communication and awareness campaigns: The regional network Biogas Sydost is an interest group withpromoting the tas to promote the production and use of bio-methane. The network communicates through their homepage, and via newsletters, seminars and conferences. As the model of cooperation is seemingly unique, LRF will try to spread the experience to other farmers in Sweden. Geographic and population scope: Geographic position (country, region or district or metropolitan area or municipality) Municipality of Kalmar Extensions The practice is aiming to establish a production that will meet the potential demand for bio-methane in Kalmar County. Climatology The average temperature lies between -5 to 0 wintertime and between 20 to 10-summertime. Orography The municipality of Kalmar and its surroundings consist mainly of flat lowland. Population densities The municipality of Kalmar has about inhabitants and about of those live within Kalmar city. Other conurbation within the municipality is Lindsdal (5510), Smedby (3487), Rinkabyholm (1607) and Ljungbyholm (1604). Kalmar County is to some parts scarsley populated and can sometimes be compared to the northen Sweden when it comes to population density. The total population of the county is Most of those are living in the bigger cities of Kalmar (36 392), Västervik (21 140), Oskarshamn (17 258), Nybro (12 810) and Vimmerby (7 934). (Source: Revsaneundersökning Småland Blekinge 2012) Urban characteristics. The City of Kalmar is one of the oldest cities in Sweden of which the urban planning reflects to some parts. The city has an historical center planned in the 17 th century but with the surrounding built mostly during the 19 th and 20 th century. Urban growth trends. Kalmar municipality grew with about 1000 persons between 2005 and (Source: SCB) (Source: Wikipedia) Pag. 5

7 Area of study. Zoning: Micro zoning. Macro zoning. Socioeconomic characteristics: Spatial distribution of the population. See: Population densities Population density. Kalmar Municipality has about 65,91 inhabitants /km2 (Source: Revsaneundersökning Småland Blekinge 2012) Population growth rates. Kalmar municipality grew with about 1000 persons between 2005 and 2010, while Kalmar County, as a whole, decreased with about 800 persons during the same period. (Source: SCB) Distribution of family units. No data available Pag. 6

8 Age groups, aging index. This diagram shows the division of men (blue) and women (red) in Kalmar Municipality Economic activity. Labor force and unemployment. Labor market. Unemployed (total/women/men). 9200/ 4300 / 4900 (County of Kalmar) (Source: SCB) Unemployment rate % (total/women/men). 7,9% / 7,8% / 8% (County of Kalmar) (Source: SCB) Employment rate % (total/women/men). 61,3% / 59,1% / 63,4% (County of Kalmar) (Source: SCB) Situation of the workers (private/ public / individual entrepreneur / entrepreneur with employees / other situations). No data available Sectors (agriculture/construction/industry/services) / 2185 / 1625 / (registered businesses in the County of Kalmar) (Source: SCB) Employment generation No data available Pag. 7

9 Use of private vehicles. Motorization: The typical journey in the Municipality of Kalmar conducted by a single person traveling by car (50%). (Source: Revsaneundersökning Småland Blekinge 2012) Analysis of the mobility: Mechanized and non-mechanized mobility. 13% of the journeys in the Municipality of Kalmar is walking. (Source: Revsaneundersökning Småland Blekinge 2012) Public and private transport mobility. 94% private 6% public (Source: Revsaneundersökning Småland Blekinge 2012) Distribution of modes and motives. 50% Single person in a car 11% Two or more persons in a car 13% Walk 20% Bike 5% Bus 1% Train 1% Other mode of transport (Source: Revsaneundersökning Småland Blekinge 2012) Areas of study developed in the practice: Road network. Traffic. Parking. Public transport. Pedestrians and cyclists: quality and urban space. Intermodality. Mobility management. Flow and distribution of goods. Environmental aspects. Road safety. Pag. 8

10 Timescale: Duration of the practice/project. The project began 2007 and a facility to produce bio-methane is expected to be finished by 2014 Implementation phase in which it is located. Everything is settled to start building the production facility. Necessary human/economic/technologic resources and skills to realize and to manage the Best Practice: According to the Project Manager Pelle Hallén, there are three major success factors or necessities for realizing this project. The first is to have an assurance of that someone will buy the produced bio-methane. This is important in order to attract and enable for initiatives in an area where the market is weak. When the production starts, there is a confidence that the increased supply will contribute to an increased demand for bio-methane within the long run. This because, when a facility is up and running the consumer risk of buying gas fuel vehicles diminishes. The second is that the More Biogas Småland AB is a company co-owned by the framers. As the farms produce producers of the manure for the production and consumes the digest as fertilizers, the farmers commitment is crucial to the success. The third is to make the ends of the market and consumer to meet. This is not possible without collaboration, patience and great dedication. Monitoring and results: Possible demonstrated results (through indicators) The demonstrated results are so far the pre-studies, calculations and arrangements. Together it make up to the preparatory work that eventually has led to the decision to build the plant. Possible success factors See: Necessary human/economic/technologic resources and skills to realize and to manage the Best Practice Difficulties encountered The major obstacle was to make the ends of the producer and the consumer to meet, since both must exist for a functional market. It is uncertain to start the production of bio-methane within a region that is lacking a grid to transfer the gas to wider markets. Therefore, it was necessarily to not only have a clear and outspoken regional initiatives to support bio-methane, but also to have a promise that a local market demand would be created by for example the public-transport company. The latter was rather difficult, as the major stakeholders, supposed to create the local, demand were not convinced that enough bio-methane could be produced at the right price. It all ended up in a vicious circle of uncertainty, hindering all bio-methane initiatives in the region. Hence, it took a considerable amount of negotiations and efforts to eventually break the vicious circle and make ends meet. Pag. 9

11 Remarks: The project described above is a best practice of how to build a local production of bio-methane in a region with great potential of production, but with a rather low demand for the product. In comparison to electric vehicles, bio-fuel vehicles are available at roughly the same cost as ordinary petrol engine vehicles. The same goes for buses and different types of service vehicles. Thus, when the supply of gas is now being guaranteed, bio-methane vehicles are a rational choice both for environmental and economic reasons for authorities and private persons in the region. As the emissions form bio-methane to most parts is included in the cycle of nature, the biocng vehicles are considered almost CO2 neutral. This makes bio-methane one of the major alternatives to fossil fuel and an important fuel in to be promoted in the strive of Kalmar County to become a fossil fuel independent region by Pag. 10

12 ANNEX II: BIO-FUELS TYPE OF VEHICLE: The county authorities have agreed on the goal of becoming a fossil fuel independent region by Hence, most authorities are encouraged to obtain fossil fuel free vehicles, of which vehicles running on bio-methane are an attractive alternative. As for the bio-methane produced by More Biogas Småland AB the major part 75% is expected supply the public sector and especially the busses of the public-transport company. TECHNICAL CHARACTERISTICS OF THE VEHICLES. PERFORMANCE: At this moment, the municipality has about 100 personal and service vehicles 12 garbage trucks and 15 publictransport busses running on bio-methane ( Most vehicles running on bio-methane are combustion engine hybrids, able to use both petrol/diesel and gas. The main difference is that two gas tanks are needed, something that might take up little extra space in the trunk of an ordinary car. Busses have the extra tanks on the roof and therefore not affecting the passenger space. TYPE OF BIO-FUEL. ORIGIN: Bio-methane produced by More Biogas Småland AB. Pag. 11

13 SUPPLY: Supply points. The supply points are located to the major cities along the Coast of Kalmar County (Kalmar, Oskarshamn and Västervik). Distribution of the supply points. Cost. The cost of bio-methane differs between different parts of Sweden. It is dependent on several factors although mostly dependent on the availability of gas and if it must be transferred by truck to the pump station. However all actors on the Swedish market sell bio-methane 10-30% less than the equal amount of petrol. Pag. 12