ERGaR: Cross-border transfer of environmental characteristics of biomethane GIE-ERGaR-CEDEC Workshop

Transcription

1 ERGaR: Cross-border transfer of environmental characteristics of biomethane GIE-ERGaR-CEDEC Workshop Attila Kovacs, ERGaR Secretary General 5 April, 2017

2 BIOmethane as a Sustainable Renewable Fuel Horizon 2020 project initiated by EBA 7 countries: AT, BE, DE, FR, HU, IT, UK 3 years: To address all important issues related to developing the European biomethane industry and market

3 Work Package 3: completed deliverables D 3.1. Comprehensive guidelines for establishing national biomethane registries D 3.2. Proposal on cross-border biomethane administration D 3.3. European Biomethane Gurantees of Origin D 3.4. Technical-economic analysis for determining the feasibility threshold for tradable biomethane certificates D 3.5. Market survey on biomethane acceptance and evaluation Available on together with deliverables of other work packages handling sustainable raw material supplies and LCA analysis

4 Why do we need the transfer of sustainability characteristics? 1. It is mandatory RED Recital (65): Biofuel production should be sustainable. Biofuels used for compliance with the targets laid down in this Directive, and those that benefit from national support schemes, should therefore be required to fulfil sustainability criteria. 2. It facilitates production and usage RED Recital (76): Sustainability criteria will be effective only if they lead to changes in the behaviour of market actors. Those changes will occur only if biofuels and bioliquids meeting those criteria command a price premium to those that do not.

5 Transfer of intrinsic value Value of biomethane: physical (in use) value + intrinsic ( bio ) value Physical value: corresponds to prevailing market value of natural gas Intrinsic value: green, bio, renewable, sustainable The intrinsic value must be realised on the market, in case of international trade it will be paid in the consumer country Conditions for biomethane export/import: The bio quality must be certified in the producer country The bio qualification from the producer country must be acknowledged in the consumer country

6 European Biomethane Grid BioCH 4 value = physical value + intrinsic value BioCH 4 grid = NG grid + mass balancing European natural gas grid to bring the physical value to the market Administrative system for transferring the intrinsic value from the producer country to the consumer country (applying the mass balancing method)

7 Function of mass balancing by ERGaR RED Recital (76): According to the mass balance method of verifying compliance, there is a physical link between the production of biofuels (and bioliquids) meeting the sustainability criteria and the consumption of biofuels (and bioliquids) in the Community. The physical link between the production and consumption of biomethane is the natural gas network, the administration must ensure the balancing of every injected consignment with the corresponding withdrawn consignment.

8 Mass balancing vs certificate Scheme ERGaR EECS Methodology Mass balancing Book and Claim Core Document Guarantee of Origin Certificate Core Document Non-Tradable Tradable Biofuels Mandatory Not Allowed Other Biomethane Applications Transfer of Sustainability Characteristics Recommended Integrated in the documentation Accepted Not Addressed

9 Cross Border Transfer of Sustainability Claims The sustainability verification for biomethane injected into the European natural gas network for export purposes should consist of two steps: 1. The first part of the chain of custody from raw material supplies through production/upgrading till grid injection will be covered by one of the established sustainability verification procedures, exactly like in case of liquid biofuels. 2. The second part of chain of custody from the moment of grid injection till the withdrawal by the end-user will be covered by the new voluntary scheme applying the mass balancing methodology.

10 Chain of Custodity for Biofuels Liquid biofuels: Biomethane:

11 Biomethane consignment in X MWh European Natural Gas network Natural gas consignment out Y MWh Sustainability Characteristics

12 Sustainability Characteristics Applicable to Biomethane in Cross-Border Trade Starting point: Communication 2010/C 160/01 Sustainability characteristics could include for example: Evidence showing compliance with the Directive's sustainability criteria A statement that the raw materials used were obtained in a way that complies with the Directive's land related sustainability criteria A greenhouse gas emission figure Description of the raw material used The statement production has been awarded a certificate of type X from recognised voluntary scheme Y, etc.

13 Cross-border transfer of GHG emission number In ERGaR the transferred sustainability information will include the GHG emission occurred in conjunction with the production of the biomethane consignment up to the injection (expressed in kg CO 2 eq/mj) without comparing this number with the GHG emission figure of the fossil comparator applied for the specific use of the renewable energy source in the country of destination. In the country of consumption, the transmitted GHG emission number will be judged in respect to: intended biomethane usage applicable fossil fuel comparator minimum required GHG saving level and will be decided whether the consignment in question can be used for the planned purpose.

14 Question: GHG emissions during pipeline transportation The GHG emissions related to forwarding biomethane consignments in the European natural gas network should also be considered. These emissions can be quantified as equal to the methane loss factor(s) applied by natural gas pipeline transportation organisations/companies. It would be practical to apply a unified default value of methane loss for the whole European network (independently from the virtual route of single biomethane consignments). An example: a study completed in Switzerland concluded that the average methane loss in the grid is at 0,2%. Are similar studies available on the European level?

15 In Practice The biomethane producer will appoint one of the recognised voluntary schemes (such as ISCC, REDcert, NTA 8080) to provide a certificate for each biomethane consignment with the following content: 1. A greenhouse gas emission figure; 2. Confirmation that GHG emission figure was calculated in accordance with the rules contained in Annex V of the RED; 3. Confirmation that the raw materials used for biogas production do not come from high biodiversity value areas, etc.; 4. Confirmation that the agricultural raw materials used for biogas production are obtained in accordance with the relevant agricultural regulations of the EU; 5. Raw materials processed for the given consignment. The certificate containing the sustainability characteristics will be attached to the Guarantee of Origin issued for the given biomethane consignment.

16 THANK YOU Attila Kovacs Secretary General European Renewable Gas Registry

17 Sustainability in General Long-term environmental aspect should prevail above (short-term) social and economic aspects: The Environment Social Subsystem Social contract to increase the general welfare of the people Economic Subsystem Source:

18 Biomethane Sustainability Elements Environment protection Air Quality Renewable Energy Local Value Creation Waste Utilisation Recycling Nutrients of

19 Exemple: CH Home Heating Market