Impact of support incentives on biogas market - Experiences from Germany
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1 Impact of support incentives on biogas market - Experiences from Germany Future development possibilities such as heat utilization, biogas upgrading and fertilizer use Frank Hofmann, International Affairs Consultant Fachverband Biogas e.v., German Biogas Association Seite 1
2 The German Biogas Association 4900 members throughout Germany Operators of biogas plants Technology manufacturers Research institutions Public authorities Feedstock providers Interested individuals Main objective: promotion of the biogas sector Definition of legal framework and technical standards 40 employees dedicated to the topic Exchange of information Lobbying on federal, state and EU level Seite 2
3 Content Support incentives for biogas in Germany: EEG and future perspectives Heat utilization Biogas upgrading Digestate use Summary Seite 3
4 Renewable energy targets in Germany Achieved Climate % greenhouse gas reduction (vs. 1990) -27% to -95 Renewable Energies Energy Efficiency % gross electricity consumption % final energy consumption % primary energy consumption (vs. 2008) final energy productivity 27.8% 12,4%* - 9 % 0.2%* p.a to to % p.a building renovation ~1%* p.a. doubling of renovation rate: 1% 2% Source: Federal Government 2010, BMU/BMWi 2014, AGEE-Stat 2014 Seite 4
5 Biogas in Germany - number of plants and installed capacity Seite 5
6 Development of the Renewable Energy Act EEG ( ) Consistent fee for 20 years Priority connection 250 new plants a year EEG 2000 EEG 2004 Bonus for energy crops Bonus for using heat 450 new plants a year Bonus for new techniques Bonus for emission reduction Bonus for manure 1000 new plants a year EEG 2009 EEG 2012 New system New requirements on efficiency and ecology 340 new plants a year EEG 2017 Same structure as in 2014 FiT only for small manure plants (Max. 150 KW) Tender process for plants larger than 150 KW Existing??? plants can participate in tenders Flexibility is a EEG 2014 requirement FiT for small manure plants (Max. 75 KW, 80% manure) FiT for biowaste (90% biotonne) 200 new plants in 2015 Seite 6
7 Sufficient tariffs for market stimulation? The EEG 2009 tariffs! Type of bonus 150 KW 500 KW 5 MW 1 Basic feed-in tariff 11,67 Cent 9,18 Cent 8,25 Cent 2 Bonus for emission reduction 1,0 Cent 1,0 Cent 3 Bonus for energy crops 7 Cent 7 Cent 4 Cent 4 Bonus for residues from landscape management 2 Cent 2 Cent 5 Bonus for manure 4 Cent 1,0 Cent 6 Bonus for new techniques 2 Cent 2 Cent 2 Cent 7 Bonus for new techniques 2 Cent 8 Bonus for using heat 3 Cent 3 Cent 32 Cent Seite 7
8 Fixed tariffs Fixed tariffs Biomass 42 - Up to BM 150 kw 13,32 Cent/kWh - Up to BM 500 kw 11,49 Cent/kWh - Up to BM 5 MW 10,29 Cent/kWh - Degression 1% per year Fixed tariffs Biowaste 43 - Up to BM 500 kw 14,88 Cent/kWh - Up to BM 20 MW 13,05 Cent/kWh - Degression 1% per year Seite 8
9 Fixed tariffs for small manure treatment biogas plants Manure treatment biogas plants 44 - Up to 75 kw el 23,14 Cent/kWh in der DV 22,94 Cent/kWh in der FV - Degression 1% per year - About 150 new installations estimated for 2016 Seite 9
10 Capacity [GW] Implemented by The future role of biogas in electricity production: flexibility instead of base load 20 % Renewable Energy Sources 40 % Renewable Energy Sources 80 % Renewable Energy Sources With increasing share of RES, baseload loses importance Flexible systems fill the valleys of wind and sun CHP with bioenergy and natural gas, the new role of biogas red Demand (2010) green Production of wind and solar energy Seite 10
11 Content Support incentives for biogas in Germany: EEG and future perspectives Heat utilization Biogas upgrading Digestate use Summary Seite 11
12 Heat utilization When biogas is used in a CHP unit to produce electricity, heat is produced as a by-product. This heat can and should be used. Some options are: In the own consumption of heat of the biogas plant Nearby buildings: from the farm itself, or municipal buildings To dry wood In greenhouses And many others Seite 12
13 Example of heat utilization: Niebüll (north of Germany) Through a cooperation between several biogas plants and the municipal services company: The biogas plants produce the gas The municipal company built the gas pipes to transport the gas to satellite CHP plants, in order to produce the heat where it is needed. The heat of one CHP is used for the demand of a hospital and another two CHP plants provide heat for public buildings (schools, pools, etc.), amorn others. Seite 13
14 Example of heat utilization: Thermal bad in Bad Windsheim Since 2007 waste heat produced at a biogas is provided to the thermal bad in the town of Bad Windsheim (south of Germany). The heat is used at the bathing complex, as well as at the sauna and the wellness area, saving up to 300,000 liters of fuel oil annually (equivalent to about 3 million kwh of heat) Seite 14
15 Content Support incentives for biogas in Germany: EEG and future perspectives Heat utilization Biogas upgrading Digestate use Summary Seite 15
16 Biogas upgrading to biomethane Biogas can be upgraded to biomethane, which has similar characteristics as natural gas Burning characteristics (heating value, Wobbe index, etc.) can be adapted to local natural gas conditions (LPG or N 2 ) Biomethane can be injected into the natural gas grid and be used as natural gas as: Electricity Heat Vehicle fuel Seite 16
17 Biogas upgrading to biomethane There are several biogas upgrading technologies available on the market This process step requires additional investment The bigger the volume rate the specifically cheaper the upgrading process Economically feasible only for high volume rates (e.g. above 500 m³/h biogas production) Seite 17
18 Biogas upgrading Biomethane technology overview Basic operations Process Separation effect Adsorption Pressure-swingadsorption (PSA) CO 2 adsorption on a carbon molecular sieve Adsorption Pressure water scrubbing Dissolution of CO 2 in water Chemical absorption Amine-scrubbing Chemical reaction of CO 2 with Methyldiethanolamine (MEA) Membrane gas separation Polymer membrane gas separation Membrane permeability of CO 2 is higher than that of CH 4 Seite 18
19 Content Support incentives for biogas in Germany: EEG and future perspectives Heat utilization Biogas upgrading Digestate use Summary Seite 19
20 Digestate application Liquid Application Energy crops, manure, agricultural/industrial residues, biowaste Direct Application (further upgrading possible) AD plant Digestate In line with European and national legislation, voluntary product specifications Liquid digestate Separation Solid digestate Seite 20
21 Nutrient content in digestate Nearly all minerals which are feed into the digester will be in the digestate Mainly carbon, some oxygen and hydrogen will leave the digestate in form of biogas Typical content of digestate: ph DM N total N available P 2 O 5 K 2 O MgO S Org. Humus % FM % DM % N ges % DM % DM % DM % DM % DM % DM Seite 21
22 Upgrading digestate Separation Drying Pelletising Composting Liquid Upgrading Separated digestate Dried digestate Pelletised digestate Composted digestate Liquid digestate Seite 22
23 To summarize Feed in tariffs can be adjusted to steer the intended development of biogas. Specific bonuses can steer technology development, like heat utilization or manure treatment. A way to increase the efficiency is to use the heat. Heat can be used in many ways whether on the biogas plant or nearby. Biogas can be upgraded to biomethane, can be injected into the natural gas grid and can be used like natural gas for electricity, heat and vehicle fuel production. The digestate from biogas plants is valuable fertilizer, nutrients can be recycled. Seite 23
24 Hvala na pažnji! Frank Hofmann Konsultant za međunarodne poslove Nemačka asocijacija proizvođača biogasa Seite 24
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