Biomethane Roadmap in Germany

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1 Biomethane Roadmap in Germany Giannina Bontempo German Biogas Association

2 Present situation After being Europe s most evolving market between 2007 and 2014, the market growth for biomethane has slowed down. The Renewable Energy Sources Act ( EEG 2014 ) was amended with the result of lower Feed-in tariffs: There is no longer a bonus for biogas upgrading and no special tariff for energy crops anymore (biomethane plants usually have biogas production at high volume rates which was mainly based on energy crops) The current biomethane production can continue for the duration of the feed-in tariff grant (20 years). Some projects stopped because the other markets (heat sector and use as fuel) are growing very slowly if at all

3 Present situation Currently about 9,000 biogas plants in operation with a installed capacity of GWel About 150 new biogas plants in 2015: mainly small manure based plants (max. 75 kwel and more than 80% manure in the input) Decline in jobs: 42,000 in 2015 (45,000 the previous year) Internationalization of the German Biogas/Biomethane industry is becoming more and more important Main growing EU-markets are France, Italy and the UK

4 Figures on Biomethane Currently about 190 biomethane plants in operation About 180,000 Nm³/h inst. capacity (raw biogas) 80% of the biomethane production from energy crops 2015: about 15 projects started operation Range from 200 Nm³/h Nm³/h for the installed raw biogas capacity

5 Figures on Biomethane

6 Figures on Biomethane Biomethane use: 80 % in CHP plants 10 % for heat 10 % for fuel About 120 biogas filling stations in operation; additional about 170 filling stations offer a blend of biomethane and natural gas Political goal: 2020: 6 billion Nm³/a 2030: 10 billion Nm³/a The political goals are not longer relevant

7 Barriers CHP sector Heat market Fuel sector International Trade No sufficient compensation from the Renewable Energy Sources Act Heating applications are hardly supported (obligation to use in CHP due to higher CO2- reduction), except in the state of Baden- Württemberg Stagnating CNG vehicles sales New CO 2 -Quota bears many risks and uncertainties Confusing price signs at fueling stations Prohibitive national legislations Lack of EU-wide mass balance system

8 Drivers Due to the barriers mentioned above, national drivers are rather scarce at the moment Growing interest in German biomethane upgrading technology (not only in the European market, but also in countries like Brasil and India)

9 Perspectives of development There is still a significant potential for development (e.g. organic household waste, manure ) The future role of biogas/biomethane in the electricity sector will be to provide flexibility to the system (balance fluctuation from wind and solar energy) The transportation sector has huge potential for biomethane. More renewables in transport sector are needed and electrification is limited. Political support needed! Independency of foreign gaseous sources might become a more important issue for the EU

10 What s in the next future? The next reform of the Renewable Energy Sources Act is coming up in Auctions are going to be introduced for all renewables The government is currently revising the electricity market system as a whole and has announced to make major changes to the current design by 2017 (Fossil) CHP-legislation is been revised, possibly with a new momentum regarding CO2- saving and therefore chances for biomethane International barriers need to be addressed in order to provide market uptake

11 Thank you for your attention! Giannina Bontempo Junior Project Manager German Biogas Association Telephone +49 (0)

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