Country profile and actions in BiogasAction. Auvergne-Rhône-Alpes

Transcription

1 Country profile and actions in BiogasAction Auvergne-Rhône-Alpes Page 1 of 7

2 Country profile and state of departure In Red: Project pending for subsidies In green: plant in farms, territorial, landfill, water treatment plant When the project began, in January 2016, there were 51 plants in Rhône-Alps region. The biogas production represented 400 GWh of primary energy for heat and electricity. There was no biomethane production, but 2 plants were under construction. At the same time, in the Auvergne region there were 10 plants and only one farm was producing biomethane. In May 2017, there were 78 plants in the new region Auvergne-Rhône-Alpes (see hereinbefore the map) representing 700 GWh of production and 61 projects. 6 plants are injecting biomethane into the gas grid (3 farms or territorial plants and 3 water treatment plants). Most of future and on-going projects are with farms. The highest potential feedstock is represented by manure and farming by-products and by wastes from food industries. The biogas sector is now a developing sector in our region. Since 2016, the sector has been quite well supported at a regional and national level with feed-in tariffs and subsidies for investment. The biomethane production and gas grid injection is the most interesting solution for a project owner in terms of profitability, operation and capacity of development. But convincing banks to invest is quite difficult for territorial or farm projects. Page 2 of 7

3 At a national level, since 18 months, we have had new feed in tariff for CHP plants, national policy on energy crops. The work done by the gas grid operators is really encouraging: they are working on gas grid connection costs reduction and new technical solutions for gas grid injection in territories where there is a limited capacity for gas injection. In France and especially in our region, we have French SMes developing solutions for biomethane production: start-up firms We can see a strong innovative activity in this field, helping new development model such as: biomethane transport by trucks, refueling station for biongv in farms, microbiomethane production for local mobility in CHP plants, micro digestion Farmers are really interested in producing their own fuel for mobility and energy independency. The major companies in the energy field (Engie, Total, Carrefour) have clearly identified their strategy on biomethane development and are already implementing actions. There are strong demands for LNG and NGV (in local authorities and logistic sector) due to air quality problems in cities or mountain areas. Clearly, the energy transition law has impacted and is generating a new dynamic for this sector. We consider that there is a change of paradigm. But this sector has to develop quality, standards, security policies especially in farm production and small production. Natural gas grid is not really developed in rural area where there is most of substrates. Financing projects remains difficult and insurances aspects are not so clear too. The visibility of Institutional buildings and framework sector is not clear in the long run, and it takes time to convince and create a favorable/open framework at national and regional level. Electricity mobility and hydrogen technologies are well known in our country and are getting most of the finances for research, animation and regulation support. Unfortunately French Biogas companies are disappearing essentially because of the very slow process in implementing projects. (Heavy administrative issues, acceptability and financing etc...). At a local level, the acceptance of projects is very difficult with strong opposition from citizens, local associations, companies and finally local authorities for territorial projects and farm projects. What has BiogasAction been working on? During the first period of the Biogas Action project, RAEE has been working on different tasks in order to promote and fulfill the targets fixed and the different challengers in Auvergne-Rhône-Alpes especially with focus on WP3. The following initiatives have been established. Institutional-building The number of members in the regional advisory committee has increased to 250 persons. The aim of this committee is to show to public deciders the development of this sector, its economic impact in our region, to give perspectives and strategy for companies, to show development opportunities, new market and to share know-how.this committee is organized twice a year with two different formats: a conference with expert presentations and a site visit and discussions in a local company. Page 3 of 7

4 In 2016, new regional operators have identified the biogas sector development as being a strong potential in our region. And thus they decided to promote their activity in this field: the regional association of natural gas (AFG Centre est) decided to create a green gas commission, and Tenerrdis a cluster on energy innovation decided to promote biogas development. For RAEE it was an opportunity to strengthen the biogas and biomethane field towards institutional reprensentatives. RAEE presented the Biogas Action project and the strategy in May 2016 as a guidance of our activity and possibility to match with work plan of the green gas commission. RAEE proposed to create with Tenerrdis and AFG a dynamic marketed Biogaz Gener action to give visibility to our work and collaboration. In 2017, RAEE was involved in the organization of a business event (60 companies) in Lyon managed by AFG, and a regional event on innovation (150 attendees) managed by Tenerrdis and also in a workshop on training session definition for project owners. Strengthening the biogas sector framework Most of substrates are in farms which are in rural area, but the size of farms is quite small for gas grid injection. It isn t easy to build project involving numerous farmers. The opportunity could be the local production in each farm and share the gas grid injection box. But for the moment the existing mechanism of support is not adapted: the feed in tariff is calculated in the injection point and is decreasing with the high volume of gas injection. This mechanism would allow profitability for small production if the feed-in tariff was calculated at the level of the plant. With the Biogas action project, we decided to communicate and participate in conferences to show this GOOD opportunity to adapt the existing support mechanism: with AILE within the biogas Europe Fair, with ADEME within the POLLUTEC fair. In our country, new biogas cleaning system technology are based on cryogeny and allowed biolng production. It is not interesting to inject into the gas grid. It is suitable to sell directly as LGV. But the feed in tariff in France is only based on gas injection and not biomethane production. We are members at a national level within the national biogas association of a workshop to define a new mechanism of support for biomethane not injected. Concerning the problem of local acceptance: we communicate at a national level on the role of local authorities to support a project. At a regional level: we produce notes for the regional council and for ADEME to support BioGNV, especially new refueling stations in farms. Page 4 of 7

5 Optimizing business models and financing of biogas projects The French model is built on waste treatment (with fee), energy efficiency (heat used), and manure. Since the beginning energy crops are not allowed. The feed in tariff is not sufficient and each project needs subsidies at a regional level. The business model in farm with a small CHP plant < 200 kwé is quite operational now. The model of project for gas grid injection has to be adjusted. There is a new market for guaranty of origin. There is a strong demand for the transport sector. Farmers want to produce biomethane and are not interested in CHP plants. We have to reduce the costs and the size of the equipment for biomethane production in farms. In 2016, the business model of dry fermentation was not established, it is quite defined now. The first territorial AD plants with CHP had strong difficulties: the remuneration from energy or wastes were overestimated, operation costs were underestimated (territorial plant), long time to build and to produce electricity (authorizations, electricity connection ) : ->loss of money, technical problems with motors, pumps (lack of insurance). Banks don t want to finance biogas plants in farms and farmers are not really efficient to present and describe their project to the banks. We produced a guideline on the financing process for project owners to understand the positioning of banks and show all the possibilities to finance a project. Optimizing biogas production We met the company Biovalo in Clermont Ferrand, a new center of research and training with an AD plant, we are thinking about developing training sessions for regional project owners. Within the biogas gener action partnership, inside the AFG green gas commission, we developed a new training session for potential project owners on coaching on personal growth. As a potential developer, the trainee has to define its own limits and its strength with regards different skills for the project development: technical, communication, negotiation, contract. We focused on public acceptance and project financing. We trained waste management entities on biogas production. Page 5 of 7

6 Assistance to specific high quality biogas project development We provide support for project at all steps of development: studies, business, building, financing transfer of experience and capitalization on innovative process. In 2016, RAEE published the first French guideline on biomethane refueling station in farm. The 60 pages guideline details regulation, authorization and implementation, security aspects, financing, dimensioning and technology with suppliers available in our country. Concerning regulation and authorizations, there are specific status and taxes for refueling stations. When selling biomethane, it means that it is not a real farm activity. The farmer has to deal with local administration to implement his plant in rural area near the farm, and near the biogas plant. For profitability, he has to produce biomethane and inject it into the gas grid. The refueling station will use the gas from the grid with guaranties of origin. There are enough technologies available in France to compress and storage the biomethane and deliver it to cars or trucks. The economic model and the size of the plant really depend on the fleet and habit of customers. Most importantly, the size of the plant will depend on the type of refueling: quick or slow, the capacity storage in link with the size of compressor for successive refueling and the type of demand for trucks or for cars. The most expensive part of the plant for investment and operation is the compressor. In order to be profitable, the plant has to refuel first trucks with other vehicles. Only one refueling station in farm exists in Europe (in Finland). The next one will be in France. For further information please contact: RAEE Valérie Borroni Project manager valerie.borroni@raee.org Tel: RAEE website: RAEE, the regional energy agency of the region Auvergne-Rhône-Alpes is promoting and supporting new energy activities in his region in link with public authorities and institutions. It is working in the field of biogas from 20 years. RAEE is member of FEDARENE, Club Biogaz (the national biogas association), and national workshop to develop the sector. At the regional level it is a resource s center financed by the Auvergne-Rhône-Alpes Regional Council, ADEME and Europe though EU projects to support companies and local project owners with technical input, network, capacity building, replication, training and communication activities Page 6 of 7

7 About BiogasAction: Biogas Action aims to promote the production of sustainable biogas throughout the EU, especially by exchanging best practice, creating new business models, and increasing investments in biogas production. The project s purpose is to serve as a vehicle for a rapid development of the European biogas/biomethane sector. This undertaking will contribute to the EU 2020 targets, by focusing on the removal of non-technical barriers to the widespread production of biogas from manure and other waste. The project is based on a deeper cooperation between the different policy levels (European, national and regional), and on its implementation in various EU regions. What actions will be undertaken, and what objective will they serve? To identify and disseminate proven support strategies and guidelines, to fulfil the potential for biogas and biomethane development in Europe. The partners will define a strategy for the global promotion of biogas in the EU, and will provide comprehensive tools on how to exploit the potential of biogas and biomethane in Europe, based on proven support strategies. In order to achieve this goal, a comprehensive inventory of support tools will be outlined and summarized in an interactive database. To define and implement a specific biogas/biomethane intervention strategy in each target country/region. The strategies will consist of a range of specific activities and measures, focusing on the removal of non-technical barriers for the widespread production and use of biogas/biomethane from codigestion of manure and organic wastes. These measures will include institutional building through the creation/improvement of the national and regional platforms for biogas deployment and development ; the improvement of dialog and interaction between stakeholders, decision makers, financing institutions, energy companies, other major biogas/biomethane actors, as well as a cross sectorial biogas network of collaboration and communication ; the optimization of business models and project financing ; an increase of investments in biogas/biomethane production in the EU ; an optimization of biogas production and use, including new biogas/ bio-methane distribution systems and the exploitation of biogas potential through project generation and concrete assistance to farmers and entrepreneurs. The project plans 50 specific quality, sustainable biogas projects in the intervention regions. To exchange knowledge and experience within and beyond the target areas and the project life time. The project will establish systematic knowledge sharing, through learning and networking, so that the actions could be replicated at the European level, and after the project lifetime. What could the project achieve? Through its various actions, Biogas Action could contribute both to the increase of the share of sustainable bioenergy in the final energy consumption, and to a reduction in the transaction costs for project developers and the authorities. To finish, the project could also actively contribute to the development of better policies, financial frameworks and market support at national and regional levels. Page 7 of 7