Sustainability Review of a Biomethane Trade. William Mezzullo 21 Feb 2012

Transcription

1 Sustainability Review of a Biomethane Trade William Mezzullo 21 Feb 2012

2 A UK leader in the development an operation of energy crop AD plants Founded in 2008 First planning permission 12/2009 First plant (1.4MW) fully operational Second plant (1.5MW) has been operational since April rd and 4 th plants have obtained planning permission

3 Spring Farm Plant operating (1.4MW) 20+ local farmers Crop opportunity for poor land Break for vegetable production HLS grass and Norwich Airport lawn! Perennials and high performance grass Reepham Road Heat user next door (Abattoir) 1.56 MW Started generating on the 2 nd of April 2012 More local farmers!

4 Overview What is the Green Gas Grids Project? EU Sustainability Criteria for Bioenergy DECC Biomass Sustainability Criteria Implications on the biomethane industry

5 IEE Green Gas Grids Project o 3 year EU funded project to boost the European biomethane market o Led by German Energy Agency o Working on 4 key areas: o Sustainability (WG 1) o Technical Standards (WG 2) o Trade (WG 3) o Policy Targets (WG 4)

6 Working Group 4 (Policy Targets) Goal of Working Group 4 Country Models o Led by John Baldwin o Create a National Tool Kit for EU countries for policy makers to determine the total biogas potential o Each country/agency will be able to use the tool kit/model to develop a range for biomethane potential by 2020 and 2030 o This will enable feedback into National Renewable Action Plan

7 Working Group 4 Outputs Identifying Barriers to Entry o 3 fundamental requirements for biomethane injection o Is it legal: Technical barriers such as O 2, France biomethane from sewage waste not allowed o Is there finance: Italy, Northern Ireland etc. still have no support for biomethane o Support from Grid Owner: Lack of motivation from Grid Owner could make it challenging

8 Working Group 1 Sustainability What and Why? o EU Sustainability Criteria for all biomass for heat, cooling, electricity, injection o Mandate under the EU Renewable Energy Directive o Criteria must ensure all biomass to energy: o Have a net saving in GHG emissions compared to fossil fuels of 35% o Feedstocks used do not use land with high biodiversity value (or high carbon stock) o GHG savings target to rise to 50% by 2017 and 60% by 2018

9 Sustainability Criteria for Electricity Biogas to Electricity o Must meet the criteria if claiming ROC subsidies o Lifecycle GHG emissions must be monitored, audited and reported: o Feedstock production (waste = 0 GHG emissions) o 60% GHG reduction target o Not applicable to FIT

10 Biomass GHG Reduction vs Fossil Sustainability Criteria for Electricity 70% 60% 50% 40% 30% 20% 10% 0% UK GHG target (Present) EU GHG target (Present) EU GHG target (2017) EU GHG target (2018)

11 Sustainability Criteria for biomethane Biomethane o To be introduced in April 2013 o RHI funding will be dependent on successful adherence to Sustainability Criteria o Will be consulted on by DECC (October 2012) o No information available however o Probable 60% GHG reduction compared to fossil fuel equivalent (Natural Gas Comparator?)

12 kgco2/mwh Average Electricity Emissions EU Target (35%) Electricity UK Target (60%) Average Nat Gas Emissions EU Target (35%) Biomethane UK Target (60%)

13 kgco 2 /MWh GHG reduction of biogas plants Comparison of Carbon Emissions per unit of biogas produced EU Biomass GHG reduction target DECC Biomass GHG reduction target EU electricity mix UK electricity mix Biogas to electricity Biogas to electricity (ORC) Biogas for biomethane Hopefully!

14 GHG emissions of biomethane plant 50% Feedstock Production 30% 5-10% Biomethane Upgrade 10-15% Transport Site Operation

15 Areas of high GHG emission risk Methane slip from off gas o Off-gas methane concentration (also known as methane slip) o No limit in the UK however this is limited in Germany to 0.2% Open Digestate Stores o Fugitive emissions from residual methane potential o No requirement for this in the UK

16 Summary o Raising Sustainability profile in biogas industry o Pressure from Europe to ensure all biomass subsidies are linked to sustainability o Biomethane offers excellent GHG reductions o Concerns of what GHG reduction benchmark will be used o Optimisation of plant carbon footprint becoming financially imperative (reducing methane slip, efficient feedstock production etc.)

17 William Mezzullo Thank you