Biomethane markets and policies

Transcription

1 Biomethane markets and policies Sabine Strauch, Fraunhofer UMSICHT March 2014 The sole responsibility for the content of thispublication lies with the authors. It does not necessarily reflect the opinion of the European Union. Neither the EACI nor the European Commission are responsible for any use that may be made of the information contained therein.

2 Important facts Biomethane is Storable Many-sided Interdisciplinary Renewable energy storage and e.g. can stabilise the electricity grid. It s produced from bio-waste, sewage sludge, manure and energy crops. Interface between energy, waste, WWT, agriculture, water and nature protection. Flexible Different pathways various regulations

3 Status quo Country Biomethane plants Biomethane plants feeding the grid Biogas plants total (incl. LFG, sewage, agricult.) Agricultural Biowaste (incl. organic MSW) Sewage LFG Austria approx Croatia France Germany approx Hungary Italy approx Netherlands Poland approx. 200 Slovakia UK > 200 Sweden Switzerland TOTAL Fraunhofer UMSICHT, March 2014

4 How to support biomethane? Direct support Specifically for biomethane technology Encourage production Indirect support Open for various technologies Support biomethane consumption Either, or? And?

5 Feed-in-tariffs gas (FIT gas) Pros: Cons: Security for project owners Eases project financing Decreases risk margin Transparent scheme Fast development of a new market can be expected Important to harmonise height of the FIT not to overstimulate the market Examples: France, UK, Italy

6 All figures without liability regarding correctness and completeness

7 All figures without liability regarding correctness and completeness

8 All figures without liability regarding correctness and completeness

9 All figures without liability regarding correctness and completeness

10 FIT for electricity from biomethane CHP production Pros: Cons: Steering the incentive due the most energy efficient utilisation pathway High reliability eases project finance Need to keep transparency through the long value chain Distinguish between support for biomethan and natural gas CHP Examples: Germany, Austria

11 The German way Re-financing programme for banks Priority grid access and transport for biomethane Sharing of investment costs for grid connection station and grid connection Facilitated biomethane transport and balancing with extended flexibility range FIT for electricity from CHP Biofuel quota Renewable heat quota Tax reduction for biomethane as a fuel

12 Capacity equivalent [kw el ] Tariffs according to German renewable Energy Act EEG 2012 [ct/kwh el ], not considering degression Sewage gas Agricultural and biogas plants Base tariff Substrate class I Substrate class II Bonus biogas upgrading Landfill gas 75 *** 14,3 700 Nm³/h: , , , Nm³/h: ,89 8 / 6 * 5, Nm³/h: * electricity from manure > 500 kwel 6 cent / kwh ** only for bio-waste according to 27a/1 Biowaste with post composting *** extra category for manure plants with capacity <75 kw el, all inclusive tariff - no combination with base or substrate tariff

13 Investment support Pros: Specific target groups can be adressed Eases project finance Cons: Missing incentive for plant operating, if no additional mechanism

14 The Swedish way Investment programmes for municipalities and farms specific aid for farm based biogas from manure Tax exemption from vehicle tax Tax benefits for companies with environmentally friendly company fleet Benefits for taxi companies with clean vehicle fuel Tax exemption for biomethane application from CO 2 tax and energy tax

15 The Swiss way Free market driven by the initiative of the Swiss gas industry Funds for injection projects

16 To point out (I) Biomethane is a green energy carrier that has a special value because it is flexibile in use and it is storable. Various biomethane support schemes exist in European countries. Direct support through FIT can encourage the market, however, remuneration has to keep balance between cover production costs and competing branches.

17 To point out (II) Project planning and implementation phase takes time, therefore stable support conditions over at least 3 years are a must. Biomethane can be competible in biofuel quota systems. In electricity quota systems its major value to be storable- is not remunerated. Biomethane is an interdisciplinary issue carefully check interfaces with regulations in energy, agricultural, WWT branches.

18 Contact Dipl.-Ing. Sabine Strauch Phone: +49 (0) Fraunhofer UMSICHT Osterfelder Straße Oberhausen Germany Internet: info@umsicht.fraunhofer.de

19 The project partners