B I O G A S P R O D U C T I O N I N E U R O P E, D E C E M B E R B I O G A S R E P O R T

Transcription

1 B I O G A S P R O D U C T I O N I N E U R O P E, D E C E M B E R B I O G A S R E P O R T

2 Page 2 T A B L E O F C O N T E N T S Foreword 3 Methodology and disclaimer 4 Sources 5 Number of biogas plants 6 Biogas production 11 Biomethane production 14 Jobs 18 Support schemes 19 Future prospects 26 Cover photo: AB Energy

3 Page 3 F O R E W O R D Dear members and colleagues, You have just started to read the fourth Biogas Statistical Report of EBA. As a rule, EBA report comes as the last one, following many other reports on biogas industry. In return, we do present the most reliable data, coming directly from the national associations. In our view only the industry itself can provide data and answers we would like to present to our readers. As usual, it is Germany which occupies the first rows of all the statistics. However, the dramatic change which started with Renewable Energy Act EEG 2012 continues to hamper the industry. On the other hand, the biogas industry is increasing in the other parts of Europe UK, Italy and Denmark, and we hope that the rest of Europe will follow this trend. I am sure you will find a good use of these figures and of the report altogether. The biogas industry is facing tremendous policy changes, and it is our responsibility to provide you with the most reliable data to support our member associations to do political work in your home countries, to support our scientists in their research on new technologies, and to support our companies with updated information. EBA Biogas Report 2014 is here to support the work of all of you. Jan Stambasky EBA President

4 Page 4 M E T H O D O L O G Y The EBA s Biogas Report covers 27 EU countries (apart from Malta) and Switzerland. It contains compiled data on the number of biogas and biomethane plants, production, information on support schemes and predictions of the biogas market in the nearest future. As much as we tried to provide the most recent and the most accurate data, EBA cannot take any responsibility due to fluctuation and differences in the structure of the information sources. Diversity of sources Different data sources were used for compiling this report. The data comes mainly from the national associations, national statistical reports or - in the absence of submitted data - from previously compiled data by EBA published in EBA s regular country profiles. In case of no response from a particular country, own research and experts knowledge was used to assess the development. The sources and contributors are listed on the following page of this publication. Biomethane figures come from the European Sustainable Biofuels Forum (ESBF) project that collects data on biofuels in Europe and that EBA is a partner in. Data limitations and uncertainties Responses from 24 countries were collected. Disseminated questionnaire contained detailed breakdowns on production, feedstock and support schemes, however, due to lack of national databases or official registries in observed countries, contributors were unable to provide information on all requested data. In total 24 countries reported on installed electrical capacities (MWel), 12 on biogas production (GWh/year), 21 on generated electricity (GWh) and 14 on thermal energy production (GWh). Therefore, some comparative data have uncertainties, in particular breakdowns of types of biogas plants and biomethane upgrading units. Statistics for Romania and Bulgaria come from the recently published EBA s country profiles that were based on findings and support from the national associations and partners in those countries. Lithuanian data come from the Biogas Report 2013, backed up by own findings. In spite of no response from Luxembourg and Spain, the authors assumed no improvements in the countries compared to the last edition the report. Indicators Indicators used for comparing different biogas performances and benchmarking were population and biogas production per capita. D I S C L A I M E R This report was materialised thanks to efforts of EBA members and collaborators providing all the required statistical data and information. The report is primarily intended for EBA members, free of charge, and for sale to other interested parties. Use and reproduction of this report and the data contained are allowed, provided that the source is acknowledged. Users shall agree that use of the data contained in this report is made under their own responsibility. C O N T A C T S Agata Prządka, Technical Advisor przadka@european-biogas.eu +32 (0) Erneszt Kovács, Assistant to the Technical Advisor e.kovacs@european-biogas.eu +32 (0)

5 Page 5 S O U R C E S Austria Belgium Bulgaria Franz Kirchmeyr, AGRE Austrian Compost & Biogas Association Tel.: kirchmeyr@kompost-biogas.info Wallonia - Cécile Heneffe, ValBiom, heneffe@valbiom.be Tel: Flanders - Erik Meers, Biogas-E, Erik.Meers@howest.be Bulgarian Biogas Profile, November 2014, EBA Ireland Italy Latvia Percy Foster, Composting & Anaerobic Association of Ireland percy@cre.ie Lorenzo Maggioni, CIB - Italian Biogas Association Tel.: lomag@libero.it Andis Karklins, Latvian Biogas Association Tel.: andis.alabastrs@apollo.lv Croatia Ana Marija Špicnagel, IPS Konzalting ams@ips-konzalting.hr Lithuania Biogas Report 2013, EBA Darius Strazdas, UAB Manfula The Czech Republic Cyprus Denmark Estonia Finland France Germany Greece Hungary Jan Stambasky, Czech Biogas Association Tel.: jan.stambasky@czba.cz Anthi Charalambous, Cyprus Energy Agency anthi.charalambous@cea.org.cy Georgios Maroulis, RES legal georgios_maroulis@eesd.gr Søren Tafdrup, Danish Energy Agency st@ens.dk Ahto Oja, Estonian Biogas Association Tel.: balti.bioenergia@gmail.com Ari Lampinen, Finnish Biogas Association Ari.Lampinen@liikennebiokaasu.fi Claire Ingremeau, ATEE Club Biogaz Tel.: c.ingremau@atee.fr Oliver Gehrke, German Biogas Association Tel.: Oliver.gehrke@biogas.org Efthimios Sakkas, Hellenic Biogas Organization Tel.: efthimios.sakkas@helbio.gr Attila Kovacs, Hungarian Biogas Association Tel.: kovacs.attila@biogaskft.hu Luxembourg The Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden Switzerland UK Biogas Report 2013, EBA Jean Schummer, Luxembourg Biogas Association EBA expert research EBA expert research Flavia Duarte, IrRADIARE flavia.duarte@irradiare.com Romanian Biogas Profile, May 2013, EBA Alojz Bernát, AVEOZ Association of energy producers from renewable sources alojz.bernat@aveoz.sk Lada Uskobova, Novaenergo uskobova@novaenergo.cz Nina Barbara Križnik, Slovenian Biogas Association nina.kriznik@gzs.si Tel.: Francisco Repullo, AEBIG - Spanish Biogas Association, frepullo@aebig.org Hanna von Bahr, Energigas Sverige Hanna.vonbahr@energigas.se Arthur Wellinger, Biomasse Schweiz Tel.: wellinger@european-biogas.eu Ollie Moore, ADBA Anaerobic Digestion and Biogas Association Tel.: ollie.moore@adbiogas.co.uk

6 Page 6 BIOGAS REPORT 2014 NUMBER OF BIOGAS PLANTS During the previous year Europe saw an 5.5%, much lower than the 12% growth increase in the number of biogas plants rate last year. Significant changes occurred with a total of That was 760 more, in different parts of Europe, mainly due to compared to the number of plants in 2012 recent changes in support schemes, that (Table 1, Figure 1). That is an increase of led to the expected outcomes Figure 1: Biogas plants in Europe in 2012 and 2013 Biogas plant in Aiterhofen, Germany. Photo: Schmack Biogas GmbH

7 Page 7 Table 1: Biogas plants in Europe in 2012 and 2013 Country Total number of biogas plants 2012 Total number of biogas plants 2013 Agriculture Sewage Landfill Other* Austria Belgium Bulgaria Croatia 12 11** Cyprus 15 14** The Czech Republic Denmark ** Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg The Netherlands Poland Portugal Romania 7 8 n/a n/a n/a n/a Slovakia Slovenia 33 31** n/a n/a n/a n/a Spain Sweden Switzerland UK TOTAL *Other - biowaste and industrial biogas plants **Fluctuations due to different sources n/a - not available

8 Page 8 SLOWDOWN IN THE KEY BIOGAS COUNTRIES Unlike previous years when numbers of biogas plants in Germany and Italy were doubling (Italy, 2012) or increasing by more than thousand a year (Germany, 2011), 2013 brought a rather humble increase in the numbers, relatively smaller than in the years behind. The German biogas industry is suffering from the new Renewable Energy Act (EEG). Further challenges and a significant slow down in development are expected, as the FiT were reduced since August 2014, while from 2016 FiT for biogas plants above 100 kw are seen to be cut, capping the plants at 100 MW of installed capacity. Therefore, a lot of work occurs around plant repowering and flexibilisation of plants. Regardless of these changes, Germany still dominates the market, not only by the number of plants but also services provided and the know-how. Italy alongside with Germany occupies the top with plants. However, 270 new plants opened last year were just a portion of the 2.5 fold increase recorded two years ago. The Italian support scheme changed in 2013, like in Germany, also limiting the number of new biogas plants, since those would be the plants affected by the decrease in FiT. Switzerland completes the top 3 with 14 new plants built, but this presents the average growth over the last several years. CENTRE OF EUROPE, CENTRE OF ATTENTION A positive trend continued in central Europe where Hungary, the Czech Republic, Poland and Slovakia have recorded continuous increases in numbers of biogas plants. The Czech Republic has opened 73 new plants, Hungary 20, Poland 30 and Slovakia 19. This resulted in an overall increase of 18% in the region. DEVELOPMENTS IN THE WEST Countries that reported a relatively big number of new plants are those which are already forerunners in the total numbers: France with 53 new plants. The UK with 48 and Sweden with 20. Although UK is now having the majority of biogas plants based on landfill gas, in 2013 the biggest increase was in agricultural plants. This increase in the UK reached 13% this year. Sweden also opened new agriculture based biogas plants along with a smaller number of landfill biogas plants, a total growth of 7.5%. While most of the countries reported new biogas plants being commissioned, some countries reported the same numbers like the previous year, including Austria with 436 plants, the Netherlands with 252 plants and Ireland with 27. In the case of Austria, this occurred due to the local caps that were imposed over the last few years in these counties. Belgium even saw a closure of few plants: 2 landfill and 3 sewage based biogas plants in Wallonia.

9 Page 9 NEW MARKETS? Few countries that recently entered the biogas industry have even upgraded their capacities and opened new plants. Bulgaria has eight new plants with several more under construction, Estonia built eight new plants reaching eleven now. Romania opened one new plant. Serbia got its first biogas plant in the north province of Vojvodina and its newly founded national association became a member of EBA. AGRICULTURE BASED BIOGAS PLANTS DOMINATE As expected, agriculture based biogas plants that run on energy crops, agricultural residues and manure have the biggest share in the total number of biogas plants, making up to 2 /3 of all plants (Figure 2 and 3). Germany and Italy have 86% and 80% of their biogas plants operate with agricultural feedstock respectively, while Austria 100% and the Czech Republic have them slightly less in the overall share, 46% and 69%. Some countries however have all their production based on agriculture feedstock, like Croatia and Cyprus. Other countries have a rather mixed share of landfill, sewage sludge and agriculture based plants, with France, Finland and Poland producing biogas mainly from organic waste and on landfills. The United Kingdom and Sweden extract biogas from sew- Sewage 16% Other* 5% Landfil 7% Agriculture 72% Figure 2: All biogas plants in Europe in 2012 by type 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Figure 3: Biogas plants in European countries in 2013 by type Other* Landfill Sewage Agriculture

10 Page 10 age sludge. Finnish electricity and thermal energy generated from landfill biogas plants make up to 50% each in the overall biogas generated electricity and thermal energy although the number of biowaste plants is increasing. Landfill based plants in the UK generate the largest share of electricity (78%), but a growing number of agricultural plants might reverse this trend. Although Greece has only three landfill based biogas plants out of 22, those represent 64% of the total installed capacities (two major plants with capacities of 23.4 MWel and 11.4 MWel). The big share of agricultural biogas plants in Europe (Figure 2) can be explained by the corresponding shares of such plants in the breakdown of leading biogas producing countries. Germany, Italy and the Czech Republic make up for almost 75% of total biogas plants and are predominantly producers from agricultural sources. Feedstock for biogas varies across Europe. However, countries like Finland, Sweden and Portugal have very limited use of agricultural feedstock. Sweden s 6 million tonnes of sewage sludge is fed into its 137 plants. In case of the UK, the other country with the largest share of sewage sludge based plants million tonnes were processed in 146 plants. Agricultural based plants dominate, that is a fact, however the feedstock still varies and mostly relies on agricultural residues, mainly manure that is very often backed up with energy crops. There is also a clear corresponding share of industrial feedstock (food and beverages industry) and the number of such plants in Belgium, UK and Switzerland. Other in Figure 2 and 3 refers to industrial food and beverage and biowaste. BIOGAS AND ITS VERSATILE FEEDSTOCK Figure 4 shows the breakdown of feedstock use (share) in biogas plants in countries that provided the data. However, landfill sites were excluded from this breakdown and only amounts of substrates for biogas plants were covered by this graph. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Figure 4: Feedstock use in biogas plants * Belgium (Flanders), Italy (Lombardia) Other Green waste Biowaste Energy crops Sewage sludge Industrial

11 Page 11 B I O G A S P R O D U C T I O N Table 2: Biogas production in Europe in 2013 Country Biogas production [GWh/year] Installed electrical capacity [MWel] Generated electricity [GWh] Thermal energy production [GWh] Austria Belgium n/a Bulgaria n/a 14 n/a n/a Croatia n/a n/a Cyprus n/a 10 n/a n/a The Czech Republic n/a n/a Denmark n/a 401 n/a Estonia n/a n/a Finland 556 n/a France n/a 259 n/a n/a Germany Greece Hungary Ireland n/a Italy n/a Latvia Lithuania n/a n/a Luxembourg 8 7 n/a n/a The Netherlands n/a n/a Poland Portugal ,4 Romania n/a 9 n/a n/a Slovakia n/a 96 n/a n/a Slovenia n/a 34 n/a n/a Spain n/a n/a Sweden n/a Switzerland UK TOTAL n/a - not available

12 Page 12 According to EBA s data, collected for 2013, the total installed electrical capacity in Europe reached MW TWh of electricity were delivered to the European network. Apart from the electrical power, PJ (48.7 TWh) of thermal energy was produced, too. The combined amount of electrical and thermal energy corresponds to an annual consumption of 5.4 million average European households 1, the number of households in Belgium and Slovenia put together. All electricity currently produced in Europe could replace seven nuclear reactors or produce nearly as much power as 15 coal power plants with an average capacity of 500 MWel 2. As of 2013, the highest biogas production per capita was observed in Germany, followed by the Czech Republic, Italy and Latvia (Figure 5) When comparing the 2013 biogas production to the goals for 2020 introduced in the National Renewable Energy Actions Plans (NREAP), there is still a significant gap left in reaching the national goal in most of the EU countries (Figure 6). Some countries like Portugal, have reached its 2020 goal or in case of Sweden, are well ahead of its goal. The UK, Austria and Germany are exceptional, too, as the countries have already reached more than 85%, 80% and 70% of their NREAP expectations respectively. The targets for these countries were from the very beginning rather moderate and therefore, with the current growth factor, they will achieve their targets without any doubts. Central European countries, especially the Czech Republic, Austria and Hungary continuously increase their production and with such trends they could [kwhel per capita] Figure 5: Biogas production per capita in Europe in 2013 [kwh el per capita] 1 Average energy consumption per household in EU is kwh (Odysee - Mure, 2013) 2 The numbers correspond to the total generated electricity collected from national biogas associations (21 countires)

13 Page 13 meet the targets in the upcoming years. Serious doubts about reaching the 2020 goals are seen in the case of Poland and Spain, mostly due to their very high targets and an extremely slow or even non existent development of new installed capacities [GWh] Biogas production 2013 NREAP 2020 Biogas production target Figure 6: Biogas production in 2013 and planned biogas production (electricity, heating & cooling, transport) by 2020 as stated in the National Renewable Energy Action Plans (NREAPs) in chosen countries Biogas plant in Chynorany, Slovakia. Photo: Biogest

14 Page 14 B I O M E T H A N E P R O D U C T I O N In 2013 the biomethane industry kept growing. As of 2013 there were 48 new plants commissioned in addition to the existing 234 plants in 2012 (Table 3 and Figure 7). The total biomethane production increased between 2012 and 2013 by GWh, yielding in a total of GWh (Table 3). The installed capacity of biomethane plants amounted to billion m 3 of biomethane. Although it is difficult to provide a provision of biomethane production in 2014, preliminary forecast for 2014 speak cautiously about 20 additional installations. In the first half of 2014 plants with at least million m 3 of annual production capacities were installed in Europe in addition to the existing capacities. Table 3 contains the data on biomethane production and number of plants and features only countries with recorded biomethane production. Table 3: Biomethane plants in the years and support for biomethane in Europe Country Biomethane plants 2012 Biomethane plants 2013 Biomethane plants 2014 * Biomethane Biomethane plants upgrading feeding capacity in 2013 into the grid in 2013 [Nm 3 /h] Tariff or bonus for biomethane in 2014 [EUR/MWh] Austria Denmark premium Finland France Germany Hungary Italy 1 2 n/a ,12 premium Luxembourg The Netherlands /Nm³ Poland 0 0 n/a certificate Slovakia Spain Sweden Switzerland n/a UK premium TOTAL * Forecast

15 Page 15 Table 4: Biomethane production and filling stations in Europe in 2013 Country Biomethane production [GWh/year] Biomethane use in transport [GWh] Biomethane use in transport [%] Biomethane filling stations [100% biogas] CNG filling stations* Austria 70 n/a n/a Belgium Bulgaria Croatia Cyprus The Czech Republic Denmark n/a n/a n/a 0 7 Estonia Finland France 20 n/a n/a Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg 26 n/a n/a n/a 7 The Netherlands 900 n/a n/a n/a 141 Poland Portugal Romania Slovakia Slovenia Spain n/a n/a n/a n/a 69 Sweden % Switzerland 77 n/a n/a UK n/a n/a n/a 8 9 TOTAL approx. 10% *NGVA Europe, 2014 n/a not available

16 Page 16 A PUSH FOR BIOMETHANE Although the German domination on biomethane market is still crushing, there is a fresh breeze coming from the other parts of Europe. In the UK, apart from the six plants built until the end of 2013, there will be in total 18 projects commissioned in 2014 and another 15 are expected to be completed in Most of the projects are based on the waste feedstock with some addition of agricultural residues or energy crops. This evolution has been possible thanks to several changes on national level: an increase of the oxygen concentration limit in the biomethane from 0.2% to 1%; introduction of attractive Feed-in Tariff and agreement on the ownership model between the biomethane producer and the gas distribution network. Biomethane production is evolving well in France, too. In 2013 one more biomethane project was commissioned, making a total of four upgrading installations. Three additional projects are supposed to be finished in In the North, Finland has increased its production capacity by approx. 15% in 2013, but prognoses speak about tripling those capacities in 2014 and going for even higher numbers in All existing plants were using biogas from sewage sludge or mixed agricultural residues. Denmark, since the introduction of new FIT in 2013, gained momentum and opened two new plants in 2013 and another four in 2014, increasing the upgrading capacity up to Nm 3 /h or annual production of million m 3. Germany, besides currently existing 154 biomethane plants with a capacity of Figure 7: Number of biomethane plants and upgrading capacity in 2013

17 Page million m 3 in 2013, should have another 28 new projects commissioned before the end of According to the German Energy Agency DENA, 151 plants are connected to the grid, while only three installations are off-grid. In 2015 the biomethane industry will certainly slow down due to amendments to the German Renewable Energy Act introduced in August 2014, where bonuses for gas upgrading have been cancelled. In addition, the FiT decreased by 40% when compared to the EEG from Biomethane is currently being upgraded by several available technologies and the breakdown of currently used technologies can be seen in Figure 8. BIOMETHANE TRADE According to expert reports, a small scale trade is taking place inside of the EU (for instance between Germany and The Netherlands, or Germany and Sweden) and between Germany and Switzerland (approx GWh of biomethane was imported to Switzerland in 2013). There are also some minor biomethane exports from Norway to Sweden, although quantities are not known. In December 2013 partners of the project GreenGasGrids, under aegis of EBA, published a European Biomethane Roadmap, in which the estimated technical potential for biomethane (syngas and anaerobic digestion) for the EU-27 was indicated to be between 151 and 246 billion Nm 3 /year or to PJ/year. Is it predicted that by 2030 about 30% of the produced biogas will be upgraded to biomethane. Taking into account consequent political commitment and efficient support schemes, the authors assess that by billion Nm 3 of biomethane from syngas and anaerobic digestion could be produced for grid injection and gaseous fuel. 3% 1% 21% Pressure Saving Adsorption Water Scrubber 30% Physical basorption Chemical absorption 5% 40% Membrane separation Cryogenic separation Figure 8: Split of biomethane upgrading units in Europe in 2012 Biomethane filling station in Forbach, France

18 Page 18 J O B S The large majority of jobs has been created in Germany. The number corresponds to approximately 5.5% of the total jobs in the renewables energy business in Europe and although not high, it proves significance and stability of the industry, active especially in rural areas, as it increased from a 4% share last year. Due to the low response on number of jobs in renewable energy sector and biogas sector in particular from national associations, the estimates for total numbers are taken from REN21 and EuObserv ER.The total number of jobs in renewable sector, as well as biogas sector, in particular, as reported by both REN21 and EuObserv ER, are reaching almost , what is slightly less than the number of jobs in 2012 and represents a decrease in jobs by 2% in biogas sector. This confirms the stability of the sector compared to others as the total number of jobs in renewables, including all renewable energy sources has fallen 28% since 2011, according to REN21. Table 5: Jobs in renewable energies and biogas sector in 2013 Country Jobs in renewables sector Jobs in biogas sector Germany UK France n/a Ireland n/a 100 Spain n/a 150 Slovenia 188 n/a Italy n/a TOTAL REN21 report EuObserv ER report n/a not available

19 Page 19 S U P P O R T S C H E M E S The most widespread form of subsidising RES was Feed-in Tariff (FiT) for electricity (Figure 6). Nonetheless, European Commission s long term goal is to move away from the FiT towards Feed in Premium or other support instruments which, according to them, give incentives to producers to respond to market developments. The highest support was received by plant operators in Switzerland (380 /MWh for plants up to 50 kwel with bonus for agricultural residues and bonus for heating use), Italy (276 /MWh for plants with capacities up to 300 kw), Germany (237 /MWh for plants up to 75kWel fed on manure), Latvia ( /MWh for plants up to 80 kw with efficient CHP) and Bulgaria (232 /MW), as presented in Figure 7. However, the Bulgarian FIT is very difficult to predict on the longer run, as it Figure 6: Types of the support schemes in Europe in 2014

20 Page 20 achieving the government s goal to increase the share of renewable energy by 2020 from the current level about three to eleven percent. The UK saw a launch of two new support schemes. On-Farm AD, launched in October 2013 to help support the development of new farm based AD in England. The fund will be applicable to plants below 250 kw which have access to slurry and/or manure. Rural Communities Renewable Energy Fund is a 15 million fund launched in June It provides up to of funding for feasibility and preplanning development work to help community renewable energy projects become investment ready. Figure 7: The highest maximum support for biogas in 2014 is revised and according to the recent trends, decreased every year in June. Spain has switched to premiums in 2014, while support for biogas plants was ceased in Cyprus and the Czech Republic. Sweden, where one certificate is issued for each MWhel produced, has an established scheme based on CO2 and energy tax exemptions, which supports the consumers and creates demand on biogas and biomethane, what makes certificates less important for growth of the sector. Luxembourg has increased the Feed-in-Tariffs for almost all renewable energy sources in Biogas incentive increased by 31%, while biogas from sewage sludge raised by 44%. The new rules will contribute to Photo: BTS Italy

21 Page 21 Table 6: Overview on biogas support schemes in 2014 Austria FIT Subsidies: Comments: No further subsidies if a plant receives FIT for electricity Mimimum efficiency must be over 60 %; Plants under 250 kw must use at minimum 30 % farm fertilizer as feedstock (based on fresh mass); CHP Bonus for plants reaching a efficiency from over ~ 75 % = 2 c/kwh electricity; Upgrading Bonus for plants where biogas will be upgraded, injected into gasgrid and power production as application efficiency must be higher than ~ 75 % = 2 c/kwh electricity; No further subsidies if the plant gets feed in tariffs for electricity Belgium Quota (Green Cert.); different for Wallonia and Flanders 110 in Flanders and 100 in Wallonia 15 for Wallonia / 10 for Flanders Certificates: 100 /MWh for Wallonia and between 93 /MWh and 110 /MWh for Flanders Tax reduction: Tax reduction for investment up to 42% (Wallonia) Subsidies: Wallonia: from 9% to 27.5% for companies, 20% for farmers, 50% for feasibility studies for townships, 50% for energy audits, feasibility studies for companies; Flanders: investment subsidy of max 45% - 55% - 65%, max 1 million per project Comments: Investment subsidy for Flanders is organised by a call system. Maximum 1 million/project, total budget Bulgaria FIT 232* *Tariffs are revised and set by the regulatory authority for energy every June 30 Croatia 15 FIT Subsidies: Comments: FIT for biogas (156 /MWh /MWh), for small scale systems 50% if biogas (el. And th.) is used for own purposes In 2013, HROTE (Energy market operator) paid ,62 of subsidies through the FIT for biogas plants contracts Cyprus FIT n/a n/a Subsidies: EU structural funds for the years Comments: Biogas is no longer supported in Cyprus. During the respective support schemes for the promotion of RES included biogas as a supported technology. However, it should be noted that there are provisions concerning RES support in The Czech Republic FIT 128* 20 Comment: *Support for biogas plants was ceased in 2014

22 Page 22 Denmark FIP n/a n/a Comments: Plant numbers and biogas production data are the compiled data for Generated electricity is estimated since officiel statistics are not released yet. Feedstock data are not compiled for Therefore included feedstock data are estimated. Estonia FIP Comments: New investment support programme for biomethane plant constructions is under development by Environmental Investment Centre (EIC). Many upcoming measures for building local biomethane production/demand network are ongoing phase. Currently specific investment subsidy for CHP does not exist. State plan is to support biomethane production for transport through investment support for biomethane consuming buses. Finland FIP n/a 12 Subsidies: Investment subsidy up to 40% France FIT Tax reduction: Subsidies: 10 /t of waste (on TGAP fee), 20 /t of waste if flow of leachate Subsidies from Regional Council and/or national programmes and it depends on a project Germany FIT 237.3* From degression of 0.5% per quarter. If cap of 100 MW is exceeded, degression will amount to 1.27% per quarter 20 Tax reduction: Subsidies: Tax exemption for use of biogas and biomethane in CHP and as a fuel. Partial exemption for electricity tax, operation of CHP and biogas plant KfW subsidies of up to 30% for biogas plants, KfW and BAFA subsidies for heat distribution networks, biogas pipelines and storage Greece FIT 230* Annual increase by 25% of the inflation rate 20 Subsidies: 35%-40% investment subsidy

23 Page 23 Hungary Subsidies: 112* FIT *annual increase by the rate of inflation minus 1% 20%-60% from the EU cohesion fund, EU agriculture and rural development funds Ireland 7-15 FIT 157* Annual adjust of the reference prices by the increase, if any, in the consumer price index Italy 15 FIT Subsidies: Comments: Construction grants in some areas Different incentives for biomethane injected into natural gas grids, used in transport or in high efficientcy cogeneration plants Latvia Comments: * FIT 10 (100%) + 10 (80%) *20% degression after 10 years Subsidised electricity tax, 5% - 10% of income; subsidies not longer available; no difference in support of biogas production from landfills, agriculture or WWTP Lithuania FIT n/a 12 Subsidies: Investment subsidy of 50% Luxembourg FIT n/a 15 The Netherlands FIP Tax reduction: 41.5% tax reduction for upgrading plants 150* * base tariffs are set on annual basis Poland 12 Type of support system for biogas Highest price for biogas [ /MWh] Duration [years] Quota 71 min 10 Subsidies: Loans and subsidies from FNOSiGW up to 45% direct on investment Tax reduction: Exempt from the tax on the sale and consumption of electricity

24 Page 24 Portugal FIT n/a 15 Romania Quota n/a 15 Subsidies: Investment subsidies in agricultural sector Slovakia FIT Subsidies: Investmeent subsidy up to 30% Tax reduction: Exemption from excise duty for CBG * * guaranteed for three years and shall not be lower than 90% of the tariff previously applicable Slovenia 15 FIT Subsidies: Subsidies from Commmon Agricultural Policy from 40% - 70% Spain FIP n/a 15 Comment: A new remuneration system is in place. It consists in two remuneration concepts, a fixed amount depending on installed electrical capacity, under or over 500 kwel., and year of entering into service, and a second remuneration to compensate operation and maintenance. The first payment (remuneration to investment) pretends to "guarantee" a profit of 7,5% to the investment, to be recovered along 25 years. Sweden Quota Tax reduction: Subsidies: Comments: Biogas used for heating and electricity exempted from CO2 and energy taxes; biogas for transport exempted for CO2 tax as long as sustainable. Tax exemptions for customers buying biomethane as a vehicle fuel. 40% reduction of income tax for use of company NGVs until 2017 Investments in biogas plants or gas station for biogas could get a subsidy of 45% of the investment costs (maximum 25 million SEK, ~ 2 million In 2015 a new sceme are planned: a production subsidy for biogas and biomethane produced from manure. The support is maximun 2 euro cent per kwh. In Sweden there are tax exemption for the customers that by biomethane as a fuel. In general

25 Page 25 Switzerland FIT Comments: There is a cap with a waiting list for all RE of several thousand plants United Kingdom FIT or quota (Renewables Obligation Certificate); Renewable Heat Incentive (RHI) 197* * an inflation-indexed payment rate table is published every year prior to February 1 20 Tax reduction: Electricity from renewable sources is eligible for tax relief Subsidies: On-Farms AD: launched in October 2013 to help support the development of new far based AD in England. The fund will be applicable to subsidise 250 kw plants which have access to slurry and/or manure. AD Loan fund: launched in 2011 to help support the construction of food waste digesters. The scheme offers loans of between and 1 million. Rural Communities Renewable Energy Fund: a 15 million fund launched in June It provides up to of funding for feasibility and preplanning development work to help community renewable energy projects become investment ready

26 Page 26 F U T U R E P R O S P E C T S HALFWAY THROUGH The year 2015 will be an important indicator for the whole renewable energy industry. Six years since adoption of Renewable Energy Directive RED 2009/28/EC and five years after the introduction of National Renewable Energy Action Plans, Members States are halfway from their 2020 renewable energy targets. According to the project Keep On Track, half of the EU countries will fail to meet their 20% renewables target by 2020 and there are doubts about four other Member States reaching their targets, as progress stood in Biogas was so far performing well, but negative changes or cuts in the support schemes in some countries during the last two years are likely to take the wind out of Europe s sails in the coming years. (UN)SUPPORTIVE MEASURES Since July 2014 all new support schemes have to correspond to the new Guidelines on State aid for environmental protection and energy. The aim of the guidelines was to bring more competition into renewables and to make them more competitive. In fact, the guidelines allow FIT only to biogas plants below 500 kw of electric capacity, while those between 500 kw and 1 MW can be granted a premium. From January 2017, all plants above 1 MW will undergo a technology-neutral bidding process, unless Member States can explain to the Commission why such bidding processes could not work in particular circumstances. These guidelines apply to the period up to 2020; however, they should prepare the ground for achieving the objectives set in the 2030 Framework. Also in 2014, the Council adopted a non-binding target for renewable energy of 27% and a binding GHG reduction target of 40% by Since there are no national targets but only a European one for 2030, it is very likely that only a handful of ambitious Member States will push on towards an energy transition and will invest into new technologies and capacities, while the rest of Europe will lag behind, feeling no obligation to contribute to the single EU target. The guidelines and the recently established climate and energy targets for 2030 will shape the renewable energy policies and define biogas development in the coming few years. The first country introducing the new guidelines with even stricter rules was Germany. CHALLENGES AHEAD IN SUPPORT SCHEMES In Germany experts are forecasting stagnation of the industry. For 2014, the number of new plants is estimated at 94 (41 MW of

27 Page 27 installed power), while in 2015 the equivalent value will be even lower. The 100 MWel cap on annual biogas production growth, introduced by EEG 2014, will most probably not be reached due to bad overall conditions. Since August 2014 all new plants above 500 kwel have to sell electricity directly to the market, and in January 2016 direct marketing will apply to all plants above 100 kwel. Contradictory signals are now coming also from Sweden. According to the new State Aid Guidelines, the CO2 and energy tax exemptions, which build a baseline of biogas and biomethane support, are now considered by the European Commission as state subsidies and in January 2016 they might be withdrawn. Furthermore, for 2015 the Swedish government planned a manure incentive of 2 c/kwh for biogas based manure. Premiums, however, will be capped to the budget of 2.5 million per year and will not truly boost the biogas market. The decisions on these two issues are still pending and the recent fall of the government will only create more uncertainty for biogas producers. In Latvia no new plants will be built until The government has suspended the issuing of permits for construction of new renewable energy plants with FIT. In January 2014 a new act came into force, which imposes 5% or 10% tax on all income gained from the electricity production: 5% applies to agricultural enterprises with utilization of min. 30% manure, efficient use of heat or high reduction of GHG. Tax on the other producers amounts to 10%. The two other Eastern European countries with a large biogas potential Hungary and Poland showed promise in the course of 2013 revision of their support schemes. In 2014, Hungary backtracked and stopped promising any changes, the current system based on FITs will probably be kept. The Polish government is still working on the RES act, which will move away from green certificates towards FITs distributed in an auction system, where the cheapest technologies have the priority. According to the Parliamentary commission, the new act should be approved before next elections in autumn FUTURE POLICY Despite of the hard times ahead for the sector in Central and Eastern Europe, many other countries are maintaining their biogas-friendly policies and even gaining momentum. The UK for example, has almost doubled the number of agricultural and waste-based plants between 2011 and According to WRAP, at the moment the country has given planning consents to 285 plants with a total installed power of 276 MW, which will increase the total of running biogas sites to over 600. With the development of the

28 Page 28 English biomethane market, CNG as a vehicle fuel will begin to increase. The only obstacles which may hinder this positive trend are sustainability criteria coming into place for energy crops and high tariffs for injecting electricity into the grid. In biomethane, decrease of Renewable Heat Incentive can be expected, which currently is under revision and should apply as of January At the time of publication the RHI reduction was set at 10%. In the course of 2015 and 2016 in Europe, we can expect the further development of biomethane. Italy incentivised biomethane production in December Biomethane will receive different tariffs depending on its final use: injected into the grid, use as biofuel or electricity production. We expect a biomethane boom in early 2015, when the EU and Italian standards will be adopted. Also Finland is on track to decarbonize its transport sector. Biogas consumption in transport increased by 168% in 2013, while consumption for power and heat production decreased by 2%, when compared to the previous year. This means that the transport will be the dominant growth factor for biogas in Finland. In September 2014 at least 31 plants were under construction or in planning stage, all in possession of environmental permits. Speaking about biogas in the North, it is worth to mention Estonia. The local Environmental Investment Centre works ok new investment support programme for biomethane plant constructions. The government wishes to develop biomethane as a transport fuel for buses. AT THE EU LEVEL... At the EU level, important decisions are scheduled for After many delays, the Indirect Land Use Change (ILUC) dossier will be handed over to the European Parliament in January If the agreement is reached in April, full implementation of iluc in Member States is expected in According to the present draft, biomethane for transport from dedicated crops (cereal and other starch rich crops, sugars and oil crops) will be capped at 7%. The rest of the 10% target is planned to be fulfilled with advanced biofuels and renewable electricity. As it stands today, biomethane from straw, manure, sewage sludge, biowaste, biomass fraction of industrial waste and other non-food cellulosic material is considered as advanced fuels and the energy producer from them will be counted twice towards the 2020 targets. Another relevant dossier for biogas producers is the Fertilisers Regulation proposal which will be passed on by the European Commission to the European Parliament and the Council in early Although the final version of the proposal was

29 Page 29 not published yet, it is encouraging to see that digestate will be recognised as organic fertiliser which can be sold across the EU. The final vote on this is likely to take place either at the end of 2015 or in A dossier with a possible strong impact on the AD sector is the Commission s Circular Economy Package, which aims to ban landfilling and limit incineration of organic waste as well as to significantly increase the EU recycling targets. In this matter, AD is recognised as a recycling process. The recycling industry and environmental organisations asked the European Commission for a prompt implementation of the proposal, particularly after the Commission contemplated the withdrawal of its own proposal back in November. In 2015, we can expect negotiations between both co-legislators. From the very beginning EBA advocates for an ambitious regulation that requires the separation and reuse of waste materials in a sustainable way. All EBA s efforts aimed at ensuring that European legislation is adequate and in line with the interests of the biogas industry will continue throughout This will include close monitoring of any new proposals, as well as meetings with key MEPs, the Latvian presidency and Commission officials. This biogas Report 2014 was created by European Biogas Association, December 2014 European Biogas Association Rue d Arlon Brussels +32 (0) info@european-biogas.eu /european.biogas /European_Biogas