Biogas in the future integrated energy system

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1 Biogas in the future integrated energy system Nordic Biogas Conference, Reykjavik, August 2014 Rasmus Munch Sørensen 1

2 Content Looking into the crystal ball: How could a cost-optimised, sustainable energy system look like in Denmark? Do we need biogas in such an energy system? Where can we use biogas? How can we lower costs of integrating biogas? 2

3 About Energinet.dk Date - Doc. no. 18

4 We ensure supply of electricity and gas every minute Energinet.dk is responsible for ensuring electricity in the socket and gas in the gas taps - both today at and in

5 Facts about Energinet.dk 3

6 Green transition Date - Doc. no. 7

7 PJ per year Domestic renewable resources to reach 100% renewable energy by 2050 Potentials from Danish Commission on Climate Change Policy, Futher biomass potential by using energy crops Domestic potential for RE-production towards (production and gross energy consumption) 2011 (net import biomass) 2011 (production and gross energy consumption) Biogas potential in Denmark: Around 40 PJ Gross energy consumption 2011 Gross energy consumption PJ if methanised Wind Sun (PV) Wave Heat (sun and geothermal) Fluctuating power production Biomass and waste (incl. slurry) 7

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10 Perspectives on storage capacities 10

11 Using the gas system as a key integrator Cheap baths for everybody! - Also our children 11

12 Do we need biogas in the energy system? Date - Doc. no. 2

13 Conversion is easy we don t need to choose the winner molecules now 13

14 Cost of Renewable Gas (EUR/GJ) Cost and potential of producing Renewable Gas in DK (Projected 2035 price levels) 25 Manure Electrolysis (power to gas) Diesel + CO2 (2035) Energy crops Hard biomass (wood chips etc.) Extra 22 GW offshore wind needed at this amount of P2G 10 Waste Straw etc Fuel consumption (gas+liquid) 2013 Natural gas + CO2 (2035) Fuel production potential (PJ) So yes, wet biomass will likely be needed, and AD is currently the best technology for converting this ressource. 14

15 So where should we use biogas? 15

16 Some scales on wind production and electricity consumption Three weeks in November Wind share: Approximately 30% of classic consumption 2035 Approximately 50% 2050 (Scale 1:2) Approximately 80% Approximately 150% 16

17 Some scales on wind production and electricity consumption Three weeks in November (Scale1:1) Wind share: Approximately 30% of classic consumption 2035 Approximately 80% Approximately 150% 17

18 Use of biogas in Industry: Some better than others Industry (60 PJ) distribution on temperature levels <50 C C >200 C C C C - Most consumption is low temperature - For higher temperatures, RE gas is a valid long-term option. - Industry focuses on low cost of energy, and security of supply. 18

19 Supplying the industry long-term 19

20 Transportation sector - Most energy goes to personal transport - Still large potential left for RE-fuels in heavy road transport - Transport sector requires efficient distribution and storage - Transport sector, including heavy road, is increasing its energy demand 20

21 Energy input (PJ) Energy supply for road transport Input energy Output energy (energy to wheels) Oil RE gas/fuel Electricity Natural gas 21

22 Can we lower the costs of using RE-gasses? Date - Doc. no. 10

23 Gas transmission Examples of local grid configurations using different gasses SNG upgrading (CH4) Local biogas grid (CH4+CO2) Power2 Gas Biogas plant Power2 Gas Industry CHP CHP Industry Biogas plant Storage H2 tank Local hydrogen grid Syngas (H2+CO) Storage Power 2 Gas Industry CHP Industry Biofuel Metanol Power 2 Gas Thermal gasification 23

24 Local optimisation possibilites for biogas Option 1: CHP Electricity at high prices Local grid Local storage if feasible Option 2: Upgrade or methanise Injection Naturgasnet Biogas Option 3: Industry Removing the CO2 and injecting it in the gas system continiously is the easy solution but may not be worth the cost all the time 24

25 Political goals and subsidies are not free Green ambitions Subsidy schemes 15,33 Euro subsidy per GJ 4 PJ more by 2020 Evaluation Adjustment of subsidies Evaluation 60 Mio. Euro subsidy for 4 PJ 184 Mio. euro for 12 PJ more (original 2020 goal) Approx 270 euro per ton CO2 if replacing Natural Gas but isn t biogas also more than just energy? 25

26 Concluding points about use of biogas Local optimization is key. In an ideal system: Use directly for CHP when electricity price is high Use directly for industry when electricity price is low Upgrade/methanisation when industry demand and electricity price is low Requires re-thinking the way we look at biogas plants, and our framework conditions supporting it: Is it only an energy production unit? Is it not rather a combined waste treatment plant with an energy production? Biogas can not be compared 1:1 to windturbines, PV s, biomass boilers etc. It is better than that. Subsidies aiming specifically at one use or another potentially hinders succesful local optimisation and maximum benefit of the biogas If only upgraded and injected biogas can be traded as bio-methane, this also hinders local utilisation of the raw biogas 26

27 Want to know more? Watch our movie about the future gas system on energinet.dk or our youtube channel

28 Demonstration project of 1 MW electrolyser and biological methanation of biogas 28