Development of an embryonic biomethane market for Europe Brussels 24/11/2017 Lorenzo Maggioni, CIB Consorzio Italiano Biogas e Gassificazione
Consorzio Italiano Biogas (Italian Biogas Consortium) MEMBERS The CIB - Italian Biogas Consortium, formed in March 2009, has national coverage and is the reference point in the Italian biogas and biomethane sector. Agricultural biogas plants > 600 130 companies European projects
THE GOAL To develop an embryonic biomethane market by connecting regional areas of 3 neighboring countries: Austria, France and Italy biomethane register (Italy) bilateral or trilateral agreements (including the mutual acceptance of Biomethane Guarantees of Origin issued in the country of production) (at least) one customer interested in buying imported biomethane and (at least) one biomethane producer interested in producing biomethane for export.
ITALIAN MAIN BARRIERS FOR THE EXCHANGE OF BIOMETHANE WITH FOREIGN COUNTRIES Not complete regulatory framework* about biomethane and not existing biomethane market* Impossibility to inject biomethane into the natural gas grid* Fear of Italian stakeholders and politicians that a one-way market could be created * only at the beginning of Biosurf project
ITALIAN MAIN BARRIERS FOR THE EXCHANGE OF BIOMETHANE WITH FOREIGN COUNTRIES During the BIOSURF project in Italy the biomethane scenario changed a lot: The regulatory framework has been completed Draft of new subsidies scheme for biomethane published in December 2016 In this draft, the creation of an Italian biomethane registry and the possibility to exchange the Guarantees of Origin (GoO) with foreign countries are contemplated for the first time > 20 biomethane plants already authorized. First biomethane plant (3.750 m 3 /h) entered into operation
CURRENT AND COMING REGULATIONS 1) 2) 3) CURRENT Decree 05 December 2013 Agriculture Organic Fraction Municipal Solid Waste DIFFERENT SCENARIOS DEPENDING ON FINAL USE OF BIOMETHANE Biomethane injected into the natural gas grids Biomethane used in high efficiency cogeneration plants Biomethane used in transport sector NEW end 2017 The same + methanation Better chance for LBM than in the old decree NOW WE HAVE ALL THE TECHNICAL RULES NEEDED FOR BIOMETHANE PRODUCTION 1) Biomethane injected into the natural gas grids 2) Biomethane used in high efficiency cogeneration plants 3) Biomethane used in transport sector More interesting subsidies if you produce advanced biomethane
CREATION OF THE REGISTRY In the draft of the new subsidies scheme for biomethane (December 2016), they wrote that the registry will be managed by GSE (Gestore Servizi Elettrici), the state-owned company which promotes and supports renewable energy sources in Italy it obliged CIB to change previous plans (to manage itself the new biomethane registry) Then CIB started to involve GSE into BIOSURF activities GSE officially expressed his interest in the project and in WP6 activities. They underlined their interest particularly in the forthcoming draft of the Italian biomethane registry created by CIB CIB started to work on this, on the basis of the Austrian biomethane register model CIB created a registry similar to the actual software of GSE in order to guarantee that they could use it, created thanks to the BIOSURF project, as a solid base for their registry.
CREATION OF THE REGISTRY REGISTER USERS: 1) Biomethane Producers 2) Biomethane Traders 3) Authorized Auditors 4) Administrators The registry has a dedicated website: registrobiometano.consorziobiogas.it.
AGREEMENT AMONG AUSTRIA, FRANCE AND ITALY FOR MUTUAL ACCEPTANCE OF GoO Signature of a Memorandum of Understanding (MoU) between the Italian, Austrian and French partner of Biosurf project The MoU proves the collaboration of the national biomethane registries and represents the 1 st step for the exchange of biomethane between different European countries
PARAMETERS TO BE INCLUDED IN THE SHARED GoO According to Article 15. paragraph 6. of the RED, the Guarantees of Origin must specify at least: The energy source (for biomethane: biomass used to produce biogas) Start and end of production (for biomethane: start and end of injection) Identity, location, type and capacity of producing installation Investment support provided to the producing installation Financial benefit provided to the unit of energy (support scheme, etc.); Date, country of issue Unique ID.
PARAMETERS TO BE INCLUDED IN THE SHARED GoO (example from the Biosurf register) Name of plant; Place of plant; Plant type; Start of injection period; End of injection period; Caloric equivalent of injected; Biomethane amount in kwh/mwh; Injection point; Handover component; Meter Number; Usage type; GoO identification code; Owner at the time of cancellation; Auditor name: (if the audit was executed) Audit made on: (if the audit was executed) Information by auditor: (if the audit was executed) Country of origin: Injection into gas network including: Mass balancing: [yes/no] Type of plant: [text] Sustainability: [yes/no] Subsidy: Investment subsidy [yes/no] Feed in tariff [yes/no] Feedstock used: Energy crops [%] Agro-industrial by/sub- products [%] Waste [%] Second cropping/ligneo-cellulosic [%] Livestock manure [%]
OTHER CHARACTERISTICS TO BE RESPECT IN THE SHARED GoO - SUBSIDIES: not allowed the cross border trading of subsidies for the production of biomethane - ALLOWED BIOMASS: agro-industrial by/sub- products and/or waste and/or second cropping/ligneo-cellulosic and/or livestock manure. - RECIPOCITY: the condition of reciprocity has to be respected. - SUSTAINABILITY: sustainability must be completed in accordance with the Renewable Energy Directive, the Fuel Quality Directive and the Communication COM 2010/C 160/01 when the final consumer uses it for transport. - MASS BALANCING PRINCIPLE: the mass balancing principle has to be respected - UNIQUE ID NUMBER: the registry has to guarantee that the GoO identification number is unique
EXAMPLE OF GUARANTEES OF ORIGIN EXCHANGE The Italian biomethane registry generated GoOs that have been sold to French and Austrian consumers Austrian biomethane registry generated GoOs that have been sold to Italian and French consumers French registry has not generated any GoOs for export, but accepted GoS from Italy and Austria
CONCLUSIONS Thanks to the BIOSURF project, conditions and rules to exchange biomethane Guarantees of Origin among Italy, Austria and France have been defined BIOSURF showed the importance of sharing best practices and experiences developed in the forerunner countries to implement and improve the situation of other European countries Starting to work on a «BIOSURF.2» idea