Auf in neue Märkte! Exportinitiative Energie Markus Dicke, June 22nd, 2017, Darmstadt
Practical Experiences of Biogas Plant Realization in China 22.06.2017 Seite 2
Biogas technology -- Close The Environment Circle! 22.06.2017 Seite 3
Biogas is a Multitalent Input Process Output Organic Waste Regrowing Mat. from Agricalture from Food Industie from Householdwaste from Ethanol/Starch/CPO Combinations Anerobic Flowchart Advantages Examples Biogas Electrical Power Heat-/Cooling Energy Natural Gas...Gasoline? Aorganic Fertilizer Reduce CO 2 Emission 22.06.2017 Seite 4
Flow Chart of a Biogas Plant 22.06.2017 Seite 5
Inventories of pigs Inventories of pigs in China in 1996-2015 1 60000 50000 40000 30000 20000 10000 0 1996 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Inventories of pigs ( 10,000 units) Year-over-year growth Year 1. Source: National Bureau of Statistics of China 2. Source: http://www.farmers.org.cn/article/showarticle.asp?articleid=152024 On the average, each pig can produce 4Kg manure per day 2 and based on the amount of pig in Aug. 2015, the total pig manure is about 1,804,500 tons per day in China. 22.06.2017 Seite 6
Inventories of cows in China in 1973-2015 1 1. Source: http://www.dairyshow.com.cn/xinwen/994.html 2. Source: 奶牛粪最大甲烷生产潜力的估算和测定 作者 : 史风梅裴占江王粟高亚冰刘杰 Since entering the new century, the inventories of cows in China increased very fast, and in 2015, the total amount of cows in china reached 13,690,000 1. In 2014, the total cows in China reached 14,600,000 1, and the total cow manure is about 137,000,000 tons/a. 2 22.06.2017 Seite 7
Reasons of Biogas Plants -- Germany vs. China Germany Feed-in-Tariff China German feed-in-tariff for electricity from biogas for 20 years The compensation should make it possible for a managed efficiently to be operated costeffectively, based on the use of state-of-the-art technology. guaranteed grid access for the biogas electricity Purchase guarantees are for a period of 20 years The subsidy for the biogas electricity is 1.6 CNY/KWh Chinese feed-in-tariff for electricity from biogas for 15 years The electricity price of biogas generation power adopt the market price plus incentive price. The incentive price is now 0.75Yuan/kWh. The guarantee period for biomass incentive price is 15 years since the operation. The incentive price will be cancelled after 15 years of operation. The incentive price catalogue for biomass generation power will be evaluated and published every two years. It has proved to be the world's most effective policy framework (Jacobsson, S.; Lauber, V. Energy Policy) 22.06.2017 Seite 8
Potential Energy recovery with Biogas From pig and cow manure in China 1 TS Content (% ) 1 Type Cow Manure Pig Manure Dry Matter 13 10 Water 80 80 Potential Biogas yield 2 ( Unit: m 3 /kg Ts ) Temperature Cow Manure Pig Manure 35 0.30 0.42 20 0.18 0.25 Based on the data for the total pig and cow manure, the potential biogas yield for cow and pig manure is about: 90,427,356m 3 biogas per day. Based on the biogas yield, about 180,854,712kWh electricity could be recovered and used. And this amount of biogas could provide electricity to over 125 million people for one day( the average residential electricity consumption is 526 kwh/a per person in 2014) 3. Compared with petrol, this amount of biogas is equivalent to 63,480,004 L petrol, which can drive 814,659,820km by the nature gas car 4. 1. Source: ASAE D384.2 MAR2005 2. Source: 我国农村有机废弃物资源及沼气潜力. 作者 : 张无敌 刘士清 周斌 何彩云 3. Source: : National Bureau of Statistics of China,2016 4. Source: http://wenku.baidu.com/view/b2d4af8b71fe910ef12df8c0.html 22.06.2017 Seite 9
Obstacles and Chances Con: too small scale: Traditional animal husbandry in rural areas run by small family farms with small number of livestock. Pro: Recent 7 years many very large scale >10.000 cow / 50.000 pig places husbandries has been built. Con: Traditional restriction of feedstock farming closed to the city, has lead to feedstock supply far away from the livestock. => cant close the circle Pro: In Northern China the feedstock areas are next to the animal husbandries Con: Traditional cow livestock hold in open area with difficult manure collection. Pro: Modern large scale cow farming is now mostly in closed husbandries with following the US farm model. Con: Sand bedding in Cow farms lead to high abrasive sand contend in the manure. Pro: Some good examples of manure bedding start to spread the good experiences 22.06.2017 Seite 10
Obstacles and Chances *1 Con: High water consumption in feedstock farming leads to very low organic solid in the farm waste water (average 3.5%) => low efficient biogas ratio per cbm waste water. Pro: By adding low cost high TS waste like straw can increase the efficiency and biogas yield per ton. Con. prohibit liquid residue fertilizer application Few trial experience,. Pro: 2017 some local counties can allow liquid biogas residue application. Con: Small clustered agriculture area under Mao leads to complicated liquid fertilizer distribution in contrary to large scale farms. Pro: The current land reform and fast urbanization, will solve this problem in the mid term. Due to low energy prices (0.35-0.45 Y/kWh) in China and low subsidy (+0.25 Y/kWh), the most advanced biogas technology can just produce el. energy for cost of 0.65Y/kWh (0.40 BGP+0.25CHP) thus there is no return in investment. Pro: Besides subsidiary from national government, local governments have introduced tariff subsidy policies to encourage biogas power generation projects. 22.06.2017 Seite 11 1. Source: German Biogas
Obstacles and Chances *1 Modern Farming Big modern farming is moving out to lower land price areas like the north of China. The northern cold climate (6months -0 ) lead to higher biogas plant investment and higher internal heating cost. Northern China has over supply and lowest energy prices. Pro: Law of feeding in electricity is easier to get a grid connection. Enough land around the farm can accept the liquid digestate as bio fertilizer. 22.06.2017 Seite 12
Reasons of Biogas Plants -- Germany vs. China Germany Investments China The owners of the animal farms invest the biogas plants due to profit measures by the output : energy + fertilizer The average investment costs at 2006 on turn key projects was 30.000 yuan / kwel installed capacity. Nearly 100% of biogas plants are connected to the grid due to the feed-in-tariff policy. Also medium scale plants get permission. Investors are smaller farmer or association of farmers who are located out of town next to the agriculture land for the feedstock (animal or re-growing material) Investments in building biogas plants are due to environmental concerns ; smell,water pollution, methane emission. The average investment per installed kwel for recent large scale biogas plant was 40% to 100% higher compared with Germany, Source: Yunan,.Agriculture Department Most plants run in an island mode, very few grid connected plants, Below 500 kw not grid permission. Investors are companies who own mostly several farms, located close to the city were the feedstock is far away. External use of fertilizer. Not sufficient land to apply. 22.06.2017 Seite 13
Reasons of Biogas Plants -- Germany vs. China Germany Returns China High feed-in-ta Produced kw/h is delivering ROI besides the fertilizer with average 1,6 Yuan / kwh Three times higher cost of CHP but...98% of the biogas plants utilize the biogas by CHP system. The total efficiency is around 80% (where the gas engine has an efficiency of 38-40%, and the heat utilization has an efficiency of 40-45%) Good German biogas plants are running on more than 8000 hours/year and deliver profit to the plant owner. The good German biogas plants have a payback period of 6-7 years. Feed-in trarff only from 500 kw about 0,40-0,50 yuan/kwh +0,25 Adder for grid feed-in. The low energy and fertilizer prices do not payback the investment and mostly don t cover the operational cost. Produced kw/h is delivering low IRR, no heatconcept. The efficiency difference 40% lower than the European ones. Many biogas plants in China are not under well operation nor service or maintenance 22.06.2017 Seite 14
Investment for cmb manure (Yuan) Investment for cmb manure treatment (Yuan) 16 14 12 Inverstment for cmb manure treatment (yuan) + Reverse Osmosis 10 8 6 4 Only Fermentation +Decantor + Ultra-filtration 2 Input COD 0 13000 5000 5000 3000 100 Remaining COD (mg/l) 61.5% 0 % 15.5% 22% COD removal proportion (%) 22.06.2017 Seite 15
Discharge standard of pollutants for municipal waste water treatment plant (GB 18918-2002) Maximum allowable average daily discharge of waste water concentration (mg/l) No. Basic control item First level A B Second level Third level 1 COD 50 60 100 120 2 BOD 5 10 20 30 60 3 SS 10 20 30 50 4 Animal / plant oil 1 3 5 20 5 Total N 15 20 / / 6 Ammonia nitrogen 5 8 25 / 7 Total P 0.5 1 3 5 8 ph 6-9 9 Fecal coliform (piece/l) 10 3 10 4 10 4 / 22.06.2017 Seite 16
Mile Stones of German Biogas 2009 Only German China based company with proven European biogas technology with 8 years of experience in Chinese Market. 2010 licensed agent of MT-Energie, 20% market share, the most successful biogas company in Europe. 2011 Realisation of the first German standart bioggas plant in China. Localization of European Technology to the Chinese manure collection with 1 st year round stable biogas production. 2013 first German biogas plant for very large 10.000 cows farm. 2015 Turnkey construction for large farm of 1200cbm/d manure slurry waste water treatment biogas plant. 2016 establishment of Biogas Joint Venture for 100 large biogas plants, 1-4MW/h in 5 Years. 2017 Design and Construction of frist two biogas plants in Shangdong. 22.06.2017 Seite 17
Agro Waste Reference Huadian Longgan Lake Project Technical Data Huadian Engineering (CHEC ) Finished construction: Nov. 2011, German Biogas tasks: Detailed Engineering Design, Construction Monitoring, Import Biogas Equipment, Installation biogas equipemt, Operation System, Plant Comissioning, Service, Capacity: 1200 kw el Jenbacher Input material: Until disigned 470 m 3 /d pig manure slurry ( 56000 pigs) now added coferment food waste. Rewarded Project in China : 3rd price, sientific + technical power building 3rd price, national programm outstanding consultancy 2.nd price, sientific + technical achivements 22.06.2017 Seite 18
Dongying Austasia Biogas plant Technical Data Finish of construction: Sep. 2012, Successful trun key EPC project. Current offer operation support Designed Input: 90m3/d cow manure with TS 9% Capacity: 1 st Phase 330 KW el, Solution for large 10,000 dairy cows Farming. 22.06.2017 Seite 19
Dongying Austasia Biogas plant 2 Technical Data Finish of construction: Sep. 2014, Successful trun key EPC project. Current offer operation support Designed Input: : Cow slurry 750-1500 t/d with 20000 COD Output: 12000 nm3/d biogas, 700~1100 t/d treated water with COD 400 mg/l. 22.06.2017 Seite 20
Future Legal Recommendations for Biogas in China Change the subsidy model from investment subsidies to a solely output orientated support scheme. A combination of support scheme for electrical energy, bio-methane and organic fertilizer, which takes China s low price of energy into account, is the key to successful energy integration from biogas. Encourage co-operation between the agriculture and municipal sectors to enable utilization of a mix of agriculture and bio-waste from restaurants and households. This has the potential to increase biogas productivity five times. Increase the feed-in tariff for biogas plants. A new feed-in tariff should enable farms to get a return on invest from biogas plants starting at 3000kW/h production. 22.06.2017 Seite 21 1. Source: European Business in China position Paper
Future Business Model for Biogas in China Sufficient material without cost or getting paid Total investment 1 RMB 40,000,000 2 Revenue /a 20,000,000 2.1 Electricity 16000000kWh/a,0.75 RMB/kWh 12,000,000 2.2 Bio fertilizer 20,000t/a, 400RMB/t 8,000,000 Reliable and economical technology Profitable biogas plant Organic agriculture park 3 Operation cost/a 10,000,000 High tariff subsidies Organic fertilizer industry 22.06.2017 Seite 22 1. Source: European Business in China position Paper
In modern society waste changed from a problem to a valuable resource German Bio Energy Technology (Beijing) Co., Ltd. 8-11 DRC, No.1 Gongtibeilu, Chaoyang District, Beijing Postal Code:100600 Tel.:+86 10 8532 3549 Fax: +86 10 8532 2505 Markus Dicke General Manager dicke@germanbiogas.com 22.06.2017 Seite 23