Impact of support incentives on biogas market - Experiences from - - PowerPoint PPT Presentation

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Impact of support incentives on biogas market - Experiences from Germany

Future development possibilities such as heat utilization, biogas upgrading and fertilizer use

Frank Hofmann, International Affairs Consultant Fachverband Biogas e.V., German Biogas Association

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The German Biogas Association

Main objective: promotion of the biogas sector

• Definition of legal framework and

technical standards

• Exchange of information
• Lobbying on federal, state and EU level

4900 members throughout Germany

• Operators of biogas plants
• Technology manufacturers
• Research institutions
• Public authorities
• Feedstock providers
• Interested individuals

40 employees dedicated to the topic

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Content

• Support incentives for biogas in Germany: EEG and future

perspectives

• Heat utilization
• Biogas upgrading
• Digestate use
• Summary

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Renewable energy targets in Germany

Source: Federal Government 2010, BMU/BMWi 2014, AGEE-Stat 2014

Climate Renewable Energies Energy Efficiency % final energy consumption % gross electricity consumption % primary energy consumption (vs. 2008) final energy productivity building renovation % greenhouse gas reduction (vs. 1990) 2020 2025 2030 2035 2040 2050

+2.1% p.a. doubling of renovation rate: 1%  2%

• 40
• 55
• 70
• 80 to -95

35 40 to 45 50 65 80 55 to 60 18 30 45 60

• 20
• 50

12,4%* 27.8%

• 9 %

0.2%* p.a. ~1%* p.a.

• 27%

Achieved 2014

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Biogas in Germany - number of plants and installed capacity

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Development of the Renewable Energy Act EEG (2000-2017)

• Consistent fee

for 20 years

• Priority

connection

• 250 new plants

a year

EEG 2000

• Bonus for

energy crops

• Bonus for

using heat

• 450 new plants

a year

EEG 2004

• Bonus for new

techniques

• Bonus for

emission reduction

• Bonus for

manure

• 1000 new plants

a year

EEG 2009

• New system
• New

requirements

• n efficiency

and ecology

• 340 new

plants a year

EEG 2012

???

• Flexibility is a

requirement

• FiT for small manure

plants (Max. 75 KW, 80% manure)

• FiT for biowaste (90%

biotonne)

• 200 new plants in 2015

EEG 2014

• Same structure as in 2014
• FiT only for small manure

plants (Max. 150 KW)

• Tender process for plants

larger than 150 KW

• Existing plants can

participate in tenders

EEG 2017

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Sufficient tariffs for market stimulation? The EEG 2009 tariffs!

Type of bonus ≤ 150 KW ≤ 500 KW ≤ 5 MW 1 Basic feed-in tariff 11,67 Cent 9,18 Cent 8,25 Cent 2 Bonus for emission reduction 1,0 Cent 1,0 Cent 3 Bonus for energy crops 7 Cent 7 Cent 4 Cent 4 Bonus for residues from landscape management 2 Cent 2 Cent 5 Bonus for manure 4 Cent 1,0 Cent 6 Bonus for new techniques 2 Cent 2 Cent 2 Cent 7 Bonus for new techniques 2 Cent 8 Bonus for using heat 3 Cent 3 Cent 32 Cent

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Fixed tariffs

• Up to BM

150 kW 13,32 Cent/kWh

• Up to BM

500 kW 11,49 Cent/kWh

• Up to BM

5 MW 10,29 Cent/kWh

• Degression 1% per year

Fixed tariffs Biomass § 42

• Up to BM

500 kW 14,88 Cent/kWh

• Up to BM

20 MW 13,05 Cent/kWh

• Degression 1% per year

Fixed tariffs Biowaste § 43

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Fixed tariffs for small manure treatment biogas plants

• Up to 75 kWel

23,14 Cent/kWh in der DV 22,94 Cent/kWh in der FV

• Degression 1% per year
• About 150 new installations estimated for 2016

Manure treatment biogas plants § 44

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The future role of biogas in electricity production: flexibility instead of base load

• With increasing share
• f RES, baseload loses

importance

• Flexible systems fill the

valleys of wind and sun ► CHP with bioenergy and natural gas, the new role of biogas

Capacity [GW]

red Demand (2010) green Production of wind and solar energy

20 % Renewable Energy Sources 40 % Renewable Energy Sources 80 % Renewable Energy Sources

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Content

• Support incentives for biogas in Germany: EEG and future

perspectives

• Heat utilization
• Biogas upgrading
• Digestate use
• Summary

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Heat utilization

• When biogas is used in a CHP unit to produce electricity, heat is

produced as a by-product. This heat can and should be used.

• Some options are:
• In the own consumption of heat of the biogas plant
• Nearby buildings: from the farm itself, or municipal buildings
• To dry wood
• In greenhouses
• And many others…

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Example of heat utilization: Niebüll (north of Germany)

Through a cooperation between several biogas plants and the municipal services company:

• The biogas plants produce the gas
• The municipal company built the gas

pipes to transport the gas to satellite CHP plants, in order to produce the heat where it is needed. The heat of one CHP is used for the demand of a hospital and another two CHP plants provide heat for public buildings (schools, pools, etc.), amorn

• thers.

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Example of heat utilization: Thermal bad in Bad Windsheim

Since 2007 waste heat produced at a biogas is provided to the thermal bad in the town of Bad Windsheim (south of Germany). The heat is used at the bathing complex, as well as at the sauna and the wellness area, saving up to 300,000 liters of fuel oil annually (equivalent to about 3 million kWh of heat)

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Content

• Support incentives for biogas in Germany: EEG and future

perspectives

• Heat utilization
• Biogas upgrading
• Digestate use
• Summary

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Biogas upgrading to biomethane

• Biogas can be upgraded to biomethane,

which has similar characteristics as natural gas

• Burning characteristics (heating value,

Wobbe index, etc.) can be adapted to local natural gas conditions (LPG or N2)

• Biomethane can be injected into the natural

gas grid and be used as natural gas as:

• Electricity
• Heat
• Vehicle fuel

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Biogas upgrading to biomethane

• There are several biogas upgrading technologies available on the

market

• This process step requires additional investment
• The bigger the volume rate the specifically cheaper the upgrading

process

• Economically feasible only for high volume rates (e.g. above 500 m³/h

biogas production)

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Basic operations Process Separation effect Adsorption Pressure-swing- adsorption (PSA) CO2 adsorption on a carbon molecular sieve Adsorption Pressure water scrubbing Dissolution of CO2 in water Chemical absorption Amine-scrubbing Chemical reaction of CO2 with Methyldiethanolamine (MEA) Membrane gas separation Polymer membrane gas separation Membrane permeability of CO2 is higher than that of CH4

Biogas upgrading ► Biomethane technology overview

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Content

• Support incentives for biogas in Germany: EEG and future

perspectives

• Heat utilization
• Biogas upgrading
• Digestate use
• Summary

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Digestate application

Digestate

In line with European and national legislation, voluntary product specifications

Separation Solid digestate

Energy crops, manure, agricultural/industrial residues, biowaste

Liquid digestate

Liquid Application Direct Application

(further upgrading possible)

AD plant

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Nutrient content in digestate

• Nearly all minerals which are feed into

the digester will be in the digestate

• Mainly carbon, some oxygen and

hydrogen will leave the digestate in form of biogas

• Typical content of digestate:

pH DM Ntotal Navailable P2O5 K2O MgO S Org. Humus % FM % DM % Nges % DM % DM % DM % DM % DM % DM 7.1 – 8.4 3 - 95 3 - 17 30 - 100 1 - 6 2 .5 - 8 0.4 – 2 0.4 - 3 40 - 80 10 - 12

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Upgrading digestate

22

Liquid digestate Separated digestate Composted digestate Pelletised digestate Dried digestate Liquid Upgrading Pelletising Composting Drying Separation

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To summarize…

• Feed in tariffs can be adjusted to steer the intended development of

biogas.

• Specific bonuses can steer technology development, like heat

utilization or manure treatment.

• A way to increase the efficiency is to use the heat. Heat can be used in

many ways whether on the biogas plant or nearby.

• Biogas can be upgraded to biomethane, can be injected into the natural

gas grid and can be used like natural gas for electricity, heat and vehicle fuel production.

• The digestate from biogas plants is valuable fertilizer, nutrients can be

recycled.

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Hvala na pažnji!

Frank Hofmann Konsultant za međunarodne poslove Nemačka asocijacija proizvođača biogasa frank.hofmann@biogas.org