Present status and future projects of biomethane in Sweden (Scandinavia) Anders Mathiasson, Malmö Senior advisor Swedish Gas Association

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1 Present status and future projects of biomethane in Sweden (Scandinavia) Anders Mathiasson, Malmö Senior advisor Swedish Gas Association

2 Sweden a small gas user in comparison Limited pipeline infrastructure for gas. Small user of gas: 10,0 TWh natural gas (>500 TWh) 1,8 TWh biogas/ biomethane Developing infrastructure for bio methane, CNG, LNG and LBG Growing interest for gas in shipping and industry sector. EUROGAS Vehicle gas = bio methane and natural gas Bio methane = upgraded biogas LNG = Liquefied Natural gas (cooled and compressed) LBG = Liquefied Biogas (cooled and compressed)

3 Synergy effects natural gas and biomethane Injection of biomethane into the gas grid since several years. Standard for biomethane in vehicle fuel. Green gas concept makes it possible to swap natural gas and biomethane. Many local grids in swedish citys Biomethane and natural gas in Sweden

4 The green gas concept Same idea as green electricity. Allows end consumer to order 100 per cent biogas. Distributer balance input and consumption in the grid. New tax legislation from 2011 makes it possible to use the green gas concept across differents grids. Biogas Industry Heat Natural gas Fuel Possible to develop on a European scale? Biomethane and natural gas in Sweden

5 Production and utilisation of biogas in Sweden 1,8 TWh biogas 2014 National goal 2030: 15 TWh biogas* *digestion + gasification Today: 2 % of the Swedish fuel market By 2030: Up to 25 % - possible with the right policy instrument 5

6 GoBiGas Gothenburg Biomass Gasification Gasification of biofuels and waste from forestry one of the first larger plants for gasification in the world. Inaugurated spring 2014, distributes gas to the grid. Phase 1 (demonstration): 20 MW, 150 GWh. Fuel for up to cars. Phase 2 (commercial): 80 MW, 650 GWh. Fuel for up to cars. EU-support: 59 million euro (NER300). Crucial for development of biogas/biomethane potential. Biomethane and natural gas in Sweden

7 Gas in transport state of play About vehicles: Over LDV s (less than 1% of total). Over 2300 busses (15% of total). 800 HDV s (over 1% of total). One vessel run on LNG: Viking Grace bunker LNG in Stockholm. About 12 more planned Over 220 filling stations: About 220 filling stations for CNG. 6 filling stations for LNG and liquefied biomethane. Located mainly in Central and Southern Sweden. CNG and biomethane 2% of fuel used: 10% biofuels of fuel used biodiesels (65%), ethanol (25%) and biomethane (10%). Twice as much CNG/CBG is sold, compared to E85. Present situation and plans for CNG and LNG in Sweden

8 Growing demand for biomethane Natural gas Biomethane Total sold vehicle gas Source: SCB

9 Gas buses in Sweden Places with gas buses 2014 Biomethane and natural gas in Sweden

10 LNG but now also LBG fuel for the heavy transports Same technology Creates larger markets. Both Volvo and Scania in Sweden Can be used in different engines: - Diesel engines - Otto engines - Gas hybrid engines in busses Biomethane and natural gas in Sweden

11 Filling stations - LNG/LBG for trucks Six stations An additional will be opened during 2014 Part of the EU-Project, LNG Blue Corridors Renewable content up to 50 % Based on mass balance/ Green gas principle Biomethane and natural gas in Sweden

12 Swedish incentives for greener transports Tax exemption for bio methane: Ends 2020 Reduction of tax (40 %) for use of a company gas vehicle Ends Zero vehicle tax for greener cars for the first five years Incentives for innovative biogas technique Climate Investment Programmes - grants for local long-term investments that reduce greenhouse gas emissions Public procurement may favor gas for transport CNG taxis are given priority at Arlanda Stockholm Airport A quota system and a bonus-malus system under discussion

13 BUT, the market is stagnating Uncertainty about the regulations for biogas production. Problem with the EU-legislation (state aid, ILUC, ) Skepticism among investors Not the same focus on biogas from the politicians Electricity is the solution everywhere Biodiesel is coming very strong in Sweden BUT, we are waiting for the truck market and industry could be an interesting new market Biomethane and natural gas in Sweden

14 .and the future? Stand-by position for the moment Still uncertainty about the long term regulations Will gasification develop? Will LBG develop? Will rotational crops be a possibility? BUT, the other countries in Scandinavia is offensive!! Biomethane and natural gas in Sweden

15 Biogas in Denmark Green growth agreement % manure in biogas in 2020 (now: 7 %) 20% investment grant (increased to 30% in 2012) Energy agreement in march 2012: Feed in tarifs 1. Improved: electricity from 79 to 115 DKK/GJ 2. New: biomethane in grid: 115 DKK/GJ (56 /MWh) 3. New: transport and industry: 75 DKK/GJ (37 /MWh) Ressource strategy % of household waste reused in 2023 Organic fractions from waste From incineration to biogas Up from 18 % to 60 % in 2018 (retailers, canteens etc.) Danish Biogas Association

16 Increasing production New and coming (Since 2014) Total biogas 2012: 4,1 PJ 2013: 4,6 PJ 2014: 5,5 PJ 2012 Sewage Landfill Industrial Agricultural Danish Biogas Association

17 Also in Norway biogas is growing Presentationens namn, version etc

18 with buses in many cities Presentationens namn, version etc

19 Biogas production from waste raw material in Gasum MÄKIKYLÄ, KOUVOLA SUOMENOJA, ESPOO KUJALA, LAHTI GWh/a 24 GWh/a 50 GWh/a HONKAJOKI, HUITTINEN, KUOPIO, OULU GWh/a UPCOMING PLANT IN RIIHIMÄKI (facility will be operational in 2016, connected to the grid) 50 GWh/a TURKU, VEHMAA GWh/a 9+(1)biogas plants over 320 GWh/a t/a Gasu

20 Thank you for listening! Anders Mathiasson Swedish Gas Association Present situation and plans for CNG and LNG in Sweden

21 Substrates for biogas production Sludge from wastewater treatment Industrial organic waste products (dairy, slaughter house etc.) Organic household waste fast growing national target 40% by 2018 Manure Crops, sugar beets (very small part) Landfill Forest residues

22 Swedish Gas Association unites members Natural gas / LNG Biogas / LBG LPG, Propane Vehicle gas Hydrogen Råvara industri

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