Biogas in Germany. Development, Technology and Benefits.
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1 Frank Hofmann Department of International Affairs German Biogas Association Biogas in Germany Development, Technology and Benefits Warsaw, Poland, 19th of April 2016
2 Biogas in Germany Development, Technology and Benefits Content German Biogas Association Renewable energy in Germany The biogas market in Germany Political framework in Germany Different operation techniques in use Conclusions
3 over 400 honorary experts Member of the European Biogas Association (EBA) Structure of the German Biogas Association Belgrade, Serbia, 5th of April 2016 Steering Committee 7 members, elected for a 4-year-period Headquarters in Freising 28 employees, organised in 10 departments Board of Trustees Elected honorary spokesmen of regional groups, working groups and advisory boards Advisory Boards, Working Groups Advisory boards of plant operators, companies, the legal profession, funders; Working groups for the areas permissions, safety, feeding-in of biogas, environment, heat, waste and fertiliser law Berlin Office 6 employees Regional offices (North, South, East, West and Editorial Office Biogas Journal 5 employees 23 Regional groups in Germany Operators of biogas plants Providers of feedstock Research Institutions 4,800 Members Interested private individuals Public authorities Lawyers Companies and manufacturers Corporate finance Planners, advisers, laboratories 3
4 German Biogas Association - Objectives Objectives : Promotion of the biogas sector Promotion of a sustainable energy supply Definition of legal framework for reliable and long-term investments Creation of adequate technical rules and standards Promotion of R & D Exchange of information Members service Lobbying on federal state, federal and EU level in the following fields: Renewable Energy Act (EEG) Energy management Regulatory approval Environmental laws Laws on agricultural issues Tax law 4
5 European Biogas Association 26 countries 34 National Organisations 40 Companies 5
6 Content German Biogas Association Renewable energy in Germany The biogas market in Germany Political framework in Germany Different operation techniques in use Conclusions 6
7 Reasons for the energy transition in Germany Belgrade, Serbia, 5th of April 2016 Climate and environment protection Sustainable development of energy production Reduction of costs for German national economy by incorporating long- term external effects Conservation of fosil ressources Independency from imports of fossil fuels In the long term costs for fossil fuels will rise; fuel costs for RE are for free or will probably decrease Technology development Creation of employment, especially in rural areas Development of new markerts and sales 7
8 Advantages of Biogas I Production of energy Electricity Heat Vehicle fuel Storable and flexible energy source High employment rate Business creation planning operation maintenance 8
9 Advantages of Biogas II Fertilizer production Climate and environment protection Avoidance of methane emissions Substitution of fossil energy Substitution of synthetic fertilizers Nutrient recycling Odor reduction 9
10 Structure of the German electricity production from renewable energy sources (2014) Belgrade, Serbia, 5th of April % of electricity production from RES More than 50% of the RES are fluctuating 10
11 Content German Biogas Association Renewable energy in Germany The biogas market in Germany Political framework in Germany Different operation techniques in use Conclusions 11
12 Number of biogas plants Installed electric capacity Number of biogas plants & installed electric capacity Belgrade, Serbia, 5th of April Number of biogas plants in Germany Installed electric capacity in Megawatt [MW] Years Fachverband Biogas e.v. / German Biogas Association 12
13 Biogas sector at a glance Number of biogas plants (biogas plants with biomethane injection) Forecast 2014* Forecast 2015** (178) (190) Installed electric capcity in MW Gross electricity production in TWh per year 32,08 32,67 Housholds supplied with biogas-based electricity in millions 9,2 9,3 CO 2 reduction by biogas in million tons 18,0 21,2 Turnover in Germany in Euro 9,1 Billion 9,2 Billion Jobs in the biogas sector Fachverband Biogas e.v. / German Biogas Association * Own extrapolation based on country data/data from energy supplier ** Based on a expert survey 13
14 Feedstock in German biogas plants Excrements Energy crops Agricultural Vegetable waste Residential and by-products industrial waste Liquid and solid manure, dung Agriculture Grass, maize, corn, potatoes, fodder beet, mustard, silage Fertilizer Beet leaf, straw, harvest residues., vegetable matter Biogas plant Digestate Brewer grains, vegetable waste, old fat, molasses, distiller s wash, Marc, garden and park waste... Biogas separate collected residential, waste, organic fraction of mixed waste, fat separator contents, flotation tailings, food waste, leftovers, expired food, grease, blood, residues from milk production, sewage sludge, Heat, electricity, fuel 14
15 Biogas from biowaste in Germany 14,2 million t/a separately collected biowaste (incl. 8,2 million t/a household biowaste) Composting Fermentation Incineration material recycling/ recovery energetic Approx. 5,3 million t/a biowaste 984 approved biogas plants (approx. 300 plants from which 100 municipal plants) Source: Statistisches Bundesamt, 2012, Fachverband Biogas estimation 15
16 Fields of Application for Biogas 16
17 Content German Biogas Association Renewable Energy in Germany The biogas market in Germany Political framework in Germany Different operation techniques in use Conclusions 17
18 German Renewable Energy Act (EEG) Priority of connection, purchase and transmission for electricity from renewable energy sources A consistent fee for this electricity paid by the grid operators for a 20- year period The core elements of the EEG guarantee : Mid and long term planning and investment security Calculable costs for consumers Specific fees for different technologies Low bureaucratic effort Participation for local and regional players 18
19 Development of the Renewable Energy Act EEG ( ) Belgrade, Serbia, 5th of April 2016 Consistent fee for 20 years Priority connection 250 new plants a year EEG 2000 EEG 2004 Bonus for energy crops Bonus for using heat 450 new plants a year Bonus for new techniques Bonus for emission reduction Bonus for manure 1000 new plants a year EEG 2009 EEG 2012 New system New requirements on efficiency and ecology 340 new plants a year 200 new plants in 2015 EEG
20 Content German Biogas Association Renewable Energy in Germany The biogas market in Germany Political framework in Germany Different operation techniques in use Conclusions 20
21 Technologies in use in Germany Wet digestion Complete Mixed Reactor Dry continuous digestion Plug Flow Reactor Dry batch digestion Garage Systems < 15 % dm % dm > 30 % dm Thermophilic Thermophilic Thermophilic Mesophilic Mesophilic Mesophilic 21
22 Inside a digester The inside of a digester Fachverband Biogas e.v. 22
23 Plug flow reactor Input biogas digestate 23
24 Garage System 24
25 Capacity [GW] Belgrade, Serbia, 5th of April 2016 The new role of biogas in electricity production: Flexibility instead of base load 20 % Renewable Energy Sources 40 % Renewable Energy Sources 80 % Renewable Energy Sources With increasing share of RES, baseload loses importance Flexible systems fill the valleys of the wind and sun CHP with bioenergy & natural gas New role of biogas red Demand (2010) green Wind and solar generation 25
26 Direct Marketing The basic condition of direct marketing is that the electricity is not supplied to the grid operator but sold to an electricity trader. Three different forms of direct marketing The plant operator does not change the way the plant operates The electricity trader can control the plant remotely The plant operator and the electricity trader agree on a fixed schedule. 26
27 How does direct marketing and FiT of the EEG combine? Belgrade, Serbia, 5th of April 2016 By channeling the generated electricity through a public grid Market premium, flexibility premium Direct transmission to consumers Biogas plant No direct marketing Public grid Biogas plant Public grid 27
28 Market premium The biogas plant operator can combine direct marketing with the Feed-in Tariff of the EEG = Market Premium The biogas plant adheres to the requirements of the EEG and will also be reimbursed according to the statutes of the EEG but the electricity will be sold to an electricity trader. In the future, the biogas plant has two sources of income: Market premium: payed by the grid operator Revenue of direct marketing: payed by the electricity trader 28
29 The market premium principle Market premium = Feed-in tariff monthly market value on the electricity exchange The plant operator has to get the monthly market value from his electricity trader Will be paid by the grid operator Feed-in tariff EEG Market premium More revenue More revenue of direct marketing Monthly market value Revenue of direct selling Will be paid by the electricity trader 29
30 Flexibitlity premium If biogas plants can store the gas and provide additional capacity for electricity production they can apply for the flexibility premium / flexibility surcharge in addition to the market premium. A flexibility premium will be paid for extra capacity: For example: A biogas plant is operating with an average of 100 kw, 200 kw are installed at the plant and there is a big gas storage, so the plant can get the flexibility premium for its ability to produce more electricity in case it is needed. Flexibility premium is an additional premium to market premium. Direct marketing and market premium can be used by all other renewable energies. Flexibility premium is only for biogas plants! 30
31 Market premium and flexibility premium Flexibility premium More revenue Revenue from electricity trader Additional revenue for direct selling and flexibility premium Will be paid by the electicity trader Will be paid by the grid operator Market premium 31
32 Promotional material biogas.org german-biogas-industry.com 32
33 New promotional material in 2016 Biowaste to Biogas production of energy and fertilizer from organic waste Brochure will be published at IFAT in May 2016 Links "Biogas an all-rounder" Firmenliste Export FvB Marketplace 33
34 Content German Biogas Association Renewable Energy in Germany The biogas market in Germany Political framework in Germany Different operation techniques in use Conclusions 34
35 Conclusions Germany is a frontrunner in renewables Biogas is as an all-rounder and a key in the energy mix Three main trends in Germany: 1. Feedstock: manure/waste - no energy crops 2. Flexibility (balancing the fluctuating power generation) 3. Export business of the manufactures (60%) Huge potential and interest for biogas worldwide (biowaste digestion, agricultural residues, industrial residues and waste) know-how is necessary Lot of experience and know-how in Germany! 35
36 Biogas in Germany Development, Technology and Benefits Frank Hofmann Department of International Affairs German Biogas Association Internet:
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