Biogas in the Nordic countries

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Nordic Biogas Conference August 27 2014 Biogas in the Nordic countries Bruno Sander Nielsen / Danish Biogas Association

Brief overview Production Origin Use Development Major challenges / drivers Figures app. 2012 Main sources: IEA Task 37 Members of organising committee

Nordic biogas production 3900 GWh 14 PJ

Nordic biogas production

Nordic biogas production

Nordic biogas production

Iceland 20 GWh/yr 0.07 PJ/yr

Iceland 14. 26. maj juni 2014 2012 Biogas production Farm scale (cattle) used on farm Industrial plant (Coca Cola) proces Landfill gas Reykjavik transportation Coming up SORPA household waste Akureyri landfill gas and filling station

Iceland 14. 26. maj juni 2014 2012 Utilisation 1400 vehicles, 100 % biomethane 3 filling stations in capital area Support schemes Exemption of excise and CO2 tax guaranteed to 2020 Vehicle conversion costs refunded (reduced vehicle tax) Free parking (1½ hours) Challenges Biogas not competive with geothermal heat and hydropower Iceland need to reduce GHG emissions in transportation

Finland

Finland 570 GWh 2.0 PJ

Finland

Finland Utilised Flared

Finland Status Growth expected Landfill forbidden from 2016 Competition with incineration Transportation 19 filling stations 1300 vehicles 18 % biomethane 3 upgrading plants

Finland Support schemes Feed-in tarifs: Guaranteed price electricity: 83.5 /MWh if <19MWh Heat bonus: +50 /MWhe If <1MW: 50 % total efficiency If >1MW: 75 % total efficiency Landfill gas and municipal plants excluded Plants can be included for 12 years Tarifs are regulated according to market price Investment grants: 15 40 % As alternative to join the feed-in tarif system No tax on biomethane as a fuel

Norway

Norway 500 GWh 1.8 PJ

Norway

Norway Government aim (2009) for biogas in 2020: 30 % of livestock manure (4-5 mio ton) + 600,000 ton of food waste (60 % of total) To reduce GHG emissions from agriculture (½ mio. ton) Status: Limited development: actual 0.5 TWh + 0.3 TWh planned Government to propose strategy for biogas Focus on use of digestate as fertilizer incl. logistics Realistic potential in 2020: 2.3 TWh 32 % from manure 22 % from industrial waste 14 % from biowaste from households 7 % from biowaste from catering and trade Landfill (12%), straw (7%), waste water (6%)

Norway Incentives Ban of organic waste in landfill since 2009 Support for manure: 30 NOK/ton (proposal). Investment grants (small scale and industrial) pl. Norwegian-Sweden joint el. certificate (17-22 /MWh) Tax exemption for biogas for road transportation Investment subsidies for infrastructure No development in CHP all goes for transport. Current use of gas for transportation (2013) 176 filling stations 31 LNG ferries 900 vehicles 16 % biomethane in vehicle gas

Denmark

Denmark 1220 GWh 4.3 PJ

Denmark

Denmark Green growth agreement 2009 50% 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) State aid approval EU 1 and 2: November 2013 1. 1 and 2 combined with investm. grant: February 2014 2. 3: Still waiting

Denmark Biogas Task Force Established as part of energy agreement 2012 Parliament to discuss development in autumn 2014 Production probably doubled in 2020 (2.2TWh) Equals half of projection in Energy Agency scenarios Total potential 15 TWh (half of natural gas/transport) Focus on new solid type biomasses (residues etc.)

Denmark 50 pct. Uncertain Perhaps Very Pretty probable sure Manure Biogas Task Force

Denmark Clovergrass Energy beet Energy maize Sugar beet top Household waste Aqatic Green waste garden Road margins Field edges Natural habitats 2nd crop Straw Biogas potential Report for Biogas Task Force 2013 50 % livestock manure AgroTech 2013 Mio. m 3 metan 0 100 200 300 400

Denmark Biogas production 2000-2012 Total Agriculture co-digest. Sewage Landfill Industrial

Denmark Status Feed in tarifs erodes back to 2012 level in 2020 Investment grant necessary but box is empty Trends Until now: only combined power/heat All new projects: upgrading to grid Widespread gas grid basis for both strategies Upgrading plants: 1 in 2013 - now 4 Filling stations: 1 in 2012 now 7 Gas vehicles: increasing but probably still < 30 Discussion: Can vehicles use gas in Denmark? Danish biogas model is still based on residues Ressource strategy: Incinerate less reuse more Organic residues to go to biogas

Sweden

Sweden 1590 GWh 5.7 PJ

Sweden

Sweden Small gas grid and low gas consumption Transportation challenge for being fossil free 92 % fossil 57 upgrading plants 60 % biomethane in vehicle gas 138 public and 57 non public filling stations EU ban on landfill of organic matter a driver From 30,000 tonnes in 2005 To 250,000 tonnes in 2012

Biogas production (GWh) Sweden 1600 1400 Landfills (55) 1200 Co-digestion (21) 1000 800 Agriculture (26) 600 Industrial waste (5) 400 200 Waste water treatment (135) 0 2005 2006 2007 2008 2009 2010 2011 2012

Sweden Turnover in utilisation from heat to transportation

Sweden Methane for transportation 44 000 (1%) 2 200 (16%) 700 (1%) 2 % of vehicle fuel Buses important, stable market driving development

Sweden Support systems No feed in tarifs No CO2 or energy tax on biogas (value 68 /MWh) 40 % reduction of income tax for use of company NGV Investment grants up to 45 % (KLIMP, Landsbygdprogram, Biogasutlysningen etcetera) For biogas plants and filling stations Joint electricity certificate with Norway (value 17-22 /MWh) Challenge: Tax exemptions not approved in EU Expected to last to 2019, but probably only secured to end of 2015

Conclusions Similarities Development dependent on framework conditions Less landfill gas more waste and agricultural biomass From heat and power to upgrading and transportation Development is slow and dependent on stable conditions Differences Incentives (feed in tarifs vs. taxexemption and market drive) Stakeholders (energy sector, municipalities, agriculture) Denmark: power and agricultural/waste Norway and Finland: heat and sewage Sweden: Transportation and sewage/waste

Thanks! - for your attention Thanks to Organizing committee for most valuable contributions! Björn Halldórsson, Tobias Persson, Henrik Lystad, Teemu Aittamaa www.biogasbranchen.dk bsn@lf.dk Danish Biogas Association