Le Biogaz: une source flexible de production d energie renouvlable

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Le Biogaz: une source flexible de production d energie renouvlable Impact de la règlementation sur le dévelpoment de la filiere en Allemagne Dipl. Agar-biol. Michael Köttner, Cambery, Novembre, 4éme, 2014 1

Content: Regulatory and Policy Overview Feedstock & Market Perspectives Technology state of the art Direct marketing and flexible production Future of Biomethane injection to natural Gas grid

GERBIO...... German Association, created in 2001... promotes the sustainable generation and use of energy made out of biomass.... Fields of Work BIOGAS Plant Oil Wood Gas Liquid & Solid Manure and Digestate treatment Management Decentralized Wastewater

Biogas Plants in Germany

Development in Germany related to Biogas technology Over 100 regions, town and communities have +/- 100% supply in RE, partly based on biogas Special bioenergy villages supply heat and power with biogas as a base load Some regions have biogas as their main electricity source Town of Kirchberg an der Jagst has 105% RE coverage in electricity Town has 3 biogas plants, 5 wind energy plants, 5 hydro power stations, many photovoltaic plants

Cumulated number of biogas plants

Biogas in Germany 2013: Amount: Installed eletrical capacity: Power production: Agricultural Area: 7.772 Biogas Agricultural and Waste Plants 3.356 Megawatt (~ 3,0 Gigawatt) 24,38 Mrd. Kilowatt hours = Electricity for 7,0 Mio. Households ca. 850.000 ha for Biogas Feed into the natural gas grid: 124 Biomethane feed in stations (132 Mio. m³/a) Biogas filling stations: Employment places: ca. 42.374 100 with 100%, 288 with 10 to 50% biomethane

Biogas Sector Statistics at a Glance Source: Fachverband Biogas e.v. 2011 2012 2013 Number of biogas plants (of these feeding biomethane) 7175 (77) 7515 (109) 7772 (124) Installed electric power in MW 2984 3200 3365 Net electricity production in MWh per annum 19,09 Mio. 22,84 Mio. 24,38 Mio. Homes supplied with biogas-based electricity 5,5 Mio. 6,5 Mio. 7,0 Mio. Proportion of electricity consumption in % 3,17 3,85 4,10 Turnover in Germany in 8,3 Billion 7,3 Billion 6,9 Billion Jobs 63.213 45.485 42.374 Export rate in % 10 30 44

Reasons for Market Development High standards in technical development Different standadrized types of digesters and plant technologies Consolidation of Special Fermentation Technologies Automatisation of system control and operation Enabling environment & economic incentives Fixed Feed in Tarrifs guaranteed for 20 Years, Energy Crop Bonus Regulated grid access at reasonable cost

Classical : District-Heating Biogas - Heat District- Heat- Pipe

Alternative : Mikrogas Grid Gas Pipe (pressure less) Satellite-CHP

Biomethane Plants in Europe

- Bio methane Energy Crops Org. Residues Biogas Internationales Gas Utilisation: Biogas Upgrading Biogas Plant Biogas Upgrading CO2 El.- Grid Customer EEG- Electricity Heat CHP Gas transport Gas Grid

The Value of Raw Biogas From Energy Crop - Plant With Manure - Bonus Without Manure - Bonus Only electricity sales Electricity plus 50% Heat sales Only electricity sales Electricity plus 50% Heat sales 250 kw - Plant 7,5 cent/kwh 8,3 cent/kwh 6,4 cent/kwh 7,2 cent/kwh 500 kw - Plant 7,4 cent/kwh 8,4 cent/kwh 6,7 cent/kwh 7,6 cent/kwh From a waste treatment plant Only electricity sales Electricity plus 50% Heat sales 3,9 cent/kwh 4,8 cent/kwh 4,0 cent/kwh 5,0 cent/kwh Quelle: top-agrar 1/2010

Overview biogas upgrading technologies (for CO2 reduction) Adsorption Absorption Permeation Cryogenic upgrading Pressure swing adsorption Water scrubber High pressure membrane separation Low pressure water scrubber Physical absorption (organic solvents) Chemical absorption (organic solvents) Low pressure membrane separation [ISET, 2008]

Sector Perspectives The amended Renewable Energy Law in 2009 and 2012 focuses on thermal efficiency, ecology and emission reduction; More incentives for small agricultural biogas plants and for the treatment of waste Since August 2010 ammended GasNet Feed in Ordinance GasNZVO, Gas Feed in Law in preparation GEG??? Governmental goal: until 2030 at least 10% of biogas contained in the natural gas grid??? Self marketing of electricity and gas at the stock exchange (Basic Feed in Tariff plus market premium) YES Raw biogas pipelines with satelite CHP unit near heat consumers??? Biogas as raw material for chemical industry; Methane and CO2 Biomethane as fuel for vehicles

German Industry activities since 2012 New plants: 340 in 2012 and 195 in 2013 realized Estimation 2014: less than 100 plants with 40 MW Down from over 1270 plants in 2011: Over 90 % market depression Mainly < 75 kw about 150 Also refittings and plant extensions EEG 2009 (in EEG 2014 no more plant extensions)

German Renewable Energy Act (EEG) 2012 Performance Group Basic Compensation Feedstock Compensation Group I Feedstock Compensation Group II Compensation for Biowaste Digestion Bonus for Gas Upgrading 75 kw 25 ct/kwh 150 kw 14,3 ct/kwh 6,0 ct/kwh 8,0 ct/kwh 16 ct/kwh 500 kw 12,3 ct/kwh 6,0 ct/kwh 8,0 ct/kwh 16 ct/kwh 750 kw 11,0 ct/kwh 5,0 / 2,5 ct/kwh 8,0 / 6,0 ct/kwh 14 ct/kwh 5 000 kw 11,0 ct/kwh 4,0 / 2,5 ct/kwh 8,0 / 6,0 ct/kwh 14 ct/kwh 3 ct/kwh until 700 Nm³/h 2 ct/kwh until 1000 Nm³/h 1 ct/kwh until 1400 Nm³/h Capacity of biogas upgrading equipment 20 000 kw 6,0 ct/kwh 0,0 ct/kwh 0,0 ct/kwh 14 ct/kwh Min. 80% own slurry/ manure Not cumulative Installed power 75 kw Min. 60% heat use obligation Max. 60% maize silage Min. 60% slurry no heat use obligation Only for bark or wood rest Amemdments 2014!! Only for solid manure Min. 90% Biowaste + Composting of digestate Not cumulative Power 5 MW CH 4 emission 0,2 % Power consumption 0,5 kwh No fossile energy Capacity 1400 Nm³/h

Renewable Energy Act (EEG) 2012 Market Bonus, Flexibility Bonus Market Bonus: Obligatory for new plants over 750kW from 2014 Average price at EEX previous month Market bonus Theoretical Feed in Tariff + 0,25ct Flexibility Bonus: in combination with Market Bonus - for extra capacity that is not regularly used - grid owner has automatic access to the extra capacity - Bonus about <1ct( ) for every kwh t Bonus

Outlook / Future Challenges Peak Load/Regulating Energy - Gas storage -Good process regulation -New technologies: power to heat, power to gas - Access fees - Workload -Pooling

Renewable Enery Act 2014 Market premium model Regulated energy marketing positive / negative minute reserve positive / negative secondary reserve Flexible Production Flexpremium Nov-14 22

Origin of revenue Internationales Biogas Plant (EEG-Compensation) Biogas Plant Market premium Management premium Grid Operator Grid Operator Electricity revenue from Stock Exchange + evtl. additional services - minus costs Marketing company Nov-14 23

Electricity price at Stock Exchange Mo 13.10 Di 14.10 Mi 15.10 Do 16.10 Fr. 17.10 Sa. 18.10 So 19.10 Mo 20.10 00-01 Uhr 2,707 3,205 3,000 2,987 3,002 2,999 1,574 0,818 01-02 Uhr 2,172 3,049 2,728 2,865 2,842 2,818 1,197 0,110 02-03 Uhr 2,006 2,945 2,625 2,577 2,726 2,775 1,115 0,150 03-04 Uhr 1,552 2,797 2,408 2,330 2,492 2,504 1,275 0,483 04-05 Uhr 1,383 2,672 2,427 2,468 2,524 2,488 1,093 0,628 05-06 Uhr 1,939 2,880 2,636 2,803 2,777 2,511 1,321 1,066 06-07 Uhr 3,544 4,037 3,824 3,843 3,578 2,871 1,455 2,934 07-08 Uhr 4,196 5,487 5,192 5,298 5,095 3,292 1,320 3,922 08-09 Uhr 4,491 5,734 5,415 5,494 5,387 3,445 1,595 3,681 09-10 Uhr 4,438 5,005 5,582 5,500 5,510 3,515 1,806 3,435 10-11 Uhr 4,492 4,635 5,500 5,500 5,411 3,415 1,610 3,260 11-12 Uhr 4,379 4,493 5,428 5,552 5,193 3,161 1,344 3,231 12-13 Uhr 4,009 3,785 4,598 5,244 4,918 2,964 1,071 3,071 13-14 Uhr 4,141 3,660 4,497 4,831 4,535 2,561 0,621 3,151 14-15 Uhr 4,078 3,600 4,321 4,592 4,363 2,538 0,799 3,238 15-16 Uhr 4,395 3,841 4,492 4,503 3,901 2,804 0,824 3,290 16-17 Uhr 4,492 4,286 4,584 4,190 3,813 3,000 1,165 3,408 17-18 Uhr 4,495 4,846 4,858 4,498 4,165 3,496 1,674 4,244 18-19 Uhr 5,180 5,777 5,194 4,993 4,594 3,927 2,803 4,798 19-20 Uhr 5,774 5,780 6,163 5,794 5,229 4,493 3,272 5,987 20-21 Uhr 5,000 5,205 5,232 4,696 4,515 3,409 2,608 4,680 21-22 Uhr 4,435 4,500 4,495 3,709 3,618 2,876 1,529 3,619 22-23 Uhr 3,506 3,618 4,165 3,228 3,422 2,806 1,448 3,434 23-24 Uhr 3,323 3,226 3,164 3,074 3,113 2,146 0,876 2,085 Nov-14 24

Nov-14 25

Nov-14 26

Nov-14 27

Flexible Production More revenue depends on: Which is the production flexibility of the Biogas Plant (Gas storage, CHP- Performance) How high is the part of Flexibility for marketing How well is Flexibility marketed Nov-14 28

Flexibility Premium for existing Plants Creation and use of production flexibilty Legal Conditions: - participation in direct marketing - usable flexibitly must be confirmed by an external auditor - Flexibility premium granted for 10 years - Flexibility premium is calculeted yearly at the end of the year Nov-14 29

Flexibilitätsprämie bei Biogas-BHKW Bedienung: nur in grüne Felder eintragen! bisher installierte/geplante Leistung Jährliche Betriebsstunden Jahresarbeit (Strommenge/Jahr) 340 [kw] 8.760 Bh/a 2.978 MWh/a Bemessungsleistung 340 [kw] (grüne Linie) Korrekturfaktor Biogas lt. EEG (2012) 1,10 Flexprämie ab installierter Leistung Flexprämie bis installierte Leistung Flexibilitätsprämie lt. EEG (2012) maximale Flexprämie max. zus. BHKW-Leistung Auswahl Zusatz- BHKW/Vergrößerung installierte Leistung mit Flex-BHKW Betriebsstunden mit Flex-BHKW Flexprämie für Wahl-BHKW 374 [kw] 1.700 [kw] (schwarze Linie) 130 je kw pro Jahr 110.500 pro Jahr 1.360 [kw] 340 [kw] 680 [kw] 4.380 Bh/a 39.780 pro Jahr (roter Punkt) Bemessungsl. > 0,2 * installierte Leistung (bis schwarze Linie) Zusatzleistung < 0,5 * installierte Leistung (rote Linie) *Flex Analyse: unabhängige Dienstleistung der CUBE Engineering, ermittelt die Ertragspotenziale der bedarfsorientierten Einspeisung, einschließlich EPEX-Markt-erlösen, Wirkungsgradveränderung, Start- und Vermarktungskosten durch ganzjährige stundengenaue Simulation der einzelnen Anlage. jährliche Flexibilitätsprämie für Biogas- BHKW 120 000 100 000 80 000 60 000 40 000 20 000-0 500 1 000 1 500 2 000 installierte Leistung BHKW (kw) Engineering Nov-14 Grafik: CUBE 30

Flexibility for New Plants (EEG 2014) Creation of production flexibilty legally binding > 100 KW Support (EEG) only for 50% of the electrical working capacity Flexibility premium of 40 / KW installed capacity per year over the whole duration of support Nov-14 31

Flexible Electricity Production Technical Conditions have to be checked Gas storage/- Volume / Gas pipes Higher CHP Capacity; Output regulated at short notice Service guaranty of manufacturer must be valid for flexible production Approval must be adapted (Output, Safety, Paperwork,...) Higher Service Costs Nov-14 32

Flexible Electricity Production Also means: right choice of marketing company and a favourable contract Nov-14 33

Step by Step introduction of flexible production according to operational and technical possibilities Direct marketing of electricity production without changing output and mode of operation Providing of negative regulated production Utilization of available additional capacity Creation of additional flexibilty Nov-14 34

Outlook / Future Challenges Development of alternative substrates - reduction of ecological impacts - positive reception of biogas in the public - Unsure about further using possibilities Silphium perfoliatum (Source: www.wikipedia.org) Sorghum bicolor (Source: www.wikipedia.org) Field margins or landscape maintenance Material

Outlook / Future Challenges Small scale plants max. 75kW - 80% slurry/manure - No obligation for heat utilisation - At the moment several turnkey products are under development Source: www.energiespektrum.de - Utilisation of slurry/manure potential - Investment costs? Source: bio4gas

Outlook / Future Challenges Biomethane - upgrading to about 98% methane - several technologies available - technology bonus or feed in tariff necessary - use at point of better heat utilisation - use as household heating - use as fuel for NGVs (Natural Gas Vehicles) - upgrading no longer supported for new plants

Future? Internationales 75 kw Farm Source: MT-Energie Biowaste

THANKS for your attention! Michael Köttner, Chairman German Biogas and Bioenergy Society, GERBIO www.gerbio.org koettner@gerbio.org