Power Generation from Biogas Energy Provider Perspective



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Power Generation from Biogas Energy Provider Perspective Global Biogas Congress Brussels, 29th November 2011 Dr. Christian Böse

Content: Who is E.ON Bioerdgas? Development of Biogas-Production in Europe Biogas in Germany Most efficient use of biogas Biomethane injection as an attractive option for utility energy procurement and GHG abatement

Energy-Mix 2030: Increasing Share of Renewables at E.ON E.ON Production Portfolio: (2008 2030) 1 100 Renewables (including hydro) Nuclear Coal Natural gas/oil 80 60 38 % ~40 % ~31 % ~22 % <50% low carbon: - Natural gas/oil - Coal (without CCS) 40 20 0 34 % ~30 % ~11 % 15 % ~12 % ~36 % 13 % ~18 % 2008 2015 2030 >50% zero carbon: -Renewables (including hydro) -Nuclear -Coal (with CCS) 1 Figures based on attributable generation capacity..

Our targets: Support reaching the political objectives of German Government and EU regarding shares of bioenergy in 2020 and 2030. Provide an increasing share of biomethane in the overall consumption of natural gas. Implement most efficient technologies for reducing green house gas emissions (at least 60% compared to natural gas). Provide additional income and work opportunities in rural areas. Leadership in the sustainable production of biomethane: Cross-compliance and good agricultural practice for biomass production, Lowest GHG emissions in biomethane production, Sound integration of biomethane production into the local economic, agricultural and social framework. 4

E.ON biomethane projects in Germany Schuby Einbeck: 50 GWh/a in operation since 09/2009 Rhede Eimbeckhausen Einbeck Könnern Lehma Schwedt Schöpstal Könnern: 150 GWh/a in operation since 09/2009 Zörbig Merzig: 50 GWh/a in operation since 05/2011 E.ON assets long term contract Merzig Schwandorf Hallertau Aiterhofen Aiterhofen: 90 GWh/a in operation since 09/2009

Content: Who is E.ON Bioerdgas? Development of Biogas-Production in Europe Biogas in Germany Most efficient use of biogas Biomethane injection as an attractive option for utility energy procurement and GHG abatement

Biogas production: two approacheas Local Biogas Utilisation biogas (local CHPs) Biogas Feeding into the Gas Network biomethane (purification + feeding in) biomethane gas pipe CHP upgrading electricity (CHP) N E W heat fuel biogas plant few locations with full heat utilisation optimised heat utilisation new products demand from customers

Significant differences in Biomass/Biogas Support between Member States Support Schemes for Energetic Use of Biomass Support for capacities >20MW e Investment Support Tax excemptions CHP Support Duration of Support Co-firing Support Italy UK Netherlands Spain Czech. Rep. Slowakia Austria Belgium France Polamd Portugal Bulgaria Germany Romanian Sweden Hungary Greece Ireland Danmark Finland 15 20 12 15 20 15 15 10 15 0 25 15 20 15 15 10 20 15 10 0 Quelle: Ecoprog/Fraunhofer 12/2009; Ecofys/Fraunhofer/EEG/LEI 10/2009 8

in COMMISSION STAFF WORKING DOCUMENT The support of electricity from renewable energy sources, Brussels, 23.1.2008 SEC(2008) 57

Status of Biogas-Production in EU 2009 in ktoe

Biomethane Production in Europe biomethane projects depend on national incentive schemes

Content: Who is E.ON Bioerdgas? Development of Biogas-Production in Europe Biogas in Germany Most efficient use of biogas Biomethane injection as an attractive option for utility energy procurement and GHG abatement

Biogas- Plants in Germany / Livestock Density Source: DMK Source: DBFZ

Case Study Germany: Development of Biogas Production Electricity Production from Biogas 2010: 12,8 Bill. kwh, =. 2,1 % of total electricity consumption in Germany: 12,6 % of electricity from renewables. thereof about 100 Biomethane Plants = 1,4% thereof about 250 MWel = 9% Biomethane Source: Fachverband Biogas, FNR

Case Study Germany: Share of Biogas in Renewable Heat 0,7% at total Heat Use Source DBFZ

Feedstocks Most biogas plants in Germany run on energy crops and manure, Range of energy crops is broadening Potential of organic bio-waste is limited and requires additional technical installation for feedstock treatment prior to the biogas production, Use of non-agricultural raw materials in specialized biogas plants,

Content: Who is E.ON Bioerdgas? Development of Biogas-Production in Europe Biogas in Germany Most efficient use of biogas Biomethane injection as an attractive option for utility energy procurement and GHG abatement

Efficiency of Biogas Utilisation The degree of Heat-Use decides on the efficiency of the biogas plant. This is true for: Share of Non-Utilised Energy (%) Energy efficiency, Economic efficiency, 70 60 50 40 30 20 10 0 Efficiency in Climate gas reduction. Electricity only Heat-Driven CHP 60% Heat Use + Electricity

CO2-Reduction for different ways of biogas use 300 g CO2-Äq / kwh Hs 250 200 150 100 50 0 100% heat 0% heat Direct use Biogas- of biogas Use Bioerdgas of biomethane im Direktverstromung for electricity in Transportsektor transport sector production ohne without Wärmenutzung use of heat Use Bioerdgas of biomethane im in heating Wärmemarkt sector Use Bioerdgas of biomethane in KWK for CHP Source: Own compilation based on Data from Wuppertal-Institut and IFEU

Biomethane: The most efficient bio fuel www.biogaspartner.de

Content: Who is E.ON Bioerdgas? Development of Biogas-Production in Europe Biogas in Germany Most efficient use of biogas Biomethane injection as an attractive option for utility energy procurement and GHG abatement

Elements of the biomethane chain Separation of biomethane production and consumption using the gas grid as storage biomass dispenser fermenter for AD CHP CNG station biomass, e.g. energy crops biogas upgrading + injection gas distribution grid 22

Biomethane plant Aiterhofen Annual biomethane production: 90 GWh Hs /a Substrates: 80,000 t/a (energy crops, mainly maize) Biogas production and upgrading built by Schmack Biogas Upgrading by PSA Commissioning 09/2009

Main Advantages of Biomethane (I) The Gas Grid Access of Biomethane was facilitated in 2008 by the Gas Grid Access Ordinance which stipulates that biomethane plants take precedence when it comes to being connected to the gas grid. Plant operators and grid operators must each bear half of the costs associated with the grid connection. Biomethane can be used for: Biomethane for power generation (in cogeneration mode) Biomethane for admixing products (in blends with natural gas) Biomethane for transport application as biofuel. Biomethane is a dispatchable and storable energy source (unlike wind and solar power).

Main Advantages of Biomethane (II) Biomethane is available year-round (24/7); AD plants run in base load. Anaerobic digestion of energy crops has highest energy yields per ha; and it is based on a broad mixture of input materials: - dilute organic waste, solid organic waste, wet crops, dry corn - root, stem, leaves and fruit Anaerobic digestion of local energy crops has a closed cycle of matter: minerals from biomass return as fertiliser to the fields Biomethane has the best eco-balance of all existing bioenergies

Contacts: Dr. Christian Böse Head of Feedstock Management Tel: +49 (201) 184 7649 Mobil: +49 175 2288045 Fax: +49 (201) 184-7837 E-Mail: christian.boese@eon.com E.ON Bioerdgas GmbH Brüsseler Platz 1 45131 Essen

Croping Area needed for Feedstock Production (Einbeck Size: 5 MW; 45 GWh/a) Feedstock grown in a radius of 15 km around the plant location Total Area: 70.700 ha, thereof about. 35.000 ha agricultural area Area needed for fedstock supply about 1.000 ha (ca. 1,5% of overall area; ca. 3% of agr. area) Biomethane Plant About 70 farmers supplying feedstock 27 Area needed for feedstock supply

Allocation of Harvest Area Einbeck 2009 BGA-Einbeck