Latest Development of Biogas Upgrading to Biomethane

Heating Systems Industrial Systems Refrigeration Systems Latest Development of Biogas Upgrading to Biomethane EBA Workshop, Brussels, September 3 rd, 2015 Dr. Tino Weber, Viessmann Group COO, Industrial Energy Systems

Presentation Content 1. Viessmann Group 2. Biogas and Biogas Upgrading 3. Latest Developments in the market 4. Looking ahead

1. The Viessmann Group Family business with head office in Allendorf (Eder) 1917 Founded 11,500 Employees 2.2 Turnover in /billion 22 Manufacturing sites in 11 countries 49 Sales companies, 35 sales partners in 58 countries and sales activities in a total of 85 countries 120 Sales offices worldwide 56 Export share in percent

1.1 Comprehensive range Products and system solutions for all application areas Three divisions: Heating systems, Industrial energy systems, Refrigeration systems Comprehensive ranges for specific target groups, for the application areas of residential buildings, commerce, industry and local authorities

2. Biogas and Biogas Upgrading

Natural Gas Grid Latest Development of Raw Biogas Upgrading into Biomethane 2.1 Biogas and Biogas Upgrading From biomass to electrical power & biomethane Conventional local power production Grid Injection & Decentralised Utilisation Biogas Upgrading Biomass Slurry Biogas Production Biogas Biomethane Off-gas + Heat Export Power Heat CHP On site CHP Industry & households Power Heat CNG Vehicle fuel CHP Grid Injection Disadvantages: Advantages: No Heat Concept Low CHP-Efficiency Better Heat Concept Highest CO 2 -reduction potential High CHP-emissions Low energy utilisation High energy utilisation Lowest emissions High CHP-methane loss High CHP service cost Highest added value High CHP-Efficiency

2.2 Biogas and Biogas Upgrading Upgrading technologies Technology Working Principles Advantages Disadvantages Physical Scrubber CO 2 absorption in scrubbing liquid Methods: Water scrubber, Polyglykol scrubber Robust and well proven technology Sensitive to high ambient temperatures Chemical Scrubber CO 2 removal by chemiesorption in scrubbing liquid Method: Amine scrubber Very low Methane losses Cost effective at low heat price Very high heat demand No removal of trace gases Adsorption CO 2 removal by molecular sieve Method: Pressure Swing Adsorption Robust process, removal of trace gases and partly O2 + N2 High investment cost for small units Membrane CO 2 removal by molecular size Method: Membrane Simple process Less complex units High power demand, Degradation of Membrane over time Combined process Membrane or PSA + CO2 Liquefaction Method: combined Pure CO2 as additional product Low Methane losses High power demand Complex systems

2.3 Examples of Upgrading Units Different sizes and substrates BUP 350, Sewage Gas BUP 500, Agricultural Waste BUP 750, Slaughterhouse Waste BUP 1000, Municipal Waste BUP 2000, Agricultural Crops BUP 1800, Landfill Gas

3. Latest Developments

3.1 Biomethane upgrading plants in Europe: in operation Biogas Upgrading Plants in Europe > 250 BUP in operation > 200 BUP feed into gas grids > 50 BUP utilize CNG Largest markets: Germany > 150 BUP Sweden > 30 BUP Netherlands > 25 BUP Growing markets: Great Britain, mix of biowaste and energy crops France, biowaste, small to medium sized BUP Italy, biowaste for CNG and/or grid injection Source: dena, July 2015

3.2 Last 10 year s focus of development Higher methane recovery Increase profitability & reduce GHG-effect Lower power & heat demand Reduction of OPEX & GHG-effect Simplification & Standardization Reduction of CAPEX New Upgrading Technologies Membrane & Combined Process Downsizing Upgrading Units Serving new markets O2/N2 removal Access&Compatibility to EU-EASEE natural gas network Integration with Power to Gas

specific power demand KWh/Nm3 Latest Development of Raw Biogas Upgrading into Biomethane Methane loss % 3.3 Development of upgrading plant performance (Example : PSA since 1984) 0.40 8.0 0.35 7.0 0.30 0.25 power demand > 50 % improvement 6.0 5.0 0.20 4.0 0.15 3.0 0.10 2.0 0.05 0.00 Methane loss > 80 % improvement 1984 1992 1998 2006 2010 2012 2014 Future target 1.0 0.0

Methane Yield in % 3.4 Development of upgrading efficiency 102 100 98 96 94 92 90 Methane Recovery Average in 2006 96% Average in 2010 97.5% Average in 2014 98% Average in 2016 >99% Upgrading technologies A B C D E Average 88 86 84 Overall: Power demand down by 30% Methane recovery up by 3% 2006 2008 2010 2012 2014 2016 Year

Energy demand in kwh/nm³ Biogas 3.5 Development of power demand 0.5 0.45 0.4 0.35 0.3 0.25 Power demand Average in 2006 0,31 kwh/nm³ biogas Average in 2010 0,28 kwh/nm³ biogas Average in 2014 0,24 kwh/nm³ biogas Average in 2016 0,22 kwh/nm³ biogas Upgrading technologies A B C D E Average 0.2 0.15 0.1 2006 2008 2010 2012 2014 2016 Year

Invest cost in Specific invest cost in /Nm³ Biogascapacity 3.6 Cost scaling of different BUP sizes (Turnkey installed incl. all auxilliaries, average of most common BUPs) 3,000,000 5000 4500 2,500,000 4000 2,000,000 3500 3000 1,500,000 2500 Average cost Specific investment cost 2000 1,000,000 1500 500,000 1000 500 0 BUP250 BUP500 BUP750 BUP1000 BUP1200 BUP1400 BUP2000 0 BUP size

Specific upgrading cost in ct / kwh HVV 3.7 Specific upgrading cost (Capex & Opex 20 years operation) 3.5 3 2.5 2 1.5 Specific upgrading cost 2008 Specific upgrading cost 2015 1 0.5 0 BUP250 BUP500 BUP750 BUP1000 BUP1200 BUP1400 BUP2000 BUP sizes

3.8 Status Quo Biogas Upgrading technologies and industry is Well developed and broadly excepted Reliable and safe Has achieved substantial improvements Much more efficient than 10 years ago Keeps on developing further Utilization of Biomethane was Mainly injection into the gas grid Some use as CNG (mainly in Sweden) Based on sewage gas, manure, organic waste and energy crops Medium to large size of plants (except for Switzerland) Average sizes 300 5000 Nm³/h Biogas

4. Looking ahead

4.1 Bio-CNG and Bio-LNG Bio-CNG Some countries & car manufacturers focus on CNG vehicle development Interesting for vehicle fleets in cities such as taxis, busses, delivery vans Bio-LNG Huge potential in transport sector, especially long distance transport Bio-LNG for ferries and seagoing ships 2 nd and 3 rd generation fuels Biogas Upgrading Unit CO2 removal to <50ppm Pure Biomethane to LNG liquefaction Biogas

4.2 Biomethane and Bio-CO2 Renewable commodities and raw materials in chemical industry Bio-CH4 and Bio-CO 2 Adding other products to the value chain Sustainable gases for improving the sustainability of chemical products Biogas Upgrading Unit Biomethane Biogas Liquid CO2 Liquefaction

4.3 Integration of Power to Gas Storage solution for renewable energies Power to Gas: The excess power from renewables is converted into methane using electrolysis and CO 2 The methane is then stored in the natural gas grid If the demand for power increases, the stored gas can be converted back into power Biogas Upgrading Unit Biomethane Biogas AD plant (Optional: Biogas from AD Plant) CO2 Electrical power PEM Electrolyzer H2 CH4 Biological Methanantion Bacteria

4.4 Trends Status Quo Many big BUP units >500 Nm³/h Majority of BUP based on agricultural crops A couple of companies dominating the market Main utilization gas grid injection Over 200 BUP in Europe, fist established in 1990s in Sweden and Switzerland Slowly growing availability and acceptance of CNG & LNG vehicles / transport Opportunities/Trends Larger amounts of units <350 Nm³/h Majority of BUP based on biowaste, wastewater, landfill gas and syngases Over 50 companies supplying BUPs Main utilization fuel market Several countries with high targets and potentials of new BUP units, especially in UK, France and Italy Rapid development in 2. generation fuel sector, dual fuel, long distance transport

Contact Dr. Tino Weber COO Industrial Systems, Viessmann Group Phone: +49 (0)6452 / 70-2700 Fax: +49 (0)6452 / 70-5700 Internet: www.viessmann.com Mail: drtw@viessmann.com