biomethane roadmap in the uk vienna, 27th february 2015 david collins renewable energy association...
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Biomethane Roadmapin the UK
Vienna, 27th February 2015
David Collins
Renewable Energy Association – REA Biogas
Background• Renewable Energy Directive (2020 targets) - 15% of total
energy in the UK to be renewable – heat, electricity, transport
• Renewable Heat Incentive (RHI) supports heat and
biomethane injection – to meet targets (2011)
• strong commitments - when coalition government came to
power – influence of Liberal Democrats
• after Solar industry overspent the budget & general spending
cuts – now severe budgetary controls & degression
mechanism
• Levy Control Framework – sensitivity over taxation and
household bills
• Lobbying to retain commitments with new government – May
2015
New RHI Incentives – 9th February 2015
40,000 MWh 80,000 MWh Above 80,000 MWh0
1
2
3
4
5
6
7
8
7.5 (Euro 10c)
4.4 (5.9c)3.4 (4.6c)
7.5
Original RHI Banded RHIRHI Value p/kWh
Energy Produc-tion/an-num
Biomethane projects per year 2010-2015
Could have over 50 projects before 2016 and over 60 before 2017
2010 2011 2012 2013 2014 20150
10
20
30
40
50
60
18
1 1 24
27
51
Projects per Year Speculative CumulativeProjects
CNG Market• Green Gas Certificates
• CNG for trucks and buses and CHP/District Heating for new housing/stores• REAL not for profit scheme is helping to facilitate biomethane projects
• UK NGV focus is trucks and buses• No support for CNG cars • 353 natural gas trucks• 348 dual fuel trucks• 5 dedicated gas trucks• 26 new or upgraded refuelling stations
• UK funding for Natural Gas Vehicles • TSB Competition with DfT – £11million funding 353 natural gas trucks• Green Bus Fund – £2.1million (for CNG/biomethane buses)• LCEB rebate – 6p/km• TEN-T Funding – £5million for Bio-LNG stations
RHI Incentive vs Road Transport Fuel Certificates
RHI p/kg RTFC p/kg 2 RTFCs p/kg0
20
40
60
80
100
120108
15
30
IncentivesIncentives UK pence/kg
Energy Produc-tion/an-num
Barriers
• budget restraints and future tariff degression• availability of waste feedstocks• the use of crops still under debate• gas grid capacity• cost of grid connections/delays• energy content (CV) of biomethane v grid (propane)• Sustainabily Criteria- in force 5th October 2015
• 60% GHG savings compared to GHG EU fossil heat average• Lifecycle emissions of < 125.28kg CO2 equivalent
(34.8gCO2e/MJ) of biomass heat generated• Consignment basis – no averaging• Waste exempt – emissions up to the process of collection• Land criteria requirements to be introduced by April 2015• All existing plants will have to comply
RHI Degression
Biomethane Market Forecast
• UK total gas demand now is around 800 TWh/annum– Around 50% domestic heating, 25% power gen and 25% industry– Biomethane injected by end 2015 is 2.00TWh– Potential maximum biomethane by 2030 is around 20TWh
• For heat in cities there are few practical/economic alternatives– Biomass (air quality), heat pumps (do not work in very cold weather), district heating (too
late to dig up cities)
UK Biomethane Projects 2012-15
2012201320142015
Contact details
David Collins
Renewable Energy Association – REA Biogas
Board Member - [email protected]
+44 7973 111 972
Thanks to CNG Services for providing dataContact: John Baldwin [email protected]