BIOSURF Project

Biomethane Trade Group Discussion

Vienna, 27/Feb/2015

Biomethane trade

The functions of cross-border trade:

a) balancing supply and demand on regional and European level (beyond national borders)

b) enabling production at places/regions with the highest comparable advantage

Vienna, 27/Feb/2015

Challenges of biomethane trade

•Value of biomethane: physical (in use) value + intrinsic („bio”) value

•Intrinsic value: „green”, renewable, sustainable •The physical flow does not carry the intrinsic value •Condition for sustainable biomethane production:

intrinsic value must be realised on the market at level needed to secure cost recovery

•Conditions for biomethane export/import: The „bio” quality must be certified in the producing country The „bio” qualification from the producing country must be

acknowledged in the consuming country The mass-balancing requirement must be metDouble-counting must be excluded

Vienna, 27/Feb/2015

Questions for discussion

1. Is cross-border biomethane trade needed for enabling 100%

load of the existing biomethane producing capacities?

2. What should be first: trade system or production?

3. Which countries could be the main importers?

4. Which countries would be the main exporters?

5. Who is interested in developing the cross-border biomethane

trade?

6. Where do we see the volume potential for cross-border

biomethane trade?

7. What are the key regulatory/administrative preconditions for

cross-border biomethane movements?

8. Which are objectives of the BIOSURF project regarding

biomethane trade?Vienna, 27/Feb/2015

  Key preconditions for

cross-border biomethane movements

1. Solving mass-balancing on European level;

2. International cooperation among the national

biomethane registries;

3. Equal access to support systems for domestic and

imported biomethane;

4. Biomethane to be compared to the European mix of

fuels for every application (instead of comparing to

natural gas only).

5. Involvement of natural gas industry companies and

their customers.

Vienna, 27/Feb/2015

BIOSURF WP3 – Key objectives

1. Support the establishment of National biomethane registries in European biomethane producing countries

2. Connection/cooperation/harmonization among national registries - compatibility of individual registries to be addressed at early stage

3. Common criteria/attributes applied by all participating registries for mutual acceptance of Guarantees of Origin

4. Proposal directed at the EU Commission for declaring the interlinked EEA natural gas network as a single, closed mass balance unit

5. European Biomethane Certificate trading scheme

6. Support biomethane standardization

Vienna, 27/Feb/2015

National biomethane registries

Independent, neutral, professional organisations

Established through government actions or voluntary cooperation of market players

Track, confirm and document the biomethane transactions along the contractual chain

Administrative support in meeting regulative requirements

Independent audit controls

Assisting trade development through building market confidence

Guarantees of Origin

Guarantees of Sustainability

BUT: the issued documents are not trade-able certificates

Vienna, 27/Feb/2015

Biomethane registries

AT: Biomethan Register Austria

CH: VSG (Federation of Swiss Gas Industry)

DE: Biogasregister

DK: Energinet

FI: Gasum

R: Gaz Réseau Distribution

NL: Vertogas

UK: Green Gas Certification Scheme

Biomethane Certification Scheme

Vienna, 27/Feb/2015

International coordination

• The cooperation is aimed at creating compatibility among the individual registries with regard to cross-border transactions;

• A transparent, reliable and efficient system of information transfer across the national borders will be established;

• Common criteria/attributes accepted and applied by all participating registries will be worked out for mutual acceptance of GoO’s;

• The ”European Biomethane Guarantee of Origin” will contain all information needed for qualifying the imported biomethane as „green” – but will not be traded independently from the physical product;

• The collaboration will be based on mutually acceptance of the principal requirements both for mass balancing and exclusion of double counting.

Vienna, 27/Feb/2015

Thank You for your attention!Dr. Attila Kovacs

European Biogas Associationkovacs@european-biogas.eu

Vienna, 27/Feb/2015

Back-up files

Biomethane Trade

Vienna, 27/Feb/2015

The arts of biomethane trade

Vienna, 27/Feb/2015

Vienna, 27/Feb/2015