european biogas association cross-border biomethane trade for supporting the expanded use of methane...
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European Biogas Association
• Cross-border biomethane trade for supporting the expanded use of methane as transportation fuel in
Europe
Lodi, 19th June, 2015
Biomethane as vehicle fuel
• Natural gas (NG) and biomethane are complementary to each other, • Bio-CNG and Bio-LNG are blends of NG and bioCH4 to be marketed
jointly by NG and biogas industries,• The biomethane component improves the GHG emission reduction
potential of CNG/LNG,• HDV’s, city buses, municipality vehicles, ships, etc.
Lodi, 19th June, 2015
Methane as vehicle fuel – forecast 2025
Source: Chris Le Fevre, Research Fellow Oxford Institute of Energy Studies OIES Paper NG84
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
Lodi, 19th June, 2015
Challenges of biomethane trade
•Value of biomethane: physical (in use) value + intrinsic („bio”) value
•Intrinsic value: „green”, renewable, sustainable •The intrinsic value can be quantified (GHG emission figure)•Condition for sustainable biomethane production:
• intrinsic value must be realised on the market•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 met
Lodi, 19th June, 2015
Well-to-Tank GHG emissions indicative numbers
Source: JRC-EUCAR-CONCAWE (JEC) consortium WtT Report 2014
The arts of biomethane trade
Lodi, 19th June, 2015
Potential solution
As a potential solution we may suggest an Annex to COM 2010/C 160/01
which would address the following biomethane related issues:
1. sustainability verification for biomethane injected into the European natural gas network,
2. cross-border transfer of volumes and mass balancing of biomethane in the European natural gas network,
3. definition of European natural gas network,4. definition of national biomethane registries and their role in
cross-border mass-balancing,5. averaging GHG emission figures for biogas raw material
mixtures.
Lodi, 19th June, 2015
National biomethane registries are needed
• 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
Lodi, 19th June, 2015
Lodi, 19th June, 2015
Summary: Main factors for success
1. Overall development of NGV market
2. Right political priorities, political support for biomethane (as advanced biofuel)
3. Broad marketing cooperation between the natural gas and biogas industries
4. Monetizing the intrinsic („green”) value on the market
5. Reduction of biogas/biomethane production costs
6. Feasible possibilities for cross-border trade
ILUC Directive Annex IX – list of biogas raw materials qualified for double counting
”non-food cellulosic material” means feedstocks mainly
composed of cellulose and hemicellulose, and having a
lower lignin-content than ligno-cellulosic material; it
includes food and feed crop residues (such as straw,
stover, husks and shells), grassy energy crops with a low
starch content (such as ryegrass, switchgrass, miscanthus,
giant cane, cover crops before and after main crops
etc), industrial residues (including from food and feed crops
after vegetal oils, sugars, starches and protein have been
extracted), and material from biowaste;
Lodi, 19th June, 2015
Biogas industry in Europe
• Biogas production: ~ 15,7 Mrd m3 methane/year, ~ 3% of NG consumption
• BioCH4 production:
~ 1,0 Mrd m3 methane/year~ 0,3 Mrd m3 used as vehicle
fuel • ~ 14.600 biogas plants• ~ 300 upgrading units• BioCH4 production in: AT, CH, DE, DK,
ES, FR, FI, HU, IS, IT, LX, NL, NO, SE, UK
Source: EBA Biogas Report 2014
Woodfuel UK Source: REA
Lodi, 19th June, 2015
Biomethane – national markets
UK: Fixed FIB + gas market value up to 11,0
€Cent/kWh FR: Fixed FIT 6,4 – 9,5 €Cent/kWh
depending on capacity (350 m3/h– 50 m3/h) and substrates
example: 150 m3/h, 50% manure+50% org. waste > 9,38 €Cent/kWh
DK: Guaranteed biomethane feed-in-bonus (FIB) IT: FIT set by law, 8,0 – 10,0 €Cent/kWh NL: SDE+ scheme, „biotickets” for vehicle fuel use AT: „Technologiebonus“ at green electricity generation DE: Biofuel GHG emission reduction certificates SE: Complex support system, incl. tax relief FI: Tax relief, (high taxes for fossile vehicle fuels) NO: Tax relief till end 2015
Kecskemét, 23rd April, 2015
Biomethane quality will be regulated by CEN standards elaborated in TC 408
a) for grid injection
b) for vehicle fuel use
Kecskemét, 23rd April, 2015