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Service Contract for European Union External Actions

N° PI/2015/363-952

Technical Assistance to the

Low Carbon Business Action in Brazil

Id-N°: EuropeAid/136478/DH/SER/BR

Brazil

Mapping Report

Part 2 – Biogas and Biomethane

05th April 2016

Adress GFA Consulting Group GmbH

Eulenkrugstraße 82

D-22359 HAMBURG

GERMANY

Teléfono +49 (40) 60306 – 387 Telefax +49 (40) 603 06 – 189 E-mail [email protected]

Technical Assistance to the Low Carbon Business Action in Brazil

Service Contract for European Union External Actions

EuropeAid/136478/CH/SER/BR

Mapping Report

Part 2 – Biogas and Biomethane

05th April 2016

Author: Adelino Ricardo J. Esparta

Key Expert Low Emissions Technology

The contents of this document are the sole responsibility of the autor and should in no way be taken to reflect

the views of the European Union

Mapping Report – Part 2 – Biogas and Biomethane

Low-carbon Business Action in Brazil (Project funded by the European Union) Contact: Adelino Ricardo J. Esparta • e-mail: [email protected]

I

T a b l e o f C o n t e n t s

Table of Contents .................................................................................................................................... I

List of Figures ......................................................................................................................................... II

List of Tables .......................................................................................................................................... II

Abbreviations......................................................................................................................................... III

1 Executive Summary .......................................................................................................................... 1

2 Introduction to Biogas Production and Use ................................................................................... 3

3 Biogas Technological Options ........................................................................................................ 6

4 Biogas sector and potential in Brazil ............................................................................................ 12

5 Biogas sector/market in the European Union .............................................................................. 15

6 Brazilian Biogas Market Barriers ................................................................................................... 19

7 Biogas and biomethane industry needs and gaps in Brazil ....................................................... 21

8 Business potential for European Union Small and Medium Enterprises .................................. 24

9 Identified potential partner organizations in Brazil ..................................................................... 25

10 Initial indication of potential participants (SMEs) in Brazil through partner organization ...... 26

11 Identified potential partner organizations in the EU .................................................................... 28

12 Initial indication of potential suppliers in the EU ......................................................................... 30

13 Selected Biogas Events in 2016 .................................................................................................... 33

14 References ....................................................................................................................................... 34

Annex 1: Technology demand map .................................................................................................... 35

mailto:[email protected]



II

L i s t o f F i g u r e s

Figure 1: Biogas production and use (Source: SSWM) ....................................................................3

Figure 2: Separation steps for the upgrading of biogas to biomethane (Source: Project Virtual Biogas) ...........................................................................................................4

Figure 3: Location of biogas upgrading plants, connected to anaerobic biodigesters, in operation in 2012 (Source: Thrän et al. , 2014) ........................................................6

Figure 4: Examples of anaerobic digestion technologies (Source: Luostarinen et al., 2011). CSTR – continuous stirred tank reactor, UASB – upflow anaerobic sludge blanket reactor ..........................................................................................................7

Figure 5: Biogas upgrading steps .....................................................................................................8

Figure 6: Application of biogas and biomethane as energy source (Source: Cabral et al., 2015). ......................................................................................................................10

Figure 7: Biogas plants in Europe (Source: Przadka, 2015)...........................................................15

Figure 8: Biomethane plants in Europe (Source: Przadka, 2015) ..................................................16

L i s t o f T a b l e s

Table 1: Typical gas composition of untreated raw biogas (Source: Project Virtual Biogas ) ..........4

Table 2: Biomethane in selected countries in 2012 (Source: Thrän et al. , 2014) ...........................5

Table 3: Average Energy prices in Brazil April 2016 (Source ANEEL 2016 and ANP 2016) .........13

Table 4: Municipal Solid Waste (MSW) energy conversion potential in Brazil (source: EPE, 2014)

......................................................................................................................14

Table 5: Theoretical biogas potential from residues in Brazil in 2014 (source: AHK-RJ, 2015) .......................................................................................................................14

Table 6: Biogas-based power generation plants in Brazil in 2014 (Source: Roller et al., 2014) .......................................................................................................................14

Table 7: Selected players in the Brazilian biogas market (source: AHK-RJ, 2015) .......................26




III

A b b r e v i a t i o n s

ABiogas Associação Brasileiro de Biogás e de Biometano (Brazilian Biogas and Biomethane Association)

ANEEL Agência Nacional de Energia Elétrica (Brazilian Electricity Regulatory Agency)

BMUB Bundesministerium für Umwelt, Naturschutz, Bau und Reaktorsicherheit (Ministry for the Environ-ment, Nature Conservation, Building and Nuclear Safety)

CAPEX Capital expenditure

CFC Chlorofluorocarbon

CHP Combined heat and power

CIMGC Inter-ministerial Commission on Climate Change

CNG Compressed natural gas

CSTR Continuous stirred tank reactor

EBA European Biogas Association

EBA European Biogas Association

EEG Erneuerbare-Energien-Gesetz (German Renewable Energy Sources Act)

EGR Exhaust gas recirculation

ERoEI Energy returned on energy invested

EU European Union

FNR Fachagentur Nachwachsende Rohstoffe e.V. (Central Agency for Renewable Resourcing)

GEF Global Environmental Facility

GHG Greenhouse gas

GWP Global warming potential

IC reactor Internal circulation reactor

ICE Internal combustion engine

IPP/IGP Independent Power/Gas Producer (frequently also project developer)

LCBA Low Carbon Business Action in Brazil

LNG Liquefied natural gas

LPG Liquefied petroleum gas

MCTI Ministry of Science, Technology and Innovation

MM Matchmaking mission

NG Natural gas (fossil)

OPEX Operational expenditure

PNRS Política Nacional de Resíduos Sólidos (Brazilian National Policy on Solid Residues)

Probiogas Projeto Brasil-Alemanha de Fomento ao Aproveitamento Energético de Biogás no Brasil (Brazil-Germany project Fostering Energy Use of Biogas in Brazil)

PSA Pressure swing adsorption

SABESP Companhia de Saneamento Básico do Estado de São Paulo

SME Small and medium enterprise

SSWM Sustainable Sanitation and Water Management

THT Tetrahydrothiophene

UASB Up-flow anaerobic sludge blanket




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1 E x e c u t i v e S u m m a r y

The present document is the second part of a comprehensive Mapping Report that assesses existing low carbon emission potentials and technology gaps and needs in Brazil in strategic sec-tors. Furthermore, it identifies commercial opportunities that can be fostered through cooperation between European and Brazilian partners. The strategic sectors previously identified in the first part of the Mapping Report, called the “White Paper on Low-carbon Technologies in Brazil,” are (i) renewable energy production and use (including biogas/bioenergy/biofuels), (ii) energy-efficiency in buildings and industry, (iii) waste management and (iv) low-carbon agriculture, main-ly due to their higher emission reduction potential and higher financial attractiveness, as indicated in the literature.

The purpose of this document about the biogas and biomethane sector is the identification of concrete business potentials for European small and medium enterprises (SMEs) in the Brazilian biogas market both for technologies and services, thus providing the basis for organizing a matchmaking mission (MM) in November 2016 in conjunction with the Third Biogas Industry Fo-rum organized the Brazilian Biogas Association (ABiogas).

The analysis of the biogas sector shows that Brazil offers a high potential in particular for European technology providers as the world´s largest and leading supply market. However, the Brazilian business environment is complex and the biogas market is in the initial stage of de-velopment. European SMEs in the biogas sector being in an advanced stage of development, will have the opportunity to offer service and technologies alternatives to a growing but still undevel-oped market.

The report identifies the gaps and needs of technologies in almost all stages of biogas produc-tion, preparation and use, with distinctive innovation, needs and gaps at

1. production in sewage treatment plants, agricultural residues, animal livestock waste, 2. biogas upgrading technology, 3. process monitoring and 4. use as a transportation fuel.

The most important organizations in Brazil and in the EU were identified and some of them al-ready offered to support the matchmaking mission call for application (e.g. ABiogas, European Biogas Association (EBA) and the Probiogas Project). A number of SMEs were also contacted or interviewed in order to back up conclusions and check the interest in the planned mission. Sever-al organizations and companies already signed Declarations of Interests.

The report shows the business potential for EU SMEs and explains which preconditions have to be fulfilled by EU companies in order to be able to enter the Brazilian market and to overcome entry barriers and obstacles.

Interested EU companies and technology providers should be aware of finding a different biogas market structure compared to Europe. Related to the used substrates in Brazil, the biggest poten-tials come from agro-industrial organic waste waters, which in tropical zones are normally more profitable to be digested in anaerobic lagoons, rather than in concrete or steel tanks. Also, the future potential of biogas usage might be more focused on the substitution of the high-priced compressed natural gas (CNG) and liquefied petroleum gas (LPG) or the parallel use of biomethane in combination with CNG in the transport sector. As a fuel for electricity generation, biogas is less attractive since

i) Fix, guaranteed feed-in tariffs do not exist for renewable energies in Brazil,

ii) electricity prices in Brazil vary strongly and are normally below potential break-even points for biogas plants,




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iii) Brazil covers already 74% of its overall electricity matrix with renewable energies mainly produced by hydro-power.

1

The environmental aspect of biogas plants by reducing the negative impact of organic waste wa-ter is an important matter, on which technology providers should focus with their concepts and project proposals. By offering efficient biogas concepts, improved environmental aspects in com-bination with energy cost savings or additional income from energy supply services, Brazilian investors and companies can be convinced to invest in high-efficient biogas technologies from Europe.

With the gathered information, the author is confident to state the need of alternative services and technologies in the Brazilian biogas market and to show that many potential SMEs suppliers in the European Union are interested to offer their products in the country. In other words, all the preconditions to establish a successful matchmaking are met.

In the following the biogas sector will be assessed, including a description of the main technolo-gies used in the industry. After the technological introduction (chapters 2 and 3) the sector in Bra-zil will be presented (chapter 4). A presentation of the developments of the market in the Europe-an Union (potential supply, chapter 5) is followed by the exploration of barriers (chapter 6) and technology gaps in Brazil (chapter 7) and the business opportunities that can arise for European SME (chapter 8). Finally, lists of possible matchmaking mission participants as well as indication of key players are outlined (chapters 9, 10, 11 and 12).

1 AHK Brasilien, Hahn, P.: Rahmenbedingungen: Markteinstieg in Brasilien




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2 I n t r o d u c t i o n t o B i o g a s P r o d u c t i o n a n d U s e

Biogas is the gaseous product of anaerobic digestion, a biological process in which microorgan-isms break down biodegradable material in the absence of oxygen, of different forms of organic matter, typically – but not always - residues, and is composed mainly

2 of methane (CH4) and

carbon dioxide (CO2).

Figure 1 gives an overview of different ways to produce and use biogas. In the case of a landfill, the landfill itself works as the anaerobic digester producing the landfill gas.

Biogas is made from biomass and/or biologically degradable parts of waste by anaerobic fermen-tation. Possible sources are as follows:

Agricultural material; e.g. grasses, silage, energy crops as well as residues from the pro-duction of grains, meat, milk and sugar

Biogenous residues from industry and business; e.g. residues from production of food and luxury foodstuffs, wastes from the utilization of animal carcasses, municipal sewage

Municipal wastes; e.g. separate collection (green biotons), cut grass, leaves Animal excrements from agriculture; e.g. pig, cattle and horse manure, poultry manure

Figure 1: Biogas production and use (Source: SSWM3)

Depending on the used substrate and the process parameters, biogas also contains secondary components like oxygen, nitrogen and contaminations from bacterial degradation of organic sul-phurous substances (hydrogen sulphide).

In praxis, a wide mixture of materials is used as substrate for the biogas production. Therefore, the composition of the produced gas is also fluctuating within a rather wide range. As a result, a definition of untreated raw biogas according to the gas composition can only be given within a certain range of concentrations (table 1).

2 Others: water vapor, nitrogen, oxygen, NH3, H2, H2S, trace gases. 3 URL: Sustainable Sanitation and Water Management, http://www.sswm.info/content/anaerobic-digestion-large-scale,

accessed on 14-Jan-2016.


http://www.sswm.info/content/anaerobic-digestion-large-scale



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Table 1: Typical gas composition of untreated raw biogas (Source: Project Virtual Biogas 4)

PARAMETER UNIT RAW BIOGAS (TYPICAL VALUES)

EXAMPLE GAS QUALITY FOR GRID INJECTION

EXAMPLE GAS QUALITY FOR TRANSPORT FUEL PURPOSES (CNG QUALITY)

Upper heating value [kWh/m³STP] 6,0 to 9,3 10,7 to 12,8 8,4 to 13,1

Relative density [-] 0,70 to 1,20 0,55 to 0,65 0,55 to 0,70

Methane content [mol%] 40 to 80 ≥ 97.0 ≥ 89.5

Carbon dioxide content [mol%] 14 to 55 ≤ 2.0 unspecified

Ammonia content [mg/m³STP] ≤ 1,000 technically free unspecified

Hydrogen sulphide content [mg/m³STP] 300 - 2,000 ≤ 5.0 ≤ 5 mg/m³

Oxygen content [mol%] ≤ 2.0 ≤ 0.5 unspecified

Nitrogen content [mol%] ≤ 20 ≤ 5.0 unspecified

Water content (dewpoint) [°C] < 37 @ 1 bar ≤ -8 @ 40 bar unspecified

The table shows that a certain degree of purification is needed in order to obtain a product gas that is suitable for the substitution of natural gas (grid injection) or suitable to be used as a vehicle fuel (figure 1). Basically, this purification/upgrading encompass the removal of carbon dioxide, water, hydrogen sulphide and ammonia. A few contaminants, for example water and hydrogen sulphide, have to be removed before the upgrading process in order to avoid corrosion or other problems in downstream applications. Furthermore, numerous other unwanted gas species might be present in the biogas depending on the type of the biogas production plant. These species include e.g. silicon compounds (siloxanes, silanes), chlorine compounds or chlorofluorocarbon (CFCs), additional sulphurous compounds like mercaptans, etc. Moreover, raw biogas always contains liquids and solids (droplets and dust). In most cases additional advanced gas upgrading process steps are necessary, if these components are contained in the biogas.

Figure 2: Separation steps for the upgrading of biogas to biomethane (Source: Project Virtual Biogas)

4 URL: http://www.virtuellesbiogas.at/node/342, accessed on 10-Feb-2016.


http://www.virtuellesbiogas.at/node/342



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The technical feasibility to produce biomethane from biogas on a large scale has been demon-strated worldwide over the last decade. Table 2 gives an overview of the biomethane production in selected countries. In 2014 about 13,000 biogas plants and 260 biogas upgrading plants, i.e. biogas to biomethane plants, were running in several countries with an overall production capaci-ty of some 100.000 Nm³/h (Thrän et al., 2014). Remarkable is the development in Germany, with the largest number of biogas and biomethane plants in the world, mostly because of the incen-tives (for example, feed-in tariffs and priority feed-in and grid connection rights) from the Renew-able Energy Sources Act (EEG from the German “Erneuerbare-Energien-Gesetz”), that came into force in the year 2000 (Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB), 2007).

Table 2: Biomethane in selected countries in 2012 (Source: Thrän et al. , 2014)

Another key driver for the application of biomethane is the reduction of greenhouse gas emission (GHG) due to the substitution of fossil fuels. The emission reduction depends on both plant de-sign and operation. The proven results are very much dependent on the GHG accounting meth-odology.

In spite of the development in the recent past, the biomethane market is still in a development stage, also due to the oscillation and the temporarily comparable low gas prices worldwide. Dif-ferent strategies, investment programmes, support schemes and utilization concepts have been adopted in several countries and stakeholders are having diverse expectations. Given the political strategies and the existence of an extensive natural gas grid, a number of EU countries are be-coming more active in the development of a biomethane market. A multitude of activities are be-ing implemented in the fields of technical standardization and sustainability certification. Both are complex issues, but should provide instruments in the next few years to improve the situation with biomethane application and cross border trade. Several European countries have established national biomethane registers, which provide information on the amount and origin of the availa-ble biomethane qualities to support proliferation in the market. Furthermore, the national biomethane registers are planning a close cooperation for better trade between six countries with the option of including more countries (Thrän et al., 2014).




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3 B i o g a s T e c h n o l o g i c a l O p t i o n s

Today, biogas is a renewable and sustainable energy carrier and produced at a high number of sites throughout Europe. As substrates, various substances like energy crops, organic residuals or agrarian side products, wastes and waste waters are used. Beside the numerous trace com-ponents like ammonia or hydrogen sulphide the main components of biogas are methane (45 to 70 vol%) and carbon dioxide. The state-of-the-art technology for using the energy content of this biogas is the combustion in gas engines together with the generation of electric energy with a normal efficiency of 35 to 40%. Due to the rising prices for energy and raw materials, the utiliza-tion of the produced waste heat becomes more and more important in order to achieve an eco-logically and economically efficient operation of the biogas plant. The feasibility and profitability of such biogas plants have been demonstrated frequently and as a result, also a considerably num-ber of biogas upgrading plants have been commissioned during the last decades in the world and, more markedly in the European Union (figure 3), but also in Brazil

5.

The upgrading of biogas shows an alternative way of using the energy content of the gas instead of the conventional way of generating electric power and heat. Upgraded biogas can be used as a fully-fledged natural gas substitute in all the natural gas applications like fuel for households and industry as well as propellant for the automotive sector (CNG-vehicles, compressed natural gas). Doing this, the already well-established natural gas infrastructure such as pipelines, gas storage tanks and fueling stations can be utilized to transport the produced gas to the consumers.

Figure 3: Location of biogas upgrading plants, connected to anaerobic biodigesters, in operation in 2012 (Source: Thrän et al. , 2014)

According to numerous experts, the utilization of upgraded biogas as an alternative to the import-ed natural gas has three major advantages. First of all, the dependency on imported fossil fuels could be reduced. Secondly, the usage of less greenhouse gas intensive biogas would strongly support international efforts on reducing the emission of greenhouse gases by decreasing the share of fossil energy carriers on the primary energy consumption. Thirdly, mainly small and lo-

5Source: Project Virtual Biogas - http://www.virtuellesbiogas.at/node/342


http://www.virtuellesbiogas.at/node/342



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cally operating companies would benefit from biogas upgrading, resulting in increasing the local added-value of the specific region and the survivability of these companies.

Today, natural gas is a very popular energy carrier in the whole world, still having high rates of growth of consumption. The main advantages of natural gas used as an energy carrier are: low transportation costs due to the use of pipelines as well as low emissions of carbon dioxide and other pollutants per unit of produced secondary energy compared to other primary energy carri-ers. The reorientation of a part of today’s transportation sector towards the utilization of natural gas (and furthermore, utilization of biogas) as a vehicle fuel, potentially results in a significant reduction of emissions (carbon dioxide, nitrous oxides, unburned hydrocarbons, dust, noise).

Usually, the production of sustainable and renewable energy carriers show a disadvantageous ratio of produced to invested energy (ERoEI, “energy returned on energy invested”). Therefore, the costs for investment and operation of the plants have to be decreased as far as possible. Furthermore, the operation of the biogas upgrading has to be highly automated and the effective personnel requirements have to be minimized to assure controllable personnel cost for the usual-ly relatively small plants.

Biogas/biomethane production can be roughly divided into two technological steps: [bio]digestion and purification/upgrading. In the following paragraphs the main technological features of both steps are briefly explained.

Technical options for digester technologies (Luostarinen et al., 2011)

Several different digester technologies are used for anaerobic digestion. Olsson et al. (2005) have divided biogas technology into three generations by level of technological approach and increase of bioconversion capacity (figure 4), though not all of the technologies described are suitable for all types of raw materials. While Continuous Stirred Tank Reactor (CSTR) is still the most common and widely-used process for digestion of manure, for energy crops and diverse municipal and industrial raw materials, Up-flow Anaerobic Sludge Blanket (UASB), expanded bed (such as internal circulation reactor (IC reactor)) and fluidized bed are only suitable for more di-lute materials, i.e. mostly wastewaters.

Figure 4: Examples of anaerobic digestion technologies (Source: Luostarinen et al., 2011). CSTR – continuous stirred tank reactor, UASB – upflow anaerobic sludge blanket reactor




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Technical options for biogas upgrading (Thrän et al., 2014)

To inject biogas in the natural gas grid or to use it as a vehicle fuel, the raw biogas has to be up-graded and pressurized. Biogas upgrading means that the carbon dioxide, water, hydrogen sul-phide and other contaminants in the biogas is removed to increase the energy density and to avoid corrosion or other problems in downstream applications (figure 5).

Figure 5: Biogas upgrading steps

The following list shows possible steps from the biogas extraction/collection to biomethane deliv-ery:

1. Preconditioning treatment – removal of particles, droplets, siloxanes, other trace compo-nents

1.1 Particles, droplets: use filter, demister 1.2 Siloxanes: use carbon adsorption (water dewpoint control needed - place a chiller +

reheater in front of the carbon adsorption tower) 1.3 Halogenated hydrocarbons, other hydrocarbons, fatty acids, terpenes: use carbon

adsorption (water dewpoint control needed - place a chiller + re-heater in front of the carbon adsorption tower)

2. Biogas desulphurization

2.1 In-situ desulphurization 2.2 Air injection 2.3 External biological desulphurization 2.4 Chemical oxidation 2.5 Adsorptive removal (iron oxide, zinc oxide) 2.6 Catalytical oxidation and carbon adsorption (impregnated carbon, needs

stochiometric amount of oxygen) 2.7 Combined with upgrading: water/amine absorption

3. Compression

3.1 Various types of compressors available: 3.2 Piston compressors 3.3 Screw compressors 3.4 Water ring pumps 3.5 Blowers




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4. Biogas upgrading/separation of CO2 and H2O (Select suitable technology according to: upgrading capacity, turn-down ratio, shut-down / start-up performance and ease of opera-tion, product quality needed and chemicals and energy consumption)

4.1 Pressure swing adsorption (PSA) system, the raw biogas is pressurized (3-10 bar) and fed into an adsorption column filled with an adsorbent, such as carbon molecular sieves. Carbon dioxide is absorbed by the bed material and the biomethane passes through. The carbon dioxide is desorbed from the adsorbent by reducing the pres-sure and using a purge gas (commonly biomethane).

4.2 Water or organic scrubbing, the biogas is pressurized (5-10 bar) and the carbon diox-ide is dissolved in the water or a selective organic solvent, e.g., selexol. The biogas is upgraded and the dissolved carbon dioxide is released from the solvent in a desorp-tion vessel at atmospheric pressure during air stripping. In a water scrubber, hydro-gen sulphide is commonly separated together with carbon dioxide. For the other technologies, an external H2S removal device is needed. Commonly, this is an acti-vated carbon filter, but other technologies also exist on the market.

4.3 Amine absorption, the in water dissolved carbon dioxide (carbon acid) reacts with an added amine and thus can be separated from the gas stream. This process can be carried out at atmospheric pressure since it is a chemical reaction that drives the pro-cess. Heat is needed to reverse the reaction and release the carbon dioxide in a stripper vessel and restore the amine.

4.4 Membrane separation, the biogas is pressurized (5 – 20 bar) and fed into the mem-brane unit. The carbon dioxide, as well as other gas components, permeates through the membrane, whereas the methane is retained. The performance varies widely de-pending on the settings (e.g. pressure stages, loops) and the unique design adopted by each manufacturer.

4.5 Cryogenic separation is a developing technology. Methane and carbon dioxide are separated by gradually cooling down the raw biogas. All compounds with higher con-densation temperature than methane, such as water, hydrogen sulphide, siloxanes and nitrogen, can be separated in this process. In case of an increasing share of liq-uefied natural gas (LNG) in the market, e.g. for transport, cryogenic separation might be of growing importance because of the benefits to be gained by integration of CH4 separation with liquefaction units for the CH4.

4.6 Hybrid systems

5. Final conditioning/dew point control, adjustment of heat value, off-gas treatment

5.1 Final conditioning needs depend on upgrading technology and requirements of gas grid or fuel use: all absorption based upgrading technologies (water scrubbing, selexol absorption, amine absorption) need gas drying by glycol scrubbing or molecu-lar sieve adsorption. PSA may need mixing buffer tank to level out product concentra-tion fluctuations

5.2 Heating value correction: propane dosing to adjust heating value – consider need for gas quality and product gas flow measurement for dosing control

5.3 Delivery pressure adjustment: pressure reduction or increase depends on feed-in conditions

5.4 Odor dosing: e.g. THT (tetrahydrothiophene) or similar dosing equipment and control 5.5 Gas quality measurement: local regulations and agreements may require continuous

quality measurement (e.g. process gas chromatography)

Technical options for biogas/biomethane energetic use (Cabral et al., 2015)

The main options for biogas and biomethane that may be considered technically mature and proven in the praxis are (Figure 6):

Biogas stationary engines to generate power and heat; Biogas fired boilers (heat generation);




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Biogas upgrading to biomethane, injection in the grid and further use as a natural gas similar energy source (heat, power and vehicle fuel).

Figure 6: Application of biogas and biomethane as energy source (Source: Cabral et al., 2015).

The possible end-uses of biomethane do not differ from those for natural gas. Biomethane is chemically similar to a lean natural gas with lower levels of higher hydrocarbons. Therefore some characteristics of biomethane injected to the NG pipeline may need to be adjusted by addition of liquefied petroleum gas (LPG), if the product requirement in the specific grid cannot be reached. Biomethane is fully miscible in all proportions with its fossil counterpart, and fully interchangeable from an end-user perspective.

The preferred end-use of biomethane depends heavily on the framework conditions of the country where it is produced.

If electricity generation is favored, the raw biogas is only upgraded to biomethane if the direct production of power and heat from biogas is not possible. In comparison to on-site conversion of biogas into electricity, the upgrading of biogas to biomethane affords much more flexible use of biomethane so that better utilization of heat can be achieved. A recent trend has been for coun-tries to provide subsidies to promote biogas upgrading for natural gas (NG) pipeline injection in cases where heat recovered after electricity generation is wasted due to lack of available market.

This way, biomethane becomes similar to natural gas regarding its distribution and availability for all types of electricity generation end-uses. Examples of European countries where electricity generation from biogas dominates are Germany, Spain and Austria.

Examples of countries where grid injection schemes are becoming increasingly common are the Netherlands, Switzerland, Austria, the United Kingdom and Germany.

Biomethane can also be used directly as automotive fuel, in which case it can be produced to the same compositional standard as pipeline NG, or it can be made to a higher specification for high-er performance vehicles.

Specifically, in the European Union, by the end of 2013, biomethane was available as an automo-tive fuel in 13 countries (Green Gas Grids). Policies such as tax reductions on clean vehicles and renewable fuel quota systems are important for the emergence and growth of this form of use. Sweden is the country in Europe where this utilization route is dominating, due to the significantly lower tariff for green electricity (tenfold lower than Germany; quota system with market controlled pricing). Hard facts about biomethane utilization as transport fuel are sparse.




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Three countries dominate in terms of volumes used: USA (600-1,000 GWh/a in 2013), fourfold increase projected for 2014) Germany (150-500 GWh/a, in 2013), and finally Sweden, the only country, besides Iceland, where the biomethane utilization for automotive purposes is larger than the one for natural gas (869 GWh/a biomethane out of a total 1,493 GWh/a in 2013). Other coun-tries with statistics from the year 2013 for biomethane are the Netherlands (ca 240 GWh/a), Swit-zerland (90-180 GWh/a), Austria (35 GWh/a), Norway (30 GWh/a), France (20 GWh/a), Iceland (20 GWh/a), Italy (15 GWh/a) and Finland (10 GWh/a). The United Kingdom is also using biomethane for automotive purposes, but no statistics are available. A very rough world estimate would be 2-3 TWh/a, rising rapidly up to 6 TWh/a if the projections for the US holds true (Thrän et al., 2014).

As an automotive fuel, biomethane clearly outranks petrol with a high methane number (biogas often has a methane number in excess of 100, indicating a high knock resistance), but only in a fully dedicated internal combustion engine (ICE) can this be fully exploited. In most cases, the gas is used in bi-fuel mode, so the spark ignited ICE is a compromise design, based upon the combustion constraints of both petrol and methane. In heavy duty applications, compression ig-nited diesel ICE’s are still better compared to dedicated methane powered spark ignited ICE’s. This is however gradually changing, in part through the application of advanced control strategies and exhaust gas recirculation (EGR).

In comparison to stationary electricity generating ICE’s working at steady-state, the trace compo-nents in biomethane used as automotive fuel need to be controlled even further, due to the tran-sient operation and stricter emission regulations in automotive applications.

Finally, biomethane can be used as a feedstock for the production of many different products (paints, plastics, detergents, etc.) in the specialty chemicals industry. There is a keenness to in-crease the renewable share in the products, provided costs are justified.




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4 B i o g a s s e c t o r a n d p o t e n t i a l i n B r a z i l

In Brazil the biogas market is still in an initial development phase, but interest is steadily growing, very likely because of three key facts:

1. The huge biomass and organic waste water occurrence and availability of the market (see table 4 and table 5 for preliminary estimates) and,

2. The Brazilian National Policy on Solid Residues (“Política Nacional de Resíduos Sólidos” (PNRS), Brazil, 2012), approved by Law 12,350/2010 and initially planned to fully enter into force by the end of 2015.

3. Increasing energy prices for fossil fuels, especially for CNG and LPG during the last dec-ade

The PNRS’s goal is to avoid and prevent generation of solid residues by promoting sustainability, increasing recycling and re-utilization and appropriate final disposal while sharing responsibilities with the whole society, namely government, producers, sellers and consumers. The development of the law was a very long process with intense public participation initiated in 1991.

After several calls and almost 20 years discussion the law was approved on August 2nd

, 2010, and regulated by Decree 7,404 from December 23

rd, 2010, which included a few provisions relat-

ed to energetic use of residues, for example:

Art. 3, para. VII – adequate final destination: including reutilization, recycling, composting, recovery, energetic use or any other destination allowed by the local/regional responsible authorities...;

Art. 15, para. IV – goals/targets for minimum energetic use of biogas generated in munic-ipal solid waste final deposition unities;

Additionally, on September 30th, 2014, the Brazilian Electricity Regulatory Agency (ANEEL) is-

sued Resolution number 1807, approving the auction of contracts for the supply of energy from solar photovoltaic, wind and biomass/bioenergy. Bioenergy may be generated from municipal solid waste, biogas from landfills and sewage sludge treatment plants, as well as biogas plants treating animal waste. The electricity supply contracts sold in this auction will be subject to dura-tion of up to twenty (20) years. Expressed in Euro per MWh, the submitted price to generate elec-tricity from biogas was 53.82 €/MWh (1 Euro = 3.14 BRL at the time). This auction was the first to allow different kWh prices for each type of renewable source of electricity; in effect allowing for differences between the generating costs for solar, wind and bioenergy (IEA Bioenergy, 2015).

The regulation policy 687/20156 promotes the so called micro- and mini-generation for small and

medium renewable energy power plants up to 75 kW (micro with simplified regulation) and for solar, wind and biomass power plants up to 5 MW (mini) within the established net metering reso-lution. Net metering allows consumers, which generate some or all of their own electricity with own RE-power plants, to use the generated electricity at anytime, instead of when it is generated.

Agro-industry companies, with a relatively high electricity demand of up to 1 MW in their produc-tion sites could use the net metering resolution to reduce significantly their monthly electricity bills. In some regions and according to the consumption structure, electricity prices range up to a maximum of USD 0,17 per kWh (see table 3), which may offer attractive additional energy costs savings besides the environmental benefits for the investing company.

Furthermore, Brazil has one of the highest fuel prices for gas fuels like CNG and LPG in the re-gion

7, as shown in table 3, which results in average calorific prices of around USD 0,06 per kWhi

for CNG and around USD 0,09 per kWhi for LPG. According to the German “Fachagentur Nachwachsende Rohstoffe” (FNR)

8, specific raw biogas generation costs (including capital ex-

6 ANEEL, 2015: Resolução normativa Nº 687, de 24 de novembro de 2015 7 Metrogas 2013: Comparación Internacional de Tarifas de Gas Natural para Clientes Residenciales e Industriales a Junio

2013 8 Fachagentur Nachwachsende Rohstoffe FNR: Leitfaden Biogasaufbereitung und – Einspeisung (2014)




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penditure (CAPEX) and operational expenditure (OPEX) in Germany range between EUR 0,05 and EUR 0,07 per kWhi. In tropical regions these costs can be reduced for large scale organic waste water biogas plants up to USD 0,025 per kWhi

9, due to less technology requirements for

heating, insulation or solid feeding. Thereby, on-site generated biogas can provide in some cases a fuel with a specific cost, which is up to 50% below the current Brazilian gas price equivalents. Since the modification of industrial gas boilers for the use of biogas can be realized as a simple technical installation measure with low investment costs, companies with a constant consumption of CNG or LPG in industrial appliances can be identified by technology providers and project de-velopers as future potential investors in order to reduce their monthly energy bill and improve their environmental performance.

Table 3: Average Energy prices in Brazil April 2016 (Source ANEEL 2016 and ANP 2016)

Table 3 shows also a further economic long-term potential for the partial substitution of fossil fuels in the transport sector with upgraded biogas like biomethane or Bio-CNG. Specific costs for up-grading biogas range between USD 0,015 and USD 0,03 per kWhi depending on size and tech-nology (FNR 2014) and can result in lower overall production costs compared to the current calo-rific prices of other fossil fuels in Brazil. Nevertheless, this requires a broad investment, develop-ment and promotion of the CNG- infrastructure including gas and service stations, which currently provides 1.758 CNG-service-stations country-wide.

10

In spite of the recent notable development there is still no official consolidated figure and no actu-al consensus on the potential production of biogas in the country, but a few estimates indicate a very promising market:

According to ABiogas (2015), the potential biogas production in Brazil can be estimated in a conservative manner in 23 billion m³/year (~ 63 million m³/day), being equivalent to ap-proximately 12 billion liters diesel. Considering an average share of 60% de methane in the biogas, and using the global warming potential (GWP) of 21 for methane (CO2 by def-inition has GWP = 1), there is a substantial potential (over 100 million tonnes of CO2 equivalent) for greenhouse gases emissions reduction by the use of biogas as energy source in Brazil.

Table 4 indicates potentials according to EPE (2014), which indicates a biogas potential from municipal waste, sewage treatment and residues and waste waters from agro-industry and agriculture of over 100 million m³ per day, which comes close to Brazil´s dai-ly consumption of natural gas.

9 GIZ Honduras, 2013: Estudio de Factibilidad para una planta de biogás a base de aguas residuales de la producción de aceite de palma africana en Tocóa, Honduras


Unit Minimum Average Maximum

Electricity* USD/kWhel 0,07$ 0,13$ 0,17$ 0,04$ USD/kWh

CNG** USD/m³ 0,50$ 0,63$ 0,84$ 10 kWh/m3 0,06$ USD/kWh

LPG** USD/kg 0,75$ 1,15$ 1,76$ 12,5 kWh/kg 0,09$ USD/kWh

Diesel** USD/l 0,74$ 0,84$ 1,11$ 10 kWh/l 0,08$ USD/kWh

*according to ANEEL, April 2016: Tariffs Grupo B1: www.aneel.gov.br/ranking-das-tarifas

**according to ANP, April 2016: www.anp.gov.br/preco/prc/Resumo_Semanal_combustiveis.asp

Efficiency/ Heat

Value (Hi)

Calorific Price

(Average)

35%




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Table 4: Municipal Solid Waste (MSW) energy conversion potential in Brazil (source: EPE, 2014) 11

Table 5 indicates potentials according to AHK-RJ (2015)

Table 5: Theoretical biogas potential from residues in Brazil in 2014 (source: AHK-RJ, 2015)

In spite of the significant potential, the market is still in its development phase, even if with nota-ble recent growth. In 2014 there were already at least 22 biogas power generation plants in oper-ation with 84 MW installed capacity and 8 more under licensing process, comprising additional 86 MW installed capacity (table 6).

Table 6: Biogas-based power generation plants in Brazil in 2014 (Source: Roller et al., 2014)

BIOGAS PLANTS IN OPERATION

Substrate N° of plants Installed capacity (MW)

Landfill gas 7 77

Wastewater 3 4

Manure 10 2

Food Industry 2 0,9

Total 2284

BIOGAS PLANTS IN LICENSING

Substrate N° of plants Installed capacity (MW)

Landfill gas 4 68

Wastewater 1 2,6

Food Industry 1 0,04

Sugar cane Residues 2 15,8

Total 8 86

11“tep” is the Portuguese acronym for tonne of oil equivalent ( “tonelada equivalente de petróleo”, and is equivalent to 1 tep = 11.63 x 103 kWh).

Power generation (MWh)Avoided energy use due to recycling

(MWh)total (MWh)

Landfill gas 2,453,930 -

Incineration 25,039,390 41,984,300 67,023,690

Anaerobic digestion 6,850,070 216,759,940 223,610,010

Biomethane production

(103 m

3 natural gas)

Avoided energy use due to recycling

(103 m

3 natural gas)

Total (103 m

3

natural gas)

Landfill gas 662,500 -

Anaerobic digestion 1,494,318 21,179,545 22,673,864

MSW energetic use, technical potential




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5 B i o g a s s e c t o r / m a r k e t i n t h e E u r o p e a n U n i o n

According to the EBA Biogas Report (Przadka, 2015), more than 14,000 biogas plants are al-ready operating in Europe and the number is still growing (figure 7). In the center of attention in 2013 were central European countries: Hungary, the Czech Republic, Slovakia and Poland where an increase of 18% in the number of biogas plants in the region was recorded. Other key biogas producing countries, such as the UK, France and Sweden, continue to develop on a steady rate over several years already.

Figure 7: Biogas plants in Europe (Source: Przadka, 2015)

Biomethane industry followed the growing trend of biogas, reaching 282 plants across Europe with a total production of over 1.3 billion m

3 (figure 8). Utilization possibilities are emerging, as the

number of biomethane filling stations doubled in 2013 increasing the share of biomethane used in transport to 10% of the total produced biomethane in Europe.




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Figure 8: Biomethane plants in Europe (Source: Przadka, 2015)

In a more recent mapping published in January 2016 the European Biogas Association12

states:

There were 17,240 biogas plants in Europe by the end of 2014. This is a remarkable number, especially when realizing that it represents 18% growth. Also development of biomethane indus-try shows outstanding results, with 367 plants, 23% increase compare to 2013… In terms of bio-gas production, national associations and third-party observers quantify the total amount of elec-tricity produced from biogas at 63.3 TWh, a number that corresponds to the annual consumption of 14.6 million European households… A steady increase can be appreciated in the biomethane sector, with 87 new biogas upgrading units commissioned…These numbers reflect a clear devel-opment in Europe, showing that the biogas industry is a mature one, capable of withstanding less profitable times while able to successfully seek for opportunities in the meantime. It can be then expected that these positive trends will continue in the short future, while all eyes are set on the policy development expected at an international level as a result of the recent COP21 meeting in Paris.

Being the continent with the strongest development in the area, almost all needed technical solu-tions are available in the European Union. Just as an example, the European Biogas Association consisted at the end of 2015 (EBA, 2016) in 35 full members (national or regional biogas associa-tions) and 47 associate members (companies, universities, research institutes, public authorities and individuals). The same association publishes a catalog of companies in the sector once a year. In the most recent version of the document (EBA, 2016b) a list detailing services, contact details and references of 35 companies, with many small and medium enterprises, is presented in the following business areas:

Planners, manufacturers of biogas plants

o project development, planning o construction and commissioning Support o full-system suppliers/ turnkey plants

12 Press release: EBA Biogas Report 2015 published - a record growth in Europe (http://european-biogas.eu/policies/position-papers/ accessed on 03-Mar-2016).


http://european-biogas.eu/policies/position-papers/

http://european-biogas.eu/policies/position-papers/



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Operators

o Biogas plant o Biomethane plant

Manufacturers, suppliers of plant components

o cogeneration units o Connection to gas grid o Construction and insulation materials o Control and instrumentation systems o Covers, films and foils o Fans and compressor o Feeding, metering and weighing systems o Fermentation product processing, separation systems o Fermenters/containers o Gas accumulators o Gas analysis o Gas cleaning, gas processing o Gas control systems o heat utilization o Process aids (e.g. enzymes) o Safety systems, monitoring and warning systems o Stirring and pump systems o Substrate preparation and processing o Transformers, connection to electricity grid o Washing and cleaning systems o Waste treatment

Substrate

o Storage and silos

Services, consulting

o Consulting o financing o TI/software for plant management o Substrate analysis/fermentation tests o Biological support o Plant refurbishment o Nutrient auditing o Legal advice/legal support

Science, research

o Feedstock optimization, process optimization and instrumentation. o Pretreatment, nitrogen rich substrates, digestate processing, nutrient recovery, H2 uti-

lization, viscosity, bio-refinery, fermentation, microbiology, utilization of industrial waste, algae

o Investigation of the whole process chain for electricity, heat, and energy source pro-duction from biomass

Others

o Training o Process Simulation o Feasibility studies, due diligence and profitability analyses o Technology and system monitoring, evaluation and optimization




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The biogas and biomethane sector in the European Union is the most developed in the world not only in terms of technology but also in services and business models. Communications with play-ers in the European Union and in Brazil indicated that all technologies and services needed for the development of the industry in Brazil are provided by suppliers in the European Union. Never-theless a few barriers (see chapter 4) still hinder a more intense exchange. The main factors are costs and regulatory uncertainties (including planned incentive policies not being released). Also, the type of available biomass for biogas production differs from the Brazilian market. While in the EU energy crops and other more solid organic materials remain the main input substrates for biogas production, the main biogas potential in Brazil comes from organic waste waters. Organic waste water requires more reactor volume and a different concept of agitation in some cases, but on the other side in a lot of cases does not need additional heat energy to guarantee the required process temperature. A possible way for EU SMEs to increase exchange of services and prod-ucts with Brazil and to overcome cost barriers is to form partnerships with local suppliers and local companies willing to represent and supply services from EU companies.

Local investors and stakeholders are already lobbying towards a more business friendly environ-ment and positive developments are expected in the next couple of years, for example, the regu-lation of injection of biomethane into the natural gas grids is under discussion since beginning of 2015 and is expected to be released in 2016.

Lack of capacity and know-how was also mentioned in the contacts carried out, but here the LCBA has an important role to play introducing players on both sides to facilitate the information exchange and business opportunities. EU companies which are planning to enter the Brazilian biogas market should be aware that besides different market and cultural aspects, technology standards and designs might need to be adapted according to substrate availability, climate con-ditions, commercialization interest and benefits of biogas. The focus should be on the huge po-tential of organic waste and organic waste water from the agro-industry and the technical chal-lenges, less on the digestion of energy crops and a fixed guaranteed feed-in-tariff.




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6 B r a z i l i a n B i o g a s M a r k e t B a r r i e r s

With respect to market barriers, the Probiogas Project commissioned AHK (2015) to carry out a research interviewing 38 selected stakeholders. The report identified the following barriers and difficulties:

1. Cost benefit ratio: high CAPEX (investment costs) and OPEX (operational costs) partially limit investment decisions and foreign technology transfer. High costs can be further de-tailed as:

a. High transaction costs, including acquisition of technology/know-how, transportation, capacity building/training, local services supply

b. Market with very high potential but still under development

c. High demand on the quality and quantity of the biogas for commercial purposes,

d. High taxes and importation fees

e. Lack of standardization in the local market

f. High maintenance costs, especially when low quality local components are used trying to reduce investment costs or for equipment dependent on maintenance and supply parts not locally available.

Regarding the above mentioned cost-benefit-ratio it should additionally be mentioned, that even the claimed high CAPEX and OPEX could eventually be justified for the market, if there would be an appropriate benefit and an open access to financial resources and programmes for investors and project developers. Clear frameworks and legal procedures for the establishment of financial benefits from electricity generation, fuel substitution, fertilizer production and even improved envi-ronmental impacts can help technology providers to create awareness for a high-efficient, more expensive technology compared to maybe inefficient low-cost local technology. Chapter 4 ex-plains the economic potential for individual biogas plants in Brazil i) for direct on-site substitution of CNG and LPG, ii) electricity generation from biogas by using the new established net metering framework in specific consumption structures and iii) future potential of the usage of biomethane as a transport fuel. Another indicated local barrier can be seen as an opportunity for EU compa-nies, the high dependence on foreign know-how and equipment. The low number of local suppli-ers leads to low level knowledge, capacity and options but, on the other hand, high level of oppor-tunities for new entrants. The above mentioned lack of standardization in the local market refers to the existence of low-efficient and comparably cheap biogas technology. This can be seen as a potential risk for the biogas market, since the trust in biogas technology, as an established and efficient energetic source and environmental treatment system, needs to be improved in order to overcome a rejection of potential clients, who already made or heard about less successful bio-gas experiences.

Specifically, with respect to the commercialization of generated electricity, the following barriers were mentioned:

1. Free market: only available for big consumers/clients and interesting when the offered price is smaller than the ones in the regulated market. As the regulated market is strongly dependent on hydropower (corresponding to over 60% of the installed capacity in the country

13) and, consequently, on rain patterns, it may be interesting in drier periods (for

example from 2012 to 2015) of for clients willing to lock prices on long-term contracts. 2. Regulated market: biogas project can (and did already) participate on specific new energy

auctions but by the end of 2015 none were able to offer competitive bids.

13 Source: ANEEL – Capacidade de Geração do Brasil (http://www.aneel.gov.br/aplicacoes/capacidadebrasil/capacidadebrasil.cfm, accessed on 02-Mar-2016).


http://www.aneel.gov.br/aplicacoes/capacidadebrasil/capacidadebrasil.cfm



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3. Captive generation/self-consumption – possible and occurring but taxation lack of clarity in a few states is limiting broader development (→ hopefully reduced under the recently published new net metering resolution No 687/2015)

Regarding the commercialization of biomethane, the following barriers are mentioned in the study:

1. Gas network concession monopoly, in the praxis the only buyer is the operator of the network in the region. Additionally, there is still no regulation on the supply of biomethane in the natural gas network, therefore, today it is still not possible (regulation is under dis-cussion/development and definition is likely in 2016).

2. High investment and operation costs for the biogas upgrading to biomethane. 3. Lack of operating projects and, therefore, reference projects. The few operating projects

have little history and, therefore, no literature on operation difficulties and solutions and economic results are available.

4. Due to the lack of operating projects there is still not enough literature/information of technical, legal and commercial available. There are many technological and business options but there is very low local experience. Actual developers still face the burden to evaluate many options with almost no local experience.

5. Due to the low number of initiatives the financial market has very little understanding of the biomethane business opportunities and, consequently, does not offer interesting fi-nancing options. Although the Brazilian National Policy on Solid Residues (Política Nacional de Resíduos Sólidos - PNRS) foresees support to biogas activities, no specific incentive or supporting mechanism was defined since the approval of the policy.

Even though there have been undeniable advancements, much work is still needed in the sector. The minimum content of biomethane in the São Paulo state gas grid is yet to be defined, and that does not create an obligation for the gas distribution companies to inject biomethane in the grid. Also, the compensation system that came into force with the net metering resolution still fails to fully promote decentralized electricity production from biogas, since many companies with high electricity consumption do not have a significant biogas potential and vice versa according to Roller et al. (2014).

Beyond that, other technological, economical, infrastructural and professional capacity challenges are inevitably present in a country with continental dimensions and large regional differences − including a broad variety of different substrates, climate conditions and local markets.

Additionally, from the interviews and meeting carried out within the elaboration of this report be-tween December 2015 and March 2016, the following can be listed

The high volatility of the exchange rate in the period increases the risk of any contract signed in EUR.

The low experience of EU SMEs suppliers in the country and the differences on substrate will likely demand adaptations to local conditions (also known as “tropicalization of equipments”).

Many of the operating municipal/state sludge treatment companies are public (or partially public). In this case, production and use of biogas is subject to public concessions and, in many cases, the activity depends on missing regulation.

Most of the players in Brazil are willing to evaluate alternative services and technologies but the majority will have resistance to buy equipment from companies with no presence (commercial, maintenance, training, etc.) in the country.




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7 B i o g a s a n d b i o m e t h a n e i n d u s t r y n e e d s a n d g a p s i n B r a z i l

As explained above, the biogas and biomethane industry in Brazil is still in a development phase. Therefore, opportunities and market gaps can be fulfilled in almost all possible technological steps of production.

1. Biogas production, anaerobic digestion

There is already experience with biogas production in the country. Worth mentioning are anaero-bic digestion in sewage treatment stations and the many mostly methane avoidance projects built due to incentives from the clean development mechanism (CDM) (50 landfill gas and 63 biogas from manure management in pig farms; Inter-ministerial Commission on Climate Change (CIMGC), 2014). Nevertheless, less than 10% of the projects use the generated biogas for ener-getic purposes or any advanced biodigestion technology. With respect to biomethane production, today there are two operating commercial projects (Gramacho Landfill, operation start in 2013 and, Dois Arcos Landfill, operation start in 2015, both in Rio de Janeiro) and one additional under construction (Fortaleza Landfill in Ceara, operation start forecasted in 2016). Due the existing experience there is some availability of know-how and capacity in biogas extraction and collection in landfills, but very limited in advanced biodigestion technologies and many opportunities for companies and manufacturers offering optimized/increased biogas capturing systems design and biogas generation in landfills, wastewater, agricultural and industrial residues and livestock waste.

2. Biogas low-pressure suction/transport

Due to the existing biogas projects there is already experience/know-how/capacity with low-technologies operation, nevertheless opportunities are given for companies/manufacturers offer-ing novel optimized solutions.

3. Biogas Flaring

Due to the existing biogas projects there is already enough experience with low-technologies operation (frequently open flaring) but opportunities for companies/manufacturers offering novel optimized solutions (enclosed flaring).

4. Biogas compression (for process)

With only two operating upgrading biogas to biomethane commercial unities in the country, expe-rience, capacity and know-how in the area is low which means opportunities for companies offer-ing alternatives and optimized design are given. The existing natural gas industry on the other hand has a long-term experience with compressing methane and gaseous fuels for grid aspects.

5. Biogas upgrading - CO2 removal, N2/O2 removal, H2S Removal, drying, siloxanes removal, final conditioning, dewpoint control, adjustment of heat value, etc.

With only two operating upgrading biogas to biomethane commercial unities in the country, there is very little experience, capacity and know-how in the area and many opportunities for compa-nies offering alternatives, training, capacity building and, ideally, willing to offer local ser-vices/maintenance. For H2S removal and drying, some experience is available, because removal is required for biogas use in combined heat and power (CHP) and burners (especially for biogas from slurry, wastewater and organic waste).

6. Biogas/biomethane monitoring and control

In spite of the reasonable number of facilities, few of them have the objective of energetic exploi-tation for the generated biogas. The vast majority has the objective of reducing organic matter in residues (mostly wastewater and livestock residues) in order to comply with environmental re-strictions of wastewater disposal. For that reason, most of the plants are not designed and built to optimize biogas production or have any advanced monitoring and control strategy. For the same reason no consolidated or precise biogas generation statistics exist. The Probiogas Project launched in 2014 a project with the objective to monitor inputs and outputs in 10 selected sewage




- 22 -

treatment plants but faced many practical difficulties and up to the beginning of 2016 no result is published yet. Therefore, there is still very little experience, capacity and know-how in the area which provides opportunities for companies offering alternatives, training, capacity building and local services/maintenance.

7. Biogas use - process heat, biogas boilers

Due to the existing biogas projects experience/know-how/capacity with low-technologies opera-tion are existing, nevertheless there are still opportunities for companies/manufacturers offering novel optimized solutions. For example, most of the sewage treatment plants using anaerobic processes, if not all, simply flare the biogas, in spite of the possibility to use the heat generated to increase the efficiency of the process. There is an additional potential for concepts and technolo-gies which allow the direct substitution of CNG and LPG in industrial boilers (double-fuel burners, external intermediate storage concepts), due to the high gas prices in Brazil (see chapter 5).

8. Biogas use - power generation, combined heat and power

It is the most applied use for biogas in the country (see table 6 above), but in most cases with simple and rudimentary setup. Suited also for isolated businesses in rural areas with electricity and heat demands

Due to the existing biogas projects there is already experience/know-how/capacity with low-technologies operation, nevertheless there are great potentials and opportunities for compa-nies/manufacturers offering novel optimized solutions.

9. Biogas/biomethane use - transportation fuel

With only two operating upgrading biogas to biomethane commercial unities in the country, none with planned biomethane use as transportation fuel experience, capacity and know-how are poor in the area and many opportunities for companies offering alternatives, training, capacity building and, ideally, willing to offer local services/maintenance.

At least two pilot/development projects are being forecasted in the short/medium term.

Global Environmental Facility (GEF) Trust Fund, Ministry of Science, Technology and In-novation (MCTI), Itaipu Binacional / CIBiogás-ER

14

o Project name: Biogas Applications for the Brazilian Agro-industry o Project description/objective: To reduce GHG emission and dependence on fossil fuels

through the promotion of biogas-based mobility and other energy solutions for produc-tive uses within agro-industrial value chains and by strengthening of national biogas technology supply chains. The objective of this project is to nationally stimulate biogas plant development. It aims to demonstrate the implementation of a medium to large scale plant (up to 3000 m3 biogas per day).

German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMUB) and SABESP

15

o Project name: Use of sludge gas of a municipal wastewater treatment plant for trans-portation purposes in Franca, Brazil

o Project description/objective: As a part of international efforts geared towards climate protection, the BMU supports selected projects in partner countries, which contribute to the reduction of greenhouse gas emissions. Such is the case with the project of the Fraunhofer IGB with the Brazilian water provider and sewage disposal company SABESP. The project aim is to gather the sludge gases produced in the city of Fran-ca’s sewage plant, operated by SABESP, and purifying it until it reaches the quality of natural gas (bio-methane). This product, considered today to be one of the most envi-

14 GEF Project #9057 (https://www.thegef.org/gef/project_detail?projID=9057, accessed on 6-Mar-2016). 15 Brazilian vehicle fleet drives on bio-methane from the sewage plant

(http://www.igb.fraunhofer.de/en/competences/environmental-biotechnology/bioenergy/biomethane-as-a-fuel-from-biogas-of-sewage-plants.html, accessed on 6-Mar-2016).


https://www.thegef.org/gef/project_detail?projID=9057

http://www.igb.fraunhofer.de/en/competences/environmental-biotechnology/bioenergy/biomethane-as-a-fuel-from-biogas-of-sewage-plants.html

http://www.igb.fraunhofer.de/en/competences/environmental-biotechnology/bioenergy/biomethane-as-a-fuel-from-biogas-of-sewage-plants.html



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ronmentally sound fuels in existence, shall in turn be made available to a fleet of vehi-cles. The benefits of this fuel are truly great due to its balanced carbon footprint – its combustion creates virtually no new greenhouse gases.

Additionally, there is a huge potential for biogas/biomethane generation and use in the sugar & bioethanol industry, with many sugar mills and an association (UNICA), which is already studying the subject and prospecting alternatives. Of special interest is the diesel-CNG (biomethane) con-version for heavy duty vehicles (trucks and tractors). Diesel represents around 35% of the opera-tional costs of a sugar mill.

10. Biomethane Compression

With only two operating upgrading biogas to biomethane commercial unities in the country, there is very little experience, capacity and know-how in the area and many opportunities for compa-nies offering alternatives, training, capacity building and, ideally, willing to offer local ser-vices/maintenance.

11. Digestate Disposal/Use

Digestate disposal or use poses a big challenge on projects dealing with high volumes of sub-strate. Land application is the preferred option but regulatory risks are to be considered. Further knowledge on digestate agronomic properties and environmental risks would go a long way trying to address the issue. Further processing technologies for the digestate such as composting, dry-ing, mixing with mineral fertilizer, etc. are also options that could be explored in order to add value to the business. There is still very little experience, capacity and know-how in the area and many opportunities for companies offering alternatives, training, capacity-building and local ser-vices/maintenance.

For a more detailed overview evaluation of gaps and needs of the biogas/biomethane sector in Brazil see annex 1 – Technology demand map.




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8 B u s i n e s s p o t e n t i a l f o r E u r o p e a n U n i o n S m a l l a n d M e d i u m E n t e r p r i s e s

The realized assessment identified gaps of technologies in almost all stages of biogas production, preparation and use, with noteworthy innovation needs at 1) production in sewage treatment plants, agricultural residues, animal livestock waste, 2) upgrading, 3) process monitoring and 4) use as transportation fuel (see annex 1).

With the gathered information in the present mapping report the author is confident to state that there is a very big suppressed need of alternative services and technologies in the Brazilian biogas market and, that there are many potential SMEs suppliers in the European Union willing to offer their products in the country.

The above section on potentials and barriers explained that EU SMEs are willing to participate in the Brazilian biogas market. A few barriers need to be reduced by, for example:

Working together with financial institutions able to offer applicable special financing condi-tions (for example, export credit agencies in the EU).

Developing associations and/or joint-ventures in Brazil with local companies to increase the capacity to carry out some local research and adapt/tropicalize equipment/services.

Support local initiatives supplying local capacity building in the private (technical and fi-nancial) and public sectors, for example, the Probiogas Project.

EU companies interested in the Brazilian market should be aware of finding a different biogas market structure. Related to substrates the biggest potentials come from agro-industrial organic waste waters, which in tropical zone are normally more profitable to be digested in anaerobic lagoons, less in concrete or steel tanks. Also, the future potential of biogas usage might be more focused on the substitution of the high-priced CNG and LPG or the parallel use of biomethane in the transport sector in combination with CNG. As a fuel for electricity generation, biogas is less attractive since

i) there are no fix feed-in tariffs in Brazil,

ii) electricity prices in Brazil varies strongly and are normally below potential break-even points for biogas plants being profitable to be substituted with electricity from biogas only for special consumer profiles and

iii) Brazil covers already 74% of her overall electricity matrix with renewable energies mainly generated with hydro-power.

16

The environmental advantage of biogas plants from reducing the load of organic waste water is an important matter, technology providers should focus on in their concepts and project pro-posals. By offering efficient and adopted biogas concepts, improved environmental aspects in combination with energy cost savings or additional income from energy supply can convince Brazilian investors and companies to invest in high-efficient technologies from Europe.





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9 I d e n t i f i e d p o t e n t i a l p a r t n e r o r g a n i z a -t i o n s i n B r a z i l

Several donors, related institutions and associations in the biogas sector in Brazil have been con-tacted in the first two months of 2016. The following ones were identified as most promising ones and already indicated interest to cooperate with the LCBA, including spreading the word and for-warding communication about a possible matchmaking mission:

Associação Brasileira de Biogas e Biometano, ABiogas Associação Brasileira de Biogas e Metano, ABBM PROBIOGAS Project Cogen Abrelpe




- 26 -

1 0 I n i t i a l i n d i c a t i o n o f p o t e n t i a l p a r t i c i -p a n t s ( S M E s ) i n B r a z i l t h r o u g h p a r t n e r o r g a n i z a t i o n

Several companies and stakeholders in the biogas sector in Brazil have been contacted in the first two months of 2016. The following lists of companies operating in Brazil can be used as initial mailing/invitation lists of a possible matchmaking mission:

Market stakeholders/actors (table 7, AHK-RJ, 2015).

Table 7: Selected players in the Brazilian biogas market (source: AHK-RJ, 2015)

List of Technologies and biogas companies in Brazil (“Lista de Tecnologias e Empresas de Biogas;” PROBIOGAS, 2015).

Catalog of tecnologies and biogas companies (“Catálogo de tecnologias e empresas de biogás;” Thieme et al., 2015).




- 27 -

Complete list of participants in the events “Forum da Indústria do Biogas,” organized by Probiogas Project in Brazil, in 2014 (114 participants) and 2015 (157 participants, 99 par-ticipants in the matchmaking activity, with brief description of the companies) available, mostly Brazilian companies (List of the 2015 participants partially available at http://www.forumdobiogas.com.br/index.php/pt_br/2015-10-04-21-35-24/participantes, accessed on 04-Mar-2016. Complete lists submitted by the Probiogas Project in a per-sonal communication).


http://www.forumdobiogas.com.br/index.php/pt_br/2015-10-04-21-35-24/participantes



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1 1 I d e n t i f i e d p o t e n t i a l p a r t n e r o r g a n i z a -t i o n s i n t h e E U

Several institutions and associations in the biogas sector in the European Union with a potential interest into the Brazilian biogas market have been contacted in the first two months of 2016. The following ones were identified as most promising ones and already indicated interest to cooperate with the LCBA, including spreading the word and forwarding communication about a possible matchmaking mission:

European Biogas Association German Biogas Association Czech Biogas Association

Additionally, the following national and regional associations (list from URL: http://european-biogas.eu/members/eba-members/, accessed on10-Feb-2016) were already contacted and in-formed about the LCBA by the EBA.

Austria

ARGE Kompost & Biogas (Austrian Compost & Biogas Association)

Belgium

Biogas-E– het platform voor anaerobe vergisting in Vlaanderen (Anaerobic digestion platform of Flanders)

EDORA – Fédération des Energies Renouvelables (Renewable Energy Federation)

ValBiom – Association de valorisation de la biomasse (Wallonian association for the valorisation of biomass)

Vlaco npo – Flemish compost and biogas association

Czech Republic (contacted)

CzBA – Ceská Bioplynová Asociace (Czech Biogas Association)

Denmark

Brancheforeningen for Biogas (Danish Biogas Association)

Estonia

Eesti Biogaasi Assotsiatsioon MTÜ (Estonian Biogas Association)

Finland

Suomen Biokaasuyhdistys (Finnish Biogas Association)

France

AAMF – Association des Agriculteurs Méthaniseurs de France (Association of Biogas Farmers of France)

ATEE Club Biogaz (Biogas Club of the Technical Association for Energy and the Environment)

METHEOR – Association pour la Méthanisation Ecologique des Déchets (Ass. for the Ecological Anaerobic Digestion of Waste)

Germany (contacted)

Fachverband Biogas e.V. (German Biogas Association)

FNBB – Fördergesellschaft für nachhaltige Biogas- und Bioenergienutzung e.V. (Society for the Promotion of Sustain-able Biogas and Bioenergy)

Greece

HEL.BI.O (Hellenic Biogas Association)

Hungary

Magyar Biogáz Egyesület (Hungarian Biogas Association)

Italy

CIB – Consorzio Italiano Biogas e Gassificazione (Italian Consortium of Biogas and Gasification)


http://european-biogas.eu/members/eba-members/


http://www.kompost-biogas.info/

http://www.biogas-e.be/

http://www.edora.be/

http://www.valbiom.be/

http://www.vlaco.be/

http://www.czba.cz/

http://www.biogasbranchen.dk/

http://eba.eestibiogaas.ee/

http://www.biokaasuyhdistys.net/

http://www.pardessuslahaie.net/agriculteurs-methaniseurs

http://atee.fr/biogaz/

http://www.metheor.org/

http://www.metheor.org/

http://www.biogas.org/edcom/webfvb.nsf/ID/DE_Homepage

http://www.fnbb.de/

http://www.fnbb.de/

http://www.helbio.gr/?lang=en

http://www.biogas.hu/?lang=en

http://www.consorziobiogas.it/



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FIPER – Federazione Italiana di Produttori di Energia da Fonti Rinnovabili (Italian Federation of Renewable Energy Producers)

Ireland

Cré – Composting & Anaerobic Digestion Association of Ireland

IrBEA – Irish Bioenergy Association

RGFI – Renewable Gas Forum Ireland

Latvia

Latvijas Bigazes asociacija (Latvian Biogas Association)

Lithuania

Lietuvos Bioduju Asociacija (Lithuanian Biogas Association)

The Netherlands

BBO – Biogas Branche Organisatie (Biogas Industry Organization)

VGGP – Vereniging Groen Gas Producenten (Association of Green Gas Producers)

Poland

PIGEO – Polska Izba Gospodarcza Energii Odnawialnej (Polish Economic Chamber of Renewable Energy)

Romania

ARBIO – Asociatia Romana Biomasa si Biogaz (Romanian Association of Biomass and Biogas)

Serbia

Udruženje Biogas Srbija (Biogas Association of Serbia)

Slovakia

AVEOZ – Asociácia výrobcov energie z obnovitelných zdrojov (Association of producers of renewable energies)

Slovenia

Sekcija bioplinarjev pri GZS-Zbornici kmetijskih in živilskih podjetij (Biogas section of the Chamber of Commerce and Industry of Food and Agriculture)

Spain

AEBIG – Asociación Española de Biogás (Spanish Biogas Association)

Sweden

Energigas Sverige (Swedish Gas Association)

United Kingdom

ADBA – The Anaerobic Digestion and Bioresources Association (The Anaerobic Digestion and Biogas Association)

REA Biogas Group (UK Renewable Energy Association)


http://www.fiper.it/

http://www.fiper.it/

http://www.cre.ie/

http://www.irbea.ie/

http://renewablegasforum.com/

http://latvijasbiogaze.lv/

http://www.lbda.lt/en/home

http://www.bbo.nu/home

http://www.vggp.nl/www.vggp.nl/Home.html

http://www.pigeo.org.pl/?lang=en

http://www.arbio.ro/en/#all

http://www.biogas.org.rs/

http://aveoz.sk/

http://www.gzs.si/slo/panoge/zbornica_kmetijskih_in_zivilskih_podjetij

http://www.gzs.si/slo/panoge/zbornica_kmetijskih_in_zivilskih_podjetij

http://www.aebig.org/

http://www.energigas.se/

http://www.adbiogas.co.uk/

http://www.biogas.org.uk/



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1 2 I n i t i a l i n d i c a t i o n o f p o t e n t i a l s u p p l i e r s i n t h e E U

Several companies and agencies from the biogas sector in the European Union with a potential interest into the Brazilian biogas market have been contacted in the first two months of 2016. The following lists of companies operating in the EU can be used as initial mailing/invitation lists of a possible matchmaking mission:

From RENI (2015), page 43, German Biogas Association companies’ overview, business areas and profiles.

LEGEND

Major business system provider

Further business

Major business provider of components and substrates, supplier

Further business

Major business operator, planner, advisor

Further business

Major business research and development

Further business

COMPANY BUSINESS SEGMENTS

1 2G Energy AG

2 Agraferm Technologies AG

3 agriKomp GmbH

4 AGROTEL GmbH

5 APROVIS Energy Systems GmbH

6 Awite Bioenergie GmbH

7 BAG Budissa Agroservice GmbH

8 Baur Folien GmbH

9 BayWa AG

10 BDI – BioEnergy International AG

11 BioConstruct GmbH

12 BIOFerm GmbH (Viessmann Group)

13 BMF HAASE Energietechnik GmbH

14 BTA International GmbH

15 BTS Biogas Srl/GmbH

16 dbds Deutsche Biogas Dach-Systeme GmbH

17 DCL Europe GmbH

18 EnvironTec GmbH

19 EnviTec Biogas AG

20 Evonik Industries AG

21 FF-Maschinenbau GmbH

22 Finsterwalder Umwelttechnik GmbH & Co. KG

23 Fliegl Agrartechnik GmbH


http://www.german-biogas-industry.com/companies/2g-energy-ag/index.html

http://www.german-biogas-industry.com/companies/agraferm-technologies-ag/index.html

http://www.german-biogas-industry.com/companies/agrikompgmbh/index.html

http://www.german-biogas-industry.com/companies/agrotel-gmbh/index.html

http://www.german-biogas-industry.com/companies/aprovis-energy-systems-gmbh/index.html

http://www.german-biogas-industry.com/companies/awite-bioenergie-gmbh/index.html

http://www.german-biogas-industry.com/companies/bag-budissa-agroservice-gmbh/index.html

http://www.german-biogas-industry.com/companies/baur-folien-gmbh/index.html

http://www.german-biogas-industry.com/companies/baywa-ag/index.html

http://www.german-biogas-industry.com/companies/bdi-bioenergy-international-ag/index.html

http://www.german-biogas-industry.com/companies/bioconstruct-gmbh/index.html

http://www.german-biogas-industry.com/companies/viessmann-group/index.html

http://www.german-biogas-industry.com/companies/bmf-haase-energietechnik-gmbh/index.html

http://www.german-biogas-industry.com/companies/bta-international-gmbh/index.html

http://www.german-biogas-industry.com/companies/bts-biogas-srlgmbh/index.html

http://www.german-biogas-industry.com/companies/dbds-deutsche-biogas-dach-systeme-gmbh/index.html

http://www.german-biogas-industry.com/companies/dcl-europe-gmbh/index.html

http://www.german-biogas-industry.com/companies/environtec-gmbh/index.html

http://www.german-biogas-industry.com/companies/envitec-biogas-ag/index.html

http://www.german-biogas-industry.com/companies/evonik-industries-ag/index.html

http://www.german-biogas-industry.com/companies/ff-maschinenbau-gmbh/index.html

http://www.german-biogas-industry.com/companies/finsterwalder-umwelttechnik-gmbh-co-kg/index.html

http://www.german-biogas-industry.com/companies/fliegl-agrartechnik-gmbh/index.html



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COMPANY BUSINESS SEGMENTS

24 Franz Eisele & Söhne GmbH & Co. KG

25 FRITZ PAULMICHL GMBH

26 Green Energy Max Zintl GmbH

27 Green Protection GmbH

28 Hermann Sewerin GmbH

29 Huber SE

30 ibes Ingenieurbüro Dr. Eisenhardt Sonneberg

31 LANXESS Deutschland GmbH

32 Lindner-Recyclingtech

33 LIPP GmbH

34 Mehrer Compression GmbH

35 MethaPOWER Biogas GmbH

36 MTU Onsite Energy GmbH

37 NETZSCH Pumpen & Systeme GmbH

38 NORTH-TEC Maschinenbau GmbH

39 ÖKOBIT GmbH

40 OWS

41 Pentair Haffmans

42 Pro2 Anlagentechnik GmbH

43 PRONOVA Analysetechnik GmbH & Co. KG

44 PURAC PUREGAS

45 Schmack Biogas GmbH (Viessmann Group)

46 Schmack Carbotech GmbH (Viessmann Group)

47 SCHNELL Motoren AG

48 seepex GmbH

49 SEVA Energie AG

50 SILOKING Mayer Maschinenbaugesellschaft mbH

51 SILOXA Engineering AG

52 streisal GmbH

53 SUMA Rührtechnik GmbH

54 THÖNI INDUSTRIEBETRIEBE GMBH

55 Tietjen Verfahrenstechnik GmbH

56 TÜV NORD GROUP

57 UGN-Umwelttechnik GmbH

58 UTS Biogastechnik GmbH

59 Viessmann Group

60 Viessmann Werke GmbH & Co. KG (Viessmann Group)

61 WELTEC BIOPOWER GmbH

62 Wolf System GmbH

63 Wulf Johannsen KG GmbH & Co.

64 XYLEM WATER SOLUTIONS


http://www.german-biogas-industry.com/companies/franz-eisele-soehne-gmbh-co-kg/index.html

http://www.german-biogas-industry.com/companies/fritzpaulmichlgmbh/index.html

http://www.german-biogas-industry.com/companies/green-energy-max-zintl-gmbh/index.html

http://www.german-biogas-industry.com/companies/green-protection-gmbh/index.html

http://www.german-biogas-industry.com/companies/hermann-sewerin-gmbh/index.html

http://www.german-biogas-industry.com/companies/huber-se/index.html

http://www.german-biogas-industry.com/companies/ibes-ingenieurbuero-dr-eisenhardt-sonneberg/index.html

http://www.german-biogas-industry.com/companies/lanxess-deutschland-gmbh/index.html

http://www.german-biogas-industry.com/companies/lindner-recyclingtech/index.html

http://www.german-biogas-industry.com/companies/lipp-gmbh/index.html

http://www.german-biogas-industry.com/companies/mehrer-compression-gmbh/index.html

http://www.german-biogas-industry.com/companies/methapower-biogas-gmbh/index.html

http://www.german-biogas-industry.com/companies/mtu-onsite-energy-gmbh/index.html

http://www.german-biogas-industry.com/companies/netzsch-pumpen-systeme-gmbh/index.html

http://www.german-biogas-industry.com/companies/north-tec-maschinenbau-gmbh/index.html

http://www.german-biogas-industry.com/companies/oekobit-gmbh/index.html

http://www.german-biogas-industry.com/companies/ows/index.html

http://www.german-biogas-industry.com/companies/pentair-haffmans/index.html

http://www.german-biogas-industry.com/companies/pro2-anlagentechnik-gmbh-seva-energie-ag/index.html

http://www.german-biogas-industry.com/companies/pronova-analysetechnik-gmbh-co-kg/index.html

http://www.german-biogas-industry.com/companies/purac-puregas/index.html



http://www.german-biogas-industry.com/companies/schnell-motoren-ag/index.html

http://www.german-biogas-industry.com/companies/seepex-gmbh/index.html

http://www.german-biogas-industry.com/companies/pro2-anlagentechnik-gmbh-seva-energie-ag/index.html

http://www.german-biogas-industry.com/companies/siloking-mayer-maschinenbaugesellschaft-mbh/index.html

http://www.german-biogas-industry.com/companies/siloxa-engineering-ag/index.html

http://www.german-biogas-industry.com/companies/streisal-gmbh/index.html

http://www.german-biogas-industry.com/companies/suma-ruehrtechnik-gmbh/index.html

http://www.german-biogas-industry.com/companies/thoeni-industriebetriebe-gmbh/index.html

http://www.german-biogas-industry.com/companies/tietjen-verfahrenstechnik-gmbh/index.html

http://www.german-biogas-industry.com/companies/tuev-nord-group/index.html

http://www.german-biogas-industry.com/companies/ugn-umwelttechnik-gmbh/index.html

http://www.german-biogas-industry.com/companies/uts-biogastechnik-gmbh/index.html



http://www.german-biogas-industry.com/companies/weltec-biopower-gmbh/index.html

http://www.german-biogas-industry.com/companies/wolf-system-gmbh/index.html

http://www.german-biogas-industry.com/companies/wulf-johannsen-kg-gmbh-co/index.html

http://www.german-biogas-industry.com/companies/xylem-water-solutions/index.html



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EBA (2015) – Companies Catalog of the European Biogas Association (available on http://european-biogas.eu/wp-content/uploads/2015/02/eba_companies_catalogue.pdf, accessed on 05-Mar-2016).

Associated members (companies) of EBA also available on http://european-biogas.eu/members/eba-members/ (accessed on 10-Feb-2016).


http://european-biogas.eu/wp-content/uploads/2015/02/eba_companies_catalogue.pdf





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1 3 S e l e c t e d B i o g a s E v e n t s i n 2 0 1 6

Ideally the MM are to be carried out in a synergic way in conjunction with relevant, topic-related events. For that reason, stakeholders were asked during the meetings to indicate the most rele-vant and interesting events they are willing to participate in 2016. Following events have been proposed:

IFAT 2016, Trade Fair for Water, Sewage, Waste and Raw Materials Management (30-May, 3-June, 2006, Munich, Germany, http://www.ifat.de/index-2.html).

“Energetische Nutzung von Reststoffen aus der Landwirtschaft in RJ und RS” (24-28 Oc-tober 2016, Porto Alegre) https://www.export-erneuerbare.de/EEE/Redaktion/DE/Veranstaltungen/2016/Geschaeftsreisen/gr-brasilien-bio.html).

Energy Decentral (15-18 November 2016) http://www.tradefairdates.com/EnergyDecentral-M9027/Hanover.html.

III Forum da Indústria do Biogas (November 2016 in SP, RJ and MG, exact dates still to be defined), already targeted in conversation with the Probiogas Project as a suitable matchmaking mission opportunity.


http://www.ifat.de/index-2.html

https://www.export-erneuerbare.de/EEE/Redaktion/DE/Veranstaltungen/2016/Geschaeftsreisen/gr-brasilien-bio.html



http://www.tradefairdates.com/EnergyDecentral-M9027/Hanover.html



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1 4 R e f e r e n c e s

ABiogas (2015). Proposta de Programa Nacional do Biogás e do Biometano PNBB. Versão 1, novembro de 2015.

AHK-RJ (2015). Zielmarktanalyse: Biogas Brasilien - Energetische Nutzung von Abfällen und Abwässern, mit Profilen der Marktakteure. Deutsch-Brasilianische Industrie- und Handelskammer Rio de Janeiro (AHK-RJ).

BMUB (2007). Renewable Energy Sources Act (EEG) – Progress Report 2007. Bundesministerium für Umwelt, Naturschütz, Bau und Reaktorsicherheit.

Brasil (2012). Política nacional de resíduos sólidos (2. Ed.). Brasília: Câmara dos Deputados, Edições Câmara, 2012.

Cabral, C. B. G. et al. (2015). Tecnologias de digestão anaeróbia com relevância para o Brasil: substratos, digestores e uso de biogás. Probiogás; organizadores, Ministério das Cidades, Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH. Brasília, 2015.

CIMGC (2014). Status dos Projetos de Mecanismo de Desenvolvimento Limpo (MDL) no Brasil. Comissão Interministerial de Mudanças Globais do Clima.

EBA (2016). Annual Report 2015. European Biogas Association. January 2016. EBA (2016b). Companies Catalogue Members of the European Biogas Association. Jan-

uary 2016. EPE (2014). Inventário Energético dos Resíduos Sólidos Urbanos. Nota Técnica DEA

18/14. Empresa de Pesquisa Energética. Rio de Janeiro, outubro de 2014. IEA Bioenergy (2015). IEA Bioenergy Task 37 – Country Reports Summary 2014. Luostarinen, S., A. Normak, M. Edström (2011). Overview of biogas technologies. Bal-

tic Forum for Innovative Technologies for Sustainable Manure Management. Silveira, B. et al. (2015). Probiogás – Guia Técnico de Aproveitamento Energético de

Biogás em Estações de Tratamento de Esgotos. Ministério das Cidades - Secretaria Nacional de Saneamento Ambiental, Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH. 1ª edição, Brasília, 2015.

PROBIOGAS (2015). Lista de tecnologias e empresas de Biogás. Przadka, A. (2015). European Biogas Association - State of the Art of Biogas and

Biomethane in Europe. Workshop – Avaliação do Potencial e Impacto do Biometano em Portugal. Lisboa, 2 de julho de 2015.

RENI (2015). Biogas an all-rounder – New opportunities for farming, industry and the en-vironment (4

th Edition). Renewables Insight – Energy Industry Guides.

Roller, W., V. B. Valente, J. Giesdorf (2014). Brazil, a promising market for biogas. Bio-gas Journal, May 2014.

Thiemi, E. at al. (2015) Catálogo de tecnologias e empresas de biogás. Probiogás; organizadores, Ministério das Cidades, Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH. Brasília, 2015.

Thrän, D. et al. (2014). Biomethane – status and factors affecting market development and trade. IEA Task 40 and Task 37 Joint Study. September 2014.

WBA (2015). WBA Fact Sheet: Biogas – An Important Renewable Energy Source. First edition May 2013.




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A n n e x 1 : T e c h n o l o g y d e m a n d m a p

A) STRUCTURE / MAIN FACTS RELATED TO BIOGAS B) AVAILABILITY

IN BRAZIL 1 – MATURE 2 – ESTABLISHED 3 – INCIPIENT 4 – NOT AVAILABLE

C) INDUSTRY SECTOR SEGMENTATION

D) INTERNATIONAL TRENDS / INNOVATIVE TECHNOLOGIES (EUROPE)

E) INNOVATION, NEEDS & GAPS IN BRAZIL 1 – HIGH 2 – MEDIUM 3 – LOW / NOT REQUIRED / LONG-TERM

F) BUSINESS POTENTIAL FOR THE LCBA

G) GEOGRAPHIC MARKET SEGMENTATION

H) MARKET ASSESSMENT: POTENTIAL STAKEHOLDERS / SUPPLIERS

TECHNOLOGY SECTOR EQUIPMENTS

A.1 - Biogas production

A.1.1 - Landfills

Landfill and landfill-gas extrac-tion/collection system design

2

industrial, munici-pal waste (solid waste, wastewater)

greenfield - design of the landfill to optimize biogas capture existing - design of the

extraction system to optimize biogas cap-ture

2

Potential: potential for companies offering increased capturing design. Barriers: no foreign presence, exchange rate, concession regu-lation

Whole country, metropolitan areas, better potential in S, SE and NE

engineer-ing/manufacturer companies, landfill developers and operators (conces-sion holders), municipalities

A.1.1 - Landfills

Landfill and landfill-gas extrac-tion/collection - equipment e.g. wellheads, flow control valves, flow measure-ment / material e.g. piping and fittings

2


high precision flow control in each well-head; differential pressure

measurement for wellhead leak detec-tion.

1 (today safety control is labour

intensive requiring daily safety in-

spection)

Potential: potential for companies offering increased capturing design. Barriers: no foreign presence, exchange rate, concession regu-lation



A.1.1 - Landfills

Landfill and landfill-gas extrac-tion/collection -

2


qualified labour re-quired related to the construction of e.g. HDPE piping systems

2

Potential: potential for companies offering increased capturing design.

Whole country, metropolitan areas, better potential in S, SE

engineer-ing/manufacturer companies, landfill developers and




- 36 -










construction Barriers: no foreign presence, exchange rate, concession regu-lation

and NE operators (conces-sion holders), municipalities

A.1.2 - Sewage treatment plants/systems

Anaerobic digesters (UASB, covered lagoon, CSTR, others?) - DESIGN, CONSTRUCTION and OPERATION Anaerobic digesters (IC, ICplus,UASB, UASBplus, covered la-goon,CSTR)

3 2


highly variable, de-pending on the sub-strate (i.e. Solids con-tent, organic load, predominance of cel-lulosic materials, etc.); development of me-

chanical/thermal/-chemical pre-treatment for cellulosic substrates; development of me-

chanical pre-treatment for solid substrates; new technologies with

high loading rates/low retention times asso-ciated with high effi-ciency; development of com-

pact systems of low footprint;

1

Potential: potential for companies offering increased biogas gen-eration (new technolo-gies, optimized design, better practices, etc.). Barriers: exchange rate, concession regu-lation, lack of capacity, adaptation to local conditions, profitability only in specific cases


engineer-ing/manufacturer companies, waste management developers and operators (conces-sion holders), municipalities

A.1.3 - Agricul-tural residues

3 2 agriculture 1

Potential: potential for companies offering increased biogas gen-eration (new technolo-gies, optimized design, better practices, etc.). Barriers: exchange rate, lack of capacity, adaptation to local conditions, profitability only in specific cases

Whole country, better potential in S, SE and Mid-west

engineer-ing/manufacturer companies, food industry, farmers




- 37 -










A.1.4 - Ani-mal/livestock waste

3 2 agriculture

development of robust systems that retain performance even in face of variations in the substrate. Development of high-

rate- COD- biodigestors) for opti-mizing solids digestion and development of more resistant mem-branes for lagoon covering.

1

Potential: potential for companies offering increased biogas gen-eration (new technolo-gies, optimized design, better practices, etc.). Barriers: exchange rate, profitability only in specific cases


engineer-ing/manufacturer companies, food industry, livestock raisers

A.1.5 - industrial residues

3 2 industrial 1

Potential: potential for companies offering increased biogas gen-eration. Barriers: exchange rate, lack of capacity, adaptation to local conditions, profitability only in specific cases.


engineer-ing/manufacturer companies, food industry

A.2 - Biogas low-pressure suc-tion/transport

all blower systems 2 1

industrial, munici-pal waste (solid waste, wastewater), agriculture

n/a 3

Potential: potential for companies offering optimized design. Barriers: exchange rate,

Whole country engineer-ing/manufacturer companies

A.3 - Biogas Flaring

all flaring systems 2 1

industrial, munici-pal waste (solid waste, wastewater),

n/a 3

Potential: potential for companies offering optimized design. Barriers: exchange

Whole country engineer-ing/manufacturer companies




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agriculture rate, adaptation to local conditions.

A.4 - Biogas compression (for process)

all compression systems

3 2


n/a 3

Potential: potential for companies offering optimized design. Barriers: exchange rate

Whole country

engineer-ing/manufacturer companies, natural gas suppliers

A. 5 - Biogas upgrading - CO2 removal

all CO2 removal 3


Feasible small size up-grading technology with start/stop technology (e.g. membrane separation) can be an interesting concept for the market

1

Potential: potential for any company offering suitable alternatives to the local conditions. Barriers: exchange rate, lack of capacity, adaptation to local conditions, profitability only in specific cases.

Whole country


A.6 - Biogas N2/O2 removal

landfills O2/N2 removal 4


In landfill applications, the control on wells must be very tight in order to prevent a contamination - this is a big challenge given the gas quality standards in Brazil.

1

Potential: potential for any company offering suitable alternatives to the local conditions. Barriers: exchange rate, lack of capacity, adaptation to local conditions.






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A.7 - Biogas H2S Removal

all

high load H2S removal (e.g. Vinasse projects); medium load

H2S removal (e.g. Agricul-tural wastes); low-load H2S

removal (e.g. Landfills)

3, 2


H2S removal can repre-sent a very high OPEX depending on sulphur load.

1


Whole country


A.8 - Biogas drying

all biogas driers pre-treatment (e.g. Cooling)

3


3

Potential: potential for companies offering optimized design. Barriers: exchange rate, adaptation to local conditions.

Whole country


A.9 - Biogas Siloxane re-moval

landfills, sewage treatment

activated car-bon or other systems

3


1



engineer-ing/manufacturer companies, waste management developers and operators (conces-sion holders), municipalities, natural gas suppli-ers




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A.10 - Bio-gas/biomethane monitoring and control

all

CH4, CO2, O2, N2, H2S, VOCs, siloxane... Monitoring equipment

3


biogas monitoring is very well established in Europe and the US - recent trends are perhaps in the devel-opment of on-line monitoring of trace components such as siloxanes; in Brazil, due to the

legislation, the need of online monitoring of gas components using gas chromatography poses a big economic burden on projects; in particular, monitor-

ing of very low levels of H2S in biomethane can be very costly; development of relia-

ble portable monitor-ing systems for land-fills is desirable (eg based on gas chroma-tography) due to the requirement for low-

1


Whole country





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level N2 monitoring. Development of new

laboratory methods for siloxanes analysis: from traditional CG-MS bio-gas/biomethane anal-ysis to plasma burn-ing/FID analysis. De-velopment of on line Siloxanos monitoring systems

A.11 - Biogas use - process heat

all burners for biogas direct burning

2


- n/a 3

Potential: potential for companies offering optimized applications. Barriers: exchange rate, adaptation to local conditions.

Whole country

engineer-ing/manufacturer companies, waste management developers and operators (conces-sion holders), municipalities, food industry, farmers, livestock raisers

A.12 - Biogas use - power generation

all

engines for biogas direct use, natural gas engines for power genera-

2


Manufacturer of high-efficient engines (Caterpil-lar, Jenbacher,etc) re-quire specific gas quali-ty(H2S and water remov-

3

Potential: potential for companies offering optimized applications. Barriers: exchange rate, adaptation to local

Whole country

engineer-ing/manufacturer companies, waste management developers and




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tion, diesel to gas conversion kits for station-ary engines

al) conditions, profitability only in specific cases.

operators (conces-sion holders), municipalities, food industry, farmers, livestock raisers

A.13 - Biogas use - transpor-tation fuel

all

Dual fuel (diesel and biomethane) conversion kits for trucks and stationary en-gines

3


dual-fuel conversion kits for existing vehicle is a must. Manufacturer of en-

gines require specific gas quality (siloxanes and H2S removal)

1


Whole country


A.14 - Biomethane Compression

all

Compressions systems for pipeline injec-tion and CNG applications

3 industrial, munici-pal solid waste, agriculture

2

Potential: potential for companies offering optimized applications. Barriers: exchange rate, adaptation to local conditions.

Whole country


A.15 - Digestate Dis-posal/Use

agricultur-al applica-tions

3 agriculture

digestate disposal or use poses a big chal-lenge on projects dealing with high vol-umes of substrate; land application is the

preferred option but regulatory risks are to

2

Potential: potential for companies offering optimized applications. Barriers: exchange rate


engineer-ing/manufacturer companies, waste management developers and operators (conces-sion holders), municipalities, food




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be considered; further knowledge on

digestate agronomic properties and envi-ronmental risks would go a long way trying to address the issue; further processing of

the digestate such as composting, drying, mixing with mineral fertilizer, etc. are also options that could be further explored in or-der to add value to the business.

industry, farmers, livestock raisers


mapping report chapter 2 biogas biomethane - low · pdf filemapping report – part 2...

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