Market overview of the biogas and biomethane industry across Europe

Biomethane Day 201620th April 2016; Birmingham, UK

Erneszt KovácsTechnical Advisor, European Biogas Association

• Non-profit association founded in 2009

• Covers biogas and biomethane from anaerobic digesation and biomass gasification

• Well-established network and communication platform for exchanging information and expertise in biogas

• Member of EREF and EUFORES, co-operation with waste, gas and renewable associations

• Based in Brussels, Renewable Energy House (REH)

What is EBA?

www.european-biogas.eu

25 countries, 35 National Associations, 51Companies – representing 7,100 stakeholders

Biogas and Biomethane Report 2015

• Annual statistical report

• Based on expertise of the national associations or other experts

• Press release and free graphs avaiable on our website; the Report also availabe for purchase

Nutrients recycling

Jobs

Rural development

Waste

management

Photo: HAASE Energietechnik AG

Bio-fertiliser (Digestate)

Biofuel

Heating

Electricity

Energy independence

Investment and growth

Clean air

What is biogas and biomethane?

Overview of the European AD sector

Second best year in terms of new AD plants

The AD sector is on the constant rise

Forerunners, followers and newscomers

Not all that grows is (necessarily) biogas

Versatility of biogas in Europe

Installed electrical capacity

Generated electricity

Generated heat

8.3 GW

63.6 TWh

32.2 TWh

No data from DK, FI, LU, SE

No data from: BG, IE, PT, RS, SK, ES, CH, UK

Biogas utilization as an energy sourcein Europe in 2014

What happens to biogas?

• Burning biogas for electricity and heat

• Sweden and Finland upgrade almost all their biogas to biomethane

63.6 TWh of electricity

produced in 2014

Consumption of 14.6 Mio households

(Slovakia, Hungary, Czech rep. and Poland)

=What does that mean?

=

Electricity vs heating

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Utilised electricity and heat

Generated electricity [GWh] Generated heat [GWh]

Where do they come from?

How good are we?

The biomethane production follows the trends

0

50

100

150

200

250

300

350

400

2011 2012 2013 2014

Number of existing and new biomethane plants commisioned per year

Existing plants New plants

+24%

+21.5%

+30%

Biomethane boom in Europe

Biomethane upgrading capacity

Approx. biomethane production

Number of biomethane plants in Europe; 70% of them inject gas into grid

Approx. use of biomethane in transport

310 053 Nm3/h

~1.4 Bn m3

367

Anaerobic Digestion only

Biomethane production in Europe in 2014

10%

• Lack of biomethane trade prevents further biomethane developments

• Cross-border trade is limited to bilateral agreements (CH-DE, DK-DE); international trade is mainly done through road transport

• The potential of biomethane production is not equal to the national demand and the international trade would eliminate this discrepancy

• Green Gas Grids have identified the biomethane potentials, while BIOSURF currently has the objective to develop national biomethane registries

Biomethane trade

(anaerobic digestion + gasification)

Biogas/biomethane potential

(anaerobic digestion + gasification)

Biogas/biomethane potential

Economics of the European biogas and biomethane production

Support schemes across Europe

• Feed-in Tarrifs the most common support scheme

• Heading towards a competitive RES market

• Unpredictive support schemes

Employment provided by the biogas sector

• -3.6% fall in jobs in both RES and biogas

• On the long run (2011 – 2013):• -31.3% RES• -7% Biogas

Future prospects, opportunities and challenges

The nearest future...

Ups:UK – expected growth in biogas and biomethane production until the end of

the decade; the growth highly depending on FiT, RHI and available feedstock

Italy – boom in 2012 (doubled capacity), more to be expected on biomethane

Denmark – targets for manure in AD plants

Sweden – constant developments; tax exemption for biogas until the end of 2020

France – new ”Energy Transition” adopted; suport for biogas increased up to 20%, up to €13 mio. and €20 mio income for the biogas sector in 2016 and 2017; new biomethane injection plants open on a weekly basis

The Netherlands – stagnation of the market in 2015 but more than doubled SDE+ budget; dairy industry as a potential beneficiary

Serbia, Bulgaria, Romania – new markets

The nearest future

The nearest future...

Downs:Germany – EEG 2014 affects heavily new agricultural plants and makes the

economically unviable; the EEG 2014 however favours small installations up to 75 kW operating with at least 90% of manure/sewage sludge/biowaste.

Czech Republic, Cyprus – support ceased in 2014

Austria – the industry has stalled; currently only upgrades and refurbishments of existing plants (built before 2012)

Spain – support schemes drastically reduced and the investors’ confidence eroded; law suits ongoing

The nearest future

Veranstaltung

www.biogasconference.eu

• 3rd biannual Conference on biogas and biomethane from AD and gasification

• 200+ participants in 2014

• Keynote speakers from the European institutions and the industry

Thank you

Renewable Energy House

Rue d'Arlon 63-65

B - 1040 Brussels

+32 24.00.10 – 89info@european-biogas.euwww.european-biogas.eu

European Biogas AssociationErneszt Kovacs,Technical Advisore.kovacs@european-biogas.eu