06-04-2017

NATURE ENERGY

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NATURE ENERGY A/S

Biogas Production

Trading and sales of energysolutions

Natural gas distribution

Business activities• Gasdistribution on Funen

• Sales and trading in natural gas, biogas, certificates and energy solution across Denmark

• Biogas production together with local suppliers

Nature Energy is owned by the municipalities of Funen and have around 135 employees

Value creating energy solutions

Maximizing sustainable value

Biogas is an obvious partner and growth engine in the sustainable transition

Developing the substrates used for biogas production and the frameworks

• Development of operational techniqies to handle and optimise hard to usebiomasses, e.g. straw, hydrolysis, methanation etc.

Industrialize and professionalize the biogas industry

• Optimization of facilities and organization

• Develop the market and biogas industry with our business partners

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• 4 facilities online: 400 GWh bio methane/year

• + 3 facilities in pipeline: 1 TWh bio methane/year

• + 2 facilities/year next 5 years: 2,5 TWh

biomethane/year

• 2021: 10 % of Denmark’s total consumption of

Natural gas

– or 1,5 x the consumption on Funen

PROGRES OF BIOGAS EXPANSION

NATURE ENERGY VAARST

NATURE ENERGY MIDTFYN

NATURE ENERGY NORDFYN

NATURE ENERGY HOLSTED

BIOGAS FACILITIES ONLINE

BIOGAS FACILITIES PIPELINE

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NGF Nature Energy Holsted A/SOperation since q2 2015Input: 400.000 tonnesOutput: 160 GWh Bio MethaneExpansion plans: 250 GWh output

NGF Nature Energy Nordfyn A/SOperation since q4 2015Input: 300.000 tonnesOutput: 120 GWh Bio Methane

NGF Nature Energy Midtfyn A/SOperation since q1 2016Input: 360.000 tonnesOutput: 135 GWh Bio Methane

NGF Nature Energy Vaarst A/SOld facility being upradedInput: 300.000 tonnesOutput: 110 GWh Bio Methane

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• ODENSE: The first CNG station in Denmark

• FREDERICIA: First project for CNG to public buses in Denmark

• Expanded to renovation trucks and cars in the elder care sector

• VEJLERenovation trucks powered by CNG

• SILKEBORGCNG for city busses

• SØNDERBORGCNG for 39 city buses – CNG Stagion being built

• FREDERIKSHAVNLNG (LBG) for vessels (Project)

GAS FOR TRANSPORT

LNG FREDERIKSHAVN

CNG ODENSE

CNG VEJLE

CNG FREDERICIA

CNG SØNDERBORG

CNG SILKEBORG

Certifcations

• Born with Energinet.dk certificates

– Measures quantity

• Voluntary schemes on top

– All facilities is certified with REDCERT

– Volumes entered into NABISY

– Interchangeable with ISCC

• Two has the Danish Ecolabel –Svanemaerket

• Working to get DENA certificates

– ENDK and DENA coorporation

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NEXT STEPS

• We see biogas as advanced wind

– Energy

– Waste management

– Storage

• We have the infrastructure

• We have the storage

– That is we have the batteries that everybody dreams of

• Export of technology

• Partnerships across Europe and across sectors

• Sales of certified and differentiated green gas has potential.

Trading of Biogas Experiences

• No established market for trading biomethane

• Still only few brokers and players in international trading

• Different legislation in different countries

– Create trading barriers

• Transportation of Biogas must happen in the existing network

• Two important issues:

– No double selling

– No double counting

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Custumers is Priority 1

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• If the costumer require a special certification scheme we will acquire it.

– If it creates value

• We explore the opportunities in the market

• But we often need a specific certification before delivery can happen

• Cross border biogas trading and sales often causes development cost

• Negotiation to Delivery

– Minimum half a year

The market (as we see it)

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Country Opportunities Certificates – Scehems Comments

Denmark Transport Voluntary market

Reaching quotas for biofuelsCreating ticketsVoluntary market progressing

Netherlands TransportationVoluntary market

Tickets

Sweden HeatingTransportation

Heating with biogasTransportation sectorDemand for ecolabel

Germany TransportElectricityVoluntary market

Big market potentialHard to reachImported bio methane is not eligible

Switzerland Voluntary market Big voluntary marketCertain condition needs to be met

Italy TransportationVoluntary market

Large CNG marketWe have not identified opportunities yet

Preliminary experiences• Trading certified biogas requires

– Volume – Price– Quality– Transportation

• All factors needs extensive documentation

• Documentation is good. If it is for the right reasons– Again. No double counting and no

double selling

• We need the system to be reliable. Else the value disappear

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Preliminary experiences

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• Price– Easy task. Calculation and negotiation.

• Volume– Easy task. Physics and calculation of output

• Quality– Reasonable task. But the most important task. Calculation and

use of GHG Values

• Transportation– Not important and vaguely described in the directive

– We need standardization or possibility to treat the European gas grid as a single facility.

The biogas market the next year• We believe that quality is key

factor for demand

• Price will be dependent on GHG emission from Biogas production

• A lot of biogas will hit the market the next 2-3 years.

• We would rather not compete on prices.

• Best proven qualities Highest prices

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What we work and lobby for

• Less certification schemes

• Few and interchangeable voluntary Schemes for complying with the RED-Directive- Track quality and the use of GHG savings

- EG. REDCert and ISCC

- No double counting

• One common register for transportation– ERGaR

– Tracks the volumes of the Biogas injected to the grid

– No double selling

• We are not that far from the goal

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Winter package – Initial thougts

• Pros

– Manure Credits

– Focus on cross border trading

• Cons

– Ownership of the green value if feed in tariff recieved?

– If producer does not receive the green value, no incentive for producing sustainable

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Challenges we would like to adress

• Waste and residues can be hard to count towards sustainability according to RED– Food waste

• Additional standard values to the RED directive– A lot of different waste and residues are missing in

the annex– RED still not “Biogas friendly”

• Standard GHG calculation for bio methane production

• Common guideline on transport– Should be simple– ERGaR a good solution

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