crossborder bioenergy: success factors for biogas in germany … · 2013-09-09 · structure 0...

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CrossBorder Bioenergy:

Success factors for Biogas in Germany


November 14th, 2010, London, UK

Thomas Siegmund

German BioEnergy Association (BBE)


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BBE and the CrossBorder Bioenergy project

Biogas – the all-rounder

Success factors of biogas projects

- The political frame – ambitious targets as market driver

- Sound and reliable support schemes

- The right project design

Biogas market share in Germany

Conclusion

Structure

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The German BioEnergy Association BBE is the

umbrella association of the German bioenergy

market and was founded in 1998 to bundle the

different sectors and initiatives of the bioenergy

market to speak with one voice.

Actually there are approx. 25 specialised

associations, 8 R&D institutes and 110 companies

member in BBE.

The German Bioenergy Association

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Excerpt of member associations

And many more…

The German Bioenergy Association

VDBH

http://www.bauernverband.de/

http://www.depv.de/

http://www.carmen-ev.de/

http://www.fee-ev.de/

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CrossBorder Bioenergy

• The objective of CrossBorder Bioenergy is to help SMEs to evaluate

bioenergy markets in Europe in view of cross-border investments, thereby

making SMEs less dependent on uctuating domestic market conditions and

strengthening the whole bioenergy industry.

• Five dierent bioenergy market sectors are considered:

1. Biogas

2. Small scale heating

3. Commercial heating with biomass & district heating

4. Solid biomass for electricity

5. Biofuels for transportation

Aim of the project

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• For each of the 5 market sectors, criteria to identify market attractiveness

are defined by representative companies.

• A method is worked out to process these criteria and find appropriate

indicators, and a comprehensive template is produced.

• This template is used to collect data in EU 27 countries through statistics,

enquiries, support schemes, national action plans, etc.

Methodology

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• 5 sector handbooks on how to evaluate international markets

• 5 market handbooks with assessment of market attractiveness for different

technologies

• Online-database as GIS-tool with comprehensive market informations

• B2B-platform for different bioenergy stakeholders to enhance cooperation

Expected outcomes

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• European Biomass Association (AEBIOM)

• German BioEnergy Association (BBE)

• The Bioenergy Association of Finland (FINBIO)

• Swedish Bioenergy Association (SVEBIO)

• Hungarian Biomass Competence Center (HBCC)

• Slovak Bioenergy Association (SKBIOM)

Project Consortium

• Latvian Bioenergy Association (LATBIONRG)

• Italian Agriforestry Energy Association (AIEL)

• Danish Bioenergy Association (DI Bioenergi)

• Austrian Biomass Association (ABA)

• eclareon Consultants

• Imperial College London

More information:

German Bioenergy Association (BBE)

Thomas Siegmund

Tel.: +49.(0)228.81002-23

[email protected]

Skype: thomas.siegmund

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Conclusion

Structure

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Source: German Biogas Association


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The biogas is burned

in combined heat

and power units

(CHP) to produce

electricity.

Beside the CHP heat

is produced as a by-

product.

The usable „biogas

potential“ in

Germany can

replace up to 20

percent of the

German natural gas

consumption

Biogas

electricity heat natural gas grid

storage

With the biogas from

a hectare maize

silage drives a

natural gas car

approximately

70,000 kilometres

(nearly twice the

length of the

equator)

fuel




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Excellent perspectives for biogas: grid management

• Biogas can be stored and utilized at any time, hence a clever management

of fluctuant and non-fluctuant RES energy carriers contributes to a efficient

and secure availability of RES electricity

Source: Kombikraftwerk


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Conclusion

Structure

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0 5 10 15 20 25 30 35 40 45 50

Belgium

Bulgaria

The Czech Republic

Denmark

Germany

Estonia

Ireland

Greece

Spain

France

Italy

Cyprus

Latvia

Lithuania

Luxembourg

Hungary

Malta

The Netherlands

Austria

Poland

Portugal

Romania

Slovenia

The Slovak Republic

Finland

Sweden

United Kingdom

RES final energy 2005 RES final energy 2020

Ambitious targets as market driver

National targets of the EU RES Directive

15 % ≈ 20 Mtoe

18 % ≈ 35 Mtoe

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German targets for market sectors

• 30 % RES Electricity in 2020

• 12 % RES in Transport in 2020

• 14 % RES Heat in 2020

• 8 % bio-electricity

• 10 % predominantly biofuels

• 10 % heating and cooling with biomass

}

18 % Final energy demand

35,49 Mtoe

} 11 % Final energy demand


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Expected development of RES sectors in DE

Source: BMU

'05

'200

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

20.000

RES-ERES-H

RES-T

5.3017.706

2.087

18.653

14.431

6.388

[ktoe]

'05 '20


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Where are expected new markets in Europe?

-

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

AT BE

draft

BU CY CZ

draft

DK EE FI FR DE

draft

GR HU IR IT LV LT LU MT NL PO

draft

PT RO SK SI ES SE UK

GW

h

• Bioelectricity increase 2005 – 2020 [GWh]


• Large new bioelectricity markets in DE, UK, IT, PO, NL

+ 139 TWh for 20 countries

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Where are the expected new markets for Biogas in Europe?

• Electricity generation with biogas 2005 – 2020 [GWh]


Source: European Biogas Association

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• Electricity generation with biogas 2005 – 2020 [GWh]


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• Heating and cooling with biogas 2005 – 2020 [ktoe]


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• Biogas as transport fuel 2005 – 2020 [ktoe]



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- The political frame – ambitious targets as driver




Conclusion

Structure

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Level of Remuneration

Planning security

Purchase obligation

Guaranteed grid access

Sufficient?

- Cost based?

- Market based?

Differentiated by

- Technology?

- Capacity?

- Feedstock?

...

- Higher E-production costs

- Higher entrepreneural risk

- Payment period long enough

to incite investments?

- Access to market necessary

- Avoidance of blockades

- Guaranteed market

- Prioritized RES-E transmission?

- Fair cost allocation to grid operators?

EEG

Sound and reliable support schemes

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• Planning security: EEG obligates electricity grid operators to purchase

RES electricity, to integrate RES with priority into the e-grid and to pay

a minimum remuneration rates for it for a 20-year period

• The remuneration fees for newly installed power plants are lowered by

1% each year to foster technology development and cost degression

• Technology differentiated support for all RES enables early development of

future RES technologies (learning curves, economies of scale etc.)

• EEG remuneration is allocated to all consumers (~4 EUR/month), hence

“polluter pays” principle fulfilled while acceptance grows due to low costs

• EEG is evaluated and amended regularly to react to market developments

The Renewable Energy Source Act (EEG)


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Remuneration system biogas <=150 kW <=500 kW <= 5 MW

Basic compensation 11.67 Cent 9.18 Cent 8.25 Cent

Clean air – bonus Old plants 1.0 Cent 1.0 Cent

New plants 1.0 Cent 1.0 Cent

Energy crop bonus 7 Cent 7 Cent 4

Rural conservation bonus 2 Cent 2 Cent

Manure-bonus 4 Cent 1 Cent

Technology bonus (without Gasinjection) 2 Cent 2 Cent 2 Cent

Bonus for Gasinjection New plants Depending on the size of the gas treatment 1/2 Cent

Old plants 2 Cent

CHP-bonus 3 Cent 3 Cent 3 Cent

The Renewable Energy Source Act (EEG) – Overview


• EEG 2000: 13 articles (§§) regulating all RES electricity

Capacity <= 500 kW <= 5MW <= 20 MW

Fee for bioenergy 10,23 Cent 9,21 Cent 8,7 Cent

• EEG 2009: 66 articles (§§) regulating all RES electricity

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Conclusion

Structure

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Small Scale Biogas

Medium Scale Biogas

Different concepts of biogas = different success factors and risks

The right project design

Mean Characteristics:

< 50 kWel, owned by farmer, on-site of the farm, integrated into farm processes, financed

with equity capital and credits, creditworthiness of farmer decisive for bank credit, farm

property as guarantee, farmer acts as operator and feedstock supplier, limited possibilities

for efficient heat use


Ø 350 kWel, approx. 1 Mio. € investment costs = usually too expensive for single farmer,

owned and operated by project consortium (farmers, municipalities, waste disposer, plant

manufacturers etc.), therewith more equity capital available, risk sharing by project

financing, cash-flow decisive for financing (not credtiworthiness of farmer)






Large scale biogas (parks)


1-2 MWel, or several units (e.g. biogas park “Klarsee” = 40 units á 500 kWel = 20 MWel), high

feedstock / farm land demand (Klarsee: 8.000 ha), feedstock with high energy content to

lower transport costs and environmental impacts, farmer acts as feedstock supplier, owned

and operated by industrial companies, financed by investment funds







Ø 350 kWel, approx. 1 Mio. € investment costs = usually too expensive for single farmer,

owned and operated by project consortium (farmers, municipalities, waste disposer, plant

manufacturers etc.), therewith more equity capital available, risk sharing by project

financing, cash-flow decisive for financing (not credtiworthiness of farmer)

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• An increasing size of a biogas plant is linked with a shift of the

organisational structure (e.g. concerning risks, benefits, financing, etc.),

therewith also of the success factors.

• Biogas project have to be customized to day-to-day business of operator.

The relation of plant size and organisation structure

Plant size

Chances:

Risks:

+ efficiency, + profit, - costs/kWh, etc.

+ feedstock, + farm land, + storage capacity, etc.


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Success factors in relation to project phase

Planning


• Experienced planning office involved due to complexity of a biogas plant?

• Sufficient space available for pits, digestion unit, CHP-module, storage?

• Sufficient capacity to store manure and residues for at least 6 months?

• Infrastructure existing to deliver co-substrates by truck at all seasons?

• Residents integrated to avoid opposition (traffic, odour, prejudices)?

• Enough time calculated for licensing procedures?

• Assurances effected, e.g. for fire, installations, losses due to stillstand…?

• Early information and involvement of grid operator?

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Construction Planning


• Quality of chosen components, suitable for planned purpose?

• Technology provider experienced with concept (technology, size, feedstock)?

• Sound relation between digestion volume and CHP capacity (efficiency)?

• Size of biogas plant in line with business structure on-site?

• Time of operation at full-load optimized (e.g. 6.000 h/a)? Margin of safety?

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Start-up Construction Planning


• Know-how of operator given (biology, sensibility, maintenance, etc.)?

• Working time factored-in (feedstock management, administration, control)?

10h/week or 1/3 manpower necessary to operate a biogas plant

• Longtime feedstock supply secured (no changes in stock farming, growing

of energy crops, quality, amount and price of feedstock etc.)

• Sale of electricity and heat secured?

• Disposal of residues guaranteed (farm land, contracts, time exposure etc.)

Operation

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Conclusion

Structure

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RES share on final energy demand 2009 [%]

Source: BMU

7,5

1,6

0,5

0,8

0,2

Bioenergy Wind Solar Hydro other RES

Biogas market share in DE

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RES market share on final energy 2009

5,4 %

5,2 %

8,7 %

Source: BEE


100 % Bioenergy 91 % Bioenergy 32 % Bioenergy

RES Heat

9,6 %

RES Transport Fuels

5,4 %

RES Electricity

16,1 %

5,4 %

5,2 %

8,7 %

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Bio-electricity generation in Germany, 1990 – 2009 [TWh]

Source: BEE

EEG2000 EEG2004 EEG2009


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0

100

200

300

400

500

600

700

800

900

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Nu

mb

er

Annually installed biogas plants in relation to EEG amendments

Electricity Feed Act

07.12.1990

EEG

29.03.2000

EEG

21.07.2004

EEG

01.01.2009



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Development of installed biogas plants and capacity in Germany


139 159 186 274 370 450617

8501.050

1.300

1.6001.750

2.5002.680

3.5003.711

3.891

4.984

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

0

1.000

2.000

3.000

4.000

5.000

6.000

Insta

lled

cap

acity [M

W]

Num

ber

of

pla

nts

Biogas plants

Capacity

Electricity Feed Act

07.12.1990

EEG

29.03.2000

EEG

21.07.2004


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Biogas electricity, feedstock and CO2-mitigation


Source: DBFZ

0

2

4

6

8

10

12

2006 2007 2008 2009

[TWh]

= X X

10 Mio. t

CO2

X

X

6

8,9

10,1

11,3

54% 26%

14%

6%

Manure

Energy Crops

Bio-waste

Industrial residues

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Conclusion

Structure

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• Biogas as an all-rounder will be a key driver of RES market development

providing energy in the heat, transport and electricity markets

• The exists no “one size fits all”-approach: The development of biogas markets

requires sound and adopted strategies with regard to targeted markets, capacities

and concepts

• Political will for biogas same than sufficient, reliable and long-lasting support

schemes are key requirements to boost biogas markets, but also deep know-how

and awareness of workload and risks on site of project implementation

• Biogas market in Germany is result of a long-lasting development and adjustments

with a lot of lessons-learned.

Conclusion

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Thank you for

your attention

Bundesverband BioEnergie e.V. (BBE)

Thomas Siegmund

Godesberger Allee 142-148

53175 Bonn

Tel.: +49.(0)228.81002-23

Fax: +49.(0)228.81002-58

[email protected]

Skype: thomas.siegmund

crossborder bioenergy: success factors for biogas in germany … · 2013-09-09 · structure 0...

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