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Market Development of Biogas in Germany: Experiences and Success Factors Dr. Wolfgang Tentscher, Senior Energy Consultant
www.renewables-made-in-germany.com
Market Development of Biogas in Germany: Experiences and Success Factors
Dr. Wolfgang Tentscher, Senior Energy Consultant
Biogas in Germany Cooperation options Feasibility and operational costs CHP or engine-generator-set Digestate, comparative income Conclusion
Content
Biogas in Germany Agricultural Biogas in Germany developed over about 40
years „The mountain moved“ in 1990: first feed – in law (StrEG)
with tariffs for injected renewable electricity This law was completely changed in 2000 (EEG) and
amended every two to four years after monitoring and evaluation.
We now celebrate 23 years of feed-in-tariff, among this 13 years of EEG.
There are two regulating circles: a) the legal circle b) the insurance and banking circle. They take care for environmental and compensational affairs on one side and for safety and service life on the other side.
Chapter 1
Chapter 1, Regulating circles
Legalsystem
Monito-ring
Evaluation
Standards
Environ-ment
Compen-sation
Insurances, banking
Legal system
Standards
Quality
Fees, interest
Insure, finance
Biogas development
There are 4 conditions which make biogas a success in Germany Priority access of the BGP to the electrical grid Priority injection of renewable electricity Priority acceptance of electricity Feed-in tariff structure
Banks know the value of biogas and like to finance up to 80% loan.
Insurances insure the risk of failure and break down since they know the reliability
Chapter 1, Success story in Germany
Chapter 1, Development of number and power in Germany
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
0100020003000400050006000700080009000
0500100015002000250030003500
139 159 186 274 370 450 617 850 1050130016001750
20502680
350037113891
4984
59057215
7521
7895
50 65182 256 333 390
650
110012711377
1893
2291
29043185
3312
Development of the number of biogas plants and the total installed electrical power (kWel)
Number of biogas plants
Installed electrical power (MWel)
Year
Num
ber o
f bio
gas
plan
ts
Inst
allie
rted
Pow
er (M
Wel
)
Source: German Biogas Association
The role of the GBA The role of the EBA
The German Biogas Association is with 4800 members the strongest association in Europe.
It is speaking with one voice and lobbying in Germany for all topics concerning biogas.
Chapter 1, Success story in Germany
The European Biogas Association is representing the biogas interests in Brussels.
Cooperation
Spare parts, implements, turn key plants, design, engineering, project development, approval planning.
Chapter 1, German companies offer services, seeking for cooperation
Source of the map: AHK-paper: Market entry in Vietnam – opportunities and challenges
Chapter 2, Cooperation Germany - Vietnam
Legal system CountryGermany Vietnam
4 conditions yes no instead StartingPriority access by project
Priority injection by project
Priority acceptance by project
Feed-in tariff Substitution
Banks know and like to finance
by project
Insurances insure by project
Fertilizer, digestate utilization ? ?
Monitoring and evaluation
Statistical dataFertilizerEnergyBreak evenFeasibilityBankability
Income through electricity
Is it possible to reduce operational cost by a factor of 4/11 or 64%?
Chapter 2, Cooperation Germany - Vietnam
Vietnam
from toFeed-in-Tariff 11 25Substitution 4
EUR ct/kWhelGermany
Options for cost reduction Wages: 10 to 20% of those in
Germany Concrete as construction material: 50% of that in
Germany? Engine-generator-set instead of CHP-unit Innovative local low-cost materials: ?
Chapter 3, Feasibility and operational cost
Options for combined income generation Electricity: cover farm consumption, injection options
Engine-generator-set only Co-generation, CHP-heat in addition
Heat only, for productive use (drying, heating, steam generation)
Fertilizer in digestate, liquid or solid, composted, pelletized? Export?
Chapter 3, Feasibility and operational cost
Operating costs (€ct/kWhel) versus installed electrical power (kWel), Germany
9,511,1
16,8 12,314,4
23,4
0
10
20
30
40
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200Installed electrical power of biogas plant (kWel)
Ope
ratin
g co
sts
(€ct
/kW
h el) electr. generation costs (€ct/kWhel) at 8000 h/a
electr. generation costs (€ct/kWhel) at 6000 h/aBudget quotation 100 kWelBudget quotation 1000 kWel
Source: Tentscher et.al. (2011): Master plan and road map of biogas in Jordan
Simulation, Annuity method
Chapter 3, Feasibility and operational cost
Source: Tentscher et.al. (2011): Master plan and road map of biogas in Jordan
CHP versus engine-generator-set
MAN E 2842 LE 312, 345 kWel ,
with synchronous generator
40% electr. efficiency
Chapter 4, CHP or engine-jenerator-set
• Engine-generator-set in piggery, Thailand, asynchr. generator, 25 kWel
• 20-25 % electr. efficiency
Income through fertilizer is higher than electricity
Chapter 5, Digestate, comparative specific income
ElectricitykgTS
1 * 0,3 * 0,55 * 9,97 * 0,4 = 2,05 kWhel/kgTS
2,05 * 0,04 = 0,082 €/kgTS
NPK-FertilizerkgTS
1 * 10% = 0,10 kgNPK/kgTS
0,10 * 1 = 0,100 €/kgTS
Chapter 5, Digestate, world prieces for mineral fertilizers
Source: World Bank
In Vietnam, there is high potential of reducing operating costs a) due to the cheap labour force and b) through reduced investment, i.e., if a large part of the
biogas plant is manufactured locally. Manufacturing options are an opportunity and challenge
for those German companies who seek cooperation. More advice is required.
If the value of the fertilizers is fully activated every year, income through biogas may be doubled.
Conclusion
Born in Oct. 1946 in Germany 1966: High-school 1972: M.Eng. Food Technology, Sugar Technology, TU
Berlin 1973: M.Eng. Biotechnology, TU Berlin 1992: Ph.D., Dr.agr., Justus Liebig University, Giessen 1975-84: IPAT at TU Berlin and Oekotop Ltd, Berlin,
Consultant to GTZ 1985-92: GTZ-biogas expert at AIT, Thailand Expert stays in Thailand, China, Taiwan, Philippines, South
Korea, North Korea, Nepal, India, Birma, Vietnam, Simbabwe, South Africa, Brasil, Peru, Costa Rica, Jamaica, Guatemala, Syria, Jordan, Ukraine, Belarus on behalf of GTZ, GIZ, FAO, ESCAP, UNIDO, KfW, BMZ, EBRD, municipalities, associations etc.
Background of the speaker:
Many thanks