German concept of small scale manure based biogas plants – Reasons for a switch from energy crops to available organic residues

Frank HofmannDepartment for International Affairs

German Biogas Association

GIZ Workshop Small scale manure biogas plants for Serbian farms, 22. and 23. September 2015

Agenda

• German Biogas Association

• Market Development in Germany

• Reasons for a switch from energy crops to small scale manure biogas plants in Germany

• Chances for Serbia

• Conclusion

Frank Hofmann 2

Structure of the German Biogas Association

Headquarters in Freising23 employees, organised in 10 departments

Board of TrusteesElected honorary spokesmen of regional groups, working groups

and advisory boards

Steering Committee7 members, elected for a 4-year-period

Berlin Office5 employees

Regional offices (North, South, East, West and Editorial Office Biogas Journal5 employees

Advisory Boards, Working GroupsAdvisory boards of plant operators, companies, the legal profession, funders; Working groups for the areas permissions, safety, feeding-

in of biogas, environment, heat, waste and fertiliser law

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23 Regional groups in Germany

4,800 MembersOperators of biogas plants

Research Institutions

Interested private individuals

Companies and manufacturers

Lawyers

Corporate finance

Public authoritiesProviders of feedstock

Planners, advisers, laboratories Mem

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German Biogas Association - Objectives

• 4,800 members• Promotion of the biogas sector• Promotion of a sustainable energy supply• Lobbying on federal state, federal and EU level in the following fields:

• Renewable Energy Act (EEG)• Environmental law• Creation of adequate technical rules and standards• …

• Definition of legal framework for reliable and long-term investments• Creation of adequate technical rules and standards• Promotion of R&D• Exchange of information• Members service

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Biogas, development in Germany

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Number of biogas plants & installed electric capacity

6

139 159 186 274 370 450617

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1.3001.600

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2.680

3.5003.711

3.891

4.984

5.905

7.1757.515

7.8507.9448.005

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1.1001.271

1.377

1.893

2.291

3.097

3.352

3.543

3.859

4.054

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1.500

2.000

2.500

3.000

3.500

4.000

4.500

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Number of biogas plants in Germany

Installed electric capacity in Megawatt [MW]

© Fachverband Biogas e.V. / German Biogas Association

Frank Hofmann

Biogas sector at a glance

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2013* Forecast 2014** Forecast 2015**

Number of biogas plants (biogas plants with biomethane injection)

7.850 (144) 7.944 (153) 8.005 (156)

Installed electric capcity in MW 3.543 3.859 4.054

Gross electricity production in TWh per year 26,42 27,55 27,88

Housholds supplied with biogas-based electricity in millions

7,5 7,9 8,0

CO2 reduction by biogas in million tons 16,8 17,6 17,8

Turnover in Germany in Euro 7,3 Billion 7,4 Billion 7,2 Billion

Jobs in the biogas sector 41.000 41.000 39.000

© Fachverband Biogas e.V. / German Biogas Association * Own extrapolation based on country data

** Based on a expert survey

Frank Hofmann

Motivation to support RE and Biogas

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Reasons for the energy transition in Germany

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1. Climate and environment protection

2. Sustainable development of energy production

3. Reduction of costs for German national economy by incorporating long- term external effects

4. Conservation of fosil ressources

5. Independency from imports of fossil fuels

6. In the long term costs for fossil fuels will rise; „fuel costs“ for RE are for free or will probably increase lower

7. Technology development

8. Creation of employment, especially in rural areas

9. Development of new markerts and sales

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Biogas and it‘s composition

=> 1.000 ppm = 0.1 Vol.%

Biogas, anaerobic digestion (AD), is a natural process by which microorganisms breake down organic material in the absence of oxigen. Biogas cosists mainly of….

component percentage

CH4 50-75 Vol. %

CO2 25-75 Vol. %

H2S 0-5.000 ppm

NH3 0-500 ppm

H2O 1-3 Vol. %Dust particles < 5

N2 0-5 Vol. %

Reasons to support biogas in Germany

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• Biogas reduces Greenhouse Gas emissions• Avoidance of methane emissions by manure storage• Substitution of fossil fuels• Substitution of mineral fertilizer

• Biodiversity can be enhanced• Local employment, 40,000 jobs in Germany• Business creation, 7 billion € turnover• Technology development, Germany is biogas market leader• Biogas produces a fertilizer of high value• During the biogas process the material is sanitised

• seeds deactivated• Potential pathogene microorganisms reduced

• Due to the biogas process odor (smell) is reduced

Biogas utilisation options

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Reasons for a switch from energy crop based biogas to small, manure based biogas plants

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Biogas: Manure or Energy crops? Basics and History

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• The bigger the biogas plant the specific cheaper the biogas production• The more manure used the cheaper the biogas production• Example: 260 cows deliver manure for about 75 kWel

• If biogas should take a substantial role in the German energy transition bigger installations should be possible

• Overproduction of food and fodder in EU leaded to set-aside land (not used agricultural land): 1993/94 15%; 1999/2000 = 10%, 2004/05 reduced to 5%

• Consideration: The land not needed for feed and fodder production can be used for energy crop cultivation

• Question: How much energy crop cultivation is sustainable?

Cultivation of energy plants in Germany

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Source: FvB based on FNR 2015

Crops for biogas:1.27 mio. ha = 8% of agricultural area

Overall cultivation area: roughly 12 mio. ha Energy Crops: 2 mio. ha =

16% of cultivation

area

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Feedstock in German biogas plants

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% by weight % by energy output

Source: Motoringbericht DBFZ, June 2014

Energycrops

Biowaste

Liquid & solid manure

Industrial & agricultural residues

Dr. Stefan Rauh 26.06.2015

Inside the biogas fermenter

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Manure based biogas plants:Advantages and disadvantages I

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Manure offers a cheap input material but with low biogas yields: • Biogas yield about 15 – 25 m³/t manure, 60% methane • Example: Running a biogas plant with the manure of 100 cows would

result in 10-15 kWel• Nearly zero costs (if available at the farm) or only transportation costs

Cost for biogas and electricity production is highly depending on the size• The bigger the biogas plant the cheaper the biogas• FiT for small biogas plants (< 75 kWel): 23.73 ct/kWh, moderate

development

Manure based biogas plants:Advantages and disadvantages II

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Manure treatment in a biogas plant reduces methane emissions from storage and is a climate friendly input material• Avoided CH4-emissions per m³ cow manure: 27 kg CO2eq

• Avoided CH4-emissions per dairy cow (per year): 675 kg CO2eq

• => Manure based biogas plants can reduce CO2eq from storage and substitute fossil energy.

• Manure based biogas plants avoid Green-House Gases (GHG) at moderate costs

Costs for GHG avoidance

Dr. Stefan Rauh 26.06.2015

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Percentage: Content of manure in the input

Energy crop based biogas plants:Advantages and disadvantages I

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• Energy crops have high biogas yields • Biogas yield about 160 – 240 m³/t manure, about 50% methane

but

• Growing Energy crops is connected with • Costs: e.g. about 30 €/t maize• Mineral fertilizer, pesticides• Use of agricultural land

• Discussion food vs fuel• Discussion (i)LUC• Discussion too much maize?

How much agricultural area should be used for energy crops?

Residues and wastes as input material for biogas

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• Residues and by product on a farm deliver favourable co-substrates• Often at (nearly) zero costs. Costs are depending on: quality, other

uses, availability…• Good biogas yields• Availability is limited• Fuel vs fodder discussion

• Wastes, like sorted houshold wastes• Costs depend on quality and local conditions, earnings for waste

treatment possible• Good biogas yields• Additional technology needed, e.g. sanitizazion, • Extended permission regulation

Small manure biogas plants for Serbia?

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• Origen: Axpo-Kompogas / Büchl Entsorgungswirtschaft GmbH; BioIN GmbH

Dr. Stefan Rauh 26.06.2015

Investment costs and options for their reduction

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• Typical investment costs for small biogas plants (75 kWel)• (4,000) – 12,000 €/kWel• average 8,100 €/kWel• „Bauherren Modell“ average 5,500 €/kWel

• Options for cost reduction• Usage of existing components, like tanks• Use of landscape (downflow of material)• Reliability: Availability reduces specific costs• Low (no) cost material as substartes (agricultural residies, not sellable

fruits, leaves, etc)• Higher yields possible, especially in organic farming

Conclusions

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Arguments for policy makers to support small, manure based biogas plants

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• Greenhouse Gas emission reduction• Fuel production in Serbia, avoidence of fossil fuel imports• Conservation of Serbian fuel ressources• Decentralised energy production• Biogas can balance power demand and supply• Local development and employment; about 5 – 15 employees per

installed Mwel• Taxes• Environmental advantages

Arguments for farmers to invest in small, manure based biogas plants

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• New business opportunities• Fertilizer production• Residues like manure, fruits that cannot be sold, parts of the plant

that are not sold (like leaves) become a value as fuel for the biogas plant

• Less smell• Opportunities for the village, employment, own energy production

Conclusions for Serbia

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• Manure based biogas plants should be supported• Avoidance GHG emissions• Renewable Energy development• Rural development• New business chances for farmers

• FiT to be adapted • In Germany FiT for small biogas plants (< 75 kWel): 23.73 ct/kWh,

moderate development

• Manure based biogas plants should use co-fermentation material

or• Purly manure based biogas plants are limited to huge farms (above

1,000 cattle) to limit costs

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Thank you for your attention

Frank HofmannDepartment for International AffairsFachverband Biogas e.V.Frank.hofmann@biogas.org