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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