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Biogas industry development status in Latvia

Biogas industry development status in Latvia. North Vidzeme Waste Management Organization (ZAAO Ltd.), Martins Niklass. CONTENT. Company overview Short history of Latvia Biogas industry Biogas production potential Biogas legal framework Current status of biogas production and use

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Biogas industry development status in Latvia

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  1. Biogas industry development status in Latvia North Vidzeme Waste Management Organization (ZAAO Ltd.), Martins Niklass

  2. CONTENT • Company overview • Short history of Latvia Biogas industry • Biogas production potential • Biogas legal framework • Current status of biogas production and use • Biogas development problems and oportunieties

  3. North Vidzeme Waste Management Organization (ZAAO Ltd.)

  4. ZAAO collected waste, year 1999 - 2009 (m3)

  5. Landfill gas utilization in cogeneration of heat and power since 2009

  6. Latvian Biogas Industry History • Biogas research activities were performed already since 1979-1980 by Latvian Academy of Science Institute of Microbiology. • Latvian Biogas Association (LBA) is founded in 1994. It is one of the oldest NGO which acts in Latvia energy sector. • Today LBA has 25 members. • LBA is actively taking part in development of state policy and regulations regarding renewable energy sector. • There is also Latvian Bio-methane Association and several other NGOs in renewable energy sector which is connected with biogas & biomethane.

  7. Biogas production in Latvia * 1 PJ = 1015 J

  8. Biogas production potential • According to “Latvian biogas production and development programme 2007-2011” biogas production potential is estimated ~174 000 000 m³/annually (~ 3,7584PJ) • Other sources declare practical biogas production potential from 121-285 m3 million/ annually.

  9. Biogas production sources

  10. Main RES support instruments in Latvia • Regulations (Nr. 198) for feed in tariffs from RES • Particular regulations (Nr.221) for electricity produced in CHP plants (the net heat power must be deliver to public heat grid). • Support Rural Development Programme (reg. Nr. 696) for agriculture type RES energy plants (up to 40% from investment). • National climate finance instrument.

  11. Existing biogas plants

  12. Short-term perspective • 54,872 MW – current power capacity for obtained permits for feed in tariff for electricity production from biogas. • ~30 agriculture type biogas projects are currently in development stage with mounted electricity power load ~ 24MW with planned total investment ~ EUR 45 000 000. • Average planned investment for agriculture type biogas projects EUR 4126/kW • 8 projects already started construction. Rest of the projects are looking for investment.

  13. Biogas development problems • Politico-economical problems • Quota on renewable electricity power production (for biogas 6,9%-2009; 7,93%-2010 onwards) • Project financing • Not available support schemes for biogas upgrade & connection to natural gas grid. • Not available support for biogas use as transport bio-fuel. • Weak initiative from industry about anaerobic digestion (biogas production) as environmental technology for waste an sludge treatment.

  14. Biogas/Natural gas development problems Technological problems: • Lack of long term experience in biogas plant operation • Project developers overestimation of given project biogas potential. • Net heat power commercial utilization • Excise tax LVL 0,07/1m3 (~EUR 0,10) on natural gas use as vehicle fuel since 01.01.2010.

  15. Future opportunities • Gradient increase in available biogas potential use. • Renewable electricity power production from biogas free from quota. • Increase in net heat commercial utilization. • Biogas upgrade & connection to natural gas grid. • Biogas use as transport bio-fuel. • Fair state support scheme for production and use of bio-methane as vehicle fuel after 2010 together with other biofuels.

  16. ZAAO track records • Now - Active participation in Latvian Biogas Association as well as working alone with state institutions in promotion legislative framework for biogas use as vehicle fuel. • Short term - Starting up of natural gas grid connection and CNG filling station design (2010) and construction (2011 -???). • Middle term • Conversion of existing waste collection truck fleet to dual fuel (diesel/CNG). • New CNG/biomethane waste collection trucks purchase.

  17. Thank you for attention! Martins Niklass – project manager Web:www.zaao.lv E-mail:martins.niklass@zaao.lv Mobile:00 371 29146130

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