Outlook to Europe- BIOMASTER, a new European Project

1. Outlook to Europe- BIOMASTER, a new European Project STEFANO PROIETTI ISTITUTO DI STUDI PER L’INTEGRAZIONE DEI SISTEMI Skånes Energiting Conference, June 9th, 2011 Malmö

2. Who is ISIS • Research and consultant Institute founded in 1971; • Consolidated experience in energy efficiency, sustainable mobility, territorial systems, governance and environmental sustainability; • 15 members staff with multidisciplinary background in engineering, statistics, economics, politics and informatics; • Long story of collaboration at national (Ministries, Regions, Provinces and Municipalities) and international level (European Commission, World Bank, European Bank of Investments, foreigner Ministries, Regions e Municipalities, etc.); • Specialised skills in coordination of projects, analysis of and support to policies, impact assessment, evaluation of policies and technologies energy efficiency, monitoring of public participation processes to policies.

3. Project Overview • BIOMASTER: Biomethane as an Alternative Source for Transport and Energy Renaissance • 17partners, 4 sites: Norfolk County (UK), Skåne Region (SE), Małoposka Region (PL), Trentino (IT) • Uptake of biomethane production, distribution and use in vehicles • “Waste-to-wheel” partnership, with set-up of local networks • Studies, analysis, training, seminars, conferences, dissemination, publications, events, meetings • EC Contribution: EUR 1,853,391.00 • Duration: 01 May 2011 - 30 April 2014 (36 months)

4. ISIS – Institute of Studies for the integration of Systems, IT (coordinator) NCS - Norse Commercial Services Ltd, UK NGG - National Grid Gas plc, UK NCC - Norfolk County Council, UK FEM – Edmund Mach Foundation, IT CRF - FIAT Research Centre SCPA, IT CRPA – Research Centre on Animal Production, IT SEA-SE – Kommunforbundet Skåne, SE LUENERG – Kraftringen produktion AB, SE Regskane - Region of Skåne, SE AGH-UST- AGH University of Science and Technology, PL MSWM – Municipal Services and Waste Management Limited Company of Cracow, PL PGNiG - PGNiG Energia S.A., PL TTR - Transport & Travel Research Ltd, UK FGM-AMOR - Austrian Mobility Research, AT ACSM – ACSM S.p.A., IT DE – Group Dolomiti Energia, IT Partnership

5. Why Biomethane? • Variety, abundance and self-supply of feedstock, with waste and by-products to be treated anyway: sewage sludge, municipal bio-waste, waste from the agro-food sector • Energy efficiency and environmental performance higher than other biofuels • Biogas production in many cases not being the priority but as a way to improve environmental efficiency of waste treatment processes • High productivity per hectare of biogas from crops, decreasing competition for arable land • Upgraded biogas being similar to natural gas: • CNG infrastructures and vehicles can be used • Natural gas can be complementary in security of supply • Upgraded biogas can be injected in and transported by the natural gas grid

6. Background • BIOMASTER to prove biomethane for transport as operational and viable option in spite of the existing regulatory and fiscal barriers • Biomethane offering a unique combination of low-carbon, low-emissions, low-noise transport • Novelty and interest lying with the ambition to overcome the impasse by bringing the key components of the biomethane chain into a joint initiative, stimulating investments, removing non-technological barriers and mobilising actions for biomethane uptake • Commitment of a “waste-to-wheel” partnership along the biomethane chain, i.e., existing and potential stakeholders from the production, distribution and end user world • Set-up of networks by involving additional local and national stakeholders (beyond the official partners) • Addressing: i) potential for total production and use, ii) available distribution modalities (with special focus on biomethane grid injection), and iii) legal, organisational and financial barriers

7. Project Approach Source: Biogasmax project

8. Objectives and Main Activities • Boost the biomethane economy and identify solutions to the common barriers within the project sites in the view to implement practical action plans • Contribute to strategic energy security, renewable energy, environmental and harmonization targets (at local, national and EU level) • Conduct an initial market assessment to identify the current technical, economic and social barriers to the development of biomethane market • Define a common platform as a basis for widespread market development of biomethane as a renewable transport fuel • Evaluate environmental and economic processes and impacts to assess the cost-effectiveness of biomethane market in in terms of social, technical, environmental, economic and financial implications • Disseminate the project findings to the main target groups and the key actors of the biomethane chain and potential multipliers

9. Expected results • 4 detailed feedstock assessments, action plans for biogas production and upgrading, strategies for residual product management, strategies to boost biomethane use in vehicles • Quantifiable progress towards a cumulative target of: • 12 new biomethane production plants in the partner regions • 4 biomethane grid injection points • 630 vehicles operating on biomethane • 54 new biomethane filling stations • 4 regional networks established, one in each target region • 16 additional regional networks, 4 in each partners’ country • 5 additional networks in 5 countries other than the partners’ countries

10. Current Challenges (1) EU LEVEL • Directive 2009/28/EC: 10% of transport fuel from renewable sources; • Need for European biomethane standards; • Promote and facilitate injection of biomethane into natural gas grid; • Waste Framework Directive, Water Framework Directive, Nitrate Directive (and legislation on bio-waste with possible EU Directive); • Digestate to replace artificial fertilisers.

11. Current Challenges (2) NATIONAL AND LOCAL LEVEL • Avoid distortion market of green certificates system for power and heat • Legislation to secure investments for production, refuelling infrastructure, garages and vehicles • Simplify and accelerate permissions for building of biogas plants and connection with the gas grid • Economic incentives on vehicles (as subsidies, low taxes and fees on purchasing and using them) and on fuel (excise reduction compared to fossil fuels, including CNG) • Security of energy supply: biomethane (from local resources) instead of fossil fuel dependency and import (from politically sensitive areas) • Increase and optimise the bio-waste collection, treatment and recycling (instead of landfilling and incineration) • Adapt/build gas grid for injection and increase gas filling stations.

12. Current Challenges (3) INDUSTRY AND FLEET OWNERS • Improve range and energy efficiency of gas vehicles (storage and engine) • Increase availability of vehicles models • Investments in driver trainings for gas vehicles • Higher frequency of vehicles maintenance • Comprehensive service contract.

13. From Organic Residues to Tank Source: Trendsetter project

14. From Toilet to Tank Source: Trendsetter project

15. Thank you for your attention! Stefano PROIETTI, Coordinator ISIS – Institute of Studies for the integration of Systems Via Flaminia, 21 00196 Rome, ITALY Tel: 0039 06 321 265 5 Email: sproietti@isis-it.com www.biomaster-project.eu