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Biomethane in Denmark September 12 2013

Biomethane in Denmark September 12 2013. Biogas production in Denmark - Present and future By Bruno Sander Nielsen Danish Biogas Association. Danish Biogas Association. Farm scale biogas plants. Joint biogas plants. Research. Consultants. Secretariat: Chairman: Aksel Buchholt

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Biomethane in Denmark September 12 2013

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  1. Biomethane in DenmarkSeptember 12 2013 Biogas production in Denmark - Present and future By Bruno Sander Nielsen Danish Biogas Association

  2. Danish Biogas Association Farmscalebiogasplants Joint biogas plants Research Consultants Secretariat: Chairman: Aksel Buchholt Secr.: Bruno Sander Nielsen Agriculture Energysector Wastehandling Constructors Sub-suppliers

  3. Biogas production 2012 % TJ

  4. Organic Manure ”waste” Biogas Plant Digested Renewable biomass energy Biogas – Danish model

  5. 25 years of Danish biogas experience Manure - from a farmers problems to an opportunity for the whole society

  6. Biogasproduction 1990-2012 2½ MT livestock manure Target: 15+ MT

  7. Number of plants  22 centralised biogas plants  60 farm scale biogas plants Biomass in biogas plants Manure 2½ mill. t Organic residues 0.5 mill. ton Total 3.0 mill. ton Danish biogas plants  

  8. Biogas – currently and potential

  9. Biogas – currently and potential 5 % of energy consumption 20–25 %. af natural gas 20–25 % of road transport

  10. Biogas – currently and potential 5 % of energy consumption 20–25 %. af natural gas 20–25 % of road transport

  11. Biogas – currently and potential App. 90 % of natural gas for Co-generation or Industry/households/service 5 % of energy consumption 20–25 %. af natural gas 20–25 % of road transport

  12. Biogas – currently and potential App. 90 % of natural gas for Co-generation or Industry/households/service 5 % of energy consumption 20–25 %. af natural gas 20–25 % of road transport Energy crops Organic biogas Habitats Aquatic biomass

  13. Restrictions in energy crops • Without limits • Fodderresidues • Organic • Cropresidues

  14. Restrictions in energy crops • Without limits • Fodderresidues • Organic • Cropresidues

  15. Restrictions in energy crops • Without limits • Fodderresidues • Organic • Cropresidues

  16. Restrictions in energy crops • Without limits • Fodderresidues • Organic • Cropresidues

  17. 12. september 2013 Gaspotential Clovergras Beet Maize Beettops Householdwaste Aquatic Gardenandpark Ditches Randzoner Natural habitats Catchcrops Straw Zero! Extra organick waste 50 pct. livestock manure Mio. m3 metan 0 100 200 300 400 Kilde: AgroTech 2013

  18. Energy agreement 22. marts 2012 • 26 DKK regulated according to natural gas pris • 10 DKK will be stepped out with 2 DKK per year from 2016 – 20 • El. payment into force from juli 1 2012 (if approved in Bruxelles) • Same subsidy when injected in gas grid as to CHP • Gascompanies owned by municipalities can invest in production • Task force to examine and guide projects • If not enough development in 2014 – perhaps obligatory purchase

  19. Payment electricity

  20. Expectations to development Danish Ministry for Climate and Energy • App. 40 projects – different stage of development • If all wereimplementet +8 PJ – total 12 PJ • Projection from 2012: 17 PJ in 2020 • If expectation not met in 2014 the politicianswillassess the situation • Risk for delayed or cancelled • Notification of agreement delayed (at least to oct.) • Construction subsidies (aug. 2015) • Other: economy, gas sale, planning, localization

  21. 1. Will we get the expected development? Midway seminar 13/9/3 • Hopefully – but not without new initiatives • Current situation • Notifikationen delayed – a basal precondition! • We got 1.15 DKK pr. kWh / 115 kr. pr GJ, BUT • The 10 will be phased out quickly • The 26 and 10 are not regulated for inflation • NOx-, methane-, energy-, ”forsyningssikkerheds”/biomass taxes • Construction subsity 20  30 pct.  ??? • Increasing natural gas prises erodes the electricity price • We are far from 1.15 DKK/kWh • Expensive and fluctuating cost for injection to gas grid • August 2015 is very soon (construction subsidy) • Environmental approval takes long, long time

  22. 2. If not, what should be done? Midway seminar 13/9/3 LONG TIME FRAMEWORK CONDITIONS • Ensure the economy is not eroded • The valueshouldbesecured on 2012 level • Construction subsidies in the future – or alternative to this • Facility to guarantee to facilitateloan • Aktive integration intoenergy system • Gassystem has the costexcept to nearest 4 bar net • Promote new utilisation of biogas such as transportation • Rådigheds-/backupkapacitets-/stabiliseringspræmiering • Smooth administration of environmentalapprovals • Follow the national rules • Fast appeal proces

  23. Public support for biogas! From: Altinget 19. januar 2011

  24. Promotion in biogas through From currently 5 % to 50 % of manure into biogas in 2020 Co-ordination plan for construction of biogas plants Plan for integration of biogas into the energy sector Obligation for municipalities to point out where to build plants Distribution in natural gas grid on equal terms as direct co-generation Equal opportunities for biogas to earn money as natural gas suppliers Financing 20 % construction subsidy (in total 300 mill. DKK from 2010 to 2012) loans guaranteed by municipalities Capital from investors Government Green Growth Plan 2009

  25. Danish ressource strategy • Delayed for more than a year • Internal discussions in government ressources vs. economy • What do we expect? • Prevention of waste • From incineration to reuse/recirculation • Source separation • Wet fractions to biogas

  26. Household waste – several koncepts Sourceseparated Mixed Ecogi/Komtek Aikan/Solum REnescience/DONG

  27. Danish Climate Plan • From 50 to 60 per cent of manuredigested • App. 130,000 tonnereduction in GHG • CHP: 400 – 700 DKK per tonne CO2-eq. • Upgrading 1200 DKK per tonne • 45 mill. DKK in 3 years for 30 % of extracost for heavy dutycars on methane compared to diesel

  28. Alternative fuels Socio economic costs From: Energistyrelsen 2012

  29. Alternative fuels CO2 emissions for small cars 2020 and 2030 From: Energistyrelsen 2012

  30. Biogas – a flexible fuel • Fits into the energy system in many ways • Decentralised co-generation • Distribution in gas net (biogas/mixed/natural gas) • Individuel or district heating • Process fuel in industry • Transportation fuel • Engines, boilers, fuel cells

  31. Conclusion • Development steady for 10 years – few new plants • Substantial improvement of framework conditions • Waiting for notification proces in EU • Economy still challenged • New iniatives necessary to reach 50 % manure • Task Force report end of 2013 – political proces 2014 • Main focus on manure and organic residues • Household waste could end up in wastewater treatment plants • Until now all used in CHP plants – in future also upgrading • Transportation – have gas grid - need filling stations and vehicle fleets • With the right long term framework conditions we will se a substantial increase in biogas/biomethane production

  32. Thank you for your attention www.biogasbranchen.dk bsn@lf.dk

  33. Flexibility required to integrate fluctuating wind/wave power … increasing towards 2025 2010 2025 Need for up/down grading of production within hours/minutes/seconds Kilde: Energinet.dk

  34. Flexibility required to integrate fluctuating wind/wave power … increasing towards 2025 2010 2025 Need for up/down grading of production within hours/minutes/seconds Kilde: Energinet.dk

  35. Current gassector

  36. Future gassector?

  37. Why promote biogas? • Supply security • Stabilising windpower dominated energy system • Efficient and cheap reduction af GHG emissions • Environmental protection (eutrophication, smell) • Recirculation of nutrients from residuals and waste • Jobs • Export of food and technology

  38. Renewable energy in Denmark

  39. Danish energy policy • From oil to coal, natural gas and renewables • Widespread natural gas grid • From centralised power plants to decentralised co-generation of power and district heating • Transportation is fossil • No tax reductions on biofuels • High share of windpower in power system • Renewable but unpredictable and unreliable • Backup systems needed

  40. Biogas -stable and flexible Biogas production • Continous, stable and predictable • Up/down regulation through seasons Biogas utilisation • Adaptation to demand • Storage on biogas plant • Injection into gas grid • Back-up for windpower

  41. Society Decrease dependency on imported fossil fuel Protection of drinking and surface waters Decrease emission of greenhouse gases Fossil free and stable energy supply Agriculture Improved utilisation and storage capacity Relations to neighbours Redistribution of manure Extraction of surplus of nutrients New business 30 years of incentives in Denmark • Development promoted by • Legislation regarding handling of manure and energy • Subsidies for research,demonstration, documentation, etc. • Framework conditions – construction and feed in tarifs

  42. Biogas plants • Not only for production of renewable energy • But a multifunctional tecnology for • Renewable energy and energy supply security • Sustainable agricultural development • Environmental protection • Rural development

  43. Farmers advantages • Better relations to neighbours • Improved nutrient value • Redistribution of nutrients • Removal of excess of nutrients • Alternative to slurry soil injection equipment • Handles all manure from small and large farmers • Delivers more goods to society than just food

  44. Societal advantages • Greenhouse gas reduction • Protection of aquatic environment • Rural life quality (smell) • Pathogen reduction • Energy security • Optimal biomass utilisation

  45. Danish biogas - conclusions • Biogas is now a top priority in Danish politics as a tool to • solve societal challenges (climate, less fossil dependent energy supply, security of energy supply, jobs etc.) • Based on conversion of residues into energy and fertilisers • manure, waste from industry, households, natural habitats • to be used for power, heat and transportation • Biogas utilisation will be diversified • Currently locally in CHP plants • Future part of national and international grids (power, gas) • Development is dependent on • long term steady framework conditions

  46. Biogas and separation

  47. Biogas and separation Digested slurry Fiberfraction Decanter Liquid fraction 15 – 20 % of volume 70 pct. P Most of organic nitrogen 80 – 85 % of volume 80 % of nitrogen Almost all ammonium Low P content

  48. Biogas and separation Digested slurry Fiberfraction Decanter Liquid fraction Soil improver or biofuel Environmental and social friendly fertiliser 15 – 20 % of volume 70 pct. P Most of organic nitrogen 80 – 85 % of volume 80 % of nitrogen Almost all ammonium Low P content

  49. Biogas and separation

  50. Perspectives Huge potential (manure, organics) Climate protection, energy supply Decentralised infrastructure Export of know-how and technology Challenges Huge increase in production Development based on experience Less waste dependent plants Integration in energy sector Ressource primarily in Jutland Biogas – perspectives and challenges Existing centralised plants  Required new plants (ex)                       Map: Con Terra

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