Green gas projects from all over Europe

1. Green gas projects from all over Europe Jeni Fulton Biogasrat + e.V. Berlin 13.06.2014

2. Contents • The Biogasrat+ • Whatis biomethane? • Biomethane in the EU • Biomethane trade • Next steps

3. Whatwe do: actively shaping the future of the industry. The Biogas Council+ • acts in thenameofthedecentralizedrenewable gas andenergyindustry in Germany and Europe • representstheinterestsofkeystakeholdersandmajormarketparticipantstodecisionmakersandpolicydevelopers • aimstodevelopthedecentralizedenergysupplyastheleadingstrategyforthefuturethroughmarketmechanisms on a national and international leveltowardmoreecologicalandeconomicalefficency • aimstodevelop a cross-bordermarketofbiomethane in the European Union • createseconomicalgrowththroughstableandsustainabledemandbydeveloping all usageapplicationsofbiogas: transportation, heatandenergysupply • Contributesto EU-level policy initiatives andpartnerships

4. Biomethane isgreenheat, greenelectricityandgreenmobility! Revenue foragriculture Upgradingto biomethane andinjectionintothe gas gridpermitsdecouplingofproductionandusage Agriculturalrawbiogasproduction Value through versatile applications = electricity, heatandvehiclefuel! Through injectionintothe gas grid, biomethane canconnect rural productionwithdecentralised CHP in urban areas! Can betradedcross-border

5. The advantagesof biomethane • Biogas is upgraded and injected into the natural gas grid, same quality as natural gas and can be used in all the natural gas sector • Adapts to existing infrastructure • Diverse, abundant feedstock: sewage sludge, municipal bio-waste, residues and crops from the agro-food sector, residues from food and agriculture • High availability throughout Europe • Contributes to security of supply • Decarbonisation of gas grids • Low-carbon, low-emissions, low-noise transport, heating and power • Balances renewables with renewables

6. Productionandinjectionof biomethane Gridcontrol Onsitepropanestorage Gas analysis, pressure, control, odorantandinjectionmodule Biogas feed Connection pipeline Biogas cleanup & upgradingmodule Propaneinjectionmodule incl. blender Gas Grid Reject Gas Reject/Recycle Gas Gas distributionnetwork Biomethane Producer Methodology of biomethane production and injection, source Green Gas Grids

7. Biomethane production in Europe • ~ 214 producing units • Biomethane Grid injection in > 14 countries: AT, CH, DK, DE, ES, FI, FR, HU, LU, NL, NO, SE, SK, UK • 865 bcm per annum • Mainly waste and sewage, some energy crops • Transportation fuel usein > 9 countries: AT,CH,DE,DK,FI,HU,IS,NO,SE

8. Biomethane production in selected EU countries Biomethane production per annum, source Biogasrat+

9. Biomethane production in Europe to 2020 Injection in selected EU Member states, source: Biogasrat+, GreenGasGrids

10. EU policyframework EU support for biomethane • EU Fuel Quality Directive (2009/30/EC) • Stipulation of a GHG reductiontargetfortransportfuelof at least 6% in 2020 comparedto 2010 • Renewable Energy Directive (2009/28/EG) • Creationof a commonframeworkforthepromotionofenergyfromrenewableresources • Creationofsettargetsforthe total percentageofrenewableenergy (18%) andforrenewablefuels (10%) in Germany • Creationofsustainabilitycriteriaforrenewablefuels (including biomethane) • Double countingfor biomethane fromresidues • Infrastructure proposal SWD 2013/0012 (COD) – • one CNG fuelstationevery 150 km • Proposalfor an energytaxation – notax on biomethane until 2023 • 2030 GHG reduction target • Biomethane fully included in the 40% reduction obligation.

11. Promoting a biomethane market Sustainability: environmental productionof biomethane must beensured, andtakeplaceaspartof a cycle Common rulesforcertification: a cross-bordermarketfor biomethane requirescommon, reliablestandardsforproductionandusefor bioenergy, guaranteedthroughguaranteesoforigin. Includingsustainabilitycriteria Reliablepoliticalframework: forinvestments, standardsandframeworkconditions, includinggreentariffsandsubsidies Increasecooperationmechanisms: nationallyandinternationally Economics: needto cover productioncostof6,7 – 8,1 ct/kWh HHV for waste fermentation and for energy crop fermentation Grid connection: TPA access must be guaranteed, priority access to grid. Who covers costs? Unified quality standards: energy content, H20, oxygen, Mercaptansetc

12. Trading biogas - principles • The gas transmission network can be used for transporting renewable energy in the form of biomethane – biogas upgraded to methane standard • Shippers are responsible for handling the transport of bio natural gas in the transmission network and trading it in the European gas markets • In the market model, access to the transmission system is provided through a bio natural gas entry point (BNG entry point). • When a shipper commercially or 'virtually' has injected bio natural gas into the transmission system via the BNG entry point, the shipper may trade the gas in all existing points on the same terms and conditions as apply to other types of natural gas. And thus sell bio natural gas in the entire system. • The documentation of injection and offtake data by the DSO acts as proof of mass-balance • Due to availability of biogas plant, biomethane producers are granted balancing y margins: • Denmark: 15 per cent • Germany: 25 per cent within a year

13. Registries and Labels in the EU Conditionsfor biomethane trade: Recognition of ‚green‘ characteristicofbiomethane Biomethaneregistry Currently: casebycase Planned: Automated, registrycooperation

14. Obstaclesandchallenges • No overall EU strategy for biomethane • Future developments promising but need commitment to single market • No European requirements for registry • Bilateral agreements increase in significance • EU price for biomethane 6,1 – 8,9 ct/kWh, gas price 3ct/kWh • Harmonised support structure • Transport fuel market as target • Currentlyonlyas LNG • Reasonfor lack ofcross-bordertrade • Registry clubworking on EU definitionofmass-balance

15. Future developments GGG Roadmap goals

16. Conclusions • In 2030 18-20 billion m3 of biomethane could be produced in Europe, 3% of the present natural gas consumption of the European Union. • It could make a major contribution to the transport, power and heat sectors, balancing renewables with renewables • It can ensure security of supply • It can contribute to CO2-free gas grids to 2050 • Biomethane production will differ between EU countries according to support schemes • Encourage MS to set biomethane strategies • Develop a European market for biomethane • Harmonised EU Roadmap for biomethane (targets, sustainability, uses) • Coherent policy framework • National policies to support biomethane trade • Injection standards and acceptance for biomethane at grid level