Upload
others
View
6
Download
0
Embed Size (px)
Citation preview
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
Success factors for Biogas in Germany
November 14th, 2010, London, UK
Thomas Siegmund
German BioEnergy Association (BBE)
German BioEnergy Association (BBE)
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
BBE and the CrossBorder Bioenergy project
Biogas – the all-rounder
Success factors of biogas projects
- The political frame – ambitious targets as market driver
- Sound and reliable support schemes
- The right project design
Biogas market share in Germany
Conclusion
Structure
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
The German BioEnergy Association BBE is the
umbrella association of the German bioenergy
market and was founded in 1998 to bundle the
different sectors and initiatives of the bioenergy
market to speak with one voice.
Actually there are approx. 25 specialised
associations, 8 R&D institutes and 110 companies
member in BBE.
The German Bioenergy Association
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
Excerpt of member associations
And many more…
The German Bioenergy Association
VDBH
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
CrossBorder Bioenergy
• The objective of CrossBorder Bioenergy is to help SMEs to evaluate
bioenergy markets in Europe in view of cross-border investments, thereby
making SMEs less dependent on uctuating domestic market conditions and
strengthening the whole bioenergy industry.
• Five dierent bioenergy market sectors are considered:
1. Biogas
2. Small scale heating
3. Commercial heating with biomass & district heating
4. Solid biomass for electricity
5. Biofuels for transportation
Aim of the project
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
CrossBorder Bioenergy
• For each of the 5 market sectors, criteria to identify market attractiveness
are defined by representative companies.
• A method is worked out to process these criteria and find appropriate
indicators, and a comprehensive template is produced.
• This template is used to collect data in EU 27 countries through statistics,
enquiries, support schemes, national action plans, etc.
Methodology
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
CrossBorder Bioenergy
• 5 sector handbooks on how to evaluate international markets
• 5 market handbooks with assessment of market attractiveness for different
technologies
• Online-database as GIS-tool with comprehensive market informations
• B2B-platform for different bioenergy stakeholders to enhance cooperation
Expected outcomes
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
CrossBorder Bioenergy
• European Biomass Association (AEBIOM)
• German BioEnergy Association (BBE)
• The Bioenergy Association of Finland (FINBIO)
• Swedish Bioenergy Association (SVEBIO)
• Hungarian Biomass Competence Center (HBCC)
• Slovak Bioenergy Association (SKBIOM)
Project Consortium
• Latvian Bioenergy Association (LATBIONRG)
• Italian Agriforestry Energy Association (AIEL)
• Danish Bioenergy Association (DI Bioenergi)
• Austrian Biomass Association (ABA)
• eclareon Consultants
• Imperial College London
More information:
German Bioenergy Association (BBE)
Thomas Siegmund
Tel.: +49.(0)228.81002-23
Skype: thomas.siegmund
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
BBE and the CrossBorder Bioenergy project
Biogas – the all-rounder
Success factors of biogas projects
- The political frame – ambitious targets as market driver
- Sound and reliable support schemes
- The right project design
Biogas market share in Germany
Conclusion
Structure
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
Biogas – the all-rounder
Source: German Biogas Association
Biogas – the all-rounder
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
The biogas is burned
in combined heat
and power units
(CHP) to produce
electricity.
Beside the CHP heat
is produced as a by-
product.
The usable „biogas
potential“ in
Germany can
replace up to 20
percent of the
German natural gas
consumption
Biogas
electricity heat natural gas grid
storage
With the biogas from
a hectare maize
silage drives a
natural gas car
approximately
70,000 kilometres
(nearly twice the
length of the
equator)
fuel
Biogas – the all-rounder
Source: German Biogas Association
Biogas – the all-rounder
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
Excellent perspectives for biogas: grid management
• Biogas can be stored and utilized at any time, hence a clever management
of fluctuant and non-fluctuant RES energy carriers contributes to a efficient
and secure availability of RES electricity
Source: Kombikraftwerk
Biogas – the all-rounder
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
BBE and the CrossBorder Bioenergy project
Biogas – the all-rounder
Success factors of biogas projects
- The political frame – ambitious targets as market driver
- Sound and reliable support schemes
- The right project design
Biogas market share in Germany
Conclusion
Structure
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
0 5 10 15 20 25 30 35 40 45 50
Belgium
Bulgaria
The Czech Republic
Denmark
Germany
Estonia
Ireland
Greece
Spain
France
Italy
Cyprus
Latvia
Lithuania
Luxembourg
Hungary
Malta
The Netherlands
Austria
Poland
Portugal
Romania
Slovenia
The Slovak Republic
Finland
Sweden
United Kingdom
RES final energy 2005 RES final energy 2020
Ambitious targets as market driver
National targets of the EU RES Directive
15 % ≈ 20 Mtoe
18 % ≈ 35 Mtoe
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
German targets for market sectors
• 30 % RES Electricity in 2020
• 12 % RES in Transport in 2020
• 14 % RES Heat in 2020
• 8 % bio-electricity
• 10 % predominantly biofuels
• 10 % heating and cooling with biomass
}
18 % Final energy demand
35,49 Mtoe
} 11 % Final energy demand
Ambitious targets as market driver
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
Expected development of RES sectors in DE
Source: BMU
'05
'200
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
18.000
20.000
RES-ERES-H
RES-T
5.3017.706
2.087
18.653
14.431
6.388
[ktoe]
'05 '20
Ambitious targets as market driver
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
Where are expected new markets in Europe?
-
5.000
10.000
15.000
20.000
25.000
30.000
35.000
40.000
AT BE
draft
BU CY CZ
draft
DK EE FI FR DE
draft
GR HU IR IT LV LT LU MT NL PO
draft
PT RO SK SI ES SE UK
GW
h
• Bioelectricity increase 2005 – 2020 [GWh]
Ambitious targets as market driver
• Large new bioelectricity markets in DE, UK, IT, PO, NL
+ 139 TWh for 20 countries
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
Where are the expected new markets for Biogas in Europe?
• Electricity generation with biogas 2005 – 2020 [GWh]
Ambitious targets as market driver
Source: European Biogas Association
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
Source: European Biogas Association
Where are the expected new markets for Biogas in Europe?
• Electricity generation with biogas 2005 – 2020 [GWh]
Ambitious targets as market driver
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
Source: European Biogas Association
Where are the expected new markets for Biogas in Europe?
• Heating and cooling with biogas 2005 – 2020 [ktoe]
Ambitious targets as market driver
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
Source: European Biogas Association
Where are the expected new markets for Biogas in Europe?
• Heating and cooling with biogas 2005 – 2020 [ktoe]
Ambitious targets as market driver
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
Where are the expected new markets for Biogas in Europe?
• Biogas as transport fuel 2005 – 2020 [ktoe]
Ambitious targets as market driver
Source: European Biogas Association
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
BBE and the CrossBorder Bioenergy project
Biogas – the all-rounder
Success factors of biogas projects
- The political frame – ambitious targets as driver
- Sound and reliable support schemes
- The right project design
Biogas market share in Germany
Conclusion
Structure
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
Level of Remuneration
Planning security
Purchase obligation
Guaranteed grid access
Sufficient?
- Cost based?
- Market based?
Differentiated by
- Technology?
- Capacity?
- Feedstock?
...
- Higher E-production costs
- Higher entrepreneural risk
- Payment period long enough
to incite investments?
- Access to market necessary
- Avoidance of blockades
- Guaranteed market
- Prioritized RES-E transmission?
- Fair cost allocation to grid operators?
EEG
Sound and reliable support schemes
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
• Planning security: EEG obligates electricity grid operators to purchase
RES electricity, to integrate RES with priority into the e-grid and to pay
a minimum remuneration rates for it for a 20-year period
• The remuneration fees for newly installed power plants are lowered by
1% each year to foster technology development and cost degression
• Technology differentiated support for all RES enables early development of
future RES technologies (learning curves, economies of scale etc.)
• EEG remuneration is allocated to all consumers (~4 EUR/month), hence
“polluter pays” principle fulfilled while acceptance grows due to low costs
• EEG is evaluated and amended regularly to react to market developments
The Renewable Energy Source Act (EEG)
Sound and reliable support schemes
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
Remuneration system biogas <=150 kW <=500 kW <= 5 MW
Basic compensation 11.67 Cent 9.18 Cent 8.25 Cent
Clean air – bonus Old plants 1.0 Cent 1.0 Cent
New plants 1.0 Cent 1.0 Cent
Energy crop bonus 7 Cent 7 Cent 4
Rural conservation bonus 2 Cent 2 Cent
Manure-bonus 4 Cent 1 Cent
Technology bonus (without Gasinjection) 2 Cent 2 Cent 2 Cent
Bonus for Gasinjection New plants Depending on the size of the gas treatment 1/2 Cent
Old plants 2 Cent
CHP-bonus 3 Cent 3 Cent 3 Cent
The Renewable Energy Source Act (EEG) – Overview
Sound and reliable support schemes
• EEG 2000: 13 articles (§§) regulating all RES electricity
Capacity <= 500 kW <= 5MW <= 20 MW
Fee for bioenergy 10,23 Cent 9,21 Cent 8,7 Cent
• EEG 2009: 66 articles (§§) regulating all RES electricity
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
BBE and the CrossBorder Bioenergy project
Biogas – the all-rounder
Success factors of biogas projects
- The political frame – ambitious targets as driver
- Sound and reliable support schemes
- The right project design
Biogas market share in Germany
Conclusion
Structure
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
Small Scale Biogas
Medium Scale Biogas
Different concepts of biogas = different success factors and risks
The right project design
Mean Characteristics:
< 50 kWel, owned by farmer, on-site of the farm, integrated into farm processes, financed
with equity capital and credits, creditworthiness of farmer decisive for bank credit, farm
property as guarantee, farmer acts as operator and feedstock supplier, limited possibilities
for efficient heat use
Mean Characteristics:
Ø 350 kWel, approx. 1 Mio. € investment costs = usually too expensive for single farmer,
owned and operated by project consortium (farmers, municipalities, waste disposer, plant
manufacturers etc.), therewith more equity capital available, risk sharing by project
financing, cash-flow decisive for financing (not credtiworthiness of farmer)
Mean Characteristics:
< 50 kWel, owned by farmer, on-site of the farm, integrated into farm processes, financed
with equity capital and credits, creditworthiness of farmer decisive for bank credit, farm
property as guarantee, farmer acts as operator and feedstock supplier, limited possibilities
for efficient heat use
Large scale biogas (parks)
Mean Characteristics:
1-2 MWel, or several units (e.g. biogas park “Klarsee” = 40 units á 500 kWel = 20 MWel), high
feedstock / farm land demand (Klarsee: 8.000 ha), feedstock with high energy content to
lower transport costs and environmental impacts, farmer acts as feedstock supplier, owned
and operated by industrial companies, financed by investment funds
Mean Characteristics:
< 50 kWel, owned by farmer, on-site of the farm, integrated into farm processes, financed
with equity capital and credits, creditworthiness of farmer decisive for bank credit, farm
property as guarantee, farmer acts as operator and feedstock supplier, limited possibilities
for efficient heat use
Mean Characteristics:
Ø 350 kWel, approx. 1 Mio. € investment costs = usually too expensive for single farmer,
owned and operated by project consortium (farmers, municipalities, waste disposer, plant
manufacturers etc.), therewith more equity capital available, risk sharing by project
financing, cash-flow decisive for financing (not credtiworthiness of farmer)
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
• An increasing size of a biogas plant is linked with a shift of the
organisational structure (e.g. concerning risks, benefits, financing, etc.),
therewith also of the success factors.
• Biogas project have to be customized to day-to-day business of operator.
The relation of plant size and organisation structure
Plant size
Chances:
Risks:
+ efficiency, + profit, - costs/kWh, etc.
+ feedstock, + farm land, + storage capacity, etc.
The right project design
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
Success factors in relation to project phase
Planning
The right project design
• Experienced planning office involved due to complexity of a biogas plant?
• Sufficient space available for pits, digestion unit, CHP-module, storage?
• Sufficient capacity to store manure and residues for at least 6 months?
• Infrastructure existing to deliver co-substrates by truck at all seasons?
• Residents integrated to avoid opposition (traffic, odour, prejudices)?
• Enough time calculated for licensing procedures?
• Assurances effected, e.g. for fire, installations, losses due to stillstand…?
• Early information and involvement of grid operator?
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
Success factors in relation to project phase
Construction Planning
The right project design
• Quality of chosen components, suitable for planned purpose?
• Technology provider experienced with concept (technology, size, feedstock)?
• Sound relation between digestion volume and CHP capacity (efficiency)?
• Size of biogas plant in line with business structure on-site?
• Time of operation at full-load optimized (e.g. 6.000 h/a)? Margin of safety?
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
Success factors in relation to project phase
Start-up Construction Planning
The right project design
• Know-how of operator given (biology, sensibility, maintenance, etc.)?
• Working time factored-in (feedstock management, administration, control)?
10h/week or 1/3 manpower necessary to operate a biogas plant
• Longtime feedstock supply secured (no changes in stock farming, growing
of energy crops, quality, amount and price of feedstock etc.)
• Sale of electricity and heat secured?
• Disposal of residues guaranteed (farm land, contracts, time exposure etc.)
Operation
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
BBE and the CrossBorder Bioenergy project
Biogas – the all-rounder
Success factors of biogas projects
- The political frame – ambitious targets as driver
- Sound and reliable support schemes
- The right project design
Biogas market share in Germany
Conclusion
Structure
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
RES share on final energy demand 2009 [%]
Source: BMU
7,5
1,6
0,5
0,8
0,2
Bioenergy Wind Solar Hydro other RES
Biogas market share in DE
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
RES market share on final energy 2009
5,4 %
5,2 %
8,7 %
Source: BEE
Biogas market share in DE
100 % Bioenergy 91 % Bioenergy 32 % Bioenergy
RES Heat
9,6 %
RES Transport Fuels
5,4 %
RES Electricity
16,1 %
5,4 %
5,2 %
8,7 %
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
Bio-electricity generation in Germany, 1990 – 2009 [TWh]
Source: BEE
EEG2000 EEG2004 EEG2009
Biogas market share in DE
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
0
100
200
300
400
500
600
700
800
900
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Nu
mb
er
Annually installed biogas plants in relation to EEG amendments
Electricity Feed Act
07.12.1990
EEG
29.03.2000
EEG
21.07.2004
EEG
01.01.2009
Source: German Biogas Association
Biogas market share in DE
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
Development of installed biogas plants and capacity in Germany
Source: German Biogas Association
139 159 186 274 370 450617
8501.050
1.300
1.6001.750
2.5002.680
3.5003.711
3.891
4.984
0
200
400
600
800
1.000
1.200
1.400
1.600
1.800
0
1.000
2.000
3.000
4.000
5.000
6.000
Insta
lled
cap
acity [M
W]
Num
ber
of
pla
nts
Biogas plants
Capacity
Electricity Feed Act
07.12.1990
EEG
29.03.2000
EEG
21.07.2004
Biogas market share in DE
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
Biogas electricity, feedstock and CO2-mitigation
Biogas market share in DE
Source: DBFZ
0
2
4
6
8
10
12
2006 2007 2008 2009
[TWh]
= X X
10 Mio. t
CO2
X
X
6
8,9
10,1
11,3
54% 26%
14%
6%
Manure
Energy Crops
Bio-waste
Industrial residues
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
BBE and the CrossBorder Bioenergy project
Biogas – the all-rounder
Success factors of biogas projects
- The political frame – ambitious targets as driver
- Sound and reliable support schemes
- The right project design
Biogas market share in Germany
Conclusion
Structure
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
• Biogas as an all-rounder will be a key driver of RES market development
providing energy in the heat, transport and electricity markets
• The exists no “one size fits all”-approach: The development of biogas markets
requires sound and adopted strategies with regard to targeted markets, capacities
and concepts
• Political will for biogas same than sufficient, reliable and long-lasting support
schemes are key requirements to boost biogas markets, but also deep know-how
and awareness of workload and risks on site of project implementation
• Biogas market in Germany is result of a long-lasting development and adjustments
with a lot of lessons-learned.
Conclusion
Sie
gm
und,
11/1
6/2
010
CrossBorder Bioenergy:
Success factors for Biogas in Germany
German BioEnergy Association (BBE)
Thank you for
your attention
Bundesverband BioEnergie e.V. (BBE)
Thomas Siegmund
Godesberger Allee 142-148
53175 Bonn
Tel.: +49.(0)228.81002-23
Fax: +49.(0)228.81002-58
Skype: thomas.siegmund