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Markets and trends inNordic countries

Biogas, Märkte, Recht und Wirkschaftlichkeit 15/16 MAI 2013

Dr. Tobias Persson

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Björn Hafsteinn Halldórsson,Sorpa (Iceland)

Panu Pasanen, Bionova (Finland)

Henrik Lystad, Avfall Norge

Bruno Sander Nielsen,

Danish Biogas Association

The presentation is presentedwith support from

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1.Markets and trends in Sweden

2.Markets and trends in Denmark

3.Markets and trends in Norway

4.Markets and trends in Finland

5.Markets and trends in Iceland

6.Summary

Agenda

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Small gas grid and low gas consumption

13 TWh natural gas= 3% of total energy demand

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Anaerobic digestion plants in Sweden (2011)

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Market development

Expected development ofbiogas production in Sweden

including gasification

Biogas potential from anaerobicdigestion until 2030

Source: Swedish gas association

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Utilisation of biogas

Vehicle gas

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Upgrading plants (2012)

Number of biogas upgrading plants: 57

8 connected to the gas grid

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Biogas as a vehicle fuel

• 44 000 gas vehicles(1800 busses, 600 heavy duty vehicles)

• 60% biomethane in the vehicle gas• 138 public and 57 non-public filling stations• Four filling stations for LBG

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Financial support systems

• No carbon dioxide or energy tax on biogas. Today thiscorrespond to a value of 68 €/MWh compared to petrol.

• 40% reduction of income tax for use of company NGVs

• Investment grants for marketing of new technologies andnew solutions for biogas. Maximum 45% of investment cost

• Joint electricity certificate between Norway and Sweden.Average price 2012 around 17-22€/MWh

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1.Markets and trends in Sweden

2.Markets and trends in Denmark

3.Markets and trends in Norway

4.Markets and trends in Finland

5.Markets and trends in Iceland

6.Summary

Agenda

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Biogas – currently and potential

~1 TWh ~17 TWh

Source: Task 37

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Biogas production in Denmark

Existing plants 201222 Centralised biogas plants60 Farm biogas plants

Biomass in biogas plantsManure 2 mill. tOrganic residues 0.5 mill. tonTotal 2.5 mill. ton

Important driverBy digesting pig manure more

pigs are allowed on a farm

Source: Task 37

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Utilization of biogas

Main utilisation today: electricity and heat

Growing interest for vehicle fuel.Two filling stations, one biogas upgrading unitAnd several more will be constructed

At a biogas conference in Skive in January, TheDanish climate- and energy Minister MartinLidegaard said:“I believe that gas is one of the main solutionsfor the future of transports”. He also mentionedthat he saw the heavy transport as the mostinteresting for the use of biogas.

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Financial support systems

Implemted 2012: Feed in tariff for biomethane equal to electr.

5.6€cent/kWh grid injection or CHP,

Direct transport or process use gets 3.7€cent/kWh

Incl. NG price compensation (max 1.2€cent), +0.5€cent up to 2016

(7.50 DKK/EUR)

+ Investment grants for plants digesting mainly manure

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1.Markets and trends in Sweden

2.Markets and trends in Denmark

3.Markets and trends in Norway

4.Markets and trends in Finland

5.Markets and trends in Iceland

6.Summary

Agenda

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• The Norwegian Government aims that 30% oflivestock manure in combination with 600 000tons of food waste to be treated in biogas plantswithin 2020

Biogas in Norway

• Substrate competition with neighbours with betterterms. 70,000 tons of waste is exported to Swedenand Denmark each year

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Biogas production

Today: 0.5 TWh

Potential 2020Theoretical 5.8 TWh Realistic 2.3 TWh

Source:

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• Main utilisation today: electricity and heat

• Increased interest for vehicle fuel

• Several biogas upgrading plants are constructed

• The first LBG plant in operation during 2013

• Today 900 gas vehicles, 31 LNG poweredferries and 176 filling stations.

• 16% of the vehicle gas is biomethane

Biogas utilisation

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Financial support systems

• A joint electricity certificate marked betweenNorway and Sweden. Average price 2012 around17-22€/MWh

• No tax on biomethane as a fuel

• Farmers receive 15 NOK/m3 manure

• Investment grants (industrial + small scale plants)

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1.Markets and trends in Sweden

2.Markets and trends in Denmark

3.Markets and trends in Norway

4.Markets and trends in Finland

5.Markets and trends in Iceland

6.Summary

Agenda

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Biogas production in Finland 2011Biogas production sites

Energy production from biogas 2011 (GWh)

Reference: Huttunen & Kuittinen 2012

• 75 biogas production sites(including landfills)

• Total biogas production 660GWh

• Biogas utilization was ~80%

– Heat 367 GWh

– Electricity 151 GWh

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Yellow line: Naturalgas pipeline

Green dots: Biogasplants in Finland

Reference: Finnish Gas Association

Biogas plants

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Helsinki:200 bar CBG for 92 vehicles 1943!

Utilisation as vehicle fuelToday: 19 filling stations, 1300 vehicles,18% biomethane in the vehicle gas, 3 upgrading plants.

More biogas upgrading plants are constructed

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• The feed-in-tariff system for electricity produced frombiogas

– Guaranteed price 83.5 €/MWhe• Heat bonus + 50 €/MWhe if 50% total efficiency if < 1MW,

70% total efficiency if > 1MW• Landfill gas and municipal plants excluded

• Plants can be included in the feed-in-tariff scheme for 12 years

• Investment grants in the order of 15-40% available forconstruction of biogas plants

– An alternative to joining the feed-in-tariff system

• No tax on biomethane as a fuel

Financial support systems

Source: Task 37

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1.Markets and trends in Sweden

2.Markets and trends in Denmark

3.Markets and trends in Norway

4.Markets and trends in Finland

5.Markets and trends in Iceland

6.Summary

Agenda

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• Biogas production

• Small farm based plant (cow manure), - Biogas used on farm

• Coca Cola factory digest their sewage – biogas used in the plant

• SORPA (municipal waste company) is preparing an AD plant for

household waste and waste from food industry

• Biomethane

- The Capital Area landfill at Álfsnes (capacity is increased to 1200 Nm3/h)

- Almost 1000 gas vehicles, 2 filling stations, 100% biomethane in thevehicle fuel

- Total road transport (3 TWh) could be covered in full by waste,wastewater, agricultural residuals, energy crops and marine substrates

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• Financial support systems

- Exemption of excise and CO2 tax guaranteed up to 2020

- Vehicle conversion costs refunded by reduction of annual vehicle tax

- Free parking for 1.5 hours

Iceland host for Nordic Biogas Conference 27-29 August 2014!www.nordicbiogas.com

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1.Markets and trends in Sweden

2.Markets and trends in Denmark

3.Markets and trends in Norway

4.Markets and trends in Finland

5.Markets and trends in Iceland

6.Summary

Agenda

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Today Potential 2020-2050

Sweden 1.5 TWh 5-10 TWh

Denmark 1.1 TWh 10-17 TWh

Norway 0.5 TWh 2-6 TWh

Finland 0.7 TWh ~5-10 TWh

Iceland <0.1 TWh ~3 TWh

Total ~4 TWh ~30-40 TWh

Biogas production(gasification excluded)

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Total [GWh]% biomethane

Vehicle gas market statusSales volumes

18100%

4618%176

17%1,42657%

0.1-

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Financial support systems

Support for biomethane as a transport fuel• No tax on biomethane as a fuel in Sweden, Norway,

Finland or Iceland• Feed in tariff for biomethane and for utilization as a

transport fuel in Denmark

Support for electricity production• Feed in tariff in Finland and Denmark• Electricity certificates in Sweden and Norway

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How can we increase theknowledge transfer

between Sweden andGermany?

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IBBA is the mail based information exchange service for increasedcooperation of Swedish and German biogas protagonists, open for

everybody without membership, administration, fees!

• The Inter Baltic Biogas Arena offers:

• Non-commercial information and exchange of biogas knowledge

• Project information in research and industrial scale

• Support for bilateral cooperation

• You can use the Inter Baltic Biogas Arena for:

• Distribution of your information

• Requests for cooperation and information

Join IBBA !

WWW.IBBA.SE

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• Programme and registration: www.ibbaworkshop.se

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Thank you!