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Perspectives of large scale biogas plants in Germany

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<strong>Perspectives</strong> <strong>of</strong> <strong>large</strong> <strong>scale</strong> <strong>biogas</strong> <strong>plants</strong> <strong>in</strong><br />

<strong>Germany</strong><br />

Kiel, 10 February 2009<br />

Dr. Christian Böse


Content<br />

• Introduction <strong>of</strong> E.ON Bioerdgas GmbH<br />

• Advantages <strong>of</strong> biomethane production<br />

• Actual status <strong>of</strong> biomethane production <strong>in</strong> <strong>Germany</strong><br />

• Future potential for biomethane production<br />

• Prospects


Content<br />

• Introduction <strong>of</strong> E.ON Bioerdgas GmbH<br />

• Advantages <strong>of</strong> biomethane production<br />

• Actual status <strong>of</strong> biomethane production <strong>in</strong> <strong>Germany</strong><br />

• Future potential for biomethane production<br />

• Prospects


E.ON Bioerdgas with<strong>in</strong> the E.ON Group Structure<br />

Central Europe MU<br />

E.ON Energie AG,<br />

Munich<br />

Pan-European Gas MU<br />

E.ON Ruhrgas AG,<br />

Essen<br />

Italy MU<br />

E.ON Italia,<br />

Milan<br />

Russia MU<br />

E.ON Russia Power,<br />

Moscow<br />

Corporate Center<br />

E.ON AG,<br />

Düsseldorf<br />

U.K. MU<br />

E.ON UK plc,<br />

Coventry<br />

Nordic MU<br />

E.ON Nordic AB,<br />

Malmö<br />

Spa<strong>in</strong> MU<br />

E.ON España,<br />

Madrid<br />

U.S. Midwest MU<br />

E.ON U.S. LLC,<br />

Louisville<br />

Climate & Renewables MU<br />

E.ON Climate & Renewables GmbH,<br />

Düsseldorf<br />

Energy Trad<strong>in</strong>g MU<br />

E.ON Energy Trad<strong>in</strong>g AG<br />

Düsseldorf


Our targets:<br />

• Support reach<strong>in</strong>g the political objectives <strong>of</strong> German Government and EU<br />

regard<strong>in</strong>g shares <strong>of</strong> bioenergy <strong>in</strong> 2020 and 2030.<br />

• Provide an <strong>in</strong>creas<strong>in</strong>g share <strong>of</strong> biomethane <strong>in</strong> the overall consumption <strong>of</strong><br />

natural gas.<br />

• Implement most efficient technologies for decreas<strong>in</strong>g green house gas<br />

emissions (at least 50% compared to natural gas).<br />

• Provide additional <strong>in</strong>come and work opportunities <strong>in</strong> rural areas.<br />

• Leadership <strong>in</strong> the susta<strong>in</strong>able production <strong>of</strong> biomethane:<br />

• Cross-compliance and good agricultural practice for biomass production,<br />

• Lowest GHG emissions <strong>in</strong> biomethane production,<br />

• Sound <strong>in</strong>tegration <strong>of</strong> biomethane production <strong>in</strong>to the local economic,<br />

agricultural and social framework.


E.ON is enter<strong>in</strong>g <strong>in</strong>to significant bio-energy <strong>in</strong>vestments:<br />

E.ON Biomethane plant Schwandorf<br />

E.ON Biomethane plant E<strong>in</strong>beck


Content<br />

• Introduction <strong>of</strong> E.ON Bioerdgas GmbH<br />

• Advantages <strong>of</strong> biomethane production<br />

• Actual status <strong>of</strong> biomethane production <strong>in</strong> <strong>Germany</strong><br />

• Future potential for biomethane production<br />

• Prospects


Why biomethane?<br />

1. Generation<br />

<strong>biogas</strong><br />

(local CHPs)<br />

2. Generation<br />

biomethane<br />

(purification + feed<strong>in</strong>g <strong>in</strong>)<br />

biomethane<br />

gas pipe<br />

CHP<br />

upgrad<strong>in</strong>g<br />

N E W<br />

electricity (CHP)<br />

heat<br />

fuel<br />

<strong>biogas</strong> plant<br />

• few locations with full<br />

heat utilisation<br />

• optimised heat utilisation<br />

• new products<br />

• demand from customers


natural gas ● <strong>biogas</strong> ● biomethane<br />

• natural gas =<br />

fossil <strong>biogas</strong><br />

• <strong>biogas</strong> = gas mix derived from biomass,<br />

either by fermentation or by gasification.<br />

Fermentation <strong>biogas</strong>: Gasification <strong>biogas</strong>:<br />

50-65% CH 4 50% N2<br />

30-45% CO 2 18% CO<br />

14% CO2<br />

15% H2<br />

2% CH4<br />

• biomethane = ref<strong>in</strong>ed <strong>biogas</strong><br />

(bio-SNG) <strong>of</strong> natural gas quality (CH 4 > 95%);<br />

can be fed <strong>in</strong>to gas distribution networks


Advantages <strong>of</strong> biomethane<br />

• biomethane is dispatchable<br />

• biomethane can be stored<br />

• biomethane is available 24 hours, 365 days<br />

• closed circle – regional focus:<br />

biomass from fields → residue as fertiliser back onto fields<br />

• corn, sugar beet have higher yields / ha than short rotation coppice<br />

• biomethane has highest fuel yields / ha<br />

• Fast productivity improvements <strong>in</strong> technology and feedstock production


Biomethane – the most efficient bi<strong>of</strong>uel<br />

23 100 km<br />

biodiesel (RME)<br />

1550 liter *<br />

farm area needed<br />

for a drive <strong>of</strong> 100,000 km<br />

4,3 ha<br />

23 100 km<br />

bioethanol<br />

2560 liter *<br />

4,3 ha<br />

61 100 km<br />

67 200 km<br />

BTL (Sunfuel)<br />

4030 liter *<br />

biomethane<br />

3560 kg *<br />

1,64 ha<br />

1,49 ha<br />

* Source: Fachagentur Nachwachsende Rohst<strong>of</strong>fe


iomethane – CO 2<br />

-emissions<br />

positive climate balance for pr<strong>of</strong>essional <strong>large</strong>-<strong>scale</strong> <strong>plants</strong><br />

350<br />

300<br />

old small <strong>scale</strong> Plants<br />

Industrial Plants<br />

(Type Schwandorf)<br />

Natural Gas<br />

250<br />

Biomass production<br />

Biogas production<br />

235<br />

g CO2 Äq./ kWh<br />

200<br />

150<br />

Upgrad<strong>in</strong>g<br />

132 128 112<br />

A<br />

-50% reduction<br />

100<br />

50<br />

0<br />

PSA Am<strong>in</strong>wäsche Am<strong>in</strong>wäsche PSA<br />

regenerativ<br />

Am<strong>in</strong>wäsche<br />

regenerativ<br />

Source : ifeu Heidelberg, Januar 2008


Content<br />

• Introduction <strong>of</strong> E.ON Bioerdgas GmbH<br />

• Advantages <strong>of</strong> biomethane production<br />

• Actual status <strong>of</strong> biomethane production <strong>in</strong> <strong>Germany</strong><br />

• Future potential for biomethane production<br />

• Prospects


Biogas <strong>plants</strong> <strong>in</strong> <strong>Germany</strong> s<strong>in</strong>ce 1992<br />

Number <strong>of</strong> <strong>plants</strong><br />

End 2007: 9 Mrd. kWh/a electricity<br />

Power output <strong>in</strong> MW el<br />

new feed-<strong>in</strong> tariffs <strong>in</strong> 2004<br />

Source: Fachverband Biogas


Status Quo <strong>of</strong> Bio-methane production <strong>in</strong> <strong>Germany</strong><br />

Quelle: Energie und Management<br />

Total: End 2008: 500 Mio kWh/a


Current (2008) and planned (2009) Biomethane <strong>plants</strong> <strong>in</strong><br />

<strong>Germany</strong><br />

Source: top agrar


Feedstocks<br />

• Most biomethane <strong>plants</strong> <strong>in</strong> <strong>Germany</strong> run<br />

on energy crops and manure,<br />

• Range <strong>of</strong> energy crops used is<br />

broaden<strong>in</strong>g (<strong>in</strong>creas<strong>in</strong>g share <strong>of</strong> triticalesilage<br />

and grass),<br />

• Organic bio-waste is <strong>of</strong>ten available at<br />

relatively low cost, but requires<br />

additional technical <strong>in</strong>stallation for<br />

feedstock treatment prior to the <strong>biogas</strong><br />

production,<br />

• Potential <strong>of</strong> organic bio-waste is limited,<br />

• Use <strong>of</strong> non-agricultural raw materials,


Content<br />

• Introduction <strong>of</strong> E.ON Bioerdgas GmbH<br />

• Advantages <strong>of</strong> biomethane production<br />

• Actual status <strong>of</strong> biomethane production <strong>in</strong> <strong>Germany</strong><br />

• Future potential for biomethane production<br />

• Prospects


Policy Objectives for bio-methane production <strong>in</strong> <strong>Germany</strong><br />

• Federal Government Objectives:<br />

• Out <strong>of</strong> 100 Mrd. m³ annual use <strong>of</strong> natural gas <strong>in</strong> <strong>Germany</strong> bio-methane<br />

shall contribute:<br />

• by 2020: 6 Mrd. m³ = ca. 60 Mrd. kWh<br />

• Assumption:<br />

1/3 from by-products and waste<br />

2/3 from energy crops:= ca. 40 Mio. t energy crops = ca. 0,8 - 1 Mio.<br />

ha agricultural land<br />

about 500 Schwandorf-type or 1.000 E<strong>in</strong>beck-Type <strong>plants</strong> would<br />

be needed.


Policy Objectives for biomethane production <strong>in</strong> <strong>Germany</strong><br />

• Federal Government Objectives:<br />

• Out <strong>of</strong> 100 Mrd. m³ annual use <strong>of</strong> natural gas <strong>in</strong> <strong>Germany</strong> bio-methane<br />

shall contribute:<br />

• by 2030: 10 Mrd. m³ = ca. 100 Mrd. kWh<br />

• Assumption:<br />

1/3 from by-products and waste<br />

2/3 from energy crops:= ca. 66 Mio. t energy crops = ca. 1 – 1.2 Mio.<br />

ha agricultural land<br />

about 800 Schwandorf-type or 1,600 E<strong>in</strong>beck-type <strong>plants</strong> would<br />

be needed.


Potential for Biogas production <strong>in</strong> <strong>Germany</strong><br />

1 Mrd. kWh = ca. 1.000.000 t Mais Silage = ca. 20.000ha = ca. 12 Schwandorf Plants<br />

Source: BGW/DVGW-Studie (2006)


Potential for Biogas production <strong>in</strong> EU 27<br />

1 Mrd. kWh = ca. 1.000.000 t Silomais = ca. 20.000ha<br />

Source: EEA, www.<strong>biogas</strong>partner.de


Content<br />

• Introduction <strong>of</strong> E.ON Bioerdgas GmbH<br />

• Advantages <strong>of</strong> biomethane production<br />

• Actual status <strong>of</strong> biomethane production <strong>in</strong> <strong>Germany</strong><br />

• Future potential for biomethane production<br />

• Prospects


Prospects<br />

• Large Scale Biogas Plants (electricity production):<br />

• Actual legal basis supports small <strong>scale</strong> <strong>plants</strong>.<br />

Therefore only a limited number <strong>of</strong> <strong>large</strong> <strong>scale</strong> <strong>plants</strong> (<strong>of</strong> a size <strong>of</strong><br />

above 2 MWel) will be established,<br />

There may be a (slow) <strong>in</strong>crease <strong>in</strong> medium sized <strong>plants</strong> (with sizes <strong>of</strong><br />

about 1 MW el).<br />

• Large Scale Biomethane <strong>plants</strong>:<br />

• A clear political commitment from the government side for<br />

significantly <strong>in</strong>creas<strong>in</strong>g biomethane production,<br />

• A significant potential for agricultural biomass production exists,<br />

• Reach<strong>in</strong>g political targets would require significant <strong>in</strong>vestments,


Prospects<br />

• Critical factors for future development <strong>of</strong> <strong>large</strong> <strong>scale</strong> <strong>biogas</strong> and biomethane<br />

production:<br />

• Developments <strong>of</strong> agricultural and food markets.<br />

Bioenergy was attributed a huge share <strong>in</strong> ris<strong>in</strong>g <strong>of</strong> food prices <strong>in</strong><br />

2007/08.<br />

Actual developments pro<strong>of</strong> that bioenergy was one <strong>of</strong> a broad range<br />

<strong>of</strong> factors.<br />

• F<strong>in</strong>ancial Crisis and sufficient resources for <strong>in</strong>vestments.<br />

Reach<strong>in</strong>g the Governments objective <strong>of</strong> 60 Mrd. kWh biomethane by<br />

2020 would require roughly 10 Mrd. Euro <strong>in</strong>vestments.<br />

Reach<strong>in</strong>g the Governments objective <strong>of</strong> 100 Mrd. kWh biomethane<br />

by 2020 would require roughly 15 Mrd. Euro <strong>in</strong>vestments.<br />

• Developments <strong>of</strong> energy market and prices.


Prospects<br />

• Critical factors for future development <strong>of</strong> <strong>large</strong> <strong>scale</strong> <strong>biogas</strong> and biomethane<br />

production:<br />

• sufficient number <strong>of</strong> plant-locations:<br />

a location for a biomethane plant must meet several criteria:<br />

• At least 4 – 6 ha (depend<strong>in</strong>g on plant size) with<strong>in</strong> an <strong>in</strong>dustrial<br />

• Close distance to an adequate gas grid,<br />

• Sufficient agricultural area with<strong>in</strong> 10 – 15 km distance from the<br />

plant,<br />

• Acceptance <strong>of</strong> <strong>biogas</strong> production by the local authorities and<br />

<strong>in</strong>habitants.<br />

• regulative and political framework:<br />

future changes <strong>in</strong> the German and EU regulative framework will<br />

have an impact on <strong>biogas</strong> production.


Contacts:<br />

Dr. Christian Böse<br />

Head <strong>of</strong> Feedstock Management<br />

Tel: +49 (201) 184 – 7649<br />

Mobil: +49 175 2288045<br />

Fax: +49 (201) 184 - 7837<br />

E-Mail: christian.boese@eon-ruhrgas.com<br />

E.ON Bioerdgas GmbH<br />

Ruhrallee 307<br />

45136 Essen

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