Energy Strategy 2050 – from coal, oil and gas

Initiatives in the strategy
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Background The government will
A solid foundation for biogas expansion
Agriculture will play a key role as a green energy supplier
in the transition to fossil fuel independence. In accordance
with the national Green Growth agreement, the
government wants Denmark to aim for the exploitation
of up to 50% of livestock manure for green energy. There
are large unexploited biogas resources, especially in
the form of livestock manure in agriculture. These can
replace natural gas, oil and coal for energy purposes.
Greater use of livestock manure will also benefit the
aquatic environment and will contribute to reducing
emissions of greenhouse gases from agriculture, which
in turn will contribute significantly to meeting Denmark’s
international climate commitments.
The government is monitoring closely the expansion of
biogas and has agreed with the Danish People’s Party
to take stock of these developments at the end of 2012,
see the Green Growth agreement. However, even now
the government is presenting a package of initiatives to
support realisation of a 50% use of livestock manure by
2020, whilst taking into account the effects of introducing
the free choice of fuel.
The biogas package proposes raising the start-up aid
and introducing a new subsidy system, which will provide
subsidies for a greater variety of uses. It is the government’s
ambition that a greater share of the subsidies
be paid directly to the biogas plants, so that the plants
may receive subsidies for all biogas production irrespective
of ultimate use. Biogas plants will therefore be able
to choose whether to use biogas in their own processes
or sell it off to the highest bidder. In the longer term this
will help improve financial performance in the biogas
sector and it will enhance the use of biogas for a greater
variety of purposes, e.g. in the natural gas grid and in
industry. In order to cover the costs of livestock manure
separation, the government will moreover introduce a
subsidy for biogas from livestock manure.
Energy Strategy 2050 – from coal, oil and gas to green energy.
• Introduce a subsidy of DKK 27/GJ for biogas production
from 2012. The subsidy will be paid to the
biogas plant regardless of how the plant uses the
biogas
• Retain current levels for preferential treatment of
biogas in CHP production, and for the average plant
this will correspond to approximately DKK 75/GJ,
including the biogas production subsidy, in 2012
• Introduce a subsidy for biogas in the natural gas grid
on equal terms with CHP production, entailing a total
subsidy of DKK 75/GJ, including the biogas production
subsidy, in 2012
• Introduce a subsidy for biogas in industry and transport
of net DKK 12/GJ, so that the total subsidy for
biogas in industry and transport is raised from 2012
by net DKK 39/GJ, including the biogas production
subsidy
• Introduce an additional subsidy of DKK 22.5/GJ for
biogas from livestock manure. The subsidy will be
reduced in line with natural gas prices
• Increase the aid from a start-up construction fund
from 20% to 30%
• Set aside funds of DKK 25 million in 2012 to safeguard
the required expansion of the biogas infrastructure
with a view to alleviating any negative consequences
for existing biogas plants in connection
with the introduction of the free choice of fuel
• Allow, on a voluntary basis, changing from fixed electricity
settlement to an electricity price supplement for
100% biogas-based plants.