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Bioenergy International no 7 December 2015

MARKETS AND FINANCE Biomethane overlooked in biofuel quota design Bioenergy International No 83, 7-2015 35 Bioenergy International No 83, 7-2015 35 ACCORDING TO FIGURES in the “EBA Biogas Report 2014” published by the European Biogas Association (EBA) the biomethane industry followed the growing trend of biogas, reaching 282 plants across Europe with a total annual production of 1 303 billion m3 in 2013. Furthermore the number of biomethane filling stations doubled in 2013 increasing the share of biomethane used in transport to 10 percent of the total produced biomethane in Europe. More recent figures revealed during the conference suggest that there are now over 340 biomethane facilities in 17 countries across Europe. Held at the end of September the “Biomethane as a Fuel” conference, which took place at the Austrian Embassy, was organized by Evonik Fibres GmbH and German Energy Agency, DENA. The former is an Austria-based subsidiary of German speciality chemical major Evonik Industries GmbH and the only plant within the group specilised in the production of polyimide fibers used for seals, insulation and hotgas filtration including biogas upgrading to biomethane. Legislative obstacles Norbert Barthle, MP of the Bundestag, Parliamentary State Secretary at the Federal Ministry of Transport and Digital Infrastructure said in his keynote speech that also the long-term growth prospects of transport in Germany depend on global ability to incorporate energy-efficient as well as climate and environmentally friendly solutions. – Alternative fuels offer promising results and, in addition to technological innovations and the emissions trading scheme, are able to contribute to decouple transport performance and emissions in the future, Barthle stated. Dr Max Peiffer, from law firm Assmann Peiffer talked about legal obstacles when using biomethane as fuel and practical experiences in this area. Dr Peiffer has carried out numerous legal assessments on energy projects for the purpose of optimizing the economic efficiency and clarifying the eligibility of renewable energy remuneration. He is also a specialist on technical plant-related disputes for state courts and arbitral tribunals. According to Peiffer, grid-based energy supply is especially subject to an intensive regulatory framework, thus a solid legal knowledge is essential for the implementation of new ideas in this field. Also on the stages of energy production and consumption only players familiar with the relevant legal framework will be economically successful. – The legal situation is very complex today. No other area of law is as interdisciplinary as energy law. It comprises inter alia European law, German constitutional law, administrative and civil law, Peiffer explained. The legislator, he said, did not think of biomethane when designing the regulations for biofuel quota. As a consequence it is hard to “fit” biomethane into the existing regulation. If biogas is produced from any other material than organic waste, liquid or dry manure, the law does not give any standard value. In absence of a standard value the emissions need to be assessed by way of export reports. That makes the GHG-calculation very expensive. – In fact a stronger support of biomethane is needed in order to make use of this unique kind of energy in the fuel sector, said Peiffer. Blend with LNG? Harm Grobrügge, Vice-President, EBA, concentrated his outlook on what should be done regarding EU- goals and legislation on biomethane. Grobrügge operates his family’s farm in Northern Germany with an on-farm biogas plant installed in 1983. He has been active in the German Biogas Association (Fachverband Biogas) since 1985 at various positions. According Grobrügge, it is possible to decrease further the greenhouse gas emissions of gas by blending natural gas with biomethane. The new German Energy Agency study “LNG in Germany: Liquefied Natural Gas and Renewable Methane in Heavy-Duty Road Transport, 2014”, shows that LNG at a 4 percent market share could reduce the GHG emissions of road-freight transport in Germany by 240 000 tonnes CO2 per annum, if a 20 percent blend of biomethane is used. – Therefore, because of natural gas’ capacity to reduce emissions, particularly when blended with renewable methane, the political emphasis of decarbonising the energy sector should be on phasing out other fossil fuels first, said Grobrügge. Lack of infrastructure Biomethane is continuously increasing its share on the EU methane market and estimated to reach 10 percent share by 2030. – Since renewable and fossil gases benefit from the same infrastructure, the investments on gas infrastructure do not lead to stranded assets, said Grobrügge. The low use rate is, in most countries, connected with the lack of infrastructure. – For example in Germany there are more or less no filling stations for LNG in road transport. LNG is mainly considered for the maritime sector, but has barely been discussed on the political level so far. There are no incentives foreseen to attract first investments. Knowledge exchange seems to be missing, underlined Grobrügge. Grobrügge referred to several examples. In Sweden, the first filling station for liquefied methane was opened in 2010 and in the same year the first truck powered by liquefied methane was deployed. Currently, there are around 70 trucks that run on liquefied methane and six filling stations for liquefied methane are in operation. In Norway a few towns including the capital Oslo are deploying public transport with busses fuelled by liquefied biomethane. – In the future, liquefied biomethane might be an interesting option for inland waterways, like the Rhine and the Danube. One of the benefits of gaseous fuels is the intermodality: waterborne and road transport complement each other, remarked Harm Grobrügge. Text & photos: Markku Björkman BI83/5086/AS Biomethane can help Europe to significantly cut air pollution and carbon dioxide (CO2) emissions from the transportation sector. Upgrading technology and legislative challenges reflecting this potential were recently discussed at a conference in Berlin, Germany. Norbert Barthle, MP, Parliamentary State Secretary, Federal Ministry of Transport and Digital Infrastructure. Describing in detail the legal complexity for biomethane, Dr Max Peiffer, with Assmann Peiffer law firm. – Liquefied biomethane might be an interesting option for inland waterways, noted Harm Grobrügge, EBA.


Bioenergy International no 7 December 2015
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