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REPORT

Best Practice and Critical Success Factors for Biogas in Europe

2013-08-16 LIFE09 ENV/SE/000348 BIOGASSYS

Prepared by: Erik Ronnle

Date: 2013-08-16 Life - Biogassys

Best Practice and Critical Success Factors

for Biogas in Europe

LIFE09 ENV/SE/000348 BIOGASSYS

Administrator: Erik Ronnle Status: Final

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REPORT

Best Practice and Critical Success Factors for Biogas in Europe

Consultant

WSP Environmental

Box 574

201 25 Malmö

Visiting address: Jungmansgatan 10

Tel: +4610-722 50 00

Fax: +4610-722 63 45

Contact details

Charlotte Hauksson

+4610-722 62 68

[email protected]

mailto:[email protected]






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Table of Contents 1 Background 4 2 General Findings 4 3 Technical Challenges 5 3.1 Co-fermentation 5 3.2 Transportation and Storage 5 3.3 By-products 5 4 International Outlook 6 4.1 United Kingdom 6 4.1.1 Driving Factors for the Biogas Industry 6 4.1.2 Good Examples from the UK Biogas Industry 7 4.1.3 Planning and development of sustainable logistic systems 8 4.1.4 Economics and legislation 9 4.2 Finland 11 4.2.1 Good Examples from the Finnish Biogas Industry 11 4.2.2 Planning and development of sustainable logistics systems 14 4.2.3 Economics and legislation 14 4.2.4 The Future for the Biogas Sector in Finland 15 4.3 Germany 17 4.3.1 Good Examples from the German Biogas Industry 17 4.3.2 Economics and legislation 17 5 A Good Example From Sweden: Jordberga 19 5.1 General Description of the Project 19 5.2 Raw Material: Multifunctional Cover Crops and Crop Residue 20 5.3 Concluding Remarks on the Jordberga Project 20 6 Analysis and Conclusion 21 References 22






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1 Background

WSP is participating in the biogas project BIOGASSYS that is financed through the

LIFE+ programme by the EU Commission. The project will range over 5 years.

Partners in the project are WSP, the Municipality of Malmö, the Municipality of

Trelleborg, Biogas Syd (Scania Association of Local Authorities), E.ON Gas, Lund

University and Scania Biofuel Corporation (SB3). The overall purpose of the project

is to demonstrate the potential of biogas to become a major contributor within the

energy mix of Europe. The main purpose is to demonstrate and increase the potenti-

al for biogas in Skåne (Scania).

The role of WSP in the project is to assess and report on best practice and good ex-

amples of the biogas chain (production and processes related to the production),

mainly at European level. The purpose is to provide ideas and templates for practit-

ioners to further promote and develop the production in the county of Skåne, the

most southern county of Sweden.

To collect information, WSP has produced questionnaires that have been sent out to

WSP colleagues in the UK and Germany and arranged workshops in the UK and

Finland.

2 General Findings

1. Use of Biogas Differs Between Countries

The focus in Sweden on biogas as a vehicle fuel is shared by Finland but not by

Germany and the UK. This is mainly due to political priorities and subsidies that

differ between countries. In Germany, for example, where feed-in tariffs guarantee a

high and stable return on electricity from renewable resources, biogas is predomi-

nantly used for electricity production.

2. Production Technology is Similar

Regardless of what the gas is used for, the technology for producing it is similar

between the three countries. Anaerobic digestion is the predominant technology,

even though gasification from wood is discussed in Finland and Sweden. The sour-

ces of feedstock are primarily agriculture and food waste.

3. High Hopes for the Future

The biogas sector is seen as a growth business and a necessary technology to expand

to achieve 2020 targets in all studied countries. Especially for the UK, that is depen-

dent on diminishing North Sea natural gas. In the UK and Germany there are good

opportunities to inject biogas into a well-functioning nationwide gas grid if legis-

lation is updated and stable political conditions can be guaranteed.






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3 Technical Challenges

This chapter reviews the present technology for three chosen areas: co-fermentation,

transportation/storage and by-products. This provides a background for the discuss-

ions on technologies and market development in the three studied countries: the UK,

Finland and Germany.

3.1 Co-fermentation

Biogas can be produced either through anaerobic digestion of organic material or

through gasification of wood or other similar material. Anaerobic digestion is today

the most widely used method in all the countries studied in this report.

One possibility to increase the potential production volume of biogas is to start di-

gesting other organic material as well. This could for example include fats (lipids)

and food industry waste. The business for the biogas producer lies both in taking

care of and treating waste and in selling the biogas yield. Co-fermentation plants are

generally larger than ordinary farm facilities and are an example of industrial scale

biogas production. They also make larger production possible.

At first the coferments are ground, hygienized and mixed with manure. After this

pretreatment all the organics are pumped into the digester. Normally large tanks are

constructed out of coated steel. Standard digestion volumes of cofermentation bio-

gas plants range from 500 m³ to several thousand m³.

3.2 Transportation and Storage

Technology for transportation and storage will naturally vary depending on the size

and mode of production. Manure from surrounding farms is generally delivered by

trucks to the cofermentation biogas plant. Plants are therefore usually located in

agricultural areas. The organic material is also delivered by truck but generally from

either waste management departments of cities or from industrial plants. These

trucks are unloaded in closed areas inside the plant to reduce odour emissions.

Digested manure is pumped into a standard manure storage tank. Some of these

tanks are covered with a roof that collects any biogas that is produced during sto-

rage.

Biogas is either distributed through a gas grid or by truck. Where natural gas grids

are present the most efficient way of distributing the gas is through upgrading and

injecting it into the grid.

3.3 By-products

By-products from biogas production are primarily digested manure and carbon diox-

ide from purification of the biogas. The environmental benefits of biogas production

increase if more of these are used. The most important is to use the digested manure

as fertiliser since that substitutes artificial fertiliser. Another important possibility is

to use crop residues for biogas production. The use of by-products can also be ex-






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tended to involve more aspects of the agricultural system by growing catch crops

that are grown to prevent nutrient leakage. Carbon dioxide can be used to increase

yields in greenhouse vegetable production and is therefore also a possibly valuable

by-product.

4 International Outlook

This section provides an outlook on how the biogas sector is developing in the UK,

Finland and Germany respectively. The information is gathered at meetings and

workshops arranged by the local offices of WSP in the three countries and is aimed

to give a perspective on the technical and market challenges facing the biogas

sector, how these differ around Europe and how they are tackled.

4.1 United Kingdom

Key Findings: The most common biogas production plant in the UK is Anaerobic

Digestion (AD) plants. Biogas is primarily used for electricity and heat.

4.1.1 Driving Factors for the Biogas Industry

In the UK, food waste and agricultural waste are the primary sources of feedstock.

According to the Anaerobic Digestion and Biogas Association (ADBA), the

feedstock is both a driver and a barrier for further development of the biogas sectori.

One of the driving factors is that there is a lot of feedstock due to the enormous

amounts of food waste in the country that needs to be taken care of in some way.

Another driver is that the AD plants produce biological fertilizer as a bi-product.

The cost of mineral fertilizer increases exponentially and there are strong environ-

mental motives to switch to biological alternatives. The general awareness of the

need to recycle waste as well as the carbon value are also contributing factors. The

third driver is that the UK need AD plants to meet the energy targets of 20%

renewable energy by 2020. Finally, the domestic supply of natural gas within the

UK is declining and the rising natural gas imports can have adverse effects on the

UK economy.

The barriers are that the output from the biogas process, the fertilizer, needs to be

brought back to the agricultural land in order for the environmental and economic

benefits to be complete. However, getting the fertiliser validated for use in agricul-

ture is currently costly and requires effort. The digestate has so far typically been

landfilled at a cost. The situation appears to be changing slowly with some digestate

being used for application as fertilizer on non-food land. In the long term, other ty-

pes of regulation are also an issue. For example, feed-in tariffs currently focused on

solar power will have to be adjusted to the biogas sector. Stable rules are also ne-

cessary to guarantee that the government doesn’t change the rules every now and

then. The economic and legislative aspects are discussed in more detail in section

4.1.4.






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4.1.2 Good Examples from the UK Biogas Industry

The UK biogas sector is predominantly focused on Anaerobic Digestion (AD)

plants. Several AD plants have been constructed for agri-waste and food waste.

Most convert the biogas to electricity via gas engines. In the following two ex-

amples are provided, Refood UK that focuses on making biogas from food waste

and Adnams Bio Energy that provides energy from primarily brewery waste.

Refood UK

ReFood UK collects leftover and unsold food products and recycles them in their

own AD plants. The products from them are biogas for electricity and heat (CHP –

combined heat and power) and bio-fertiliser. ReFood exports renewable power to

the grid.ii

ReFood UK is a business established by two of Europe‘s leading specialist waste

recycling companies; PDM Group of the UK and Saria Bio-Industries of Germany.

ReFood is the market leader in Germany and sets standards throughout Europe. In

Germany there are 4 AD plants.iii

ReFoods first AD plant in the UK is located at PDM's headquarters in Doncaster. It

became operational in the summer 2011.iv Around 48 000 tons of waste is delivered

each day and the AD plant produces around 2,5 MWh electricity. The plant also

produces around 55000 ton organic fertiliser per year. The fertiliser contains high

amounts of available nitrogen, phosphorous and potassium. These fertilizers are sold

to farmers and growers within transport distance. ReFood works towards PAS 110,

Quality Product digestate.

Two other sites, in east London and Widness, are under expansion by ReFood. The

capacity for those plants are 90 000 ton of waste and 4 MWh. Future expansions

include choice of a further 7 processing plants distributed throughout the UK.

Adnam’s Brewery

Adnams Brewery in Suffolk will be the first to upgrade biogas to pipeline specifi-

cation and inject it into the natural gas network. The raw materials at Adnams

Brewery (Adnams Bio Energy) are brewery waste as well as local food waste.

Adnams Bio Energy will in partnership with British Gas and National Grid generate

up to 4,8 million kilowatt-hours per year. That will be enough to heat around 235

family homes for a year or run an average family car for 4 million miles (fully 6 000

000 km).v Another good example is the food waste AD plant at Ludlow, Shropshire

developed and operated by Biogen-Greenfinch.

The AD plants mentioned in Suffolk and Shropshire are the first generation ex-

amples of such facilities in the UK. Though, it´s getting more and more common to

use the existing gas grid for biogas. The AD plants are often standalone plants or

connected to a waste treatment process (i.e. Farington Waste Recovery Park, Global

Renewables, treating residual waste).






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One problem with anaerobic digestion is according to the ADBA that it is neither an

agricultural nor industrial processvi. Waste companies want to have the plant close

to town, but then it´s far away to the agricultural land where the fertilizer can be

spread. To spread the fertilizer will therefore be expensive.

4.1.3 Planning and development of sustainable logistic systems

The existing gas grid is used for biogas transportation. CNG Services ltd (CNG Ser-

vices) supports projects to inject biomethane into the gas grid. CNG Services won

the New Energy Infrastructure Project of the Year award 2001 for the innovative

Didcot Biomethane to grid (BtG) project. The Didcot project was the first BtG pro-

ject in the UK. The project proved that injection of biomethane to the gas grid in the

UK is possible. It also helped to identify significant opportunities to reduce the capi-

tal and operating costs, making it easier for future BtG projects to go ahead.vii

At the workshop in London 2012-03-20 CNG Services presented an estimate of the

growth potential for the biomethane market, see table 1.

Table 1: Factors that biomethane injection growth depends on (Source: CNG Services ltd,

2012).

According to National Gridviii

there can be some technical problems when biogas is

injected to the grid. The National Grid have found solutions and produced

suggestions for moving forward within these areas. Here are some examples:

1. Demand is lower during summer. The solution is to install a compressor within

the grid to access remote demand. Next step is to do field trials to show a proof of

concept.

2. Current regulations prescribe less than 0,2 % oxygen in grid gas, which is

difficult to achieve with biomethane. The solution is in the short term to have






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individual exemptions for biomethane plants combined with blending to achieve 0,2

%. The solution in the longer term is to classify exemption for biomethane if the

HSE (Health and Safety Executive) can be convinced that there are no additional

material risks. The next step is to have Gas Distribution Networks (GDN)

sponsoring work to demonstrate that there is no material risk of pipe corrosion.

3. The biomethane calorific value (CV) is low relative to the grid (natural gas) CV,

leading to that addition of propane is required. It is important to keep the CV

constant to avoid effects on consumer bills, since consumers are billed based on the

daily CV average. Additionally, propane is expensive. The solution is to minimise

propane input by blending biomethane with natural gas and measuring the CV

downstream of the blending point. The next step is to get approval of low-cost CV

measuring instruments.

4. There is uncertainity considering the responsibility for connecting equipment and

the level of costs of connection to the grid. One solution is that the Gas Distribution

Networks offer choice over who builds and operates the grid connections (GDN or

the biomethane producer). Another solution is that the National Grid has developed

standard “plug and play” facilities that are available to the market. A third solution

is that the EMIB (Energy Market Issues for Biomethane) group has developed a

“functional specification” setting out requirements for connection equipment. The

next step is to develop experience with non-GDN ownership in future projects.

5. Monitoring and metering is currently very expensive (around £150k). The

solution is to revise the measuring specifications to be more appropriate for small

volumes and for less complex gas compositions. For this no change in regulations is

required. The next step is that the Energy Market Issues for Biomethane (EMIB)

expert group makes recommendations for changes in these areas.ix

4.1.4 Economics and legislation

The anaerobic digestion sector benefits from several fiscal incentives: the

Renewable Heat Incentive (RHI), Renewable Obligation Certificates (ROCs) and

the newly introduced Feed in Tariffs (FiTs). Certain elements of plant and equip-

ment installed as part of the AD process are also eligible for enhanced capital allo-

wances and first year tax relief from the government.

If the fiscal incentives lead to more biogas producers and higher amount of biogas

remains to be seen. The prospect of incentives has led to an increase in development

activity and general interest in identifying biogas opportunities. The application of

the RHI, ROC’s and FiTs to promote anaerobic digestion in the UK is still only be-

ginning.

The main advantage with the incentive system is that it makes anaerobic digestion

competitive with other waste facilities and thereby accelerates their development –

this is a major issue in the UK due to the increased costs of separately collecting

food and agricultural waste.

The main disadvantage with this system is that plants and business models are reli-

ant on government subsidies and some investors are nervous to invest in a facility






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that may not pay back without long term government support that may be removed

at any time particularly in the current economic situation.

The WSP waste team in the UK has undertaken modelling work examining the eco-

nomics of anaerobic digestion using a source separated food waste feedstock. This

identified that delivering the gas to Combined Heat and Power plants is currently

the most profitable option although this may be surpassed by injection to the gas

grid depending on the renewable heat incentive (RHI) that will be ready in summer

2013. Gas to vehicle fuel currently commands the lowest revenue per tonne among

the alternatives.

The Renewable Transport Fuel Certificatesx (RTFC) is a system for promoting

renewable fuel connected to the Renewable Transport Fuel Obligation (RTFO) that

requires all distributors to supply at least 5% renewable fuel in 2013. Compressed

biomethane (CBM) earns 20 p per kg of gas. Transport fuel made from waste gets

double RTFC according to the EU Renewable Energy Directive. This is, however,

still not as profitable as selling the gas to CHP plants or to the gas grid.

The Green gas certificate scheme (GGCS)xi is run by the Renewable Energy Associ-

ation’s subsidiary, Renewable Energy Assurance Ltd. The GGCS tracks biomet-

hane, or ‘green gas’, through the supply chain to provide proof for those that buy it.

Each unit of green gas injected into the grid displaces a unit of conventional gas.

This system is designed to allow tracking of biomethane from injection point to

customer and is a simple and reliable way to eliminate double-counting of registered

green gas.xii

According to CNG Servicesxiii

it´s expected that the certificate will be

bought by the gas purchaser and not sold separately. This allows the gas purchaser

to work with the producer to market biomethane to customers.

According to CNG Services there are three fundamental requirements for a biomet-

hane market to be profitable; first it has to be legal to inject biomethane to the gas

grid, secondly financial support is necessary for grid injection and thirdly injection

has to be supported by the grid owners. Germany, Austria, Switzerland, Sweden,

Netherlands, Finland, France and UK are countries that have overcome the barrier.

In figure 1 is the expected annual biomethane to grid and RHI for 2012-2015

shown.






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Figure 1: Annual biomethane to grid and RHI for 2012-2015 (Source: CNG Services

ltd, 2012)

4.2 Finland

Key findings: Most of the biogas in Finland is produced from waste and landfills.

Primarily municipal-, sewage- and agricultural waste is used as feedstock in Fin-

land. According to a study done by the University of Jyväskyläxiv

2010 the highest

production potential can be found in energy crops. The estimate is based on

sustainable use of field areas and fractions outside the food chain (i.e. grass silage).

Biogas is primarily used for heat (56 % 2011). About 23 % is used for electricity

and about 20 % was flared in 2011.

4.2.1 Good Examples from the Finnish Biogas Industry

Kalmari Farm

A good example of a biogas plant is Kalmari Farm in Laoukaa. The farm is one of

the pioneer farms producing biogas in Finland. The first biogas reactor was built and

combined heat and power (CHP) production started in 1998. The original biogas

reactor was replaced by a larger one in 2008 and the original small reactor now ser-

ves as a hygenization unit. The farm is self-sufficient in electricity, heat and vehicle

fuel. Excess electricity is sold to the grid and also excess fuel is sold. In 2011 ve-

hicle fuel sales exceeded 1 000 MWh. Cow manure and confectionary by-products

are digested in the plant. In the future also fat trap waste and liquid bio waste (under

the EU animal by-product regulation) will be digested. Occasionally smaller

amounts of energy crops, mainly grass silage, are digested as well. Digestate is used

as bio fertilizer on the farm´s own fields. Biogas technology on the Kalmari farm






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therefore efficiently combines energy production, waste treatment and nutrient re-

cycling. Table 2 shows data on the farm.

Table 2: Parameters of the Kalamari biogas farm. (IEA Bioenergy Task 37)

The biogas production means that the farm is self-sufficient in energy. Even the

high heat demand in the coldest winter days is met with biogas. The sales income of

vehicle fuel is now exceeding income from milk. Additionally, the need of commer-

cial fertilizer has been reduced by 60 % due to improved availability of nutrients in

the digestate compared to raw cattle slurry. Due to decreased pathogen recycling,

additional benefits include reduced smell and better cow health. From tapping

renewable energy sources and reducing agricultural methane emissions the envi-

ronmental benefits arise.

The farm project has given a trigger for a new company, Metener Ltd. Mr Kalmari

is one of the funders to the company. Metener delivers complete turn key biogas

systems and has designed and installed several biogas plants and upgrading units in

Finland and Asia. The company also carries out development of biogas upgrading

for automotive use from small low cost solutions to larger scale plants. Metener also

has the capability to run pilot scale tests and provides consultancy and feasibility

studies related to biogas production and utilization. Both Metener and the farm has

close cooperation with both local and international research institutes and

development companies.

Valtra Inc has developed a biogas tractor with dual-fuel engine. The tractor has been

tested in Kalmari farm. Fossil fuel consumption for energy crop cultivation and har-

vesting can with this technology be significantly reduced enabling an almost car-

bon-neutral production chain to be achieved.xv

In 2009 tractor fuel production star-

ted.xvi






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Taalerithdas Biotehdas

Taalerithdas Biotehdas is an investor in Finlandxvii

. They want to create a network of

biogas plants in Finland, in total 5-7 biogas plants 2014. They want to build, own

and operate biogas plants. The technology provider within Biotehdas are Watrec.

Biothedas first investment in biogas was VamBio. The VamBio plant has a capacity

of 60 000 ton waste treatments per year. The feedstock is sludge from waste treat-

ment plants, pig slurry, biodegradable wastes of food industry and residue of bio-

ethanol production. The bioenergy production is > 30 GWh/year and the total power

of produced biogas is >3 MW. From the plant the production of organic fertiliser are

60 000 ton/year, 120 000 ton phosphorus/year and 300 000 ton nitrogen/year. The

customers of VamBio are 8 municipalities 2 big piggeries and 20 food industry

companies. Electricity is produced for the national grid, heat goes to piggeries and

biogas substitute fossil oil in industrial processes for Nordkalk Oy. Biogas pipelines

go from the biogas plant to the Nordkalk factory. And there is an option for new

industrial development in the vicinity of the biogas plant. The fertiliser is delivered

to 200 farmers.

The Gas Highway

A European project called GasHighWay has been established to contribute to reach

the European Union Target of increasing the share of biofuels and so-called alterna-

tive fuels, including natural gas, in traffic to 10 and 20 %, respectively, by 2020.

The project aims to promote the uptake of gaseous vehicle fuels, namely biomet-

hane and CNG, and especially the realisation of a comprehensive network of filling

stations for these fuels spanning Europe from the north, Finland and Sweden, to the

south, Italy. In figure 2 the route of the GasHighWay is presented.xviii






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Figure 2: The route of the GasHighWay through Europe. (www.gashighway.net, 2012)

The GasHighWay project has developed an EcoFleet Scan Tool to acitivate gas ve-

hicle uptake. The tool carries out the analysis of different fleets based on environ-

mental performances and performs an economic analysis and comparison of diffe-

rent vehicle fleets.xix

Joutsan Ekokaasu Oy

Another successful case in Central Finland is the new company Joutsan Ekokaasu

Oy that aims to refine municipal biodegradable wastes into biomethane for vehicles.

The company is owned by waste management companies in five smaller municipali-

ties and gas companies. The company has started to construct a biogas plant. In-

vestments for a biogas upgrading unit and a refuelling station are included. The fil-

ling station will be public and will serve customers by highway E75. The capacity

of the plant will be 340 000 m3 biogas per year. The business idea of the company

covers all the focus areas of the GasHighWay project mentioned above. GasHigh-

Way helped the company to find potential financiers and disseminate information

about gas vehicles for different stakeholders related to the project. The project will

generate 1,7 million € investment and employ 1 person directly and 5-10 persons

indirectly. The refuelling station expands the gas filling station network outside the

natural gas grid in Finland. Except the production of biogas as a renewable vehicle

fuel and the production of biofertiliser, reductons of about 540 tonnes of CO2 emiss-

ions will be achieved as well as better air quality and health due to very low particle

emissions from gas vehicles. In terms of social impact the project generates new

kind of co-operation of different regional companies and actors. It also provides a

practical example for communities and private persons to act for their environment

and to improve regional economics.xx

4.2.2 Planning and development of sustainable logistics systems

There is an existing gas grid in the southern part of Finland. Gasum is the natural

gas transmission network system operator in Finland. They are developing its own

filling station network (and other energy companies have also begun to start up stat-

ions). All Gasum stations have offered biogas since 2011.The aim for Gasum is to

become the leading producer of biobased gases in Finland. According to Gasum

biogas can be upgraded into a product almost equally to natural gas. Today (2012)

Gasum has for example a share in Biovakka Suomi Ltd, that inject upgraded biogas

to the natural gas grid from the Mäkikylä waste water treatment in Kouvola and the

Suomenoja waste water treatment in Espoo and they also inject biogas to the gas

grid from a biogas plant in Kouvola owned and operated by KSS Energiaxxi

.


At the workshop in Helsinki the question of how to get money from fertilizers was

discussedxxii

. The answers from the panel discussion were for example that changes

in legislation must be done. There must also be a good way to use the fertilizer and

http://www.gashighway.net/






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more users are required to achieve economies of scale. To reach these, forms to get

phosphorus out of the fertiliser must be developed. The fertiliser also needs to be

refined.

Another idea to get money from fertiliser is that a new business model needs to be

developed where all steps in the biogas chain are taken into consideration. The

question “What does the biogas contribute to society?” needs to be answered.

The most important feature to make a biogas plant profitable is that it has to be big

enough. Feed capacity over 20 000 ton per year are usually required. The most pro-

mising future market in Finland is vehicle fuel, as long as there are enough

customers. The number of biogas driven cars therefore has to be increased, perhaps

through subsidies. The same is true for the infrastructure and filling stations which

need to be improved across the country.

The biogas sector in Finland is influenced by the law of renewable sources of

electricity production support (1396/2010) that came into force on the first of Janu-

ary 2011. The Energy Market Authority manages legal system. Production aid is

paid to the so-called feed-in tariff. There are 2 types of support within the system:

Feed-in tariff

Investment support: support is given between 8% to 40% of the total plant

cost

In addition to this, there are tax incentives:

Biogas as vehicle fuel is exempt from fuel tax (but not Natural Gas)

Gas vehicles have lower vehicle tax

4.2.4 The Future for the Biogas Sector in Finland

Gasum has worked a lot with marketing activities and they think that biogas is best

to use for transports. Finland plans to produce synthetic biogas (SBG) from wood

waste that would increase the volumes significantlyxxiii

.

The Finnish Biogas Association and the North Karelian Traffic Network Develop-

ment Programme have written a report for the Finnish Ministry of Transport and

Communication as a part of a work of a task force “Future motive powers in trans-

port”xxiv

. It contains a sustainable development path to a 100 % renewable transport

energy system in 2050 as one of the alternative paths developed by the task force.

This publication is a contribution to the on-going work at the Ministry of Em-

ployment and the Economy to update the Finnish climate and energy strategy and

create an oil independency programme.xxv

Figure 3 shows the sustainable develop-

ment path to 2050.






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Figure 3: Roadmap of heavy road transports 2020-2050. (Finnish Biogas Association

and the North Karelian Traffic Network Development Programme, 2012)

The main obstacles for fast biogas expansion in Finland are lack of will from the

municipalities and politicians as well as lack of political frames, incentives and long

term rules. Education and know-how is also important.xxvi






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4.3 Germany

Key findings: Biogas is mainly used for electricity and heat in Germany. The

feedstock consists of energy crops such as sun flower, excrements from agriculture

(Ger: Gülle), municipal bio-waste and sewage sludge. Energy plants and excrements

from agriculture is dominating.

4.3.1 Good Examples from the German Biogas Industry

Aiterhofen – Feeding Biogas to the Grid

Aiterhofen, located 100 km from Munich, is one good example of a biogas plant

feeding into the natural-gas grid. In Aiterhofen the biogas is produced by corn or

grass silage. After production, the biogas is refined and fed into the natural gas grid

directly. In Germany, where the grid infrastructure is well developed, biogas can be

produced in rural areas and distributed efficiently to consumers.

Some problems have appeared in the field of construction. The Renewable Energy

law has been amended June/July 2010 and according to this, the subsidies have been

reduced. After this, there is only a low profit range for biogas plants, so the owner

does have financial constraints. In contrast to other plants/buildings in the energy

sector, the construction part (especially the silos) is quite important for the total con-

struction cost. The owner might therefore want to save money in the construction of

the silos by reducing the amount of concrete and reinforcement. In some cases this

has led to weak structures and even collapse of the silo walls when put under press-

sure.

The World’s Largest Biogas Plan in Könnern

The world’s largest biogas plant is located in Könnern, about 150 km south west

from Berlin. The production is about 15 million cubic meters of biomethane per

year. This is enough to supply about 10 000 households with electricity and heat or

about 18 000 cars that drive about 15 000 km per year. The plant started up in 2009.

The raw material consists of energy crops and manure. 30 farmers are distributing

raw material to the plant, within an average radius of 15 km. The produced biogas is

upgraded and directly transferred to the natural gas grid. The by product is used as

bio fertiliser.xxvii


In general there are a vast number of subsidies considering the production of biogas.

The level of subsidies depends on the size of the power generator that produces

heat/electricity and the origin of the biomass (energy crops such as sun flower, ex-

crements from agriculture (Ger.: Gülle), communal bio-waste, sewage sludge). The

subsidies consist of the basic remuneration (Ger.: Grundvergütung) and the subsi-

dies depending of the resource (Ger.: Rohstoffvergütung).






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Normally, biogas is used to generate electricity in a co-generation plant directly on

site. Through the feed-in tariff system, especially small biogas plants get sufficient

income to be profitable. The main possibilities to focus on with regards to return on

investment are for example the following. Small producers (50-250 kW) are increa-

sing due to the feed-in tariff system. An alternative is to sell the gas to a large

energy company on a long-term contract.

The German government introduced a national biomass action plan with the aim to

improve the opportunities to feed biogas into the gas grid. In 2008 the German go-

vernment made the following changes:

Optimization of the gas grid access regulations for biomethane

Greater transparency in judgement for grid connections

The new order of a lump sum for avoiding charges for the use of the grid

Barriers in biomethane grid-feed were removed via special provisions in the

Gas Grid Access Ordinance and the Gas Grid Payment Ordinance. This is

the main reason why the number of biogas plants has increased since

2008.xxviii






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5 A Good Example From Sweden: Jordberga

This section describes the Jordberga Farming System Project. The project will re-

duce methane slip, produce renewable fuel and decrease nutrient leakage to sur-

rounding waters. It does this through second generation biogas production including

improved land management and efficient use of bi-products such as crop residues

and multifunctional cover crops.

The multifunctional cover crops are grown to prevent nutrient leakage and to be

used for biogas production. These have sufficiently short life spans to allow them to

grow at times of the year when food production is not possible. Growing multi-

functional cover crops decreases nutrient leakage and catches fertilisers which

would otherwise have contributed both to methane slip and eutrophication. After

harvest, the multifunctional cover crops will be used for biogas production.

While the project will start out using conventional methods, the objective of the

Jordberga Farming System is that the Jordberga biogas plant in 5-6 years will be

100% supported by multifunctional cover crops and agricultural bi-products in a

farming system that is in total balance with food production. Fully established,

Jordberga will be a model for sustainable farming and second generation bio-energy

production in the Baltic Sea Region and in the EU.

5.1 General Description of the Project

The Jordberga Farming System will provide a cornerstone in a larger project, The

Jordberga Biogas Project, that aims to establish a full scale production facility for

biogas. The facility will be designed to produce 110 GWh gas each year. This is

equivalent to eleven million litres of petrol. Fully developed, about 160 farmers will

improve and transform their production of sugar beets, corn and the like to produce

biogas, a renewable fuel, from multifunctional cover crops and currently un-

exploited rest products. The production will be located at a former sugar refinery

and involve close collaboration with local farmers, providing a high grade of accep-

tance, coherence and long term-thinking. Each year, except for the biogas, the pro-

duction will result in 120 000 tonnes of bio-fertiliser which will be returned to the

surrounding farmland.

The Scanian Biofuel Company (Skånska Biobränslebolaget, SB3) is an agricultural

cooperative founded in 2005. The purpose of the cooperative is to build a

sustainable biofuel production facility based on multifunctional cover crops and

currently un-exploited bi-products. They also initiated a partnership with E.ON Gas,

an energy company. The partners have during the last two years focused on the cre-

ation of important preconditions for a successful process and investigated an appro-

priate system for land use.

Meanwhile, a large number or farmers have declared interest to become suppliers to

the biogas facility. At a later stage, the Jordberga Biogas Project aims to increase

production from 110 GWh to 330 GWh gas per year. The produced gas will be in-

jected to the gas grid and used as vehicle fuel.






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5.2 Raw Material: Multifunctional Cover Crops and Crop Residue

A multifunctional cover crop is a fast-growing crop that is grown simultaneously

with, or between successive plantings of, a main crop. Multifunctional cover crops

are used to cover soil that would otherwise be left in the open between crops and

during winter. When soil is left uncovered, nutrients are flushed out with the runoff.

Multifunctional cover crops reduce this nutrient leakage substantially. The multi-

functional cover crop will grow during autumn and winter in the mild coastal cli-

mate in southern Sweden. The harvest of the multifunctional cover crop occurs al-

ready in the middle of May. Directly after this, corn, sugar beet or other food crops

will be sown for harvest in October.

An important feature of this cultivation technique is that the multifunctional cover

crops are harvested before they become ripe and hence before the degradation pro-

cess starts. In the Jordberga project, the whole crop, including the haulm, will be

used for biogas production. Hence, there will not be any waste and thus no nutrient

leakage. Thanks to the shorter growth time, the farming system manages two yearly

crop cycles in the same farming area. In this way the farmland is covered with crops

during almost the whole year. This prevents the leakage of soil nutrients that other-

wise would have been transported to the Baltic Sea via the drainage water.

An additional effect reducing the leakage of nutrients is that the organic fertiliser

resulting from the fermenting process in the biogas facility is easily absorbed by

plants. 120,000 ton organic bio-fertiliser per year will be produced during the first

phase (110 GWh). This will displace conventional fertiliser.

Other benefits of the project derive from the processing of haulm and other crop

residue that today are left on the farmland or on the vegetable farms in the area. This

left over biomass today contributes to nitrogen leakage. The Jordberga project will

include the processing of this residue. Even if this left-over material is waste in

terms of food production it is an excellent substrate for biogas production that will

be put to use in Jordberga.

The Tullstorpså River is also a beneficiary of the project. The river is currently un-

dergoing a major restoration to improve nutrient retention and biodiversity. One part

of the restoration is reconstruction of wetlands. The wetlands are planted with fast-

growing reed in order to clean the water. The plan is to use the reed as substrate in

the biogas plant as well. This will provide additional biomass to the biogas project

without competing with food production.

5.3 Concluding Remarks on the Jordberga Project

It is possible to see several positive synergies by advancing farming systems with

multifunctional cover crops for biogas production. Second generation biogas

systems, as Jordberga is an example of, close the nutrient cycle, improve agricul-

tural management, complement food production and produce renewable vehicle

fuel. In order not to hinder this development, it is necessary that current and future

regulation support the use of multi-functional cover crops in farming that contribute

to energy and food production and nutrient retention.






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6 Analysis and Conclusion

It is clear from the the international outlook and the experiences from the workshops

that the situation for the biogas sector is largely dependent on the economic pre-

requisites given by the environmental legislation in each country. This is not at all

surprising given that the biogas sector is to such a large extent dependent on subsi-

dies and taxes for its profitability.

Biogas offers many environmental advantages over fossil fuels, especially if seen as

a part of an agricultural system as exemplified by the Jordberga project. Environ-

mental are, however, not sufficiently highly valued in current markets for biogas

fuel and biofertiliser to be competitive. The differences between the countries are

therefore highly dependent on the local political agendas.

The focus on renewable electricity in Germany, and the feed-in tariff, has resulted in

a situation where it is profitable to grow crops directly for biogas production, feed it

into a biogas plant and burn the gas to sell electricity. This is arguably an inefficient

way of using biogas. At the same time, in Finland and Sweden, where electricity

production is already fairly carbon neutral due to nuclear power and hydropower,

political priorities have been to use biogas as a vehicle fuel instead. The types of

production that have arisen are largely a result of the pre-existing legal frameworks

and incentives.

Anaerobic digestion is the most technologically basic production method and is also

the most popular. New forms of biogas production, such as from wood or other bi-

omass, requires large investments in advanced technology. Power companies are

currently not prepared to perform those investments given the political insecurity.






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References

i Lord Redesdale, ADBA, presentation at workshop in London, UK, 2012-03-20

ii Baker, Mark, Refood UK, presentation at workshop in London 2012-03-20

iii Refood UK, http://www.refood.co.uk/, the site was visited 2012-03-27

iv Refood UK, http://www.refood.co.uk/, the site was visited 2012-03-27

v Adnams Bio Energy, http://adnamsbioenergy.co.uk/press-releases/adnams-bio-energy-

injects-first-renewable-gas-from-brewery-waste-to-national-grid, the site was visited 2012-

03-26

vi Lord Redesdale, ADBA, presentation at workshop in London, UK, 2012-03-20

vii CNG Services ltd, Media release 11th November 2010 - Renewable Energy Infrastructure

Awards 2011, http://www.cngservices.co.uk/news/, the site was visited 2012-03-27

viii Pickering, David, National grid, presentation at workshop in London 2012-03-20

ix Pickering, David, National grid, presentation at workshop in London 2012-03-20

x Renewable Transport Fuels Obligation,

http://www.dft.gov.uk/topics/sustainable/biofuels/rtfo/, 2012-06-27

xi Green Gas Certification Scheme, http://www.greengas.org.uk/, the site was visited 2012-

03-29

xii Green Gas Certification Scheme, http://www.greengas.org.uk/, the site was visited 2012-

03-29

xiii Baldwin, John, CNG Services, workshop London 2012-03-20

xiv Presentation by PPT Gasum at workshop 2012-10-09, Finland

xv IEA BIOENERGY TASK 37 “Energy from Biogas”, “Biogas in society, a success story.

Pioneering biogas farming in central Finland – Farm scale biogas plant produces vehicle

fuel, heat, electricity and bio-fertilizer”, http://www.iea-biogas.net/_download/success-

story-kalmari2012.pdf

xvi Presentation by the Finnish biogas association, workshop 2012-10-09, Finland

xvii Presentation by Taalerithdas Biotehdas, workshop 2012-10-09, Finland

xviii The GasHighWay, http://www.gashighway.net/default.asp?SivuID=25922, the site was

visited 2012-12-11

xix Jyveskylä Innovation Oy et al, “GasHighWay – The Market Accelerator in Europe“,

http://www.gashighway.net/GetItem.asp?item=digistorefile;355955;1197&params=open;ga

llery

xx Jyveskylä Innovation Oy et al, “GasHighWay – The Market Accelerator in Europe“,

http://www.gashighway.net/GetItem.asp?item=digistorefile;355955;1197&params=open;ga

llery

xxi Presentation by Gasum, workshop 2012-10-09, Finland

xxii Panel discussion at workshop Finland, 2012-10-09

http://www.refood.co.uk/

http://www.refood.co.uk/

http://adnamsbioenergy.co.uk/press-releases/adnams-bio-energy-injects-first-renewable-gas-from-brewery-waste-to-national-grid

http://adnamsbioenergy.co.uk/press-releases/adnams-bio-energy-injects-first-renewable-gas-from-brewery-waste-to-national-grid

http://www.cngservices.co.uk/news/

http://www.dft.gov.uk/topics/sustainable/biofuels/rtfo/

http://www.greengas.org.uk/

http://www.greengas.org.uk/

http://www.iea-biogas.net/_download/success-story-kalmari2012.pdf

http://www.iea-biogas.net/_download/success-story-kalmari2012.pdf

http://www.gashighway.net/default.asp?SivuID=25922

http://www.gashighway.net/GetItem.asp?item=digistorefile;355955;1197&params=open;gallery









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xxiii Presentation by Gasum, workshop 2012-10-09, Finland

xxiv “Finnish Transport Sector Sets 40% Renewable MethaneTarget” NGV Global News,

http://www.ngvglobal.com/finnish-transport-sector-sets-40-renewable-methane-target-0808,

2013-06-27

xxv Finnish Biogas Association and the North Karelian Traffic Network Development Pro-

gramme, “Roadmap to renewable methane economy – Extended summary”, Publications of

North Karelian Traffic Network Development Programme 2/2012

xxvi Panel discussion at workshop Finland, 2012-10-09

xxvii WELTEC BIOPOWER GmbH, http://www.weltec-biopower.de/Biogaspark-

Koennern.300.0.html, the site was visited 2012-11-06

xxviii Bundesministerium für Umwelt, Naturschutz und Reaktorsicherheit (BMU), ”National

biomass action plan for Germany – Biomass and sustainable energy supply”, April 2009

http://www.ngvglobal.com/finnish-transport-sector-sets-40-renewable-methane-target-0808

http://www.weltec-biopower.de/Biogaspark-Koennern.300.0.html

http://www.weltec-biopower.de/Biogaspark-Koennern.300.0.html

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