1. www.biogasundenergie.de Sustainability Criteria and Indicators for the Biomethane Value Chain Johan Grope & Frank Scholwin (Institute for Biogas, Waste Management & Energy, Weimar) 12.05.2016 Malmø

2. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de Institute for Biogas, Waste Management and Energy Scientific Consulting Expert reviews Energy Waste Manage- ment Biogas technology virtual institute Prof. Frank Scholwin & associated experts Services for systems integration. Networking. Knowledge Transfer. Publication. Long term experiences in consulting and research. National and international mulidisciplinary network.

3. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de Content 3 Sustainability Certification in Europe – How it works Relevant Legislation & Regulation in BIOSURF Partner Countries Sustainability Criteria: GHG Savings Biodiversity Land Use Change Feedstock Sustainable Farm Management / Protection of Soil, Water and Air Additional Sustainability Criteria Conclusions

4. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de Sustainability Certification in Europe – How it works

5. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de Renewable Energy Directive Sustainability Certification in Europe – EU Legislation & Regulation Fuel Quality Directive COM 2010/C 160/01 ILUC Directive Sets mandatory targets for EU member states for renewable energies, incl. biofuels Defines mandatory sustainability criteria for biofuels and bioliquids (SC for gaseous and solid biomass as well, but not mandatory) GHG savings, biodiversity and land with high carbon stock Describes mass balancing system Obligates Member States to reduce GHG related to the consumption of biofuels for transport application by 10 % till 2020 Same SC as in RED Defines possibilities for stakeholders to show that SC have been met, e.g. by using voluntary schemes recognised by the EC defines the recognition process of voluntary schemes by EC Specifies some definitions with regard to land with high biodiversity and high carbn stock aims to promote transition from conventional biofuels to advanced biofuels

6. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de Voluntary Schemes Voluntary schemes define procedures and specify the requirements of sustainability verification. For sustainability verification in accordance to EU legislation, certification bodies may choose between verification schemes recognised by the EC*. 19 voluntary schemes have been recognised by EC. REDcert, ISCC and NTA 8080 have mainly been applied for sustainability verification of biomethane in accordance to EU legislation. Additional voluntary schemes exist, which have not applied for recognition by the EC, such as: Naturemade Biomethane (Switzerland) Green Gas Label (Germany) * European Commission

7. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de Relevant Legislation & Regulation in BIOSURF Partner Countries AT Transport Fuel Ordinance and Act on Agricultural Maw materials for Biofuels:  Implementing EU legislation on biofuels including sustainability criteria (SC) Green Electricity Feed in Tariff Ordinance:  No direct SC, only different tariffs depending on feedstock, introduction of SC planned following recommendation of the EC DE Biofuel Quota Act and Biofuel Sustainability Ordinance:  Implementing EU legislation on biofuels including sustainability criteria (SC); since 2015 biofuel quota related to GHG saving potential, limitation of feedstock Renewable Energy Sources Act and Act on the Promotion of Renewable Energies in Heat Sector:  Some requirements regarding sustainability, like limited methane emissions and energy use for upgrading, limitations of feedstock and others

8. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de Relevant Legislation & Regulation in BIOSURF Partner Countries FR Decree of November 23rd, 2011:  Defines the allowed feedstock and for biomethane injected into the gas grid Decrees of November 10th 2009 (decree 1), August 12th 2010 (decree 2), November 10th 2009 (decree 3) :  Definition of certain requirements for biogas plants, concerning digestate disposal, biodiversity assessment, pollutant and odour emissions Implementing EU legislation on biofuels:  Biomethane has not yet been recognised as biofuel to fulfil the biofuel quota. HU Law CXVII. (2010), Government Decree 343/2010, Decree 36/2101 (XII 31.) and Decree 42/2010 (XII. 20.):  Implementing EU legislation on biofuels including sustainability criteria (SC)

9. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de Relevant Legislation & Regulation in BIOSURF Partner Countries IT Decree 31 March 2011 no. 55, DM 23 January 2012 and DM 10/08/2014:  Implementing EU legislation on biofuels including sustainability criteria (SC) UK Renewable Transport Fuel Obligation 2011/2012 RTFO 2015:  Implementing EU legislation on biofuels including sustainability criteria (SC) Renewable Heat Incentive Scheme Regulations 2011 and 2015:  minimum of 60 % GHG savings, Reporting about feedstock and land use required Renewable Obligation Order 2013 - England & Wales  minimum of 70 to 75 % GHG savings

10. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de A)EU legislation and regulation Renewable Energy Directive (RED) Fuel Quality Directive (FQD) COM 2010/C 160/01 ILUC Directive B)legislation & regulation in BIOSURF partner countries: AT, FR, DE, HU, IT, UK C)voluntary schemes recognised by the European Commission (EC) Redcert ISCC NTA 8080 D)voluntary schemes not applied for recognition by EC Green Gas Label (Germany) Naturemade Biomethane (Switzerland) Sustainability Certification on Biomethane in the EU and its Member States

11. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de Sustainability Certification on Biomethane in the EU and its Member States Biomass production and supply Biomethane production facilities (incl. AD, purification and grid injection) gas grid CHP unit / boiler CNG vehicle GHG Savings Biodiversity Land Use Change Sustainable Farm Management Protection of Soil Water and Air Feedstock

12. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de GHG Savings EU legislation & regulation 35 %, 50 % from 2017, 60 % from 2018 fossil comparator* as 83.8 g CO2eq /MJ default values only for biomethane from municipal organic waste liquid slurry manure no averaging of GHG emission figures of biomethane from different substrates * for transport application legislation & regulation in BIOSURF partner countries gas tight system (HRT* of 150 days & back-up system) limited CH 4 emissions of 0.2 % from biogas upgrading electricity for upgrading limited to 0.5 kWh/m 3 raw biogas only heat from renewable sources for biogas upgrading biofuel quota based on GHG saving potential (only in EU) DE limited CH 4 emissions in landfill gas upgrading units (5 %) FR RHI: 60 % GHG savings (comparator: 87 g CO2eq /MJ) RO: 70 to 75 % GHG savings, non waste biomethane UK * Hydraulic Retention Time; ** RHI = Renewable Heat Incentive, RO = Renewable Obligation Order

13. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de GHG Savings voluntary schemes recognised by EC 50 % all plants, 60 % plants, which start(ed) operating after October 2015 GHG savings also defined in case of electricity and/or heat generation or grid injection NTA 8080 voluntary schemes not applied for recognition by EC 50 % GHG savings in case of grid injection or use as fuel for transport application checked by a standardized model for AD plants Naturemade ISCC REDcert follow EU legislation & regulation (RED, FQD, COM 2010/C 160/01)

14. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de Biodiversity EU legislation & regulation no biomass from land with high biodiversity value, such as: primary forest and other wooded land highly biodiverse grassland reference date: January 2008 exception regarding grassland, if production does not interfere with nature protection purpose not to be fulfilled for biomethane from waste and residues BIOSURF partner countries mandatory assessment of impact on biodiversity FR voluntary schemes recognised by EC REDcert and ISCC specify definitions, such as: ‘native tree species’; ’areas serving purposes of nature conservation’; ‘natural’ and ‘non-natural highly biodiverse grassland’ ‘human intervention’

15. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de Biodiversity voluntary schemes recognised by EC NTA 8080 voluntary schemes not applied for recognition by EC guidelines of ‘Integrated Production’ must be respected in case of biomass cultivation Naturemade specify definitions, such as: ‘highly biodiverse grassland’ ‘species rich’ ‘human intervention’ 10 % of cultivation area of new production location shall be left with highest conservation value of concerned land various additional mandatory measures regarding restoration, preservation and strengthening of biodiversity no conversation of grassland extra points for high crop rotation Green Gas Label

16. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de Land Use Change EU legislation & regulation no biomass from land with previously high carbon stock: wetlands continuously forested areas peatland reference date: January 2008 COM 2010/C 160/01 specifies definitions and exceptions not to be fulfilled for biomethane from waste and residues BIOSURF partner countries Exclusion of biomass from areas which are protected by conservation laws AT voluntary schemes recognised by EC REDcert, ISCC and NTA 8080 specify definitions, such as: ‘wetlands’; ’continuously forested areas’; ‘canopy cover’ ‘peatland’ ‘human intervention’ information on land use since November 2005 required same as EU legislation also for RHI and RO UK

17. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de Feedstock EU legislation & regulation (ILUC Directive) 7 % limitation of the share of energy from biofuels produced from cereal and other starch-rich crops, sugars and oil crops and from crops grown as main crops primarily for energy purposes on agricultural land indicative 0.5% target for advanced biofuels (2017) double Counting for biomethane from certain materials (mainly waste & ligno-celluosic/non-food cellulosic biomass) BIOSURF partner countries feedstock allowed for biomethane production is: landfill waste agricultural matter (including energy crops, which use may be soon limited - except for intermediate crops) biowaste and household waste urban sludge FR exclusion of biofuels made of animal fats and oils, except: the contamination with animal fats and oils is negligible fats and oils which have been used for cooking separately collected biowaste certain listed waste material containing animal fats and oils no virtual separation in case of mixing substrates DE

18. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de Feedstock DE voluntary schemes not applied for recognition by EC maximum of 60 % corn and cereal grain higher tariffs are paid for electricity from biomethane produced from certain biomass (e.g. straw, clover grass used as catch crop, manure) Green Gas Label BIOSURF partner countries voluntary schemes recognised by EC REDcert and ISCC give guidance for the definition of waste and residues harmonised list of waste and residues eligible for double counting does not exist; member states make definitions extra points for mixed crops, clover leguminous crops no genetically modified organisms no use of glyphosate

19. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de Sustainable Farm Management & Protection of Soil, Water and air EU legislation & regulation common rules for direct support schemes for farmers known as ‘Cross Compliance’ need to be fulfilled BIOSURF partner countries no criteria in addition to EU legislation and regulation voluntary schemes recognised by EC REDcert and ISCC ISCC defines requirements for those countries, where Cross Compliance have not been implemented yet (Bulgaria and Romania) NTA 8080 Several additional mandatory measures in order to ensure: Preservation and improvement of soil quality; Preservation and improvement of water quality; no water from non-renewable sources is used; that the emission of harmful substances into the air is limited.

20. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de Additional Sustainability Criteria ‘Competition with food and local applications of biomass’: local prices cascading ILUC low risk voluntary schemes recognised by EC extra points for: high share of organic fertilizer and low intensity of pesticides high diversity of substrates small transport distances and plant capacity high energy efficiency certain use of biomethane NTA 8080 voluntary schemes not applied for recognition by EC Green Gas Label

21. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de Conclusions Common sustainability criteria in case of biomethane use as transport fuel are defined by EU legislation. Mayor burdens regarding biomethane cross border trade originate from GHG saving criteria and from individual defined criteria on the national level. These are mainly: missing default values of GHG saving potentials for biomethane from other substrates than municipal waste, liquid slurry and manure; prohibition of averaging GHG savings from biomethane of different substrates; individual criteria based on national legislation, such as limitation of feedstock. In order to overcome existing barriers of cross border biomethane trade with regard to sustainability certification, common criteria should become mandatory for all biomethane applications and national criteria should only focus on biomethane utilization.

22. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de Conclusions

23. © 2016 Institute for Biogas, Waste Management & Energy, Prof. Dr.-Ing. Frank Scholwin www.biogasundenergie.de Biogas – Key technology in Energy and material cycle of the future Prof. Dr.-Ing. Frank Scholwin Institute for Biogas, Waste Management & Energy Henßstraße 9, D-99423 Weimar Tel +49 (0)3643 - 7 40 23 64 Mobil +49 (0)177 - 2 88 56 23 Fax +49 (0)3643 - 7 40 23 63 scholwin@biogasundenergie.de www.biogasundenergie.de Thank you very much for your attention!