2. European Biogas Association
Cross-border biomethane trade for supporting the expanded use of methane as transportation fuel in Europe
Lodi, 19th June, 2015

3. Biomethane as vehicle fuel
Natural gas (NG) and biomethane are complementary to each other,
Bio-CNG and Bio-LNG are blends of NG and bioCH4 to be marketed jointly by NG and biogas industries,
The biomethane component improves the GHG emission reduction potential of CNG/LNG,
HDV’s, city buses, municipality vehicles, ships, etc.
Lodi, 19th June, 2015

4. Methane as vehicle fuel – forecast 2025
Source: Chris Le Fevre, Research Fellow Oxford Institute of Energy Studies OIES Paper NG84

5. The functions of cross-border trade:
Biomethane trade
The functions of cross-border trade:
a) balancing supply and demand on regional and European level (beyond national borders)
b) enabling production at places/regions with the highest comparable advantage
Lodi, 19th June, 2015

6. Challenges of biomethane trade
Value of biomethane:
physical (in use) value + intrinsic („bio”) value
Intrinsic value: „green”, renewable, sustainable
The intrinsic value can be quantified (GHG emission figure)
Condition for sustainable biomethane production:
intrinsic value must be realised on the market
Conditions for biomethane export/import:
The „bio” quality must be certified in the producing country
The „bio” qualification from the producing country must be acknowledged in the consuming country
The mass-balancing requirement must be met
Lodi, 19th June, 2015

7. Well-to-Tank GHG emissions indicative numbers
Source: JRC-EUCAR-CONCAWE (JEC) consortium WtT Report 2014

8. The arts of biomethane trade
Lodi, 19th June, 2015

9. which would address the following biomethane related issues:
Potential solution
As a potential solution we may suggest an
Annex to COM 2010/C 160/01
which would address the following biomethane related issues:
sustainability verification for biomethane injected into the European natural gas network,
cross-border transfer of volumes and mass balancing of biomethane in the European natural gas network,
definition of European natural gas network,
definition of national biomethane registries and their role in cross-border mass-balancing,
averaging GHG emission figures for biogas raw material mixtures.
Lodi, 19th June, 2015

10. National biomethane registries are needed
Independent, neutral, professional organisations
Established through government actions or voluntary cooperation of market players
Track, confirm and document the biomethane transactions along the contractual chain
Administrative support in meeting regulative requirements
Independent audit controls
Assisting trade development through building market confidence
Guarantees of Origin
Guarantees of Sustainability
Lodi, 19th June, 2015

11. Summary: Main factors for success
Overall development of NGV market
Right political priorities, political support for biomethane (as advanced biofuel)
Broad marketing cooperation between the natural gas and biogas industries
Monetizing the intrinsic („green”) value on the market
Reduction of biogas/biomethane production costs
Feasible possibilities for cross-border trade
Lodi, 19th June, 2015

12. Thanks for your attention!
Dr. Kovács Attila
European Biogas Association
Lodi, 19th June, 2015

13. ILUC Directive Annex IX – list of biogas raw materials qualified for double counting
”non-food cellulosic material” means feedstocks mainly composed of cellulose and hemicellulose, and having a lower lignin-content than ligno-cellulosic material; it includes food and feed crop residues (such as straw, stover, husks and shells), grassy energy crops with a low starch content (such as ryegrass, switchgrass, miscanthus, giant cane, cover crops before and after main crops etc), industrial residues (including from food and feed crops after vegetal oils, sugars, starches and protein have been extracted), and material from biowaste;
Lodi, 19th June, 2015

14. Biogas industry in Europe
Biogas production:
~ 15,7 Mrd m3 methane/year,
~ 3% of NG consumption
BioCH4 production:
~ 1,0 Mrd m3 methane/year
~ 0,3 Mrd m3 used as vehicle fuel
~ biogas plants
~ 300 upgrading units
BioCH4 production in: AT, CH, DE, DK, ES, FR, FI, HU, IS, IT, LX, NL, NO, SE, UK
Source: EBA Biogas Report 2014

15. Woodfuel UK Source: REA

16. Lodi, 19th June, 2015

17. Biomethane – national markets
UK: Fixed FIB + gas market value up to 11,0 €Cent/kWh
FR: Fixed FIT 6,4 – 9,5 €Cent/kWh
depending on capacity (350 m3/h– 50 m3/h) and substrates
example: 150 m3/h, 50% manure+50% org. waste > 9,38 €Cent/kWh
DK: Guaranteed biomethane feed-in-bonus (FIB)
IT: FIT set by law, 8,0 – 10,0 €Cent/kWh
NL: SDE+ scheme, „biotickets” for vehicle fuel use
AT: „Technologiebonus“ at green electricity generation
DE: Biofuel GHG emission reduction certificates
SE: Complex support system, incl. tax relief
FI: Tax relief, (high taxes for fossile vehicle fuels)
NO: Tax relief till end 2015
Kecskemét, 23rd April, 2015

18. Biomethane quality will be regulated by CEN standards elaborated in TC 408 a) for grid injection b) for vehicle fuel use
Kecskemét, 23rd April, 2015