1. Biomethane Roadmap in Germany
Frank Hofmann
German Biogas Association

2. Present situation - 1
Germany was Europe’s most evolving market ; market growth for biomethane is now slower
2014: Renewable Energy Sources Act („EEG”) was amended with the result of lower feed-in tariffs
Biomethane plants usually have biogas production at high volume rates which was mainly based on energy crops  only some new plants
No bonus for upgrading technology, no special tariff for energy crops anymore
Current biomethane production can continue for the duration of the feed-in tariff grant (20 years)
Some projects stopped because the other markets (heat sector and use as fuel) are growing very slowly if at all

3. Present situation - 2
Currently about 9,000 biogas plants in operation with a installed capacity of GWel
About 200 new biogas plants in 2015: mainly small manure based plants (max. 75 kWel and more than 80% manure input)
Decline in jobs: 44,000 (2014: 45,000 jobs)
Internationalization of the German Biogas/Biomethane industry is becoming more and more important
Main growing EU-markets are UK, Italy and France

4. Figures on Biomethane - 1
Currently about 190 feed-in plants in operation
about 180,000 Nm³/h inst. capacity (raw biogas)
80% of the biomethane from energy crops
2015: about 15 projects started operation
range from 200 Nm³/h – Nm³/h for the installed raw biogas capacity

5. Figures on Biomethane - 2

6. Figures on Biomethane - 3
80 % of the biomethane is used in CHP plants
10 % for heat and 10 % for fuel
About 120 biogas filling stations in operation; additional about 170 filling stations offer a blend of biomethane and natural gas
Political goal:
2020: 6 billion Nm³/a
2030: 10 billion Nm³/a
“The political goals are not longer relevant”

7. Barriers
CHP sector
no sufficient compensation according to the Renewable Energy Sources Act
Heat market
sole heating applications are hardly supported (obligation to use in CHP due to higher CO2-reduction), except in the state of Baden-Württemberg
Fuel sector
stagnating CNG vehicles sales
new CO2-Quota bears many risks and uncertainties
lack of transparency, price signs at fuelling station
International Trade
Prohibitive national legislations
lack of EU-wide mass balance system

8. Drivers
Due to the barriers mentioned above, national drivers are rather scarce at the moment
Yet: growing interest in German biomethane upgrade technology and cross-border trade from abroad

9. Perspectives of development
There is still a significant potential for development (e.g. organic household waste, manure…)
The future role of biogas/biomethane in the electricity sector will be to provide flexibility to the system (balance fluctuation from wind and solar energy)
The transportation sector is a huge potential for biomethane. More Renewables in transport sector are needed but electrification is limited. Political support needed
Independency of foreign gaseous sources might become a more important issue for the EU
Trend: Liquefaction of methane (and separation of pure CO2)  BIO-LNG

10. What‘s next in the future
The next reform of the Renewable Energy Sources Act is coming up in 2016
Tender system is going to be introduced for all renewables with 2016 reform
The government is currently revising the electricity market system as a whole and has announced to make major changes to the current design by 2016
(Fossil) CHP-legislation is under revision, possibly with a new momentum regarding CO2-saving and chances for biomethane, also regarding future revision in 2018
THG-Quota in the fuel sector is to be implemented and proven in practice
International barriers need to be addressed in order to provide market uptake

11. Thank you for your attention!
Frank Hofmann
Consultant International Affairs
German Biogas Association
Telefon +49 (0)