1. European Biogas Association The evolution of the European market for biomethane as transportation fuel London, 16 th December, 2015

2. The future is on its way… Source: Sofia Nordström, FordonsGas Sverige AB

3. Biomethane in transport Natural gas (NG) and biomethane are complementary to each other, Bio-CNG and Bio-LNG are blends of NG and bioCH 4 to be marketed jointly by NG and biogas industries, The biomethane component improves the GHG emission characteristics CNG/LNG, Biomethane must be made available all over Europe

4. Challenges and tasks Political: equal treatment of domestic and imported product harmonisation of national support systems support for biomethane (as advanced biofuel) investment protection Virtual volume transfer through mass balancing in the European natural gas network Cross-border transfer of sustainability claims London, 16 th December 2015

5. Well-to-Tank emissions Source: JRC-EUCAR-CONCAWE (JEC) consortium WtT Report 2014

6. Well-to-Wheel emissions Source: Matthias Maedge (NGVA), dena, JEC

7. Methane as transportation fuel Source: Chris Le Fevre, Research Fellow Oxford Institute of Energy Studies OIES Paper NG84

8. CNG/LNG in road transport (Bcm) Source: http://www.acer.europa.eu/Media/News/Pages/Road- transport-expected-to-lead-the-new-uses-of-gas-up-to- 2025.aspx

9. Biomethane potential 10 9 m 3 /year

10. 10.000.000 m 3 natural gas 10.000.000 m 3 natural gas Market

11. European biomethane grid BioCH 4 value = physical value + intrinsic value BioCH 4 grid = NG grid + mass balancing European natural gas grid to bring the physical value to the market + Administrative system for transferring the intrinsic value from the producer country to the consumer country (applying the mass balancing method) London, 16 th December 2015

12. Three pillars of cross-border biomethane administration 1. Sustainability verification covering the production of biomethane to be completed prior to grid injection. 2. Recognition of the European natural gas network for single logistical facility with regard to biomethane injected into the grid. 3. Mass balancing of injected and withdrawn biomethane in the European natural gas network London, 16 th December 2015

13. Cross-border transfer of sustainability claim The sustainability verification for biomethane injected into the European natural gas network for export purposes should consist of two steps : 1) the first part of the chain of custody – from raw material supplies through production/upgrading till grid injection – will be covered by one of the established sustainability verification procedures, exactly like in case of liquid biofuels, 2) the second part of chain of custody – from the moment of grid injection till the withdrawal by the end-user – will be covered by the new voluntary scheme applying the mass balancing methodology

14. Possible ways for the cross-border transfer of sustainability claim 1. International cooperation among the national biomethane registries covering the cross-border transfer of the sustainability claims together with the cross-border transfer of quantity, 2. Voluntary scheme recognized by the Commission for the special purpose of mass balancing biomethane distributed along the European natural gas network, 3. European Biomethane Registry London, 16 th December 2015

15. Suggested administrative solution As the potential solution the BIOSURF Deliverable 3.2. suggests an Annex to COM 2010/C 160/01 which would address the following biomethane related issues : 1. recognition of the European natural gas network as a closed logistical facility with regard to mass balancing of biomethane injected for export, 2. definition of European natural gas network (with respect to mass balancing), 3. sustainability verification for biomethane to be completed through mass-balancing in the European natural gas network London, 16 th December 2015

16. Thanks for your attention! Dr. Kovács Attila European Biogas Association kovacs@european-biogas.eu London, 16 th December 2015

17. Back-up files

18. Introduction Value of biomethane: physical (in use) value + intrinsic („bio”) value Physical value: corresponds to prevailing market value of natural gas Intrinsic value: „green”, renewable, sustainable The intrinsic value can be quantified (GHG emission data) The intrinsic value must be realised on the market, in case of international trade it must be transferred cross-border Conditions for biomethane export/import: The „bio” quality must be certified in the producer country The „bio” qualification from the producer country must be acknowledged in the consumer country London, 16 th December 2015

19. The arts of biomethane trade London, 16 th December 2015

20. National biomethane registries Are needed in every biomethane producing country Independent, neutral, professional organisations Established through government actions or voluntary cooperation of market players (preferably with government mandate) Track, confirm and document the biomethane transactions along the contractual chain Administrative support in meeting regulative requirements Independent audit controls Assisting development of trade through building market confidence Brussels, 03 rd September, 2015

21. Main factors for success 1. Overall development of NGV market 2. Right political priorities, political support for biomethane (as advanced biofuel) 3. Broad marketing cooperation between the natural gas and biogas industries 4. Monetizing the intrinsic („green”) value on the market 5. Reduction of biogas/biomethane production costs 6. Feasible possibilities for cross-border trade