A spring-board for your exports

SECTOR HANDBOOK
BIOGAS
Prepared by the CrossBorder
Bioenergy Working Group
A spring-board for your exports. on biogas

Cross Border Bioenergy supports the

bioenergy industry in going international
to diversity its sales markets

Cross Border Bioenergy supports the

bioenergy industry in going international
to diversify its sales markets.
Interested in Cross Border Bioenergy Project?

This project is designed to help SMEs to evaluate markets in

Europe and support their decision-making process to invest in
them.
Join the Cross Border Bioenergy network and benefit from
exclusive information on European markets. There are absolutely
no cost associated with the use of the network.

www.CrossBorderBioenergy.eu

German BioEnergy Association (BBE)

Thomas Siegmund
Godesberger Allee 142-148
DE-53175 Bonn
Tel.: +49.(0)228.81 002-23
Fax: +49.(0)228.81 002-58
Email: siegmund@bioenergie.de
URL: www.bioenergie.de
 Cross Border Bioenergy Project

SECTOR HANDBOOK
BIOGAS
Prepared by the CrossBorder Bioenergy Working Group on biogas
 1. Introduction to market
sector

The production and use of biogas is seen but also in artificial systems like landfills,
as one of the most promising bioenergy lagoons, and specially designed tanks in
technologies due to its broad feedstock biogas plants, then called anaerobic di-
basis and various forms of application. gesters.
Several countries worldwide seek to
promote the biogas technology as part In a biogas plant, biomass is fed into a
of the bioenergy market. However, there digester for a period of several days, in
are significant differences compared to which archaebacteria under exclusion of
other bioenergy technologies in terms of light and oxygen decompose the mate-
feedstock, technologies, market requi- rial, with biogas as product. It is a gas
rements and business operators which mixture, consisting of mainly methane
need well-directed and intrinsic appro- (CH4, 40 to 75 %), carbon dioxide (CO2,
aches. 25 to 60 %), and other gases (hydrogen,
hydrogen sulphide and carbon monoxi-
This report aims at shedding light on de). As methane is also the main compo-
the biogas market structure, its mode of nent of natural gas, the composition of
operation and the specific requirements biogas resembles the characteristics of
needed by business operators to enter natural gas and therewith provides ma-
the market. It focuses on the fermenta- nifold ways of application.

Sector handbook biogas

tion of agricultural biomass and organic
wastes and residues, but although the- Components of a biogas CHP plant
re is definitely a huge potential in several
European countries as well it doesnt A typical biogas plant exists in general
explicitly consider landfill gas and bio- of three different units: the feedstock
gas produced out of sewage sludge. Yet, storage and loading system, the diges-
much information provided in this report ter in which the biogas is produced and
will still be of value for related stakehol- finally the CHP unit for the utilization of
ders. the biogas, resp. the upgrading unit for
the biomethane grid injection.
1.1 Conversion and feedstock The feedstock storage and loading sys- 4
tem of an agricultural biogas plant con-
Biogas is a combustible gas which is sists usually of a liquid manure store and
produced with micro organism assistan- a store and feed-in unit for solid mate-
ce during the decay of organic materials rial, which can be fed into the digester
like manure, agricultural feedstock or automatically by a conveyor. If solid
bio-waste in an anaerobic, or oxygen- substrates are used, a suitable metering
free, environment. Oxygen-free condi- device is needed, large enough to even
tions occur in natural systems such as out variations in the amount of available
the bottom layers of wetlands and bogs, substrates. If co-substrates are being
 IEE/09/933/SI2.558306

Figure 1: Biogas value chain

Sector handbook biogas

Biogas value chain

used, Components
additionalofbuildings
a biogas CHP mayplantbe requi- that the material is equally distributed
red to receive and treat the feedstock within the digester and that the produ-
A typical
according to biogas
their plant exists in general Also
characteristics. of three different
ced gas units:
cantheescape
feedstockfrom
storage
theand loading
substrate.
the removal
system, theofdigester
contraries
in which is
the especially
biogas is produced With somethe
and finally feedstock
CHP unit forlike
the chicken manu-
utilization of the
important
biogas,for the
resp. theprocess
upgrading tounitrun without
for the biomethane regrid or organic wastes dischargers could
injection.
disturbance and to maintain a high qua- be necessary to remove sedimentation
lity ofThe
thefeedstock
remaining storage and loading system of an agricultural
digestate. biogas plant
layers. Usually theconsists usually
digester of a liquid
is completed
The digester
manure storeis theand place
a store where the unit
and feed-in fer-for solid
with a digestate
material, which can storage
be fed tank
into the fordigester
the fer-
mentation of the
automatically by a feedstock to substrates
conveyor. If solid biogas are mented biomass.
used, a suitable metering device is needed, large 5
takes enough
place.toThe evendigester is fed
out variations in thewith
amounttheof available
The CHP unit Ifisco-substrates
substrates. mostly placed are beingin aused,
com-
feedstock either continuously or discon- pact container or a building close to the
additional buildings may be required to receive and treat the feedstock according to their
tinuously and can have various designs digester. Here, the biogas is converted
(steelcharacteristics.
or concrete,Also the removalorofvertical,
horizontal contraries is especially important
to electricity and for heat.
the process to run without
Depending on the
etc.) depending
disturbance and toon the achosen
maintain high qualitytech- capacity
of the remaining of the biogas plant gas engines
digestate.
nology and manufacturer. All have to be and pilot injection engines are most com-
The digester is the place where the fermentation of the feedstock to biogas takes place. The digester
gas- and watertight as well as comple- mon, reaching an efficiency of approx.
is fed with the feedstock either
tely opaque. A stirring device ensures continuously or discontinuously
45 % forand thecanelectricity
have variousgeneration.
designs (steel or The
that the substrate
concrete, remains
horizontal homogenous,
or vertical, etc.) depending heat
on the is for the
chosen mostand
technology part produced
manufacturer. All by
have to be gas- and watertight as well as completely opaque. A stirring device ensures that the
substrate remains homogenous, that the material is equally distributed within the digester and that the

2
 IEE/09/933/SI2.558306

the engine cooling water and with even Different types of biogas plants
produced gas can escape from the substrate. With some feedstock like chicken manure or organic
higher temperatures by exhaust gases,
recovered
wastes by means of
dischargers a heat
could exchanger.
be necessary to removeInsedimentation
general therelayers. are two
Usually the different
digester is ty-
By the parallel
completed withproduction
a digestate storage of electricity
tank for the fermentedpes biomass.
of biogas plants being considered
and heat the CHP units can reach a total in the CrossBorder Bioenergy project:
The CHP unit is mostly placed in a compact container or a building close to the digester. Here, the
efficiency between 80 and 90 %. While those using mainly agricultural material
the electricity is fed into the electricity
biogas is converted to electricity and heat. Depending as
on feedstock
the capacity ofand thoseplant
the biogas utilizing organic
gas engines
grid, and
thepilot
heat is either used on-site by wastes. Depending on
injection engines are most common, reaching an efficiency of approx. 45 % for the electricitythe feedstock,
the operator
generation. to Thesatisfy
heat is forhistheown
mostheat de-
part produced bythe
the design, technology
engine cooling water and and other
with even requi-
higher
mand, or it is fed into a district heating rements on the biogas plant have to be
temperatures by exhaust gases, recovered by means of a heat exchanger. By the parallel production
grid to supply different customers with adopted.
of electricity and heat the CHP units can reach a total efficiency between 80 and 90 %. While the
heat and therewith gaining an additional For example: a biogas plant using or-
income. If there
electricity is fed is
intonothemeaningful
electricity grid, way
the heattois either
ganic
used wastes or operator
on-site by the residues like his
to satisfy theownwas-
use the
heat heat,
demand, it or
is italso
is fedpossible to utili-
into a district testo from
heating grid supplythe foodcustomers
different industry, withfood
heat scraps,
and
se the heat for
therewith a downstream
gaining an additional income.electricity grease traps
If there is no meaningful or the
way to use slaughterhouse wastes
heat, it is also possible
production with an Organic Rankine Cy- are required to hygienise the material
to utilise the heat for a downstream electricity production with an Organic Rankine Cycle (ORC)
cle (ORC) System. meaning to treat them over a defined
System.
Figure 2: Principle of the biogas system (Source: AEE)

Sector handbook biogas

Principle of the biogas system (Source: AEE)

 MT-Energie UK LTD
period at high temperature, which needs
additional technology compared with
agricultural plants. Also the composition
of the batches can differ from day to day
so that an adopted, robust technology
is needed capable to handle different
feedstock qualities without problems.
But in recent years also the upgrading of
The feedstock is generally delivered by
biogas to biomethane gained more and
truck which also requires a well-develo-
more significance.
ped road network, and to avoid odour
emissions the receiving unit of the bio-
The refinement of biogas to
gas plant is mainly installed in a closed
biomethane
hall leading to extra-costs.
In contrast, a biogas plant using energy
Biogas can be treated and upgraded to
crops and manure has a different pro-
the quality of natural gas (then called
ject design, as the farmer harvests the
biomethane) and fed into the natural
crops and preserves them on-site as si-
gas grid, which opens the door to a who-
lage, which is then moved to the hopper
le new range of possibilities. It enables
of the plant by wheel loader. As there
biomethane to be used more centralized

Sector handbook biogas

is hardly a daily delivery of fresh ma-
at sites with optimal heat demand and
terial, this methodology requires much
achieves maximum efficiency with CHP.
more space for the storage/silage faci-
An exclusive use in high-efficient gas-
lities, but on the other hand the quality
condensing boilers for residential space
of the feedstock remains more or less
heating is possible, too, but not yet pre-
equal, allowing a better adjusting of the
valent. Also it can be used as transport
technology to the feedstocks characte-
fuel in natural gas vehicle at filling sta-
ristics. Also, theres no need for costly
tions with an adequate infrastructure.
buildings to reduce odour emissions at
The first steps of the biomethane pro-
the feedstock receiving unit.
duction are usually same than for biogas
Independent from the type of feedstock 7
CHP. The raw biogas is produced in a di-
or project design, bacteria degrade the
gester, but instead of utilising the bio-
biomass feedstock to biogas within the
gas directly e.g. in a CHP unit on-site, it
digester. As high value energy carrier
is upgraded to biomethane. Generally it
this biogas is suited for heat and elec-
can be said that the upgrading techno-
tricity generation in CHP plants as well
logy replaces the CHP unit on-site of a
as providing gas for cooking, lighting,
biogas plant. For the upgrading (and grid
hot water supply, drying and cooling. In
injection) of biomethane there are seve-
Europe biogas is mainly used on-site for
ral requirements to be considered.
decentralized cogeneration applications.
First of all, the raw biogas has to be
 a gas quality of 92 to 98 % can be rea-
ched, the methane slippage is said to be
in a range between 0,5 to 1,2 %. As the
biomethane is already compressed du-
ring the purification process, the pressu-
rised water washing matches very good
Weltec BioPower to projects, which intend to feed their
biomethane into a high-pressure gas
grid.
Another applied technology is the ami-
ne gas treatment, with which the carbon
dioxide is removed from the raw biogas
in a chemical reaction. The gas has not
to be compressed in this process, redu-
dried, desulphurised, contraries remo-
cing power consumption, but the pro-
ved and the biogas enriched to approx.
cess temperature is 160 degree Celsius,
90% methane content. Further on, at
applying therefore for projects where
the injection station the biomethane has
the heat output e.g. of a CHP plant is
also be compressed and odourised. For
not fully utilised yet. Other technology
this there are several technologies avai-

Sector handbook biogas

providers offer a methodology where
lable. Which technology applies best to
the raw biogas is also compressed, but
a planned biomethane purification pro-
cooled down below 40 degrees. In a bed
ject is very much dependent on the raw
reactor of solid activated carbon, carbon
biogas potential of the biogas plant, and
dioxide and other impurities are remo-
the requirement of the natural gas grid
ved.
into which the biomethane is to be fed
Especially for small scale projects, which
in, that is to say whether it is a high-
may be too small for the natural gas
pressure or low-pressure pipeline.
network but suited e.g. for farm-sited
The pressurized water washing is the
gas filling stations, an upgrading process
most common technology at the mo-
based on membranes is offered on the 8
ment, based on experiences from natu-
market. Here, the gas is also compres-
ral gas production. Raw biogas is com-
sed up to seven bar and forced through
pressed, sent through an absorption
a membrane. Because the carbon dioxi-
segment and sprayed with water. Car-
de molecules are smaller, they pass
bon dioxide, hydrogen sulphide and am-
through the membrane more quickly.
monia are separated out and remain in
This technology reportedly produces a
the water, while the methane remains as
gas quality between 95 to 97 % biome-
a gas. For this process, no process heat
thane content.
is required, but the compression consu-
mes a good amount of electricity. While
 Weltec BioPower
1.2 Markets and prospects
Globally biogas has started to be ack-
nowledged as one of the most upfront
technologies for energy production.
There are different motivations to start
business. Usually, the biogas market de- be too much foreign, non-biogenous
velopment starts within the field of bio- matter in the batch and the efforts for a
waste digestion as a method to treat pre-treatment to costly.
and upgrade organic wastes. Especially Beneath, the utilization of by-products
for companies in the food and other bio- and energy crops in agriculture is seen
mass processing industries, where huge to be very promising as an alternative
amounts of organic wastes (apart of ce- market for farmers. While regulations,
llulose material like wood, which cannot which limit the dumping of untreated
be processed in biogas plants) accrue, organic wastes on landfills or which re-
biogas extraction and utilization offers quire measures to limit odour emissions,
significant benefits, like additional in- encourage the biogas market as organic
come by selling energy to the markets waste management method, more and
resp. a substitution of costs for self-nee- more feedstock from agriculture enter

Sector handbook biogas

ded process energy, while reducing dis- the market solely aiming at producing
posal costs for the wastes at the same energy. Hence bio-waste treatment as
time. For external plant operators on the motivation for the biogas market deve-
other hand the fermentation of bio-was- lopment is complemented by the cons-
tes from industry promises a low-cost cious production of energy bio-wastes
feedstock supply or even a chance of re- and biomass in general regain a status
ceiving a disposal fee in addition to the as valuable resource instead of costly
income of the energy sells. waste.
It is obvious that there are many diffe-
rent kinds of organic wastes available It is expected that the development of
like separately collected bio-wastes of agricultural energy crops will play a key 9
households, garden and park wastes, role in future European biogas markets.
waste food, slaughterhouse waste or The benefits are obvious: Energy crops
residual material from food processing. and agricultural by-products (manu-
Not all fractions are suited for biogas re and crop residues) are becoming a
production in the same way. Each kind highly-sought raw material which crea-
of waste must be considered indepen- tes additional income. And even more,
dently. Especially organic wastes from the digestate, which is a mix of water,
households which are not collected se- minerals and not decomposed organic
parately are hardly suited as there would substances, can be used as a high-grade
fertilizer on-site or sold to increase inco- market growth. The main development
me. Biogas is becoming an integral part took part in OECD countries (especially
of agriculture. Hence, the growth poten- in Germany, USA, United Kingdom and
tial, especially of agricultural based bio- Italy)2 . Also a number of developing
gas plants, is very high, particularly in countries have now entered the market,
Europes large agricultural countries. but with 4 GW installed capacity (out of
An increasing importance of agricultu- 5 GW installed in total globally) and 24
ral biogas plants is also reflected in the TWh produced electricity in 2007, Euro-
statistics: in 2007 approximately 6 Mtoe pe covers two third of the global biogas
biogas have been produced in Europe, market and is therewith the most ad-
half of which (2,9 Mtoe) as landfill gas, vanced market for biogas3.
but already 2,1 Mtoe based on agricul- Biogas is also being used as biomethane
tural feedstock1. In fact, the highest in- in very limited quantities for transpor-
crease of biogas production compared tation, but still this is a niche market so
to 2006 took place in the field of agricul- far. To be used in the transport sector
tural plants (plus 20,5 %). in a large scale, biomethane has ideally
Despite this huge variety of different to be fed into the natural gas grid to be-
feedstock or stakeholders behind, most nefit from its infrastructure. But despite
biogas plants have one thing in com- ambitious voluntary targets e.g. in Ger-

Sector handbook biogas

mon: the majority of the produced bio- many, which targets to feed bn6 Nm
gas is used for electricity generation so biomethane into the natural gas grid in
far, although the feeding of biometha- 2020, several obstacles still have to be
ne into the natural gas grid gained a removed. But once the framework con-
great impetus in recent times. In 2008 ditions are set in the right way, the tech-
approximately 30 TWh electricity were nology of biogas upgrading and feeding
produced and therewith 7 % more than into the grid will face a strong growth
the year before, which indicates a strong dynamic throughout Europe.
For example, to reach the German vo-
luntary target of feeding bn6 Nm bio-
methane into the natural gas grid in 10
2020, approximately 1.500 additional
biogas plants with an average thermal
capacity of 5 MW will be needed. So far,
MT-Energie UK LTD

in 2009, approximately 90 biomethane

plants were installed in Europe with a to-
tal capacity of 300 MW.

1
EurObservER (2008): Biogas Barometer
2
REN21 (2010): Renewables 2010. Global Status Report. Paris.
3
Witt, J., Kaltschmitt, M., Viehmann, C. (2009): Erneuerbare Energien Stand 2008
weltweit und in Europa. In: BWK 1/2, 2009
 MT-Ener
1.3 Export potential cy), a lower price at comparable quali-
ties or simply the solution of a problem
The principle of biogas production is not which hasnt been solved so far, resp.
a new technology. The first biogas plant the service of an unsatisfied demand,
known to mankind was documented from meaning: it is simply not available yet.
ancient Persia as simple covered pit. Es- This general rule is also true for biogas
pecially motivated by last-centurys ener- technology.
gy crises, but also triggered by fighting Not all components of a biogas plant
global warming within the last decade, require sophisticated technology (like
several companies made great efforts in construction works of digesters made of
developing the rather simple principle of concrete, which can also be build by local
producing a biogas by digesting organic craftsmen with local material, but may-
material to a high efficient and modern, be to lower prices) and therewith dont
sophisticated technology. apply for exports. Other components
These companies, mainly based in coun- however are based on longstanding ex-
tries with already well-established bio- periences and development processes,
gas markets, have consequently a te- e.g. stirrers and loading systems, fla-
chnology advantage compared to those res, gas washing units and of course the
in starting-countries, and therewith the CHP- or upgrading units, which risk dis-

Sector handbook biogas

opportunity to sell their products abroad, turbances and wear-out failures of the
while the purchasers (investors) of the biogas plant if they are not adapted to
components will benefit from leap fro- the used feedstock and project design.
gging, meaning that they can avoid The technical development in recent
negative experiences due to immature years was especially characterized by
technology and having best-available te- detailed improvements concerning the
chnology at hand. In combination with enhancement of process reliability and
the huge feedstock basis, manifold appli- availability of the biogas plant, an in-
cations and strong political drive behind creased working life of the system and a
this provides the biogas technology ex- significant rise of the electrical efficien-
cellent potentials for export. cy of power generation modules. Which 11
But when defining the export potential technology is used is very much depen-
of a biogas technology, not every com- ding on the kind and available amount of
ponent of a biogas plant is suited for ex- the feedstock, which decides on the size
port activities. In general, a product to and design of the digester, the amount
be offered on international markets has of produced biogas and consequently
to provide clear benefits compared to lo- the installed capacity of the power ge-
cal competitors in the target country. It neration unit.
can be technological advance (indicated For example, practical experiences have
e.g. by better quality or higher efficien- shown that combustion engines are sui-
 services and know-how. Both, the plan-
ning of a biogas plant same than its ope-
ration and maintenance need excellent
know-how and long lasting expertise.
There are many examples known in li-
terature and practice of failed projects
because they were wrong dimensioned,
based on not to local conditions adopted
MT BioMethan

technologies or simply handled or ope-

rated the wrong way typical mistakes
which can be avoided by new actors by
reverting to experienced project deve-
lopers, who can objectively advise on
ted best to handle different biogas quali- project designs, capacity and adequate
ties, which can vary during the fermenta- technology for the available feedstock.
tion process. They can reach efficiencies Also maintenance services or regular
of up to 45 %. Most common are gas analyses of the digestate or bacteria
engines and pilot injection engines. Ge- can be taken over by specialized com-
nerally spoken, gas engines are used in panies.
plants with an installed electric capaci-

Sector handbook biogas

ty of more than 250 kW, pilot injection
engines however are applied more com- 1.4 Target group of the
monly in systems with a electric capaci- CrossBorder Bioenergy pro-
ty of up to 350 kW, Also a combination ject
of both technologies has proven to be
effective: gas engines for base load ope- The CrossBorder Bioenergy project
ration, and a pilot injection engine for addresses mainly companies in the bio-
start-up-, peak load and backup opera- gas business looking for a long-term
tion. commitment abroad, e.g. by investments
With view on the manifold components into foreign branches or developing lo- 12
and processes of a biogas plant, espe- cal market sectors to gain a high market
cially the development of advanced mea- share rather than exporting one or just
suring and process equipment, intensive a few units of their products or services
biochemical research experiences and to a single project. However, where the-
high-level engineering services offer ex- re is a market with an attractive market
cellent export potential in less developed volume for foreign investments, there is
biogas markets. of course also potential for single pro-
jects.
Besides technology or hardware, there Especially providers of turn-key biogas
is also a huge potential for the export of
projects covering all steps of a successful
project implementation from planning
and consulting to implementation, ope-
ration and maintenance and project
developers are addressed first. These
companies will most probably pave the
way for many up- and downstream tech-
nology providers, component suppliers
and service companies, following the
pioneering company.
But also for companies and institutions
in the finance sector like investment
funds or even banks are targeted as the
information provided by the CrossBor-
der Bioenergy project will give a clue
on favourable investment opportunities,
risks and factors to be considered when
granting credits.
Last but not least the benchmark deve-

Sector handbook biogas

loped by the project consortium will give
policy makers an indicator of the success
of the political framework conditions in
their country aiming at developing bio-
energy markets resp. recommendations
on how to improve them to satisfy the
requirements of the bioenergy industry
as defined during the project.
MT-Energie UK LTD

13
2. Characterisation of market
sector

Market handbook biogas

14
EBA
The assessment of the attractiveness of be operated by a single farmer on-site
biogas markets has to consider diffe- of the farm, will be in a consortium of
rent kind of market sectors and project several farmers or will it be an indus-
designs, which have different characte- trial plant operated by utilities or other
ristics and different stakeholders invol- industry stakeholders? The answers to
ved and therewith require also different these questions are linked with different
technologies with different chances on requirements on the project design, of
international markets. financing issues, feedstock supply, the
As the direct use of biogas for lighting choice of technology etc. and lead to di-
and cooking for instance is more relevant fferent potentials in relation to the cho-
in developing countries to serve basic sen approach.
energy needs, it is not common in indus-
trial countries and has no relevance in Thus, the market evaluation for biogas
Europe. The principle behind these very within the CrossBorder Bioenergy-pro-
small scale installations is quite simple, ject has to bear different attractiveness
for good reason not very sophisticated in mind depending on the type of pro-
and doesnt need highly developed te- ject considered. Generally they can be
chnologies. As it is also the aim of those classified in:
projects, that they can be easily realized

Sector handbook biogas

by local people with local material, this A) Small-scale, farm-sited biogas
sector is not primarily targeted within plants with agricultural feedstock, ope-
the market attractiveness assessment rated by a single farmer,
of the CrossBorder Bioenergy-project, B) Medium to large scale biogas plants
although of course there may exist com- using agricultural feedstock or bio-was-
panies which develop suited solutions for tes, but operated in joint venture of di-
home based biogas installations as well, fferent farmers or stakeholders and
but still this is to be seen as exemption. C) The upgrading of biogas to biome-
As described above, the main application thane and its injection into a natural gas
for biogas in industrial countries is still grid.
the generation of electricity and to a 15
lower extend of heat. But again there 2.1 Small-scale,farm-sited
are many different aspects to consider.
Who is the investor or operator and for biogas plants
what reason? Is it to benefit from pu-
blic subsidies for the production of re- This type of biogas plants is characteri-
newable energy, or is it to treat organic sed by a rather low electric capacity of
wastes for environmental reasons, to 50 100 kWel, installed on the premises
save disposal costs or to reduce exter- of the investing farmer and is both finan-
nal energy needs? Will the biogas plant ced and operated by the farmer. In most
cases it is financed with equity capital of
the farmer and credits, which makes the cultural residues and manure.
creditworthiness of the farmer decisive Thus, profound consultancy in planning
for bank credits. The farmer is liable for and designing a biogas plant, which is
the payment of the instalments with his adapted to the conditions on-site and in-
farm property meaning a high personal tegrated best into the daily business of
risk for the farmer. the farm, can become a well-demanded
This makes the integration of a biogas service. In terms of technology it is not
plant into the daily processes on a farm only important to find the best technolo-
utmost important, although the farmer gy for the utilised feedstock and offered
usually acts in multiple functions: as in the required scale/capacity, but also
feedstock supplier by using manure, resi- to have a sturdy technology which can
dues or energy crops from his own farm, be managed by a rather inexperienced
as plant operator in charge of loading, farmer, too.
monitoring and maintaining the biogas
plant and as craftsmen keen to take 2.2 Medium to large scale
care for as many tasks as possible for
cost reasons. Nevertheless, the efforts biogas plants with agricultural
linked even with a small-scale, farm-sited feedstock or bio-wastes
biogas plant mustnt be underestimated

Sector handbook biogas

especially in terms of time needed for In comparison with small agricultural
the operation and maintenance, but also biogas plants, medium to large scaled
in view of know-how needed to sustain a projects (> 350 kWel) are amongst
continuous fermentation process and to others characterized by a much lar-
minimize deadlock time. ger investment volume of 1 million and
The motivation for the farmer lies in gai- even higher. This makes them usually
ning an additional income to his daily too expensive to be financed by a single
farm business, based on the conditions/ farmer. Hence, projects like this are ope-
potential on his farm. Thus, usually farm- rated by a project consortium of two or
owned residues, manure and/or energy several stakeholders having a legitimate
crops are utilized, the biogas plant plan- interest in developing a biogas plant. By 16
ned accordingly. This means for exam- doing so, more equity capital is available
ple, that a farm with 100 cattle would and risks can be shared. Most commonly
have a potential for a 30 kW power unit. these stakeholders are farmers, was-
Usually livestock farming and dairies can te disposers, municipalities, utilities or
be found in regions with a high share of plant manufacturers, all bringing-in their
grassland, making those regions poten- specific know-how and strength: feeds-
tially peculiar attractive for technology tock supply, construction and operation
providers and project developers, focu- of the biogas plant, sales and marketing
sed on rather small capacities and agri- of the produced energy.
The portfolio of suitable feedstock pro- itself, but in the expected cash-flow of
vides a bright range, but an economic the project. This in turn requires a so-
operation of a biogas plant with a ca- lid, long-term planning security for the
pacity of 350 kWel or bigger requires in project, which makes, with view on the
general a higher share of feedstock with strong dependency of biogas projects on
a high energy density, like energy crops, public support, the design and maturity
to avoid a long and costly transportation of these support schemes a key factor
of the biomass. This makes larger bio- in the banks financing decision process
gas projects particularly interesting in and therewith of a successful market de-
regions with a good potential of availa- velopment.
ble, energy-rich bio-wastes or with farm
land for energy crop cultivation. Though 2.3 Biomethane upgrading
energy generation costs are lower due
to scale effects and higher energy yields As biomethane is one of the most flexible
of the feedstock, it mustnt be forgotten RES energy carriers, it can be used for
that there are also higher risks in terms electricity in CHP on-site or transported
of feedstock supply (and prices), higher via pipeline to remote generators, for
efforts for the acquisition of farmers and heat on-site, by district heating grids or
farm land, and higher costs for conditio- directly as natural gas substitute in do-

Sector handbook biogas

ning and storage facilities. mestic space heating systems, or even
Another crucial difference to small scale for transportation in natural gas vehicles.
projects is the fact, that medium scaled The criteria to assess the attractiveness
biogas plants are often project finan- for upgrading biogas to biomethane fo-
ced. This means that banks (or inves- llow the same principles in the beginning
tment funds) are not so much interested of the process.
in the creditworthiness of the investor
The core process of the production of
the raw biogas is the same than for bio-
gas CHP plants. It is based on the same
feedstock and technology. But instead of 17
utilizing the biogas immediately in a CHP
unit, it is subject to several refinement
processes before it is most commonly
MT-Energie UK LTD

fed into a natural gas pipeline. The loca-

tions of biogas/biomethane production
and use are separated.
The similarities in the raw biogas pro-
duction same than the flexibility of its
end-use is why most of the criteria,
which trigger the development of on-site direct competition with natural gas in
biogas CHP plants, also apply for biome- the market. Biomethane is first of all a
thane projects. Still, the attractiveness substitute energy carrier for natural gas
of a market for biomethane projects is applications, hence, for the sales of bio-
much more complex compared with bio- methane on the gas markets, the price
gas CHP plants for several reasons: difference between natural gas and bio-
methane is crucial. Therewith, questions
The upgrading and grid injection of the natural gas price development,
of biomethane is linked with much hig- existing support schemes both for bio-
her costs, although costs for the CHP methane and natural gas or national de-
unit can be saved if the biomethane is pendencies on natural gas imports play
just sold to a gas CHP operator. So far it an important role for the attractiveness
is still not profitable for small scale bio- assessment of biomethane markets.
gas projects. To become profitable, it
is of great importance to develop scale To be used as transport fuel, a
effects and to utilize energy-rich energy sound infrastructure is needed (like the

Sector handbook biogas

carriers for a high biomethane yield. For availability of filling stations offering na-
this reason, medium to large scale capa- tural gas fuels, adopted engines in cars
cities apply best, utilizing energy crops etc. and an adequate policy support (e.g.
or energy-rich bio-wastes rather than blending quotas, investment subsidies
animal manure. for gas vehicle etc.) to become an option
for the biogas industry.
In contrast to on-site biogas CHP,
the injection of biomethane into a na-
tural gas grid is of course dependent of
the existence of such, which is not the
case in all European regions. In addition, 18
there are many different requirements
e.g. on the gas quality to be conside-
red, which also can vary from region to
region. Same is true for administrative
procedures and costs for the grid con-
nection.

Also the sales of biomethane are

much more than on-site biogas CHP in
 market attractiveness
3. Criteria and indicators for

19
Sector handbook
Market handbook biogas
biogas
MT-Energie UK LTD
The evaluation of market attractiveness of the political will. In addition, if the im-
for biogas is a complex issue, various plementation requires a national bud-
aspects have to be considered and in- get, it has to have the necessary capital
formation collected. For SME which have which is detached from annual budget
decided to expand on international mar- negotiations to provide important plan-
kets but havent identified a suited coun- ning security.
try yet, this selection process can be very Though many policy makers wish to de-
time and cost intensive and moreover, velop the biogas sector, the production
if these companies havent gained any costs of biogas are still higher compa-
experienced in market assessments so red to fossil competitors, investments
far, important key factors can easily be into the biogas market therewith linked
ignored. with a significant higher risk. These risks
From there, within the CrossBorder Bio- wouldnt be accepted without a minimum
energy project relevant categories and security for the investment, e.g. in form
criteria have been elaborated with su- of a support scheme which covers the-
pport of market established industry se extra costs or provides a long-term
stakeholders which will give guidance on calculable cash flow within the pay-back
what to consider and to look for in the period of the investment. So another
market evaluation process: important fact is whether or not the tar-

Sector handbook biogas

gets and action plans were transposed
The political framework conditions into adopted support schemes or regula-
tions, that is to say: Is there a sufficient
Political regulations play an important support scheme implemented, or not?
role for the accelerated development of Last but not least existing support sche-
RES. First of all, clear and binding tar- mes or their conditions mustnt change
gets for the RES sector or even single too often along a minimum period of
technologies are a strong driver for in- time, as this again wouldnt contribute to
vestments. But of course these targets the investors confidence and hampers
have neither to be undemanding, nor the investment security. Steady and re-
exaggerated or unrealistic. They have to liable support schemes are of utmost 20
20
go hand in hand with the actors capa- importance to evaluate and accept the
bility to reach the targets and a sound risk, otherwise the potential would re-
implementation concept. Hence, the main untapped.
existence of an ambitious, but realistic
development target either specifically The feedstock supply
for biogas or biomethane, or at least for
RES in total which is also combined It is obvious that the availability of bio-
with a sound action plan, is an impor- mass in a sufficient amount is crucial.
tant indicator for the wholeheartedness Nevertheless it is worth to have a closer
look at the kind, amount and regional again to assess the market volume how
dissemination of the feedstock. Biogas many farms in the region keep sufficient
plants differ significantly in their designs, livestock in stables instead of on pasture
technologies and capacities according to to be able to collect the biomass.
the utilized feedstock. Or, to say it the One of the biggest potentials definitely
other way round, the available feedstock arises from agricultural energy crops, as
determines which kind of biogas project they have a high energy density and the-
can be realized. So the different kind of rewith allow the operation of medium- to
feedstock potentials should be raised large scale biogas plants resp. the pro-
separately. duction and grid-injection of biometha-
In addition, to be attractive for foreign ne. Although it mustnt be forgotten,
investments, the biomass potential has that with a rising capacity of the biogas
to allow a critical market volume for the plant, the radius of the catchment area
investor. To justify the costs, efforts and for the feedstock rises, too, which requi-
risks of investing into a foreign market, res again a sound logistical infrastructu-
there has to be potential to sell nume- re. But the more decisive question is, if
rous biogas plants rather than just one. there is at all farm land available to grow
The feedstock potential of a region has to energy crops on, and how much. This
correspond with this requirement accor- question can only be answered theore-

Sector handbook biogas

dingly which demands that the biomass tically as it is too much dependent on
already used for existing biogas plants short-term and highly volatile develop-
or other applications has to be deducted ments on agricultural markets like pri-
from the theoretical potential as well. ce developments of competing products
Very attractive is the development of made out of the biomass (food, feed) or
energy-rich, but low-cost bio-wastes, varying harvest results. As an approach
which can be found as leftovers in res- it is suggested neglecting trans-bor-
taurants, as municipal organic wastes or der trade to raise the amount of farm
as wastes and residues in biomass pro- land which is not needed for the food
cessing industries, although there could production of the inhabitants of the exa-
be different requirements on hygienisa- mined region. Further on, the available 21
tion, pretreatment and transportation farm land per capita can be compared
causing additional costs. with the corresponding farm land nee-
For agricultural biogas plants animal ded (theoretically) to feed a person in
manure is a valuable energy carrier, but the region. Both results can give a clue
manure has a low energy density. For of how much farm land could be utilized
that, it is not only important to know, for the biogas production without com-
how many livestock is needed to provide peting with the food sector, although,
a sufficient amount of manure to opera- in reality trade and price effects will of
te a small scale biogas plant, but also course influence the farm land potential
distinctly. In addition, present abando- ty market has developed in recent years
ned land suited and allowed for agricul- and even more important how it is
tural expansion should be considered. expected to develop. Is the electricity
And as described already above, also market growing or shrinking? Are there
the structure of the agriculture plays an already new power plants announced, or
important role. Is the farm land dissemi- are existing plants already out-dated and
nated homogeneously among the farms, due for replacement? Maybe in associa-
or are there just some owners of lar- tion with a decision to phase out nuclear
ge estates while the bulk of farms own energy? As usually it is not foreseen to
only small amounts of cultivable land? sell just one, but plenty of biogas plants,
How many farms can provide a sufficient the market volume theoretically availa-
amount of farm land to grow energy ble for additional electricity production
crops for a small- to medium scale bio- is relevant to justify a long-term com-
gas plant? How many to operate a me- mitment in the target country.
dium- to large scale one? But even if the market volume seems to
Last but not least, if the biomass has be attractive enough to enter the mar-
to be transported to the biogas plant, ket, the electricity still has to be sold to
a dense infrastructure suited for related the markets. That means that the bio-
means of transportation like truck roads, gas plant usually has to be connected

Sector handbook biogas

railway lines or waterways is needed. to an electricity grid and the electricity
to be fed-in and transported. So there
The energy market has to be an electricity grid available
close to the biogas plant to avoid costly
Beneath the feedstock supply and the grid connection costs. And as experien-
structure of agriculture, the quality of ce has shown, if there arent clear rules
the energy market is a decisive criterion defined for biogas plant owners and grid
for an investment decision, too. Due to operators on the costs, rights and duties
the high flexibility of biogas in the ener- of grid injection and transportation, the
gy markets, there are many issues which denial of the grid access has often pro-
can be considered, but there are gene- ven to be the bottleneck for a successful 22
rally spoken three aspects which are im- development of the RES electricity mar-
portant to analyse: the available energy ket.
infrastructure and its rules, the develo- Same is true for the processing and grid
pment of the fossil competitor and com- injection of biomethane. The biggest
petition with other biogas stakeholders potential arises from the distribution of
already active in the market. biomethane via the natural gas grid to
If the main target of the biogas produc- offer biomethane in the heat, electrici-
tion is the generation of electricity, it is ty or transportation sector, although the
first of all good to know how the electrici- marketing of biomethane as transport
fuel on-site of the biogas plant has pro- impacts, can be seen as an intense mar-
ven to be successful in many cases as ket barrier for biomethane in particular,
well, as long as the natural gas vehicle but also for biogas CHP projects.
infrastructure is well developed. Yet, If both the energy infrastructure and
the existing and regulated access to the the competition with fossil fuels look
natural gas grid is one of the key drivers favourable for the biogas sector, it is
to expand biomethane applications. In not unlikely that there are already mar-
addition, for direct sales of biomethane ket competitors active in the country.
in the heat sector the connection densi- Therewith, their number and economic
ty and consumption of natural gas cus- power in terms of sold biogas plants or
tomers is a good indicator. their sold cumulated capacities has tho-
The heat market can generally be an at- roughly to be analysed. A low number of
tractive market for biogas plants as well, competitors in a market with high volume
as they are keen to operate the plant can usually be seen as good opportunity.
in CHP to increase income and lower On the other hand, a strong competition
risks. Therewith, countries with a rising in the sector already indicates favoura-
heat demand or a defined high target ble framework conditions and a running
for RES heat can provide very attracti- market. Therewith, the interpretation of
ve framework conditions for biogas CHP the market analysis depends very much

sector handbook biogas

plants, respectively decentralized CHP on the existing market volume and the
projects based on biomethane taken out investors strategy.
of the gas grid.
Nevertheless competition with fossil Profitability and support
fuels in the energy market mustnt get
lost out of sight, of course, which indi- Without financial or regulative support
cator is its price development over the the operation of a biogas CHP- or bio-
recent years and into the future. A good methane plant wouldnt be profitable in
investment climate exists, where prices most cases. Due to the higher energy
for fossil fuels, especially for the direct production costs, the economic risk for
competitor natural gas, have risen stea- investments into biogas projects is fairly 23
dily and are expected to grow further higher compared to already market intro-
on. If then these fuels are in addition to duced, fossil energy carriers. With view
that also based to a large extend on im- on the long-term payback-period for the
ports, the economic pressure arising out investments, potential investors will feel
of it paves the way for investments into a delicacy about spending their money
biogas technologies. On the other hand, without having a minimum of planning
a high share of available domestic fos- security. Same is true for the financing
sil fuels or their low prices, maybe even of projects by banks which wont dare
due to financial support to lower social to grant credits to risky projects or will
demand unfeasible charges to cover the right way, though they are less common.
risk. Some countries gained great success
Consequently, a country which has suc- with taxes on CO2-emissions, therewith
cessfully implemented a support sche- developing the environmental benefits
me addressing this fundamental disad- of RES installations.
vantage is very attractive for investors If there isnt a support scheme for the
resp. technology providers. There can operation of a biogas plant implemented,
be many ways to overcome this market also the availability of investment subsi-
barrier, one of the most successful is the dies could be an attractive incentive to
introduction of a feed-in system (FIS), lower the total costs of a biogas project.
which provides a cost-oriented remune- Sometimes, there are also special su-
ration of the electricity production. But it pport programmes effective to attract in
is not only the amount of the fee which general investments into remote areas
decides about the success or failure of or to create jobs, which could possibly
this market incentive, but also the dura- be utilized for biogas and biomethane
tion of the payment, regulations on the projects.
grid access and whether the available But as mentioned above, also banks and
budget is limited or not. Also manda- their attitude to RES project play an im-
tory quotas for RES electricity or heat portant role in the market development
can be an incentive, if designed in the of the biogas sector. Although it is of

Sector handbook biogas

24
MT-Energie UK LTD
course possible to finance a biogas or biogas potential cannot be developed
biomethane project in cooperation with due to constraints in the building code.
a domestic bank in the home country Also requirements on minimum efficien-
or with an international financial institu- cies of biogas plants, which usually can
tion, local banks in the target country only be fulfilled by also selling the pro-
are in many cases first address for local duced heat to external customers, can
investors intending to buy a biogas plant prove to be a market barrier, if at the
from a foreign technology provider. Con- planned or allowed location of the
sequently, these banks should be well- biogas plant no heat customer can be
informed about biogas technology and acquired and consequently a rather me-
their functioning and open to grant re- aningful project cannot be realized.
lated credits to a feasible price. It is be- Environmental restraints can hamper a
neficial for a market development, if a successful market growth, if there are
bank is already committed to the biogas excessive thresholds defined, e.g. for
technology, which can be derived e.g. emissions of pollutants into the air or of
from advertisements or highlights within noise. Legal requirements for the reduc-
annual reports up to special program- tion of odour emissions can for exam-
mes offering low interest rates or bene- ple also rapidly put the profitability of
ficial conditions for loans. a bio-waste processing biogas plant on

Sector handbook biogas

In addition, to manage the risk of vola- the edge. On the other hand, regulations
tile prices, for many investors the price e.g. prescribing the treatment of wastes
transparency of markets is an important of biomass processing industries can be
factor, too. Is there a market place whe- a great market driver and motivation for
re prices both for feedstock and energy those companies to invest into biogas
are published? And are there means to technologies.
modulate the price risk, e.g. by hedging Due to the variety of different regula-
or trade with futures? tions and requirements, but also becau-
se of the various state of knowledge at
Administrative issues the authorities, the duration and efforts
of the approval procedure can be very 25
As different the market potentials of the different from country to country. For
European countries are for the biogas planning a biogas plant it is naturally im-
sector, as different are the administrative portant to get the allowance as soon as
challenges to be solved when entering a possible to avoid running costs and the
market. For example, there are different risk of changing framework conditions
regulations to be considered concerning during the time between application and
the planning permission and building approval. It can be helpful for a market
approval for a biogas plant in municipali- entry if there is a dedicated industry
ties or rural areas. Sometimes, the best association for biogas and biomethane
which can consult and assist with the chnologies and services.
procedure. With view on the financial risk of inves-
tments into foreign markets, the curren-
The individual country risk cy exchange risk has to be highlighted
as well. A beneficial exchange rate which
Apart from specific decision factors for makes the domestic currency cheaper
biogas related investments, there are compared with the foreign currency is
also many aspects to be regarded on a a good driver for exports as the buyer
macro-level, out of which the profile of therewith gets also the product cheaper
the country itself in terms of Gross Do- than on the domestic market. But vola-
mestic Product, economic development tile exchange rates dont provide a re-
and wealth of the society. Higher costs liable basis for investment decisions as
linked with RES in general are usually ordered products or services can quickly
only accepted by the public in a period become more expensive than calculated
of welfare and positive development ex- and putting any profitability calculations
pectations, while in times of economic at risk. For this reason, the membership
slowdown or depression short-term cost of both countries, the home country of
savings and social safeguard are put in the exporting company and the target
the foreground. This is true both for the country, in the European Monetary Union

Sector handbook biogas

private or commercial customers finan- (euro zone) is seen to be a great ad-
cial capability than for public budgets vantage in Europe.
with which support schemes for RES are Another financial risk arises with steadily
financed. growing inflation rates, which not only
Linked to that is the question of credi- reduces the purchase power of poten-
bility and reliability of a country, res- tial customers, but also abate the value
pectively its industry stakeholders as of the companys assets, once acquired
partners for international business coo- with the market entry process. A sta-
peration. How secure are investments ble or even declining inflation rate over
into a foreign country, how likely is a pa- a period of time is accordingly another
yment failure? There exist already highly valuable indicator to avoid negative fi- 26
professional and approved country as- nancial impacts on the investment.
sessments like the ratings of Standard
& Poors or Moodys which should be ca-
lled in to minimize financial losses due to
political crisis or economic turbulences.
Also export credit insurance companies
often provide own assessments of the
export risk into foreign countries, which
are especially suited for the export of te-
 4. List of considered criteria
and indicators

Sector handbook biogas

MT-Energie UK LTD

To evaluate and compare the attracti- The following list is the result of the in-
veness of biogas markets in different tense industry consultation process and
countries common assessment criteria should give an overview on the criteria
translated into measurable and therewi- and indicators considered within the as-
27
th comparable indicators have to be defi- sessment of the European biogas mar-
ned. This was done during the CrossBor- kets within the CrossBorder Bioenergy
der Bioenergy project with great support project. In addition, this list can also be
of industry stakeholders of the target applied by companies as checklist for
groups, who identified the key informa- an individual market evaluation, offe-
tion needed by them and consulted with ring guidance in the bulk of criteria to
the implementation of the data into a be considered and assistance in the as-
practicable tool. sessment of the received results.
1.Country profile (geography, demographics, logistics, etc.)

1.1 Geography and Climate
Total land area
What is the average summer temperature across regions in target country
over the last 10 years?

1.2 Population
Total number of inhabitants
Total number of households in the country
Population density
Household density
Total number of personal transport vehicles

1.3 Wealth/economic status of population

What was the average GDP real growth rate between 2008 - 2010?
GDP per capita for 2010

1.4 Logistics - road and rail network

Sector handbook biogas

What is the density of road-network? (for goods/biomass transportation)
What is the density of the electricity transmission and distribution networks?
What is the density of the gas transmission and distribution networks?

2. Energy Policy (political will, nREAP, etc.)

2.1 The nREAP is ambitious and proposes appropriate measures
There are high-volume targets for RES (Difference in ktoe 2010 - 2020)
There are high-volume targets for biogas (Difference in ktoe 2010 - 2020)
There are high-volume targets for electricity from CHP (Difference in ktoe
2010 - 2020) 28
Proposed measures for bio-methane and biogas in nREAP are appropriate
and convincing
Proposed measures for biogas CHP in nREAP are appropriate and
convincing

2.2 A political will to develop the RES-sector is clearly recognisable and stable
Does the government provide an appropriate budget for the targeted market
growth for biogas, biomethane?
Have the support schemes/framework conditions for investments in
 biomethane changed within the last 2-4 years?
Is a revision of the framework conditions announced, which could affect bio
methane market development?
Is a revision of the framework conditions announced, which could affect the
electricity market development?
What is the period of time before the next general (national) elections.

3. Feedstocks

3.1 The biomass potential is sufficient to enable biogas CHP projects
How many cattle-equivalent units are in the region? (to identify potential
based on feedstock)
How large is the (municipal + commercial) bio-waste potential in the region?
What is the amount of biogas already produced in the region?

3.2 The biomass potential is sufficient to enable biomethane projects

How many cattle-equivalent units are in the region?
How large is the (municipal + commercial) bio-waste potential in the region?
What is the amount of already produced bio-methane in the region (to identify

Sector handbook biogas

the remaining technical potential)?

3.3 The agricultural structure is beneficial for biogas and/or biofuel projects
How many farms have at least 150 cattle in stables, which could enable small
biogas CHP projects?
How many farms have at least 500 cattle in stables, which could enable larger
biogas CHP projects?
How many farms have at least 125 ha crop land, which could enable larger
biogas CHP projects?
What is the available farmland per inhabitant?
29
3.4 Feedstocks are available for biofuel production
Amount of domestic demand for cereal for biofuels in 2010
Did the cereal production of 2010 exceed the domestic demand?
Did the oil seed production of 2010 exceed the domestic demand?
Area of fallow/abandonned land available for agricultural expansion

4. Economic instruments (prices, support schemes/guarantee, subsidies, etc.)

4.1 Financial support schemes can be claimed for investments
 What portion of the investment in biogas plants can be claimed in subsidies
(cumulative, including tax advantages)?
When does the scheme end granting funding for biogas plants?
Subsidies for investments in logistic/Infrastructure for high blend / pure bio
fuels are in place
Investment subsidies for green vehicles procurements are in place

4.2 Financial support schemes can be claimed for operation

150 kW biogas plants: How high is the legally guaranteed price for electricity
(either feed in system, green certificate or other) in 2010?
500 kW biogas plants: How high is the legally guaranteed price for electricity
(either through feed in system, green certificate or other) in 2010?
>500 kW biogas plants: How high is the legally guaranteed price for
electricity (either through feed in system, green certificate or other) in 2010?
How long is the guaranteed duration of the biogas support scheme?
Is the support scheme limited by a maximum public spending budget?
Is there a financial incentive to support the operation of biomethane or gas
vehicles?

Sector handbook biogas

4.3 Prices of fossil fuels are high and heavily taxed
What is the price per kWh of gas for households?
What is the price per kWh of gas for large scale consumers (average over the
last year)?
What is the commodity price development of natural gas over the last 4 years?
What is the tax on gas (CO2, energy, excluding VAT or normal taxes)?
Is the use of fossil gas supported e.g. by tax incentinves, obligations, free
delivery of CO2-allowances etc.?
What is the price development of electricity of the last 4 years?
What is the average end customers price for gas for transport over the last
year (2010)? 30

5.Market aspects (volume, access to grid, etc.)

5.1 The energy sector is large and expected to grow
Amount of gas used in medium and large scale consumers (2010)?
Expected growth in large and medium-scale use of gas from 2009 to 2020
Amount of gas used by small scale consumers (2010)?
Amount of total national electricity consumption
Expected growth in national electricity consumption from 2009 to 2020
 What is the average age of the stock of power plants (coal, natural gas,
nuclear)
What is the share of natural gas in the electricity sector?
Has the region decided to phase out nuclear energy (providing potential for
RES)?

5.2 Access to the electricity grid is guaranteed

Is there in general an electricity grid available with sufficient capacity?
Is there in general an electricity grid available with regulated grid access?
Is there in general an electricity grid available with regulated costs for grid
connection?
Is there in general an electricity grid available with priority for RES?
Is the grid operator obliged to connect all renewable energy installations?

5.3 The heat market offers good opportunities

What is the total amount of energy consumed by the small heating sector?
What is the proportion of customers connected to a district heating grid?
What is the amount of coal in the district heating sector?
What is the average age of the stock of domestic heating appliances

Sector handbook biogas

Is the connection of a biomethane plant to a natural gas grid regulated?
Are the costs for grid connection regulated?
Is there a natural gas grid for biomethane feeding available with priority for
biomethane?

5.4 Produced energy can freely be marketed

Is the electricity market liberalised and private firms are free to participate in
any part of the supply chain?
Is the heat market liberalised and private firms are free to participate in any
part of the supply chain?
Is the gas market liberalised and private firms are free to participate in any 31
part of the supply chain?

5.5 The electricity market in the target country provides promising growth perspectives
What is the rate of additional electricity demand until 2020 (overall, not only
RES)? ((2020-2009)/2009)
What is the growth rate of electricity from biogas over the last 4 years?
What is the cumulative amount of electricity produced from biogas in the last
available year ?
 5.6 The heat market in the target country provides promising growth perspectives
What is the rate of the additional heat demand until 2020 (overall, not only
RES)?
What is the growth rate of biogas in the heat market over the last 4 years?
What is the cumulative amount of heat produced by biogas in the last
available year?

5.7 The gas market enables the use of biomethane

What is the rate of the additional gas demand until 2020 (overall, not
biomethane only)
What is the additional gas demand until 2020 in absolute terms?
What is the cumulative amount of biomethane consumed in the last available
year compared with biomethane target?
What is the growth rate of biomethane in the gas market of the last 4 years
(CAGR)?
What is the growth rate of biomethane in the transport sector of the last 4
years (CAGR)?
What is the total amount of biomethane used as vehicle fuel?
Amount of all gaseous fuels used in transport

Sector handbook biogas

5.8 The Framework conditions for fossil fuels do not impair market development
What is the contribution of imported natural gas on the primary energy supply
in real terms?
What is the percentage contribution of imported natural gas on the primary
energy supply?
What is the contribution of imported oil to primary energy supply in real terms?
What is the percentage contribution of imported oil to primary energy supply?
What is the contribution of imported coal to primary energy supply in real
terms?
What is the percentage contribution of imported coal to primary energy
supply? 32

5.9 Bioenergy is already implemented with a strong growth

What is the total biogas production quantity irrespective of final use
What is the biogas production growth rate in the last 4 years (CAGR)

5.10 An intense competition is not recognisable

Number of competitors providing (manufacture or sale) turn-key biogas plants
Total amount of biogas/biomethane plant capacity sold (by existing
competitors) over the last 4 years
6.Regulations (laws/mandatory targets for bioenergy, permitting, emission thresholds, etc.)

6.1 Regulatory instruments to support bioenergy markets have successfully been

introduced
How large is the quota for RES electricity in absolute terms?
How large is the quota for RES heat in absolute terms?

6.2 The approval procedure by the authorities is adequate in terms of time

How long does the approval process last in average for a biogas plant < 500
kWel installed capacity?
How long does the appoval process last in average for a biogas plant > 500
kWel installed capacity?

6.3 Specific regulations are favourable for bioenergy market developments
Is there a hygiene regulation for the treatment of bio wastes, which could incite
its utilisation in biogas plants?

6.4 Are criteria for efficiency required?

Is there an obligation for CHP-operation of a biogas plant, if so, what is the

Sector handbook biogas

required heat percentage?

6.5 Existing emission thresholds can be fulfilled with the applied technology
Are there limits to emissions to air from biogas plants and, if so, how severe
are they?
Are there limits for noise emissions from biogas plants and, if so, how severe
are they?
Are there any regulations to mitigate odour emissions fropm biogas plants?

7. Project financing context (economic situation, loan, banks, etc.)

33
7.1 The country has a solid financial position
Standard and poors rating

7.2 Export friendliness

Euler Hermes rating
Corruption perception index
Country risk as reflected by the @rating country of COFACE
Ranking of feasibility of starting a business in the IFC-World Bank Doing
Business Index
 Ranking of Feasibility of getting credit in the IFC-World Bank Doing Business
Index

7.3 The banks are familiar with bioenergy technology and support its development
Is the support of bioenergy projects highlighted in official papers of the banks,
like annual reports etc.?
Are Governmental guarantees for loans for bioenergy investements in place?

7.4 Foreign investments are supported in the target country

Are there any programmes implemented in the region to attract foreign
investments?

7.5 The banks in the target country provide attractive conditions for bioenergy projects
Can bioenergy plants benefit from interest rates for credits lower than usual in
the market?
Are the support conditions feasible in an adequate scope?
7.6 The market is liquid and transparent
Biomethane prices are published on market place
Financial market instruments (e.g. hedging, futures) are available to mitigate

Sector handbook biogas

the bio-methane price risk

7.7 The value of the investment is stable due to a low currency exchange risk
Is the market part of the Euro Zone?
Was the inflation rate of the coutry more or less stable within the last 4 years
(CAGR)?

8.Readiness for uptake (public acceptance, stakeholder networks, etc.)

8.1 Efficient networks and information are accessible
Is there a Biogas association (with a minimum of 10 company members) 34
assisting the market?
Public web sites/ information/market reports on bioenergy

8.2 Public acceptance/knowledge of technology

Is biogas known to and well-regarded by general public?

8.3 No public opposition to bioenergy technology and projects

Have any biogas project permissions been declined due to public opposition in
the last four years?
Participating companies of the biogas working group

agri.capital GmbH
Michael Hauck, Head of Corporate Communication
Hafenweg 15, 48155 Mnster, Germany
Phone: +49 (0) 251 / 27 60 1-100
www.agri-capital.de
BDI BioEnergy International AG
DI Martin Krenn
Parkring 18, 8074 Grambach, Graz, Austria
Phone: +43 (0) 316 / 4009 100
www.bdi-bioenergy.com
Benet Ltd
Dan Asplund, Asko Ojaniemi
Piippukatu 11, 40100 Jyvskyl, Finland
Phone: +35 (0) 8400 / 640460

Sector handbook biogas

www.benet.fi
biogas weser-ems GmbH & Co. KG
Ren Pschel, Sales
Zeppelinring 12-16, DE-26169 Friesoythe, Germany
Phone: +49 4491 / 938 006 44
www.biogas-weser-ems.de
CNG Services Ltd
John Baldwin, Managing Director
Rowanleigh, 37 St Bernards Road, United Kingdom
Phone: +44 (0)121 707 8581
35
www.cngservices.co.uk
COWI AB
Karin van der Salm, Business Development Manager Bioenergy
Skrgrdsgatan 1 SE-402 41 Gothenburg, Sweden
Phone: +46 10 / 850 10 00
www.cowi.se
CTS
CTS Engtec
Engtec Oy
Oy
Kirsi
Kirsi Juura Manager, Marketing
Juura Manager, Marketing and
and Corporate
Corporate Communications
Communications
Kaikukatu 7, FI-45101 Kouvola, Finland
Kaikukatu 7, FI-45101 Kouvola, Finland
Phone:
Phone: +358
+358 (0)
(0) 207
207 // 567
567 268
268
www.ctse.fi
www.ctse.fi
Dalkia
Dalkia GmbH
GmbH
Daniel Hlder
Daniel Hlder
Hammerbrookstr.
Hammerbrookstr. 69,
69, 20097
20097 Hamburg,
Hamburg, Germany
Germany
Phone: +49 (0) 40 / 253038-0
Phone: +49 (0) 40 / 253038-0
www.dalkia.de
www.dalkia.de
Gasum
Gasum OyOy
Pasi Torri
Pasi Torri
P.O.
P.O. Box
Box 21,
21, 0215
0215 Espoo,
Espoo, Finland
Finland
Phone:
Phone: +358 (0)20 // 4471
+358 (0)20 4471
www.gasum.fi
www.gasum.fi
German
German Biogas
Biogas Association
Association

Sector handbook biogas

Sebastian
Sebastian Stolpp, International
Stolpp, International Markets
Markets
Angerbrunnenstr.
Angerbrunnenstr. 12, 85356
12, 85356 Freising,
Freising, Germany
Germany
Phone: +49 (0) 8161/98 46
Phone: +49 (0) 8161/98 46 6060
www.biogas.org
www.biogas.org

juwi R&D GmbH

Jan Schrter, Research Analyst
Energie-Allee 1, 55286 Wrrstadt, Germany
Phone: +49 (0) 6732 / 96 57-1058
www.juwi.de
MalmbergGruppen AB 36
Erik Malmberg, Export Director Biogas
Malmbergerg Water AB 296 85 hus Sweden
Phone: +46 (0) 44 / 780 18 53
www.malmberg.se
MWM GmbH
Daniel Tislaric, Head of Business Development
Carl-Benz-Strae 1, 68167 Mannheim,
Germany
Phone: +49 (0) 621 / 3 84 86 73
www.mwm.net
PlanET Biogastechnik GmbH
Hanna Garbert
Up de Hacke 26, 48691 Vreden, Germany
Phone: +49 (0) 2564 / 3950-128
juwi R&D GmbH
Jan Schrter, Research Analyst
Energie-Allee 1, 55286 Wrrstadt, Germany
Phone: +49 (0) 6732 / 96 57-1058
www.juwi.de
MalmbergGruppen AB
Erik Malmberg, Export Director Biogas
Malmbergerg Water AB 296 85 hus Sweden
Phone: +46 (0) 44 / 780 18 53
www.malmberg.se
MWM GmbH
Daniel Tislaric, Head of Business Development
Carl-Benz-Strae 1, 68167 Mannheim,
Germany
Phone: +49 (0) 621 / 3 84 86 73
www.mwm.net
PlanET Biogastechnik GmbH
Hanna Garbert
Up de Hacke 26, 48691 Vreden, Germany
Phone: +49 (0) 2564 / 3950-128
www.planet-biogas.com
Pro2 Anlagentechnik GmbH
Stephan Waerdt, Managing Director
Schmelzerstrae 25, 47877 Willich, Germany
Phone: +49 (0) 2154 / 488-0
www.pro2.com
Schmack Biogas GmbH

Sector handbook biogas

Markus Staudt
Bayernwerk 8, 92421 Schwandorf, Germany
Phone: +49 (0) 9431 / 751-210
www.schmack-biogas.com
WELtec BioPower GmbH
Hajo Schierhold, Head of Sales
Zum Langenberg 2, 49377
Vechta, Germany
Phone: +49 (0) 4441 / 99 97 8-0
www.weltec-biopower.de 37
 Market handbook biogas

38
Acknowledgements:
Special thanks are expressed for their contriburions to all industry stakeholders of the
biogas working group who took part in the discussions during the elaboration of the list
of criteria and indicators.

Photos: MT-Energie UK LTD, Weltec BioPower, AEE, EBA, 123rf

www.CrossBorderBioenergy.eu
39