Page 1 Report Substrate Materials for intersectoral biogas strategy Foreword
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43% 57% Energy potential of biogas production. Total energy production = 1.7 TWh. Fertilizer Wet organic waste
The portion of the theoretical potential that is unrealistic and / or impractical to utilize in 2020 The portion of the theoretical potential is realistic to utilize in 2020
Most of the realistic potential which is not induced even Most of the realistic potential that there are concrete plans for Most of the realistic potential previously allocated Theoretical potential A total of 5.8 TWh Realistic potential A total of 2.3 TWh
13 If all the realistic potential for organic waste and manure used (1.7 TWh), the for example, could operate approximately 7000 gas buses or similar heavy vehicles, thereby could reduce the use of diesel buses in Norwegian cities. Today used an estimated 60% of the amount of energy produced from biogas plants within the plant. They remaining 40% used externally supplied in the form of electricity, heat and gas upgraded to gas mains or fuel. Around 50% of the collected landfill gas is used to heat and electricity production, while the remaining amount flared. By the end of 2012, there are about 400 gas-powered buses in operation in Norway, in addition, there are several heavy vehicles and fleet vehicles that use biogas today. However, there are relatively few cars with gas engine in Norway at present. Gas-powered cars are more expensive to buy than the equivalent diesel and gasoline vehicles, both because of the higher price for the car itself, but also due to higher one-time the gas car.
There are positive environmental impacts of the production and use of biogas. Environmental impacts of the production of biogas The production of biogas from manure avoids greenhouse gas emissions (methane and nitrous oxide) which have arisen if the manure had been stored in manure storage is common in days. Production of biogas from manure can reduce emissions of ammonia and thus helping to meet Norway's current obligation under the Gothenburg Protocol, which currently exceeded by 13%. Production of biogas from organic waste causes no direct emissions reductions. When biogas produced from organic waste that would otherwise have gone along with other waste to Energy production in incineration plants, it should be replaced by the combustion of waste or with other energy carriers, which results in an increase in greenhouse gas emissions. production of biogas from organic waste will thus prompting a slight increase in greenhouse gas emissions. This will offset the application of biogas (see also Figure 8). Residues from biogas production (organic fertilizer) contains nutrients such as nitrogen and phosphorus, and can substitute the use of fertilizers in agriculture. If organic fertilizer replacing artificial fertilizers, reduced consumption of energy and material resources and pollution associated
14 Economic production Production biogas based on manure:
Production biogas based on organic waste: 0.54
the production of mineral fertilizers, extraction of phosphorus and various micronutrients. Additionally, bio fertilizer constitute a carbon sink to help reduce greenhouse gas emissions. In some cases, bio fertilizer could be used as fertilizer because of the content of the environmental and harmful substances such as heavy metals and persistent organic pollutants. Whether bio fertilizer can be used as fertilizer product therefore depends on the purity of the substrates used in process. Source separated food waste, for example, provide a better bio fertilizer, than production that is based on the central sorted waste. Environmental effects of the use of biogas Biogas can be used for multiple purposes such as heating, electricity generation and transport sector. When biogas replaces fossil fuels such as diesel and natural gas, reduced greenhouse gas emissions. The use of vehicles that run primarily in urban areas are particularly many positive effects, in terms of reduced greenhouse gas emissions, reduced noise levels and improved local air quality. In addition, there are few other options to reduce greenhouse gas emissions from transport sector. Norway has through the Renewable Energy Directive (2009/28/EC) including pledged to increase the share of renewables in transport to 10% by 2020. If 0.7 TWh of biogas used in the transport sector, may target in the Renewable Energy Directive (10% renewable energy in transport) is achieved without wagering requirement for biodiesel and bioethanol increased above the current 3.5%.
Economic production costs Production of biogas with different social cost depending on the substrate used in biogas production. In economic calculations are the costs that are relevant, ie higher costs compared to a reference scenario. As shown in Figure 3, the biogas production based on manures, a significantly higher socioeconomic cost, than biogas production based on biowaste waste. There are two main reasons for this:
15 1 Reference scenario (option expense) related to the treatment of manure is that this spread on the fields. One does today that is not to build and operate a plant, or transporting manure far. However, this will contribute to increased economic costs. For organic waste, the reference however to burn or compost the waste, which will always provide the costs of transporting waste and operation of an incineration or composting facility etc. Therefore, biogas treatment of waste is not as great additional costs in the economic calculations compared with manure. It ongoing revision of fertilizers care regulations may affect this by changing requirements for manure management. Alternative disposal methods that may be necessary if the requirements become more stringent, can be so expensive that it would be better for the economy biogas production from manure significantly. 2 The most decisive reason is that gas yield from organic waste is almost 6 times higher than animal manure. This means that it requires more and / or larger Biogas plant for the processing of animal manure than that needed for organic waste to produce the same amount of energy. In the study, we have assumed management of manure and organic waste in separate facilities. Another possibility is to sambehandle substrates in mixed systems. Sambehandling of manure and organic waste can provide benefits to stabilize the biogas process, and by increasing the total gas yield. At the same time, the investment cost of the plant to be higher than an average of the two plant types: plant would have to equal a fertilizer plant in size but need a pre-treatment for disinfection of waste as well. It is possible that some of this will be offset economies of scale when you can build fewer, larger facilities. Since neither benefit or cost side for sambehandling are quantified, we can not conclude whether sambehandling will be more or less cost-effective than separate treatment.
Production Reduced emissions of NH 3 Reduced fertilizer use 0.0 0.2
0.4 0.6
0.8 1.0
1.2 1.4
Cost Income
Net Cost
Income Net
NOK / kWh Economic net production cost in NOK / kWh - based on manure and organic waste Work
Maintenance Electricity Upgrade Transport Annual capital costs Costs: Income: Net: Fertilizer Organic waste 1.25 0.54
16 Business Economics production Business Financial loss for biogas production based on manure:
1.27 NOK / kWh Business Financial loss for biogas production based on organic waste: 0.002 NOK / kWh Business Economic production costs According to our calculations, the biogas produced from organic waste almost commercially profitable. Biogas production from manure is not economically profitable today. There are two main reasons for this: Firstly, the gas yield from manure very low. For the others can not plant says revenue from gate-fee for manure, so one receives for biowaste waste. According to our calculations, the biogas produced by wet organic waste almost economically profitable, with a deficit 0.002 NOK / kWh. The reason for the measure is virtually economically profitable, while social cost is relatively high, a distribution effect. In the business economic analysis calculated costs and revenues for biogas plants. In our calculations we have assumed that plants take a street-fee 1 700 U.S. $ / tonne of waste which is as high as the average gate fee for waste incinerators. This income receiving units in addition to revenues from the sale of biogas. In the economic analysis, the costs and income for the community (Norway). Gate fee'en is an income for biogas plant (700 NOK / tonne) but an equally large cost for waste game (-700 kr / ton), so the social income is equal to zero (700 kr / ton -700kr/tonn = 0). Similarly, the sale of biogas in the socio-economic analysis only a removal of money from the buyer to the seller, which does not involve a real income for society. Biogas production from manure is not economically profitable today, with a deficit of 1.27 NOK / kWh. There are two main reasons for this: Firstly, the gas yield from fertilizer low, making the cost per unit of energy increases. Second, it can not be fixed taking a victory gate-fee for manure, so he receives for organic waste. Due to an immature market we have in the business economic analysis assuming bio fertilizer can not be sold at a positive price currently. This can be both over-and underestimate the value. A overestimation may result from any "unclean" fractions may lead to bio fertilizer is quality that makes it difficult and therefore expensive to handle it. An underestimation is possible because It is possible that organic fertilizer may be recognized as a high-grade fertilizer formulation, which could give it a positive value. 1 Gate fee: The price of waste owner pay on delivery to the disposal facility, in dollars / ton waste
17 Value Chain city bus Total emission reductions: 500 000 tonnes of CO 2 -Eq Contributions manure: 305 000 tonnes of CO 2 -Eq, cost of measures: 2300 NOK / ton CO 2 -Eq Contributions organic waste: 196 000 tonnes of CO 2 -Eq, cost of measures: 1100 kr / ton CO 2 -Eq Value chains for biogas In addition to use in the transport sector (specifically buses) we see on a value chain where biogas is fed into an existing natural gas network. Of the two applications is the use of biogas in buses that have the lowest costs of action, mainly because of the value of improved local air quality, the reductions in nitrogen oxides and particulate matter. The costs of measures for chain with the use of buses is intended to 2300 kr / ton CO 2 Equivalents at production from manure and 1100 kr / ton CO 2 Equivalents when organic waste used as raw material. Organic waste as substrate has higher gas yield and lower production costs than manure, which are the main reasons that the costs of measures being lower. We have in this report focused on comparing costs and new effects associated with the production of biogas from manure and organic waste, with consequent use in the transport sector. Organic waste and manure is chosen as substrates because it is these raw materials that we believe have the greatest remaining potential in the short term. In addition to use in transport sector, we look at a value chain where biogas is fed into in an existing natural gas network. These value chains are selected because in the short term probably has the lowest abatement cost and greatest potential. In both value chains is seen production of biogas in relatively large central biogas plant, so that the costs presented here do not reflect costs for small farmsteads or other solutions. Value Chain "city bus" The value chain with the use of biogas as a fuel is chosen because it is here especially many positive effects in terms of reduced greenhouse gas emissions and improve local air quality. In Additionally, there are few other options to reduce greenhouse gas emissions from the transport sector, especially for heavy vehicles. The value chain is exemplified by looking at the use of buses or similar vehicles fleet, running in the cities. The reason we look at the heavy vehicle fleet is that there are few other substitutes for fossil fuels for heavy vehicles, while requiring less infrastructure for fleet vehicles compared with private vehicle (one filling station can accommodate many vehicles that have the same daily route). If the full potential of organic waste and manure triggered (880 000 tonnes of biowaste waste and 3.9 million tonnes of manure), can be about 1.7 TWh biogas produced and as shown in Figure 2, potential for energy generation distributed approximately equally between the manure and waste. Given that biogas
18 used as fuel, this could result in an annual emission reduction of 500 000 tonnes of CO 2 -Eq
2 . About 60% this reduction in emissions comes from biogas produced from manure, while the remaining 40% comes from production based on organic waste. As mentioned above, the biogas emissions reductions both in production and in application. Figure 4 shows how emissions reductions are distributed throughout the value chain. For manure occurs around half the emissions reduction in the production of biogas (reduction of methane and nitrous oxide), but the remaining emission reductions are mainly due to the replacement of fossil diesel. Organic waste program leads to a small increase of greenhouse gas emissions in the production stage. This is because the organic waste had been burned, leading to an energy production if not produced biogas. When waste is used for biogas production rather, it should be replaced Combustion of such waste, which produces increased emissions. When biogas as substitutes fossil fuel and provides a reduction in emissions, so that the entire value chain gives a net reduction in emissions. Emission reduction for biogas produced from organic waste arises therefore first in the application. The cost of reducing greenhouse gas emissions in the supply chain "city bus" is composed of economic costs associated with the production of biogas upgrading and compression of gas and procurement of gas buses, filling stations and associated infrastructure and operation thereof. It is also including new effects such as reduced use of fertilizers, reduced emissions of ammonia, reduced air pollution and reduced use of fossil diesel. How to measure cost is affected by These various factors are shown in figure 5. As shown in Figure 5, measures the cost of the value chain with the use of buses 2300 kr / ton CO 2 - equiv of production based on manure and 1100 kr / ton CO 2 -Eq when organic waste is used as feedstock. Organic waste as substrate has lower production costs and higher gas yield than manure, which are the main reasons why the costs are also lower. Cost of the measures presented here are average costs. Pieces of potential, both for waste and manure, will naturally have a lower cost than the costs presented here while other areas of potential will have a higher cost. It will for example be some areas which measures the cost of production from manure will be lower because the affected including the transport distance between the farm and the biogas plant, so that high livestock density will have lower-cost option than average. 2 CO2-eq: To compare measures across greenhouse gases, it is common to convert all emissions of CO 2 - equivalents. This factor describes the effect discharge of a particular gas has on global warming relative to CO 2 .
19 Figure 4: Reduction of greenhouse gas emissions throughout the value chain of biogas production from manure (Top) and organic waste (bottom), used in city buses. -20
0 20 40 60 80 100 Production Reduced
fertilizer use Net
emission reduction the production Methane emissions from engine
Replacement of diesel Total
emission reduction % Emission reduction in production of biogas from manure and use in city buses. Total emissions: 305 000 tonnes of CO 2 -ekv/år. Production Application -20
0 20 40 60 80 100 Production Reduced
fertilizer use Net
emission reduction the production Methane emissions from engine
Replacement of diesel Total
emission reduction % Emission reduction in the production of biogas from organic waste and use in city buses. Total emissions: 196 000 tonnes of CO 2 -ekv/år. Production Application
20 Figure 5: Economic costs and savings throughout the supply chain, the biogas production based on manure (top) or organic waste (bottom), used in city buses. Costs and savings are shared the total emission reductions to show the development of abatement costs. Value chain - production and use of biogas from manure in city buses Upgrade
Maintenance Electricity Work Transport Annual cost of capital Biogas production from manure Application in city buses Biogas production from manure Application in city buses Production Reduced fertilizer use Compression Annual capital cost bus Annual capital cost terminals and backup Annual capital cost flakes Operating tank and backup Reduced fuel use Reduction of NOx and PM10 Cost of measures 0.00 0.10
0.20 0.30
0.40 0.50
0.60 0.70
0.80 0.90
1.00 0 500 1000 1500
2000 2500
3000 3500
4000 4500
5000 Costs
Revenue Net
Costs Revenue
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