Page 1 Report Substrate Materials for intersectoral biogas strategy Foreword

Ban on landfilling of organic waste in

Waste

National prohibition to dispose of wet organic waste (such as

food waste and organic material from the food industry)

2002

Ban on landfilling of biodegradable waste in

Waste

From 2009. Prohibition to deposit paper, wood, textiles,

sludge, organic waste with total organic carbon (TOC)

of more than 10%

Requirements for the collection and treatment of landfill gas from

landfills receiving biodegradable waste.

Waste Regulations, Chapter 9

Regulations require the collection and treatment of

landfill gas (either energy recovery or flaring)

Minimum energy recovery by incineration in

Waste

The permit requires - usually at least 50% - to

process heat or district heating.

Requirements for the handling of animal waste plastic li-product regulation

Claims for such sanitation. Management facilities

animal waste must have a permit from the Authority.

Ban on export of waste in Regulation (EC) No

1013/2006 on cross-border transport of waste

(Cross-regulation)

CPA may make objections to a planned export of

organic waste from households and similar waste

catering and trade, in cases where treatment

abroad will only involve energy while

treatment in Norway involves material

Prohibition of spreading manure in given periods of

year on frozen ground in Fertilizers Product Regulations

To prevent runoff. Increases motivation for alternative

Use of manure.

Requirements for fertilizer plan in Fertilizers Product Regulations.

Fertilizer Plan is an action taken to prevent runoff. Here

the need for fertilizer calculated on the basis of soil

nutritional status and estimated crop. This also motivates

for alternative uses of surplus manure. FSA

manage.

Requirements for disposal of bio fertilizer in agriculture and

green area (maximum content of impurities, etc.) in

Fertilizers Goods Regulations.

Fertilizers Goods Regulations governing the maximum content of

heavy metals. Application of digestate in agriculture following

same requirements as for other organic fertilizer products.

FSA supervises.

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Existing instruments - the production of biogas

Existing means of production processes is given in Table 5.2. On the production side, it is primarily

investment through Enova and Innovation Norway is operative instruments today.

Table 5.2 Existing measures the production of biogas

Existing instruments for the production of biogas

Comments

Economic

Enova - investment aid to large biogas plant

period 2012-2014

Supports projects with energy of at least 1 GWh.

The maximum aid intensity of 30% of investment.

Innovation Norway - investment to less

farmsteads for biogas production

Up to 35% support for investment and 50% to

study / expertise.

D - Support

Research, Energix program Norklima

program

Legal

Requirements for permits under the Pollution Control Act of

establishment of waste, including

biogas plants

Permission granted by the County

Requirements for permission to handle animal waste in

By-product Regulations

Requires permission / approval from the FSA to

treat certain types of organic waste, so-called category II and

III waste.

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Existing measures - use of biogas

Existing instruments that regulate or promote the use of biogas is given in Table 5.3.

Investment (through Transnova) for use of biogas for transport is one of several

measures aimed at the user side of the value chain. Vehicles fees affect all vehicles, including

gas vehicles. Because of the high weight, the gas vehicles higher than one-diesel and

gasoline cars, so this is an obstacle to increased use of biogas in the transport sector. Furthermore biogas

not required veibruksavgift, CO

2

Fee, the basic fee for mineral oil or electric charge. This affects the

competitive relationship with other forms of energy in favor of biogas. Another measure affecting

biogas electricity certificate scheme.

Table 5.3 Existing instruments use of biogas

Existing methods for the use of biogas

Comments

Economic

Transnova - investment and more - the use of biogas in

transport

Supports include reports, filling stations, and

testing of new vehicles.

One-time, vehicle. Larger trucks and buses are exempt. Vans,

Minibuses and taxis have reduced rates.

Calculated on the basis of weight, engine power and

CO

2

Emissions and NO

X

Emissions. For details see

Appendix 3c.

Annual fee, vehicle

Imposed on vehicles exceeding 7500 kg.

Weight annual fee, vehicle

Imposed on vehicles over 7,500 kg.

Re-registration fee, vehicle

Calculated on the basis of weight and age of the vehicle.

Veibruksavgift

Equivalent to 53 cents / kWh for gasoline, 38 cents / kWh

for fossil diesel

CO

2

Tax

Equivalent to 10 cents / kWh for gas and 5-6

cents / kWh for diesel, LPG and natural gas.

Basic fee mineral

Equivalent to 10 cents / kWh. Does not include

fuel and jet fuel.

Electricity consumption tax

11.61 cents / kWh ordinary rate

0.45 cents / kWh reduced rate

Green certificates - aid scheme for producers of electricity from

renewable sources

Norwegian-Swedish cooperation from 2012 to the end

of 2035.

Regulations relating to guarantees of origin electricity

A guarantee of origin is a proof of the

sources of a given quantity of electricity is produced

from.

Quotas for energy plants over 20 MW

The emissions trading regulations. Biogas provides zero-counting

if it is not mixed with fossil fuels.

Legal

Natural Gas Act

Prohibition of discrimination

system users.

Connectivity Obligation for electricity producers in § 3-4 of the Energy Act

Affiliation duty was introduced on 1 January 2010, as

that all economically viable

projects are entitled to grid connection.

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What is being done in other countries?

Sweden

Sweden has invested heavily in the production of biogas for use as fuel for vehicles (fordonsgas) and

European leader in the use of biogas in the transport sector. Total produced

over 1.4 TWh from the 233 biogas plants in Sweden. 50% of the amount of energy being upgraded to

fuel quality (Biogasportalen.se, Energimyndigheten.se).

In the period 2003 - 2008 was 650 million SEK assign to biogas projects in Sweden through

investment programs Klimp (Climate Investment Program) and LIP (Local Investment Programme). They

200 projects have received funding have contributed to the reduction of 170 000 tonnes of CO

2

-ekv/år in the period

2003-10, and are considered in the report "6518 Biogas ur manure, waste and and residual products " to be a

significant driving force for the implementation of most Swedish biogas projects.

In addition, it is used both central and local measures to increase demand for biogas

fuel. It includes grants for the purchase of biogassbil, special benefits for

company car taxation for biogas cars, free parking and biogas taxis are still the first taxi in the queue

(Mepex, 2012; Energ Sweden, 2012).

In addition, it created an "environment scheme", where "green cars" have to pay fordonsskatt for 5 years from

vehicle is used. This promotes the general use of vehicles with low emissions, but also provides an advantage

the biogas vehicles. To qualify as environmentally optimized requirement was previously a maximum emission of 120 g

CO

2

/ Km in the combined cycle, and that the car must meet EU's latest emission standards (Euro 5 and Euro 6).

From 2013, this requirement was changed to a calculated maximum emission depending on the vehicle's own weight (see

below). This requirement includes passenger cars, recreational vehicles, light trucks and light buses that are used in

Sweden for the first time from this date. All vehicles sold as environmentally optimized before this will continue to be

environmental cars.

Calculated maximum CO

2

Emissions = (the car's curb weight in kg - 1372) * 0.0457 + (95 or 150),

where 95 is used for petrol and diesel cars while 150 used cars that use biofuels.

Super Environment cars must emit a maximum of 50 g CO

2

/ Km in the combined cycle, and meet the latest EU

emission standards (Euro 5 and Euro 6). Upon initial registration in Sweden will be given a so-called

super environment car premium. This is 40 000 SEK for individuals and sole proprietorships. When the car

owned by another company or organization's premium of 35% of the price difference between the new car price

the super eco-car and the price of the closest comparable vehicle (maximum 40 000 SEK).

In some municipalities it is cheaper, or free, to park a vehicle that meets local requirements

an environment car. Stockholm parking introduced free parking for super green cars on all outdoor

visitor parking (not P-houses and garages) which they have responsibility.

Upon purchase of passenger cars and light trucks by the state government must be of environmental cars.

In 2010, 25% of the Swedish food waste collected for biological treatment. New interim to

reach the goal of 35% collection set for 2018 (Environmental Protection Agency, 6518, 2012). In addition, there is also

goal that 60 percent of the phosphorus in sewage sludge and bio fertilizer should be returned to productive land in

2015, half of which is arable land (Environmental Protection Agency, 6518, 2012).

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To promote manure based biogas production has the Swedish Countryside Ministry in its

program allocated funds for investment support to farms but livestock that will build biogas plants

on the farm (Environmental Protection Agency, 6518, 2012).

In 2010 it presented a proposal for a national multisectoral biogasstrategi as suggested

means of double biogas production in Sweden from 1.5 TWh to 3-4 TWh (ER 2010:23). This

strategy is not adopted, but the following is proposed to increase the production and use of biogas:

 Investment priority should be given to the substrates, which makes it possible to close the circuit, i.e.

waste, sludge and manure

 Biogas production from manure compensated for its climate and environmental benefit with a

special production support or methane reduction compensation of 20 cents per kWh produced

biogas

 Customization of rules for conversion of agricultural tractors and trucks

meta operation

 Tax on fertilizers should be considered

 Biogas in heavy vehicle premieres and regular system of taxation of vehicles including

property taxation of company cars, etc.. adapted so it becomes more attractive to use biogas

in heavy vehicles in fleet operations

 More R & D in bio fertilizer and utråtningsprosesser to improve profitability

biogas plants and improved utilization of nutrients

 Participants in the industry are encouraged to work together to exploit economies of scale

 Requirements for coordination of sewage sludge planning with other waste and energy planning

 Collection of landfill gas should be streamlined

 Strengthen general instruments for renewable fuels, including biogas

Denmark

Biogas production from manure in Denmark is largely driven by the agricultural economic

conditions. Since Denmark has much fossil power generation, biogas mainly been used to

electricity production and heating rather than the production of fuel. In March 2012, it was concluded

an energy agreement in Parliament (discussed more thoroughly below), as decided by increased s Totten to use

of biogas for the production of heat, as well as new additions to increase the use of biogas in gas network,

processing and transport. To increase the production of biogas from manure, the cluster

established arrangements with investment into biogas plant and guaranteed prices for the supply of

electricity from biogas. Investment support involves 20% subsidy up to 30 million DKK per

plants and 60% municipality guaranteed loans. 75% of the substrate must be manure. In addition

comes as feed-in tariffs in 2010 was 0.772 DKK / kWh electricity produced from biogas. Tariff

adjusted annually (Mepex 2012).

Energy agreement will lay the framework for the country's climate and energy policy up to 2020-2050, there

Biogas is part of the focus areas. The agreement states that it shall be carried out an ambitious development

of biogas for example by introducing the following measures:

 Increase the existing support for biogas cogeneration

 Increase other use of biogas (natural gas network, in industrial processes or

transport) through financial incentives

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 Increase support to manufacturing facilities from 20 to 30 percent

Developments should be monitored closely by a working group which will also supervise biogas projects. The

allocated substantial financial resources to this working group. Further measures should

proposed for development rate in 2012 - 2013 is not considered to be sufficient.

In the present scenario, there is significant spare capacity on existing facilities. Biogas plants for

manure receives a great deal of food waste from the catering and other industries in Denmark, but

little food waste from Danish households. A portion of food waste to the Danish biogas plants comes from

Norway (Mepex 2012).

Denmark has banned the landfilling of organic waste and has built up a significant

capacity for incineration of waste from household and industry. Incineration with energy recovery

is now the main solution for organic waste generated in households (Mepex 2012).

Denmark until 2003 requirements for the collection of food waste from catering centers that generated more

than 100 kg / week. The requirement was removed when it was forbidden to take food waste as feed for

livestock to prevent infection. Much of this food waste is subsequently delivered to the biogas plant.

The focus on biogas in agriculture, however, can lead to a further increase in biogas capacity

receipt of organic waste from agricultural and industrial waste (Mepex 2012).

Germany

Germany adopted in 2010 a "Energiwende" (energy conversion) with a target for renewable energy

to be the main source of energy in 2050 (60% of total energy consumption and 80% of

electricity production) (BMU, 2011). To reach this goal, it was decided many instruments,

including some that affect biogas production. Biogas production in Germany is largely

based on energy crops as sambehandles with manure. The gas is then used to

electricity production. The manufacturer of biogas receive a feed-in tariff (feed-in tariff) for

electricity depends on the following criteria (source: "Biogashandbuch Bavaria" and the Wood Venture)

 When the system came into operation. The sooner, the higher feed-in tariff (a reduction of

1.5% per year). How were you given an incentive to make investment decisions as early as

possible. Feed-in tariff is calculated based on the year the plant was in operation and is thus guaranteed for

20 years.

 How big the plant is. The smaller, the higher feed-in tariff. This meant that small

plant was profitable.

 If raw material consists of plants, crop residues and manure ("NawaRo"). This meant that

it was profitable to invest in energy crops instead of waste products.

 If there are more than 30% manure as input to the plant.

 If the heat from the heat & power plant is utilized, for example, by feeding in a near-or

district heating networks.

 If the unit is particularly innovative - that, for example, using micro gas turbines or

upgrading biogas to natural gas quality.

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For small plants (<150 kW

el

) Which started in 2007, uses only "NawaRo" as input in

system (including 30% manure), which recovers heat from heat & power plant, the tariff

be:

Basic tariff of € 10.99 cents / kWh + NawaRo bonus on 6 € cents / kWh + manure bonus of 4

€ cents / kWh + heat bonus of 2 € cents / kWh = € 22.99 cents / kWh.

With an exchange rate of 7.4 NOK / EUR is equivalent to a feed-in tariff of 1.7 U.S. $ / kWh , which is then

guaranteed for 20 years from the year in which production began.

Which barriers experienced?

In the following barriers experienced by biogas industry and other key stakeholders will be

discussed. The chapter is mainly based on input received through the survey and

input event organized by CPA. In addition, forms review of reports and other relevant

fabric background for the description of the existing barriers.

The survey was sent out by the CPA in December 2012 to around 100 players in biogas.

Both manufacturers, users, government agencies, research institutions and NGOs

chance to comment on the conditions of the biogas industry. The question regarding barriers were

as follows:

Describe what you see as the key barriers to increased production and use of

biogas in Norway.

Overall, it received 35 responses to this question, with a good spread of different players. Answers

points to the barriers in terms of financial, legal and knowledge related species with regard to access

of raw material, production and use of biogas. The answers are presented later in this chapter,

systematized in general statements and by the various links in the value chain. More information

survey are also found in Appendix 4

Input meeting was held on 11 January 2013. A total of more than 50 people from different parts of

biogas industry, government, research institutions and environmental and advocacy organizations.

Approximately 14 participants made presentations in which their views were presented. In addition, many

comments and questions along the way from an engaged audience.

Access to raw materials for biogas

In terms of access to raw materials point questionnaire that resources are spread out geographically, and

that it is often young actors. The supply of raw materials is small today, and it's uncertain future

access. Moreover plays more into the competition with foreign enterprises for raw materials is a barrier.

It is pointed out that a large proportion of organic waste is incinerated, and this is mentioned as a problem

in relation to available resources. Results from the survey presented in Figure 5.4.

The input meeting it was pointed out the need to introduce legal measures to promote

of resources for food waste, ie demand for separation of food waste from households and

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possibly from industry with similar waste. Furthermore, there were suggestions that the planned aid amount in

Delivery Support manure into biogas plant is considered to be too low.

There were also suggestions of a lack of knowledge and technology in relation to the exploitation of new substrates

such as energy crops, marine resources and various mixtures of raw materials.

Figure 5.4 Input from the survey - access to raw materials.

Production of biogas

During production pulled lack of commercial profitability emerged as the major barrier.

This is considered by nearly half of respondents in the survey. Some

specifies that their answers are for the agricultural sector. Lack of simple and predictable

aid is a variant of the same barrier. Results of the survey regarding

barriers to increased production seen in Figure 5.5.

Several contributions also point out that lack of long-term framework makes it risky to make decisions

about investments in facilities and infrastructure. It was also pointed out that current legislation makes it difficult

to the public-private partnership. It is also noted that it is necessary to clarify the requirements and regulations of

relation to the management of bio fertilizer and management of nutrients in the waste and manure.

Lack of knowledge and experience and the need for technological development is also frequently mentioned. It is

recorded a need for more knowledge about the following points:

 Optimal operation of the biogas plant

 Ideal mixtures of substrates (eg waste + farmyard manure)

 manure-based systems

 Energy efficiency in plant

 Technology adapted to Norway for cold climates

 The use of organic fertilizer

 Processing of biogas

7

4

2

2

Difficult access to raw materials, uncertainty, small players

Competition from abroad for raw material

Distributed / spread resource

Lite appropriate regulations for manure / digestate

Barriers - Access to raw materials

(Number of comments from survey)

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Figure 5.5 Input from the survey - production.