Page 1 Report Substrate Materials for intersectoral biogas strategy Foreword



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1827

1743


1918

1797


1856

2617

1036

1602


2051

1491


2162

317

2988

1637

2017

BUS - Bedok

NOK / kWh



0.04

-0.02


0.11

-0.10


0.18

0.25

-0.16

-0.04


0.13

-0.08


0.17

-0.30

0.16

RO - manure

U.S. / CO

2

-Eq


2351

2351


2351

2351


2351

2303


2399

2687


2016

RO - sambehandling (1:18)

U.S. / CO

2

-Eq


2207

2171


2244

2165


2248

2591


1823

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The figures below show the results from the full sensitivity analysis

-0.30


0.70

1.70


2.70

NOK / kWh

Net economic cost of production - manure

+50%


-50%

0%

1.25



0.00

-0.30


0.70

1.70


2.70

NOK / kWh

Business Financial losses during production - manure

+50%


-50%

0%

1.27



0.00

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200

-0.30


0.70

1.70


2.70

NOK / kWh

Net economic production - organic waste

+50%


-50%

0%

0.54



0.00

-0.30


0.70

1.70


2.70

NOK / kWh

Business Financial losses during production - organic waste

+50%


-50%

0%

0,002



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-0.30


0.70

1.70


2.70

NOK / kWh

Net economic production - realistic potential

+50%


-50%

0%

0.84



0.00

-0.30


0.70

1.70


2.70

NOK / kWh

Business Financial losses during production - realistic potential

+50%


-50%

0%

0.55



0.00

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-0.30


0.70

1.70


2.70

NOK / kWh

Value Chain buses - manure

+50%


-50%

0%

0.93



0.00

-500


500

1500


2500

3500


£ / tonne CO

2

-Eq

Value chain: city buses - manure

+50%


-50%

0%

2275



0

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-0.30


0.70

1.70


2.70

NOK / kWh

Value chain: city buses - organic waste

+50%


-50%

0%

0.22



0.00

-500


500

1500


2500

3500


£ / tonne CO

2

-Eq

Value chain: city buses - organic waste

+50%


-50%

0%

1128



0

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-0.30


0.70

1.70


2.70

NOK / kWh

Value chain: city buses - realistic potential

+50%


-50%

0%

0.53



0.00

-500


500

1500


2500

3500


£ / tonne CO

2

-Eq

Value chain: city buses - realistic potential

+50%


-50%

0%

1827



0

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-0.30


0.70

1.70


2.70

NOK / kWh

Business Financial loss for bus companies

+50%


-50%

0%

0.04



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-0.30


0.70

1.70


2.70

NOK / kWh

Value chain: Gas Supply RO - manure

+50%


-50%

0%

0.97



0.00

-500


500

1500


2500

3500


£ / tonne CO

2

-Eq

Value chain: Gas Supply RO - manure

+50%


-50%

0%

2351



0

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-0.30


0.70

1.70


2.70

NOK / kWh

Value chain: Gas Supply RO - sambehandling

+50%


-50%

0%

0.80



0.00

-500


500

1500


2500

3500


£ / tonne CO

2

-Eq

Value chain: Gas Supply RO - sambehandling

+50%


-50%

0%

2207



0

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Appendix 3 a) Existing and new instruments in the waste sector

Excerpt from Mepex report (2012)



Review of existing instruments

Norwegian waste policy and requirements for handling organic waste, s 12-24:

Organic waste is part of the overall national target of 75% recycling by 2010 and

subsequently to 80% based on the amount of waste recycled increased in line with what

is an economic and environmentally sensible level. Waste includes materials,

biological treatment and incineration with energy recovery. A distinction is made between small

recycling options, but officials point out that the material / biological treatment

should be preferred to energy recovery when the methods are otherwise equal. Combustion of

organic waste together with other combustible wastes is therefore defined as one of

recycling methods for organic waste, although most of this waste has high

water content and thus low calorific value.

There is at present no specific national goals for utilization of organic waste. How

resources of this waste to be utilized must be considered from a more general goals and principles.

RM 'one from 1999-2000 indicate that it is primarily desirable to utilize the resources of organic waste

by bringing it back into the natural cycle as fertilizer and soil conditioner. In accordance with the

Pollution Act guidelines shall solution for organic waste selected from an overall assessment

of environmental, resource and economic factors.

Organic waste is also covered by earnings goal of prevention which states that developments in

the quantity to be significantly lower than the economic growth.



Legal instruments

Ban on landfilling of organic waste

At the request of the Authority (now CPA) introduced the county governors in most provinces ban on landfilling of

organic waste in the period 1995-2000, but with somewhat different interpretation of the

fractions that were prohibited.

In 2002, the implementation of the EU Landfill Directive in Norwegian legislation introduced a national

ban on landfilling of organic waste through landfill requirements in the regulations.

Requirement to separation of food waste from the catering

Several municipalities established on 90 -'s own regulations that required the collection of biowaste

waste from the catering to animal feed. The requirements on the collection included companies that generated

over than certain amount per week. The limit varied from municipality to municipality with many lay in

range 50 kg per week. These regulations were after a transition phase repealed by amendment

waste definitions in pollution control.

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Ban on landfilling of biodegradable waste

In 2009, the ban on landfilling of organic waste subject to all applicable biological

biodegradable waste with a TOC content> 10%. The ban on landfilling of biodegradable

waste is primarily justified to reduce methane emissions from landfills. Instrument must be considered

as very strong and have discontinued treatment for disposal as waste with the biowaste

waste.

Requirements for minimum energy utilization



Waste not stipulate any precise targets for energy efficiency, but says

"Incinerators must be designed, built and operated in such a way that all the thermal energy generated by

incineration process is recovered as far as practicable. "

The permissions for waste incineration plants will normally 50% energy recovery as a

minimum which means that incineration plants must utilize heat energy

process steam or district heating.

Licenses and therefore an incentive to increase resource utilization of organic waste that is incinerated

together with other waste, and avoids the creation of waste incineration plants with very low

energy utilization. The average energy utilization by the Norwegian

waste incinerators was 77 percent in 2010 as a share provided by the energy produced.

Requirements for the handling of animal waste

European Union - Regulation on animal by-products (by product Regulation) sets standards for the treatment of

different types of animal waste, the requirements of transport and marketing of waste and requirements for

treatment plants. The requirements vary between different types of animal waste depending on the potential

of infection.

A key requirement for biological treatment is the requirement of grinding to a maximum of 12 mm and

disinfection in a separate hygieniseringsenhet at 70 C for 60 min. All biogas plants must

approval from the FDA for regulations on products.

Requirements for disposal of digestate in agriculture or green area

Fertilizers Goods Regulations set requirements for maximum levels of contaminants mm in fertilizer and soil

produced from waste and use limitations on the use of agricultural and green areas. No one can

sell products before they are enrolled and registered in FDA. Join lan only occur when the

sufficient evidence of manure and soil to be traded.

Requirements for cross-border transport of waste

The provisions on cross-border transport is based on common EU rules which are based on

provisions of the Basel Convention mm. In this framework, it just wastes listed in green

waste list that can be exported without license (permission) from the CPA and the competent authority in

recipient country. For wastes listed in the yellow and red list waste is in principle an embargo, but

permission (consent) may be given. For the export of waste for utilization, for example. exports of organic waste

for biogas plants in Sweden and Denmark, there is normally no problem to get permission.



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In principle must be obtained consent from the Climate and Pollution Agency, and the corresponding

authority in the host country, to export waste. There are however a number of exemptions.

Specific types of waste (green waste) being exported for recycling in EU countries and other selected

land not normally covered by the requirements for consent.

National authorities may impose more stringent requirements for export if it is environmentally

justified in violation of laws.

Requirement for authorization

Waste treatment plants that may cause pollution or be unsightly shall be authorized by

pollution control authorities. This includes composting plants and biogas plants. Authority

to grant permits and conduct inspections of such facilities is delegated to the county governors. The relevant

businesses have to pay fees for government work permits and inspections.

Renewable Energy Directive

Renewable Directive aims to increase the share of renewable energy to establish binding targets for the

some countries. For Norway, the demand for renewables set to 67.5% in 2020. Simultaneously, the general

requirement of 10% share of renewables in the transport sector apply from the same year. The Directive sets conditions

for the production of biofuels and biogas will come here very well.

The objectives of the Directive is ambitious and will be difficult to fulfill.

Approx. 25% of energy associated with the transport, while the proportion of renewable

total amount of transport is at 3.3%

34

The total fuel consumption in the transport sector is about.



50 TWh and is estimated to increase to close to 60 TWh in 2020.

35

To reach the 10% target, the consumption of renewable



fuel therefore increase to at least 6 TWh in 2020. Gross potential for biogas

waste (organic waste, sludge and manure) are different estimates set to between 4 and 6

TWh. This potential can hardly sounds full of fuel. SFT (now CPA) estimated the technical

- Economic potential of biogas to 1.4 TWh. The potential can be increased significantly if the development

Cost Effective 2 generation of biogas production based on forest resources.

Biogas from waste for fuel would be a contributor to a new target in the Renewable Energy Directive, but can with

current technology can not meet the need for renewable fuels in Norway.

Economic instruments

Tax on the disposal of waste

The purpose of the fee is to praise the environmental costs of waste treatment and thereby stimulate

recycling. The fee covered the former landfill and incineration of waste, but from 1 October

2010 is the only landfill covered by the fee.

34

Ann Christin Bøeng - Implications for Norway by the EU Renewables Directive - SSB Economic Survey 4/2010



35

KanEnergi / Insa - Assessment of biofuels in the transport sector



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Support for R & D

It is used in different contexts support funding for research, development, testing and evaluation of

processing solutions for organic waste, sewage sludge and manure.

Major projects include source separation project (1993 - 1998) and

Reactor Composting Project (1996 - 1999)

The last major program was ORIO - "Organic waste products - resources in circulation" that helped

support various projects in the period 1999-2004. The program was funded by

Ministry of Environment and Ministry of Agriculture and had a budget of 30-35000000 enough.

Today it is primarily research council that supports various research projects on biogas.

Several projects specifically related to biogas in agriculture is supported in recent years.



Summary and evaluation of effects of current instruments

Legal instruments

Prohibition of disposal of

organic waste

The ban on landfilling gave an incentive to introduce recycling of biowaste

waste in the municipalities where the deposition was waste solution. Seemingly the means

that incineration with energy recovery, composting and biogas were equal

treatment methods for organic waste. The prohibition therefore provided an incentive to increase

both biological treatment capacity, increase capacity for treatment of food waste to feed and

increased thermal processing.

Requirement to sorting

food waste from

large households

Means significantly increased the collection of wet organic waste

large households. After termination of the regulations, it appears that more people have quit

sort this waste. There are no good statistics to verify this

impression.

Prohibition of disposal of

biodegradable waste

The ban was included in the waste disposal regulations in Chapter 2009. Means, according

available statistics from Statistics Norway, first and foremost lead to increased combustion of organic waste

(Household waste) and to a lesser extent to increased recycling.



Requirements for reduced emissions of

landfill gas

landfills

This requirement has led to a significant reduction of greenhouse gas emissions from already deposited

organic waste. Waste does not require containment level or exploitation

of landfill gas that could have contributed to increased resource utilization and further reduction of

greenhouse gases from previously deposited organic waste.

Requirements for minimum

energy utilization

Requirements for min. 50% energy utilization grass provides an incentive to increase resource utilization of

wet organic waste incinerated with other wastes, although energy yield

by thermal treatment of such waste is low. Importantly, what is with this requirement

avoiding the creation of waste incineration plants with very low energy utilization.

The average energy utilization by the Norwegian waste incinerator

was 77 percent in 2010, measured as a percentage of delivered energy produced.

Requirements for handling

animal waste

By-product regulation has resulted in increased costs for biological treatment. At the same

Regulations means the hygiene standards on farms raised which contributes to increased

protection against infection and thus increased legitimacy to biological treatment.

By-product regulation has meant that it is no longer allowed to use food waste to

animal feed to livestock due. risk of disease transmission.



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Requirements for disposal of

digestate in agriculture or

green area

Fertilizers Goods Regulations has led to greater focus on producing quality products with

low content of impurities and products, agricultural requested.

These regulations are designed so that the heavy metal requirements related to solids. This gives

advantageous for compost through the process applied solids through the use of

structure material. Biogas plant however consume solids and are therefore penalized,

Although the content of micro contaminants in the waste being processed is the same.

If the requirements were related to fertilizer value instead solids will

heavy burden on agricultural land not be larger than the current requirements, but

it will be easier to use the digestate. Regulations are changing.



Economic instruments

Tax on disposal of

waste

After that there was a ban on landfilling of biodegradable waste in 2009, the tax

had little or no effect to prevent the deposition of organic waste. The loss of

emissions tax on incineration may lead to it being more beneficial to

metabolize organic waste compared to exploit it by composting or

biogas production.



Investment to

biogas plant (Enova)

The program currently has provided support to 15 plants. The biogas projects under

planning or construction has received support from Enova. There is no facility to be built

without support. The arrangement must therefore be said to have an effect.

There are strict criteria form to get support and much of the investment is

outside the scheme.



Investment support for the use of

biogas in the transport sector

(Transnova)

There are limited resources in the project and Transnova priority development projects

or the use of known technologies in new areas. Transnova has supported the establishment of

filling stations for biogas including in Oslo, Fredrikstad and feasibility studies etc. for the use of

biogas in the transport sector.

Support for R & D

There have been no reason to make any evaluations of the R & D -

projects, but in general, support for R & D will be important to address challenges

common to an industry which can lead to better and more cost effective solutions.



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The current legal instruments have been primary purpose is to reduce the amount of organic waste in

landfill. Landfill ban has worked effectively for this purpose and has led to organic waste

that previously went to landfill now available for combustion with energy recovery or biological

treatment.

The tools for organic waste have both been designed to:

 Reducing the environmental impact of waste management

 Ensure a better resource utilization of the waste

Yet there is a distinct difference in the choice of means to reach the two target areas.

The instruments used to reduce the environmental impact has been strong and effective legal

instruments, while for increased resources have been utilized various financial instruments

not have had the same lasting effect.

If we look at the number of biogas plants established in Norway, Sweden and Denmark so there is a noticeable

difference, see Table 3a.1. Different policy instruments are part of the reason for this.



Table 3a.1: Number of biogas plants in Norway, Sweden and Denmark.

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