Biogas an all-rounder

From Germany to the Far Corners of the World – Biogas is in High Demand

The EurObserv`ER barometer estimated primary energy production from biogas in the 27 EU countries in 2007 to total around 69 terawatt hours. Of the energy used, 15 percent came from sewer gas, 35 percent from other organic waste and energy crops, and 50 percent from landfill gas. The two countries with the highest primary energy production from biogas were Germany (40%) and the UK (27.5%). Since then, the number of biogas plants in Germany has risen from ca. 3,500 to ca. 5,000, and the installed electrical capacity from just under 1,300 MW_el to ca. 2,000 MW_el.

This positive development of the German biogas industry since 2000 is largely thanks to the legal framework provided by the EEG, which provides for a 20-year guarantee on remuneration rates and the prioritised feed-in of electricity from renewable sources. Germany is therefore expected to retain the largest proportional market growth rates in Europe over the next few years.

Improved framework conditions abroad

Looking at the development of legal framework conditions across Europe, it becomes clear that the adoption of directive 2009/28/EC marked an important milestone. The directive sets ambitious objectives for the promotion of renewable energies in the EU member states. Altogether, at least 20 percent of gross final energy consumption within the European Union is to be covered by renewable sources by 2020. The member states may determine the energy mix used for obtaining this goal, and thus the proportion of bioenergy or biogas. Some countries in the European Union have decided to place emphasis on energy supply from biogas by providing good framework conditions. Italy, for instance, is currently seeing rapid growth in the number of biogas plants. This is mainly due to the attractive remuneration rates of 18–30 cents/kWh for electricity generated from biogas plants with capacities of below one megawatt.

In a recently published study of potential entitled “Biogas in Europe until 2020”, the market research company Trendresearch forecasts that the number of plants in the 16 countries studied will rise to 16,000, with an installed capacity of 6,000 MW_el . As the cultivation of energy crops does not make economic sense in many countries due to low remuneration, livestock manure and biological waste will initially be important feedstocks.

Political conditions and the prescribed measures for the expansion of renewable energy in the individual countries will be crucial to the development of biogas utilisation. Consequently, large market growth is expected in Ontario, Canada, as a result of the framework conditions which have been created there. In general, the use of residual materials, waste and energy crops to produce energy is concentrated in the more developed countries, which have stronger financial power.

Germany still the market leader

In conclusion we might say that the existing potential of biomass is exploited in every corner of the world, provided that the preconditions – such as preferential grid feed-in, quick approval procedures and good feed-in tariffs – are in place. The meteoric expansion of biogas utilisation in Germany was the result of political motivation, and many other countries have already followed suit. While the motivations may vary, the results are always the same. Fossil and mineral resources are saved and the production of greenhouse gases is avoided.

Germany continues to hold sway as the market leader in biogas utilisation. Domestic demand, which is currently high, provides a sound basis for continuous development and increases in efficiency – and thus for the rising international demand for biogas plants “made in Germany”. Many German companies have already set up subsidiaries abroad, contributing to the further expansion of biogas utilisation in other European countries, as well as in America, Asia, Africa and Australia.