Biomethane Roadmap in the UK Berlin, 17th June 2015 David Collins Renewable Energy Association – REA Biogas

FWACV across country – average figures taken across 2012 Website to find these numbers – http://www2.nationalgrid.com/uk/industry-information/gas-transmission-operational-data/data-item-explorer/

Background Renewable Energy Directive (2020 targets) - 15% of total energy in the UK to be renewable – heat, electricity, transport Renewable Heat Incentive (RHI) supports heat and biomethane injection – to meet targets (2011) after Solar industry overspent the budget & general spending cuts – now severe budgetary controls & degression mechanism Levy Control Framework – sensitivity over taxation and household bills Since May 2015 current government has begun cutting all forms of RE subsidy - former Minister says “The Tories (Conservatives) are trying to kill off our renewable energy boom” - Renewable electricity replaced coal for one day in May

New RHI Incentives – 1st July 2016

CNG Market TSB providing £11 million funding 2012-15 Green Gas Certificates CNG for trucks and buses and CHP/District Heating for new housing/stores GGCS scheme not for profit scheme is helping to facilitate biomethane projects UK NGV focus is trucks and buses No support for CNG cars 353 natural gas trucks 348 dual fuel trucks 5 dedicated gas trucks 26 new or upgraded refuelling stations UK funding for Natural Gas Vehicles TSB Competition with DfT – £11million funding 353 natural gas trucks Green Bus Fund – £2.1million (for CNG/biomethane buses) LCEB rebate – 6p/km TEN-T Funding – £5million for Bio-LNG stations LNG Vehicles are now well established TSB providing £11 million funding 2012-15 13 consortiums trialling low carbon trucks 353 natural gas carbon trucks 348 dual fuel trucks 5 dedicated gas trucks 26 new or upgraded refuelling stations

Biomethane projects per year 2010-2016 63 projects injecting gas by end March 2016

Proportion of Projects by Biogas Flow-rate m3/hour

Proportion of Projects by CO2 Removal Technology

Proportion of Projects by Feedstock

Annual Production & RHI Cost for 2012-2016

LTS (Local Transmission) INNOVATION PROJECTS IN 2015 11

Industry is slowing down this year Looking Forward Project Performance Key issue in 2016 is to increase production rate of projects Technical challenges – flow weighted average CV – LTS projects RHI Consultation Waste good, crops bad Capture of CO2 from biomethane plants – only possible for crops as waste is not acceptable in the CO2 utilization industry Funding availability for 20 projects per annum each of 40 million kWh Tariff stability Tariff booking essential to move away from 3 monthly project cycle Green Gas Certificates Developments on Vehicle Fuel? Cost and complexity How can we persuade the Grid Operators and Ofgem to want to do it Will 19 bar “Hexel One” be approved for further projects? Low cost CNG compressors at biomethane plant Farm tractors on compressed biomethane great for sustainability…. Industry is slowing down this year

RHI Incentive vs Road Transport Fuel Certificates RHI fixed for 20 years – 7.5p/kWh RTFC Market traded – 2 for waste derived fuel Less than 10 filling stations

BARRIERS budget restraints and future tariff degression availability of waste feedstocks the use of crops still under debate gas grid capacity cost of grid connections/delays energy content (CV) of biomethane v grid (propane) Sustainabily Criteria- in force 5th October 2015 60% GHG savings compared to GHG EU fossil heat average Lifecycle emissions of < 125.28kg CO2 equivalent (34.8gCO2e/MJ) of biomass heat generated Consignment basis – no averaging Waste exempt – emissions up to the process of collection Land criteria requirements to be introduced by April 2015 All existing plants will have to comply

48 p/therm in April 2015 – 28 p/therm now Gas Prices 48 p/therm in April 2015 – 28 p/therm now

Biomethane Market Forecast UK total gas demand now is around 800 TWh/annum Around 50% domestic heating, 25% power gen and 25% industry Biomethane injected by end 2015 is 2.00TWh Potential maximum biomethane by 2030 is around 20TWh For heat in cities there are few practical/economic alternatives Biomass (air quality), heat pumps (do not work in very cold weather), district heating (too late to dig up cities)

UK Biomethane Projects 2012-15 2015 2014 2013 2012

Contact details David Collins Renewable Energy Association – REA Biogas Board Member - EBA dcollins@r-e-a.net Collins@european-biogas.eu +44 7973 111 972 Thanks to CNG Services for providing data Contact: John Baldwin john.baldwin@cngservices.co.uk