BIOMETHANE ROADMAP IN ITALY Steering Group Meeting and General Assembly Wien, Wednesday 25 February 2015 Lorenzo Maggioni, CIB

Agricultural biogas plants Short presentation Agricultural biogas plants > 450 = 370 MW The CIB - Italian Biogas Consortium, formed in March 2009, has national coverage and aimes to be the reference point in the italian biogas and biomethane sector.. Lorenzo Maggioni ricerca@consorziobiogas.it Wien February 25th 2015

Lorenzo Maggioni ricerca@consorziobiogas.it Wien February 25th 2015 Short presentation Company Members Partners Institutions Lorenzo Maggioni ricerca@consorziobiogas.it Wien February 25th 2015

Lorenzo Maggioni ricerca@consorziobiogas.it Wien February 25th 2015 CONTENTS BIOGAS AND BIOMETHANE IN ITALY Present situation: biogas and biomethane Present situation: transport and gas grid Decree 05 December 2013 Different scenarios Barriers Potential What is in the next future Lorenzo Maggioni ricerca@consorziobiogas.it Wien February 25th 2015

San Giovanni Persiceto (BO) PRESENT SITUATION Biogas and biomethane Roma San Giovanni Persiceto (BO) New upgrading plants Pinerolo (TO) Pieve Fissiraga (LO) Mantova (MN)

Transport sector and Natural Gas Grid PRESENT SITUATION Transport sector and Natural Gas Grid The top 10 NGV countries in the world based on total NGVs Italian Gas Grid infrastructure data: Primary transport network: 34,000 km; Distribution: 250.000 km networks. Thanks to dr JeffreySeisler Lorenzo Maggioni ricerca@consorziobiogas.it Wien February 25th 2015

Lorenzo Maggioni ricerca@consorziobiogas.it Wien February 25th 2015 BIOMETHANE IN ITALY Decree 05 Decembre 2013 Entry into force (art. 9 of the Decree) : 18 december 2013 Duration: upgrading plants that will be in service by 17 december 2018 Lorenzo Maggioni ricerca@consorziobiogas.it Wien February 25th 2015

The new rules will apply to different kinds of plant BIOMETHANE IN ITALY Decree 05 Decembre 2013 The new rules will apply to different kinds of plant NEW UPGRADING PLANTS (new sistes) EXISTING BIOGAS PLANTS (you have to add the upgrading unit) incentive reduced compared to new plants Lorenzo Maggioni ricerca@consorziobiogas.it Wien February 25th 2015

Lorenzo Maggioni ricerca@consorziobiogas.it Wien February 25th 2015 BIOMETHANE IN ITALY Decree 05 Decembre 2013 <The “natural gas grid” includes not only the transport and distribution grids of natural gas, but also other useful systems for the transport of biomethane as dedicated grids, the CNG trailers and distributors (gas station), including the agriculture, also not connected to the networks of transport and distribution of natural gas>. Lorenzo Maggioni ricerca@consorziobiogas.it Wien February 25th 2015

Lorenzo Maggioni ricerca@consorziobiogas.it Wien February 25th 2015 BIOMETHANE IN ITALY Decree 05 Decembre 2013 Duration of the incentive: 20 years Different scenarios depending on: Final use of biomethane: injected into natural gas grid, used in trasport (highest incentives), used in high efficency cogeneration plants New upgrading plant (> €) or existing biogas plant (< €) Size of the upgrading plant (> € if < 500 m3 CH4/h) Use of by-products (> €) Only for biomethane for transport, the producer is also involved in the distribution of biomethane, eg gas station, (> €) or not (< €). Best scenarios: Injection into natural gas grid:(< 500 m3 CH4/h, use of 100% by-products, single buyer = GSE) 94,12 €/MWh Used in transport: (value of certificate = 500 euro, use of 100% by-products, producer sell biothane in his own gas station) > 150 €/MWh Lorenzo Maggioni ricerca@consorziobiogas.it Wien February 25th 2015

Withing 60 days from the last provision BIOMETHANE IN ITALY Barriers Done, 12/02/2015 To do! Done, 12/02/2015 Done, 12/02/2015 Done, 12/02/2015 Done, January 2015 Withing 60 days from the last provision Lorenzo Maggioni ricerca@consorziobiogas.it Wien February 25th 2015

POTENTIAL OF BIOMETHANE BIOMETHANE IN ITALY Potential National Energy Strategy, March 2013 POTENTIAL OF BIOMETHANE <According to some studies, the potential for growth is important in terms of volume - up to one billion cubic meters a year, especially for biomethane obtained from farms, food processing companies and landfills>. www.mise.gov.it 1 billion m3 biomethane / year involves INVESTIMENTS OF 4 BILLION EURO! A realistic development plan of methane/biomethane within 2020 should include: doubling service stations to 2000; Doubling current means of transport consumption of CNG methane (preferably GNL) up to about 2 billions Nm3 by 2020; Increasing biomethane consumption up to 35% of the total consumption, about 700.000.000 Nm3/year. Lorenzo Maggioni ricerca@consorziobiogas.it Wien February 25th 2015

What‘s in the next future Other ways to produce biomethane Liquified Biomethane 1° biomethane tractor (gas) Lorenzo Maggioni ricerca@consorziobiogas.it Wien February 25th 2015

Thanks for your attention! Lorenzo Maggioni, PhD Research & Development ricerca@consorziobiogas.it CIB Consorzio Italiano Biogas e Gassificazione segreteria@consorziobiogas.it  P.IVA: 09248721004 c/o Parco Tecnologico Padano Via Einstein, Loc. Cascina Codazza Lodi (LO) 26900 Segreteria Tel +39(0)3714662633 Fax +39(0)3714662401