1. www.renewables-made-in-germany.com Market Development of Biogas in Germany: Experiences and Success Factors Dr. Wolfgang Tentscher, Senior Energy Consultant

2. www.renewables-made-in-germany.com Market Development of Biogas in Germany: Experiences and Success Factors Dr. Wolfgang Tentscher, Senior Energy Consultant

3.  Biogas in Germany  Cooperation options  Feasibility and operational costs  CHP or engine-generator-set  Digestate, comparative income  Conclusion Content

4. Biogas in Germany  Agricultural Biogas in Germany developed over about 40 years  „The mountain moved“ in 1990: first feed – in law (StrEG) with tariffs for injected renewable electricity  This law was completely changed in 2000 (EEG) and amended every two to four years after monitoring and evaluation.  We now celebrate 23 years of feed-in-tariff, among this 13 years of EEG.  There are two regulating circles: a) the legal circle b) the insurance and banking circle. They take care for environmental and compensational affairs on one side and for safety and service life on the other side. Chapter 1

5. Chapter 1, Regulating circles

6.  There are 4 conditions which make biogas a success in Germany  Priority access of the BGP to the electrical grid  Priority injection of renewable electricity  Priority acceptance of electricity  Feed-in tariff structure  Banks know the value of biogas and like to finance up to 80% loan.  Insurances insure the risk of failure and break down since they know the reliability Chapter 1, Success story in Germany

7. Chapter 1, Development of number and power in Germany Source: German Biogas Association

8. The role of the GBA The role of the EBA  The German Biogas Association is with 4800 members the strongest association in Europe.  It is speaking with one voice and lobbying in Germany for all topics concerning biogas. Chapter 1, Success story in Germany  The European Biogas Association is representing the biogas interests in Brussels.

9. Cooperation  Spare parts, implements, turn key plants, design, engineering, project development, approval planning. Chapter 1, German companies offer services, seeking for cooperation Source of the map: AHK-paper: Market entry in Vietnam – opportunities and challenges

10. Chapter 2, Cooperation Germany - Vietnam Legal system Country GermanyVietnam 4 conditions yesnoinsteadStarting Priority access by project Priority injection by project Priority acceptance by project Feed-in tariff Substitution Banks know and like to finance by project Insurances insure by project Fertilizer, digestate utilization ?? Monitoring and evaluation

11. Income through electricity  Is it possible to reduce operational cost by a factor of 4/11 or 64%? Chapter 2, Cooperation Germany - Vietnam

12. Options for cost reduction  Wages: 10 to 20% of those in Germany  Concrete as construction material: 50% of that in Germany?  Engine-generator-set instead of CHP-unit  Innovative local low-cost materials:? Chapter 3, Feasibility and operational cost Options for combined income generation  Electricity: cover farm consumption, injection options  Engine-generator-set only  Co-generation, CHP-heat in addition  Heat only, for productive use (drying, heating, steam generation)  Fertilizer in digestate, liquid or solid, composted, pelletized? Export?

13. Chapter 3, Feasibility and operational cost Source: Tentscher et.al. (2011): Master plan and road map of biogas in Jordan

14. Simulation, Annuity method Chapter 3, Feasibility and operational cost Source: Tentscher et.al. (2011): Master plan and road map of biogas in Jordan

15. CHP versus engine-generator-set  MAN E 2842 LE 312, 345 kW el, with synchronous generator  40% electr. efficiency Chapter 4, CHP or engine-jenerator-set Engine-generator-set in piggery, Thailand, asynchr. generator, 25 kWel 20-25 % electr. efficiency

16. Income through fertilizer is higher than electricity Chapter 5, Digestate, comparative specific income

17. Chapter 5, Digestate, world prieces for mineral fertilizers Source: World Bank

18.  In Vietnam, there is high potential of reducing operating costs  a) due to the cheap labour force and  b) through reduced investment, i.e., if a large part of the biogas plant is manufactured locally.  Manufacturing options are an opportunity and challenge for those German companies who seek cooperation. More advice is required.  If the value of the fertilizers is fully activated every year, income through biogas may be doubled. Conclusion

19.  Born in Oct. 1946 in Germany  1966: High-school  1972: M.Eng. Food Technology, Sugar Technology, TU Berlin  1973: M.Eng. Biotechnology, TU Berlin  1992: Ph.D., Dr.agr., Justus Liebig University, Giessen  1975-84: IPAT at TU Berlin and Oekotop Ltd, Berlin, Consultant to GTZ  1985-92: GTZ-biogas expert at AIT, Thailand  Expert stays in Thailand, China, Taiwan, Philippines, South Korea, North Korea, Nepal, India, Birma, Vietnam, Simbabwe, South Africa, Brasil, Peru, Costa Rica, Jamaica, Guatemala, Syria, Jordan, Ukraine, Belarus on behalf of GTZ, GIZ, FAO, ESCAP, UNIDO, KfW, BMZ, EBRD, municipalities, associations etc. Background of the speaker:

20. Many thanks