1. BIOMETHANE ROADMAP FOR ITALY State of the art and possible developments Lorenzo Maggioni, R&D

2. Consorzio Italiano Biogas (Italian Biogas Consortium) Agricultural biogas plants > 500 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..

3. Biogas in Italy Biomethane in Italy Level of subsidies SWOT analysis Potential CONTENTS BIOGAS AND BIOMETHANE IN ITALY The BIOGASDONERIGHT © model Conclusions Possibly developmentes

4. BIOGAS IN ITALY

5. Third biogas in the world - 3th biogas sector after China & Germany - 4 Billion € invested in the last 5 years - > 1300 biogas plants built (agriculture + sewage + waste + industrial) - > 1.000 MWel - 8 GWh el/year produced - About 2 billion Nmc Biomethane equivalent utilized per year - Less than 2% of italian agricultural land used for monocultures - 12.000 qualified green jobs

6. BIOMETHANE IN ITALY

7. DLgs 28/2011: Biomethane “… gas produced from renewable sources with the characteristics and usage conditions corresponding to those of natural gas and suitable for injection into the natural gas grid DEFINITION Biomethane

8. PRESENT SITUATION Biomethane plants Pieve Fissiraga (LO) San Giovanni Persiceto (BO) Pinerolo (TO) Mantova (MN) Roma New upgrading plants 5 Biomethane plants in Italy Modified by

9. Entry into force (art. 9 of the Decree) : 18 december 2013 Duration: upgrading plants that will be in service by 17 december 2018 BIOMETHANE IN ITALY Decree 05 Decembre 2013

10. Organic Fraction Municipal Solid Waste BIOMETHANE IN ITALY Target Agriculture

11. NEW UPGRADING PLANTS (new sites) EXISTING BIOGAS PLANTS (you have to add the upgrading unit) The new rules will apply to different kinds of plant incentive reduced compared to new plants BIOMETHANE IN ITALY Decree 05 Decembre 2013

12. . BIOMETHANE IN ITALY Decree 05 Decembre 2013

13. Different scenarios depending on: New upgrading plant (> €) or existing biogas plant (< €) Size of the upgrading plant (> € if < 500 m 3 CH 4 /h) Use of by-products (> €) Final use of biomethane: injected into natural gas grid, used in trasport (highest incentives), used in high efficency cogeneration plants Only for biomethane for transport, the producer is also involved in the distribution of biomethane, eg gas station, (> €) or not (< €). BIOMETHANE IN ITALY Decree 05 Decembre 2013 Duration of the incentive: 20 years

14. BIOMETHANE IN ITALY SWOT analysis

15. Why BIOMETHANE? flexible input material flexible sale options storable efficient tailored to demand climate-friendly SWOT ANALYSIS Strenghts

16. SWOT ANALYSIS Strenghts

17. , SWOT ANALYSIS Strenghts

18. USING BIOMETHANE LIKE A FUEL SWOT ANALYSIS Strenghts Biofuel has a long tradition

19. , SWOT ANALYSIS Strenghts

20. , SWOT ANALYSIS Strenghts Reduce negative impact to the environment …The lower nitrogen emissions and higher nitrogen efficiency mean that emissions of NH4 N and N2O N are reduced with about 50 %. However the effect on N2O and NO3 N emissions from soil after the use of liquid manure fraction need further study. In the literature lower emissions of CH4 have also been documented. Effective internal recycling of plant nutrients and improved crop production The field experiment with additional application in May of 20 tonnes biogas liquid manure ha- 1 gave 14 % higher yield of the cash crop winter wheat (15 % higher N yield) and also a corresponding increase of crop residues. In the total balance the nitrogen surplus was 35 instead of 36 N kg-1y-1 thus reducing the total potential nitrogen emissions from the biogas plant system compared to the conventional manure management system. The higher production of crop residues with a high C/N ratio also increases nitrogen immobilisation and in this way also contributes to increased humus content in the soil. Humus content in soil, long term fertility and production capacity

21. Done, 12/02/2015 To do! Withing 60 days from the last provision July 2015? Done, January 2015 Done, 12/02/2015 SWOT ANALYSIS Weaknesses UNCERTAINTY Quality parameters? Quality measurement? Value of certificates?

22. 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. SWOT ANALYSIS Opportunities High interest from industrial groups

23. SWOT ANALYSIS Threats Powerful lobbies are fighting against biomethane Political uncertainty

24. . National Energy Strategy, March 2013 POTENTIAL OF BIOMETHANE www.mise.gov.it BIOMETHANE IN ITALY Potential 1 billion m 3 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 Nm 3 by 2020; Increasing biomethane consumption up to 30% of the total consumption, about 500.000.000 Nm 3 /year.

25. BIOGAS AND BIOMETHANE IN ITALY Possibly developments

26. What‘s in the next future 1° biomethane tractor (gas) Liquified Biomethane Other ways to produce biomethane

27. The BIOGASDONERIGHT © model

28. BIOGASDONERIGHT © BIOGASDONERIGHT © is a technological platform that combines Anaerobic Digestion (AD) technologies and other Industrial and Agricultural practices, that when applied synergistically are able to: produce additional carbon both in already farmed land and in land that suffer desertification or lowered productivity, especially in dry lands simultaneously increase the World Net Primary Production (NPP) of farmland and lower the negative externalities associated with modern conventional agricultural practices; continuous increase (until an equilibrium is reached) of the organic content of soils sequestering carbon at the required scale (> 1 Gton C per year) realize this at very low cost contribute at the same time to an ecological agricultural intensification

29. Biogasdoneright climate mitigation effects  Mitigation of livestock effluents and by products GHG emissions  Soil coverage the whole year  Increased crop rotation  Double croppings with minimum tillage with techniques mutuated from conservative and precision farming  Greater increase of Organic Matter to the soils BIOGASDONERIGHT ©

30. CONCLUSIONS (1/2) As the chemical composition and energy content of biomethane are close to natural gas, it can likewise be used in the same way: Gas grid injection and used as a natural gas substitute in any blend proportion Vehicle fuel Biomethane is a very important advanced bio-fuel. It could contribute to the European climate targets thanks to the reduction of CO 2 eq emissions, it advances security of supply and European energy independency from third countries. Biomethane production also generates green jobs. In Italy biomethane has enormous potential. It is important to remove, as soon as possible, some of the major barriers for his development.

31. José Graziano Da Silva FAO Director Berlin, 16 January 2015  “In the past decades there have been a lot of debates about food versus biofuel production.  But nowadays we need to move from the food versus fuel debate to a food and fuel debate  Like anything else, it can do good or bad.  However, in more recent years, the demand for biofuels has supported food prices. It acted as a support for those crops creating a buffer zone and avoiding that agricultural prices fell to the point that farmers would be discouraged to produce next year.  Biofuels create additional demand for agriculture products, including cereals in countries with long supplies, which helps farmers in developing countries.” CONCLUSIONS (2/2)

32. www.cib-expo.it www.consorziobiogas.it Lorenzo Maggioni ricerca@consorziobiogas.it See you in Sicily, 8-9/10/2015 Consorzio Italiano Biogas, EXPO2015 International final event THANKS FOR YOUR ATTENTION!