1. European Training Session – Brno, 4 th April 2012 “Biogas Legislation in Europe” National Exhibition Centre, Birmingham, United Kingdom, 2 th July 2013 PRO-BIOGAS Framework WORKSHOP A Common European Approach“A Common European Approach”

2. European Training Session – Brno, 4 th April 2012 “Biogas Legislation in Europe” Biogas in Europe The EU Directive 2009/28/EC, on which EU has set a 20% Renewable target for 2020, is highly conditioning the decision makers work for the next years. Every European government is now working hard to provide a solid framework to develop Renewable energies in Europe Bioenergy, and also Biogas, represents one of the most important Renewable energy sources. According to NREAPs, In 2020 Biomass will represent 6,5% of total energy sources for electricity and more than 17% in Heating and Cooling sources.

3. European Training Session – Brno, 4 th April 2012 “Biogas Legislation in Europe”

4. European Training Session – Brno, 4 th April 2012 “Biogas Legislation in Europe” Biogas potential in Europe and 2020 estimation Source:AEBIOM

5. European Training Session – Brno, 4 th April 2012 “Biogas Legislation in Europe” Biogas potential and objectives in Europe EU RES program aims to reach the consumption of 59% of available biomethane, in 2020. Producing 46% of total supply Biogas potentialBillion m 3 methane Total European Biomethane consumption549 Total biogas production219 (40%) Biogas total potential77.9 Manure Biogas potential20.5 Total biogas production using total available sources297 (54%) Total Biogas production from available manure229,5 (41,8%)

6. European Training Session – Brno, 4 th April 2012 “Biogas Legislation in Europe” Biogas policy framework and barriers Despite of this big opportunity represented by biogas sources, not only for EU, but also for farmer to increase their incomes, there are still many obstacles to overcome in order to reach the objectives.  Currently in Europe there are big differences between countries:  6,000 biogas plants in Germany, 8 in Croatia, 2 in Malta.  No other European country reaches more than 1/5 of german number of plants.  ILUC directive supports biogas as waste valorization technology. Biogas will count double towards 2020 target  Biogas from residues (also solids) can be considered a second generation biofuel  New opportunities can be represented by biofertilizer production as new carbon saving product

7. European Training Session – Brno, 4 th April 2012 “Biogas Legislation in Europe” Biogas main barriers in European countries EU country governments are now fostering and pushing for biogas technology deployment in their region. However, there are still several barriers to identify and overcome for a true future development The main aspects that determine the biogas state of progress in a country could be summarized in the following points:  Feed in tariffs established for AD and CHP plants (c€/kWhe).  Limitations, costs and availability of RES government funds.  Needed lead time to obtain permission to install a Biogas plant  Farmers level of knowledge on biogas technology.  Connection to the Gas grid for biomethane trading.  Digestate utilization. Nitrate directives and biofertilizer trading permission

8. European Training Session – Brno, 4 th April 2012 “Biogas Legislation in Europe” CountryFeed-in tariff (€/kWh) Gross Domestic Product (GDP) per capita (€) (for 2011). Source: Eurostat Target for RES in gross final energy consumption by 2020 Germany 0,16 - 0,2531,718% Netherlands 0,20836,114% Denmark 0,24330% Belgium 0,1833,713% UK 0,16827,915% Luxembourg 0,158211% Croatia 0,1510,5-- Ireland 0,1535,416% Czech Republic0,1414,913% Cyprus* 0,135*20,613% Hungary 0,11013% Spain 0,0923,120% Malta No15,510% *Premium = 1,71 eurocent/kWh-electricity, in those cases where the electricity fed into the grid and is produced by heat or cooling CHP plants, if the conversion of biomass is a thermo-chemical processes such as gasification and dry fermentation. Incentives and Subsidies resuming table

9. European Training Session – Brno, 4 th April 2012 “Biogas Legislation in Europe” Limitation, costs and government funds The installations costs represent a huge barrier against biogas deployment : COST FOR ELECTRICITY GRID CONNECTION From 25,000 to 50,000 € in Belgium: Can reach the 100,000 € in UK Connection is now not available in Czech Republic Other partner should specify the grid connection situation in their country Many countries do not provide grant funds to biogas investors. The investment is largely the most influencing aspect for a farmer who decide to evaluate biogas plant installation procedure..

10. European Training Session – Brno, 4 th April 2012 “Biogas Legislation in Europe” Limitation, costs and government funds Government RES funds, a big help to decrease the initial investment: RES funds do not exist in all countries and often are difficultly eligible; but can represent a big support for the farmer in the initial investment; In Flanders (Be), Denmark, Netherlands, UK, for example, there are big RES funds of many million of Euro. Not the same in Wallonia or Croatia If well managed, these funds guarantee till the 20-40% of the initial investment for a biogas plant. In Cyprus, for example, the government established grants for 50% for small heating public plants investment and 35% for private CHP plants

11. European Training Session – Brno, 4 th April 2012 “Biogas Legislation in Europe” Permissions to install a Biogas plant The long time procedures required to obtain all permissions are a disincentive for many farmers that could decide to approach to Biogas technology: The different lead-time required for permissions among the countries is directly related to the government attitude and, above all, it depends on the government experience on renewable energy procedures In Countries as Germany, or Denmark about 12 months are required to obtain permissions and to start to install the Biogas Plant. Compared to these data: The other country reports that alwais more than one year, and often more than two years are necessary to obtain the same permissions, and this only by following a difficult travel between many different authorities

12. European Training Session – Brno, 4 th April 2012 “Biogas Legislation in Europe” Farmers knowledge on biogas technology Many farmers do know nothing on Biogas technology and potentials. Manure storage is often a problem for farmers that must treat it spending much money.  The lack of knowledge is one of the main barriers identified in the Deliverable 5.1. Government has a basic role in this problem because only through a good training action and available material farmers could learn more on biogas  Pre-feasibility study could be also available in all countries, to allow farmers to evaluate their farm possibilities without spending for thousand euro for it.  In those countries where Biogas is developed, as Germany, Denmark and also UK, there is a better knowledge on biogas technology, also thanks to a good communication activity and training material that permit farmers to be more informed than in other countries.

13. European Training Session – Brno, 4 th April 2012 “Biogas Legislation in Europe” Connection to the Gas grid for selling biomethane Biogas plants investment are always very expensive. One of the higher cost factors is the co-generation engine that is necessary to convert biogas power in electricity. In addition to the power engine investment, the electricity grid connection is then another important cost. The possibility to refine biogas in biomethane and then selling it directly to the national natural gas grid lead to a decrease of plant costs and to a larger income for farmer. Among the 13 countries involved in the project, only Netherlands, Germany and Denmark have this opportunity. This explains well how these countries are, at the same time, the most developed in Biogas technology

14. European Training Session – Brno, 4 th April 2012 “Biogas Legislation in Europe” Nitrate directive – Digestate disposal expenses Vs a high biofertilizer production opportunity Nitrate directives represent problem all around Europe. Digestate disposal is a bottleneck due to exceeding nitrogen content and heavy metals content. Digestate tratment requires high amount of energy and represents one of the most relevant costs. Disposal costs are estimated around 15 €/ton! One one hand, the digestate treatment would allow to have a good biofertilizer to be alse traded among other farmers for bio-food production On the other hand, governments do not provides adequate laws or standards for biofertilizer from digestate substrate, still considered as waste. Instead of: 1_be supported as carbon saving product 2_promoted as valuable green fertilizer for increasing food quality. 3_increase biogas economic feasibility Digestate - made fertilizer represents often an additional cost due to treatment, disposal system costs

15. European Training Session – Brno, 4 th April 2012 “Biogas Legislation in Europe” Heat savings Electricity savings Electricity for sale Annual costs Grid connection Investment Digestate treatment Nitrate directives represent problem all around Europe. Digestate disposal is a bottleneck due to exceeding nitrogen content and heavy metals content. Disposal costs are estimated around 15 €/ton! Digestate tratment requires high amount of energy and represents one of the most relevant costs. Governments do not provides adequate laws or standards for biofertilizer from digestate substrate, still considered as waste. Nitrate directive: Digestate disposal costs Vs a high value biofertilizer production

16. European Training Session – Brno, 4 th April 2012 “Biogas Legislation in Europe” Annual costs Investment Grid connection Heat savings Electricity for sale Electricity savings Biofertilizer for sale 1.supported as carbon saving product. 2.promoted as valuable green fertilizer for increasing food quality. 3.Considered as co-product to increase biogas economic feasibility 4.Savings on digestate disposal and on artificial fertilizers Digestate treatment ( liquid solid separation + drying) would produce valuable biofertilizer (3-4% N content, 60-80 % Ammonia). Biofertilizer low price - 200 €/ton! Here below the possible benefits: Nitrate directive: Digestate disposal costs Vs a high value biofertilizer production

17. European Training Session – Brno, 4 th April 2012 “Biogas Legislation in Europe” Other aspects identified Naturally; there are many other problems to underline which depend by the current economical situation and by the specifics of each country. Financial crisis lead to a high decrease of Bank available funding: Farmer can hardly benefit from these loans and do not start investments Smallest countries has a less biogas potential, or only small farms with few animals that will not receive a profit from Biogas technology Often Government funds or incentive schemes are difficult to approach or to understand (these information should be part of biogas available training material). Farmers do not have many time to dedicate to study biogas financing and installing procedures because they have always to work a lot.

18. European Training Session – Brno, 4 th April 2012 “Biogas Legislation in Europe” CONCLUSION: As well as feed in tariffs, all the other aspects explained before have a fundamental role in Biogas plant economic feasibility  Resuming: Investment funds established by government, Nitrate directives, beurocracy and farmers’ knowledge and awareness are the most important aspects to be solved in order to reach a biogas dveleopment in Europe.  If the farmers will approach to biogas technology as a new high value source of income. EU governements should demontrate a better attituted in this solution. Both for biogas high importance as sustainable green energy potential, and also for its role in countries biomethane self production, fundamental to reduce high european natural gas importation costs

19. European Training Session – Brno, 4 th April 2012 “Biogas Legislation in Europe” Thank you for the Attention!