future of renewable gas in ireland

8/8/2019 Future of Renewable Gas in Ireland

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THE FUTURE OF RENEWABLE GASIN IRELAND


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DISCLAIMERThis report is based on certain publicly available in ormation and research papers (as listed in Appendix A), Ernst & Youngproprietary data and input rom the Sustainable Energy Authority o Ireland, University College Cork, the EnvironmentalProtection Agency, For s and Ernst & Young. We give no warranties in relation to the accuracy or completeness o anyin ormation contained in this report and exclude all liability in relation to any reliance on such in ormation.


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FUTURE OF RENEWABLE GAS IN IRELAND 1

CONTENTS

Introduction rom CEO 201. Executive summary 402. Introduction 603. Renewable energy in Ireland 804. Biomethane resources and market potential 1005. Potential o biomethane in Ireland 12

05.1 Economics 1405.2 Benefts o biomethane 1506. Support structures 1807. Realising the potential rom biomethane 2008. Conclusion and recommendations 24Appendix A - Re erences 27Appendix B - Abbreviations 28


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INTRODUCTION FROM CEOBord Gis recognises the signifcant challenges posedby the ambitious EU and Irish renewable energy targets

in electricity, heat and transport. As an organisation, wehave clearly demonstrated our commitment to contributetowards meeting those targets via our investment in windassets and high e fciency power generation equipment.In 2008, we established a 10 million Alternative EnergyResearch and Development Fund to support research into

emerging energy-related technologies and to support anincrease in the quantity and quality o research in alternativeenergies in Irelands colleges. In urther recognition o theimportance o renewable energy as part o a sustainable

uture or this country, Bord Gis has commissioned thisreport The Future o Renewable Gas in Ireland.

FUTURE OF RENEWABLE GAS IN IRELAND2


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The report examines the productionand use o biomethane as a renewableenergy source in Ireland and its

potential contribution to assist inmeeting Irelands renewable energytargets. The report outlines thepotential benefts associated withdeveloping this renewable uel sourceas well as the barriers that must beovercome to make renewable gas areality.

We believe that renewable gasrepresents a signifcant and under-utilised source o renewable energy inIreland and could make a signifcantcontribution to Irelands renewableenergy and waste objectives in the

uture. The production o grid qualitybiomethane or renewable gas canplay a vital role in helping Ireland toattain its renewable energy targets, inaddition to a variety o other beneftsoutlined in the report. The act thatbiomethane can be transportedusing the readily available naturalgas in rastructure, to over 640,000homes and businesses throughoutthe country, represents a signifcantadvantage. Many other countries in

Europe have recognised the valueo renewable gas and are puttingthe necessary structures in place to

support the industry e.g. Germany andSweden.

Undoubtedly, there are obstacles tomaking renewable gas a viable energysource in Ireland. However we believei the necessary parties work together,these barriers can be overcome ina relatively short time rame. Weare willing to work with the relevantauthorities to ensure that thenecessary structures are put in place.We welcome the support o industry,the Sustainable Energy Authority oIreland (SEAI), the EnvironmentalProtection Agency (EPA) and otherrelevant parties in the publicationo this report and we look orwardto working with all policy makers inthe development o a renewable gasindustry in Ireland.

John Mullins,CEO, Bord Gis


WE BELIE E THATRENEWABLE GASREPRESENTS A SIGNIFICANTAND UNDER-UTILISEDSOURCE OF RENEWABLEENERGY


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E ECUTI E SUMMARY

The EU and the Irish Government have set bold renewableenergy, environmental and waste management targets orIreland, but renewable energy currently accounts or onlyaround 4% o Irelands total gross fnal energy demand.Obviously something needs to be done to address this

short all. The EU has highlighted the sustainability orenewable gas systems and has encouraged Member Statesto take measures to support the wider use o renewablegas. In Ireland, there is a large resource available or theproduction o renewable gas and, i captured and utilisede fciently, it could represent a signifcant opportunity tohelp achieve these challenging renewable energy targets.


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This paper, commissioned by Bord Gis, investigatesthe potential or producing biomethane in Ireland,assesses its potential contribution to achievingIrelands renewable energy targets and includes a

qualitative discussion on the potential benefts andbarriers to using biomethane as a source o heatingand transport uel in Ireland. The report highlightsthat energy rom biomethane has the potentialto contribute signifcantly to Irelands renewableenergy targets. In particular biomethane couldgreatly assist Ireland in meeting the EU targets

or thermal energy rom renewables (RES-H) andtransport uel rom renewables (RES-T).

Biogas is produced when eedstocks, such asorganic wastes (agricultural and municipal), andenergy crops, such as grass silage, are convertedinto biogas using anaerobic digestion technology.The raw biogas can be cleaned and upgraded intobiomethane (renewable gas) and injected into thenational gas grid to be used as a heating uel inhomes and businesses. A conservative estimateo the potential biomethane resource in Ireland is0.4 billion m3/a or 7.5% o the national gas demandrequirement (the equivalent o heating 300,000homes each year). Capturing this resource wouldbe a considerable step in addressing Irelandschallenging renewable energy targets and helpreduce the countrys dependency on energy imports.

Biomethane production could also provide anenvironmentally sound waste management option,helping Ireland to meet EU Landfll Directiverequirements, thereby reducing the overall costo waste management in Ireland today. Otherbenefts rom the development o a biomethanein rastructure might include income and job security

or armers and job creation in the constructionand operation o biomethane plants. A biomethanein rastructure could make a signifcant contributionto the green tech sector in line with Irelandsstrategy to create sustainable knowledge-drivenindustries.

Undoubtedly work still needs to be done to makebiomethane a viable energy option or Ireland.However, most o the obstacles identifed in thisreport could be resolved relatively quickly with the

support o Government and the relevant regulatorybodies. The ollowing recommendations shouldbe considered by policy makers to encouragebiomethane production in Ireland:

Set national targets or a proportion o gasdemand to be met rom biomethane.

Review the Renewable Energy Feed-in Tari(REFIT) to support biomethane ed directlyinto the natural gas grid. The new tari couldbe in line with the support structure used inGermany.

Implement regulatory conditions to allowbiomethane producers to inject biomethanedirectly into the gas grid and adopt suitablestandards that will regulate the quality obiomethane that may be injected into thegas grid. Such standards will deal with gasspecifcations such as chemical compositionand energy content.

Implement new support structures oragriculture to provide an incentive or

armers to produce eedstock or biomethane

production. Align renewable energy and waste

management policies to deliver certaintyaround eedstock supply over the li e o thebiomethane plant.

More unding or research, developmentand demonstration o renewable gastechnologies, building upon the existingexpertise in biotechnology and in ormationtechnology.


CAPTURING THISRESOURCE WOULD BE ACONSIDERABLE STEP INADDRESSING IRELANDSCHALLENGING RENEWABLEENERGY TARGETS


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INTRODUCTION

Ireland has enjoyed substantial economic growth inthe past 15 to 20 years and this has been accompaniedby commensurate growth in energy demand.

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An increased reliance on gas in the economy,the absence o su fcient domestic reserves,concerns or the environment and an increase inelectricity and gas prices have driven the need tofnd alternative, sustainable and renewable energy

sources.

Current estimates3 indicate that the near termdemand or gas in the power, residential,commercial and industrial sectors is expected toincrease by about 6,000GWh by 2020 compared tothe current level o 60,000GWh.Figure 1 shows the

orecast gas demand up to 2020.


THERE IS A NEED TO FINDALTERNATI E, SUSTAINABLEANDRENEWABLE ENERGYSOURCES

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Figure 1: Gas demand projection in the Republic of Ireland

Source: Annual gas demand orecasts up to 2014/15 were provided by Gaslink. The annual change in gas demand a ter 2014/15 was calculated using the averageannual increase/decrease in gas demand between 2008/09 to 2014/15.

The above-in ationary growth in total primary energyconsumption (total growth o 72% rom 1991 to 2008) hasmagnifed some o the existing characteristics o the Irishenergy system high energy imports and growing greenhousegas (GHG) emissions.1-2


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RENEWABLE ENERGY IN IRELAND

The White Paper published in March 2007 sets outthe Governments Energy Policy or 2007 to 2020.

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Renewable energy has been contributing

approximately 2% o Irelands energy supply since1990. In 2008 renewable sources contributed 4%o Irelands gross fnal energy use. The signifcantincrease in energy demand over that time masks the

act that renewable energy has grown considerablyin absolute terms since the mid-1990s. Thecontribution rom renewable energy grew by over247% (7.1% per annum) between 1990 and 2008.6

Ireland is making progress in relation to itsrenewable energy sourced electricity (RES-E) target:11.8% o total electricity consumed in 2009 came

rom renewable energy sources, up rom 4.4% in2003.

By 2009, wind accounted or 11% o electricity inIreland.7 In May 2008, the Economic and SocialResearch Institute (ESRI) stated that the amount oelectricity generated rom wind could reach 30% by2020,8 making a signifcant contribution to the new40% RES-E target under the Carbon Budget set inOctober 2008.

Figure 2 shows the fnal energy use in Irelandbroken down by application. The share o energyused or heating and transport has historically beenoverlooked by renewable energy policy, despitefnal energy demand or both heating and transportin Ireland being signifcantly higher than that orelectricity.9 By 2008, however, only 3.6% o thermalenergy was generated rom renewable sources(compared with 11.9% or electricity).10


RENEWABLE ENERGYHASGROWN CONSIDERABLY INABSOLUTE TERMS SINCE THEMID-1990s

Transport 42%

Electricity 17%Heating 41%

Figure 2: Energy use in Irelandby mode of application 2008

The Government has set targets for:

At least 15% and 33% o electricity to begenerated rom renewable sources by 2010and 2020 respectively. The 2020 target wassubsequently extended to 40% in the CarbonBudget o October 2008.4

A minimum o 5% and 12% renewableenergy share o the heating sector or 2010and 20205 respectively.

Renewable resources to contribute at least10% o all transport uel by 2020.

Source: Energy in Ireland 1990-2008, Energy Policy Statistical Support Unit,the Sustainable Energy Authority o Ireland (SEAI).


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BIOMETHANE RESOURCES ANDMAR ET POTENTIAL

Biogas production occurs when biomass is broken downinto simpler chemical components, typically using anaerobicdigestion (AD) technology.

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IRELAND HAS SIGNIFICANTUNE PLOITED POTENTIAL FOR BIOMASS IN THE FORMOF AGRICULTURAL LAND ANDRECYCLED WASTE

AD technology involves a natural process odecomposition in the absence o oxygen. It is aproven technology that has been in use since1895 when biogas was recovered rom a sewagetreatment plant and used to uel street lamps inExeter, England.11 The decomposition processproduces a raw biogas, comprising methaneand carbon dioxide, in addition to a semi-soliddigestate residue product. Raw biogas can beused on-site to produce heat and electricity orupgraded to biomethane and injected into thenatural gas network, or used as a transport uel.12

Biogas upgrading involves cleaning and puri ying

the raw biogas to meet a specifcation akin tonatural gas. The main purpose o the upgrading isto remove gases such as carbon dioxide (CO2) andhydrogen sulphide (H2S), and eliminate or reducecontaminants. Biomethane injected into the gridcan generate signifcantly more energy o -sitewhere its use can be optimised by using it or heat,Combined Heat and Power (CHP), or transport uelrather than on-site electricity generation only.13

Figure 3 illustrates the various uses o biogas.

Ireland has signifcant unexploited potential orbiomass in the orm o agricultural land andrecycled waste rom municipal, agricultural andindustrial sources. In 2007, Ireland produced about40 million tonnes o biodegradable wastes(i.e. slurry, slaughter waste and organic householdwaste) suitable or anaerobic digestion.14 Inaddition, Ireland has signifcant unexploitedresource potential in the orm o grass, with91% o agricultural land, or 3.9 million hectares,being used to grow this potential energy crop.

Feedstock

Biogas Onsite CHP

Biomethane

Transport

Grid Heat

Electricity

Figure 3: Uses of biogas

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POTENTIAL OF BIOMETHANEIN IRELAND

Research, sponsored by Bord Gis, has been carried outon the availability o di erent eedstock or anaerobicdigestion at University College Cork.15 This analysis providedboth a technical and a baseline potential or each

eedstock in 2020.

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BIOMETHANE COULD MA E ASIGNIFICANT CONTRIBUTIONTOIRELANDS RENEWABLEENERGYAND WASTEOB ECTI ES IN THE FUTURE

Table 1: Total energy potential of waste and surplus grass in Ireland for 2020Technical potential Baseline potential

Biomethane Energye Biomethane Energye

Source Mm3/a P Mm3/a PAgricultural slurry 423.8a 15.53 51.3 1.88OFMSW 61.7 2.26 15.6b 0.57Slaughter waste 37.4c 1.37 18.6 0.68Surplus grass 1,298.3 47.58 325.7d 11.9Total 1,821.2 66.74 410.2 15.03% o total current Irish gas demand 33.2% 7.5%

% o 2020 fnal energy demand in white paper scenario 11.4% 2.6%Source: Adapted Singh A, Smyth BM, Murphy D, Renewable and Sustainable Energy Review, olume 14, Issue 1, anuary 2010, Pages 277-288.Notes:a. 32,000,000 tonnes agricultural slurry x 12.8m3 methane (CH4) per tonne x 1/0.97= 423.8 Mm3 biomethane per annum (with 97% CH4 content).b. 870,000 tonnes OFMSW x 25% recoverable x 69 m3 CH4 per tonne x 1/0.97= 15.6 Mm3 biomethane per annum.c. 420,000 tonnes slaughter waste x 86 m3 CH4 per tonne x 1/0.97= 37.4 Mm3 biomethane per annum.d. 97,500 hectares x 3,240 m3 CH4 per hectare x 1/0.97 = 325.7 Mm3 biomethane per annum.e. Conversion assumes biomethane has an energy content o 36.8 M /Mm3

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Figure 4: Fossil fuel based natural gas displacement by biogas


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The technical potential represents the maximumvolume o biomethane that could be produced i theentire quantity o available eedstock in Ireland wereused to produce biomethane. The baseline potentialconsiders a scenario where a realistic proportion othe eedstock is diverted to biomethane production.This is based on 5% o cattle, pig and sheep slurry,75% o poultry slurry, 50% o slaughter waste and25% o the organic raction o municipal solid waste(OFMSW).16Surplus grass in the baseline scenarioequates to approximately 100,000 ha.17 The resultso this analysis are set out inTable 1 .

Under the technical scenario there is the potentialto meet 33.2% o Irelands current natural gasdemand, or 11.4% o total fnal energy demandwith biomethane by 2020. Our mandatory targetunder EU Directive 2009/28/EC is to achieve 16%renewable energy penetration by 2020. Under thebaseline scenario there is the potential to meet7.5% o Irelands current natural gas demand, asshown inFigure 4 , or 2.6% o total fnal energydemand with biomethane by 2020. This is equivalentto 7.4% o Irelands thermal energy demand in2020 and indicates that biomethane could makea signifcant contribution to Irelands renewable

energy and waste objectives in the uture.

Source: Annual gas demand orecasts up to 2014/15 were provided by Gaslink. The annual change in gas demand a ter 2014/15 was calculated using theaverage annual increase/decrease in gas demand between 2008/09 to 2014/15.


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05.2 BENEFITS OFBIOMETHANEThermal energy

Irelands White Paper on Energy in 2007 setrespective targets o 33% renewable electricity and12% renewable heat by 2020 (although the RES-E target is now 40% since the Carbon Budget in2008). Support mechanisms introduced by the IrishGovernment to date have resulted in a steady risein the deployment o wind energy, rom 117MW in2000 to 1,264MW in February 2010. Using similarincentive mechanisms to help overcome some othe fnancial barriers associated with biomethaneproduction, Ireland could make a substantialcontribution to the RES-H target using this sourceo renewable energy. Under the baseline scenarioo this study, Ireland could produce 15P obiomethane per annum, equivalent to around 7%o the White Paper orecast or thermal energy in2020 (202P ), or 44% o residential gas consumption(34P ). Under the technical scenario biomethanecould meet 33% o Irelands overall projectedheat demand and 200% o projected domestic gasconsumption. Biomethane could there ore play a

major role in meeting the 12% RES-H target.

One o the key benefts associated with biomethaneis that it can be transported using conventionalnatural gas in rastructure. Biomethane couldbe supplied to end customers with no change toexisting in rastructure or metering equipment,avoiding the installation o district heating systemsor wood pellet/chip boilers and providing renewableheat to buildings connected to the gas grid.

Waste management

While the increase in municipal recycling rateshas been signifcant, Ireland still has a wastemanagement in rastructure that relies heavily onlandfll.18 The EU Landfll Directive stipulates thatby 2016, Ireland can only landfll 35% o the levelo biodegradable municipal waste produced in1995.19 In order to meet the EU Landfll Directive,Ireland needs to deliver waste in rastructure todivert 900,000 tonnes per annum o biodegradablemunicipal waste rom landfll by 2016. Biomethaneplants o er local authorities and the private sectora use ul alternative to landfll while providing arenewable source o energy in the orm o electricity,heat or transport uel.

Carbon abatement and sustainabilityIrelands target under the yoto Protocol is to limitannual greenhouse gas emissions to 13% above1990 levels over the period 2008 to 2012. IrelandsCO2 target or the period 2008 to 2012, as set bythe yoto Protocol, was contravened as ar back as

1997. By 2007 annual greenhouse gas emissionswere 24.6% above 1990 levels.20 Furthermore,the EU Burden-sharing Proposals on Energyand Climate Change require Ireland to reduce itsgreenhouse gas emissions by 20% by 2020, basedon 2005 emissions. Using organic waste and otheragricultural eedstocks to create biomethane is asustainable, renewable waste-to-energy solution,which reduces greenhouse gas emissions romlandfll and rom ossil uel. In the EU RenewableEnergy Directive (2009/28/EC) bio uels produced

rom residues and lignocellulosic material (suchas grass) are awarded double credit whenestablishing compliance with the 2020 target o 10%renewable energy in transport.21

ONE OF THE EY BENEFITSASSOCIATED WITHBIOMETHANE IS THAT IT CANBE TRANSPORTED USINGCON ENTIONAL NATURAL GASINFRASTRUCTURE


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05.2 BENEFITS OFBIOMETHANE continuedSecurity of supply

Security o energy supply is one o the mostimportant macroeconomic and strategic issues

or any country, and even more so or an islandnation such as Ireland. Over the last twenty yearsthe energy landscape in Ireland has changeddramatically. In 1990 domestic energy productionaccounted or 32% o Irelands energy requirements.However, import dependency has grown signifcantlydue to the decline in natural gas production,coupled with the increase in energy use and, by2007, only 11% o Irelands energy consumptionwas sourced rom domestic production. Anydisruption to energy imports would consequentlyhave a signifcant impact on the Irish economy.The production o biomethane rom anaerobicdigestion could provide Ireland with an indigenousand reliable energy source amounting to 33% odomestic natural gas demand, helping to reducethe dependency on natural gas imported rom theU and mainland Europe. An indigenous supplyo biomethane could also provide some protection

rom volatile international energy prices.

Economic development and innovation

The Governments Strategy or Science, Technologyand Innovation outlines a vision or Ireland in 2013as a country internationally renowned or excellencein research and innovation. Biomethane o ers anopportunity or the development o innovative newtechnologies, processes and skills, which could beused or urther inward investment and export toother renewable energy markets. Uptake could bestimulated through demonstration projects involvingpublic and private sector organisations, with aview to tackling a number o issues including theproduction o low-carbon energy and the treatmento biological waste at a local level. The developmento biomethane in rastructure could also generatesignifcant employment opportunities in terms oplant construction, operation and indirect services,consequently creating an estimated 5,000 indirect jobs.

Assuming a plant size o 50,000 tonnes per annum,which would provide su fcient economies o scale

in upgrading biogas to biomethane, Ireland wouldrequire 183 rural biomethane acilities to processthe quantities o grass and slurry eedstocks asdescribed under the baseline scenario(Table 1) . A rural digester o this size would,however, most likely be based on the CentralisedAnaerobic Digestion (CAD) system and wouldthere ore require a large collection radius.

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Similarly, a urther eight plants o 50,000 tonnes

per annum each could process the quantitieso slaughter waste and OFMSW as per thebaseline scenario. The total investment cost orthe number o plants described here and set outin Table 2 would be o the order o 1.4 billion.A typical biomethane plant may only require

three operational employees (plant manager/lab

technician and two loader drivers), presentinglimited direct employment opportunities. Howeverthe indirect impacts could be greater, particularlyi Irish developers, contractors and technologycompanies were established or expanded to buildthis new capacity.

Table 2: Digesters proposed for Ireland in 2020

CapitalDigester type Number Feedstock treated Total eedstock investment (M)

Rural 183 50,000 t/a: 9.15 M t/a: 183 * 7m = 1,281m29,000 t/a grass (530 ha) 5.3 M t/a grass (97 k ha)21,000 t/a slurry 3.87 M t/a slurry

Slaughter 4 52,000 t/a 208,000 t/a 4 * 15m = 60mMunicipal 4 54,500 t/a 218,000 t/a 4 * 20m = 80mSource: Singh A, Smyth BM, Murphy D, Renewable and Sustainable Energy Reviews, olume 14, Issue 1, anuary 2010, Pages 277-288.

BIOMETHANE OFFERS ANOPPORTUNITY FOR THEDE ELOPMENT OFINNO ATI ENEW TECHNOLOGIES


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SUPPORT STRUCTURES

There are clear benefts to increasing the level obiomethane produced in Ireland in terms o energy security,waste management and carbon abatement.

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SOME SUPPORT MECHANISMSARE ALREADY IN PLACE TOASSIST THEDE ELOPMENT OFBIOENERGY IN IRELAND

Like other renewable energy technologies, therate o deployment o biomethane will remain slowunless adequate returns are achievable by investors,commensurate with the risk taken in investingin this technology. Some support mechanismsare already in place to assist the development obioenergy in Ireland, including:

Renewable Energy Feed-in Tari (REFIT)o 12c/kWh or electricity produced byanaerobic digestion.

The Sustainable Energy Authority o Ireland(SEAI) grant aid or biomass CHP/AnaerobicDigestion (AD) CHP providing a capital granto up to 30% o the initial capital costs.

Bioenergy Establishment Scheme whichprovides grants to armers interested ingrowing miscanthus and willow.

Energy Crops Scheme which o ers growers45/ha or areas sown under energy cropsunder the Single Payment Scheme.

Government published Bioenergy ActionPlan or Ireland which put in place systemsto encourage the use o bioenergy in publicbuildings.

Renewable heat deployment programme(ReHEAT) provides grants or wood chip/pellet boilers, solar thermal systems andheat pumps.

The Greener Homes Scheme (GHS) providesassistance to homeowners to purchasenew renewable energy heating systems orexisting homes.

These support mechanisms do not provide a directfnancial incentive to increase the use o biogas or

uses other than CHP production. For this reason,biogas is not currently upgraded to natural gasquality since there is no economic incentive to doso. I there was an equivalent support mechanism inplace or the production o grid quality biomethane,aligned with a supporting regulatory ramework,this could provide the impetus to start a renewablegas industry in Ireland.


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REALISING THE POTENTIAL FROMBIOMETHANE

The economic viability o anaerobic digestion projects iscurrently driven by a combination o gate ees received andincentives provided by the Government under the REFITscheme or the electricity produced.

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APPRO IMATELY91% OFAGRICULTURAL LANDINIRELAND IS UNDER GRASSAND IS USED FOR GRA INGCATTLE AND SHEEP ORPRODUCING SILAGE.

There is currently no equivalent incentiveor biomethane used as a source o heat or

transport uel. Such a tari would be relativelystraight orward to introduce, i based at the

point o injection into the gas grid. Althoughsome orm o accreditation and monitoringwould be required, particularly where the gasis only used o -grid (in rural locations, orexample). Financial incentives alone will notresult in high rates o deployment o anaerobicdigestion projects as many o the barriersto be overcome are non-fnancial issues asdescribed below.

Feedstock supplyA key issue when assessing the viability o an

anaerobic digester is the availability and cost osu fcient volumes o eedstock in close proximityto the acility. Challenging waste targets suchas the EU Landfll Directive mean that there is avery strong incentive to divert waste to alternativetreatment acilities such as biodigesters. Indeed,anaerobic digestion plants will be able to chargea signifcant gate ee to receive organic waste.However, prevention and minimisation strategieswhich aim to reduce organic waste at source, andincreasing maturity o the waste managementmarket (with more biodigesters being erected),will lead to a decrease in the quantity o OFMSWavailable or new biodigesters and the associatedgate ee. Revenues should take into accountreduction in gate ees over the li e o the acility.

Other eedstock options such as agricultural wastemay not receive a gate ee. Grass, or example, mayneed to be purchased by the biomethane producer.Approximately 91% o agricultural land in Ireland

is under grass and is used or grazing cattle andsheep or producing silage. The grass grown on thisland may be used as a component eedstock in ananaerobic digestion plant to produce biomethane.I 5% o the land used or silage production was

used to produce biomethane, the energy potentialrom grass eedstock alone could exceed the energy

equivalent o 262 million m3 o natural gas22

(or enough to supply 200,000 homes). Animal manures, slurries and slaughter wastesare posing an increasingly di fcult problem orwaste management. Currently slurries, manuresand some slaughter wastes are applied to land.Regulations governing the spreading o thesewastes on agricultural land (particularly the NitratesDirective and the Animal By-Products Regulation)limit the area o land available or environmentallysound disposal. A solution may be to divert these

eedstocks to an anaerobic digestion plant frst, inorder to sanitise the waste.

Digestate removalAnaerobic digestion generates a by-product knownas digestate. Digestate may be used as a ertiliser,compost or topsoil, replacing ossil ertiliser andthereby greatly increasing the sustainability o theagricultural process. However, the Department oAgriculture, Fisheries and Food has implementedstrict rules governing the spreading o animal

by-products on ood-producing land. Anaerobicdigesters using slaughter waste may be classifedas high or medium risk under the Animal By-Products Regulation and may require alternativemeans to dispose o the digestate (as opposed topasture land application).


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Supply chainThere are a number o supply chain models orbiomethane plants. Large-scale centralisedanaerobic digestion acilities require newrelationships to be ormed between parties romdi erent sectors, or example armers, wastemanagers and energy commodity intermediaries.Such interactions can be complex, particularly

or larger anaerobic digestion acilities, wherearmers must agree to deliver manure and grasseedstocks and collect the digestate; and waste

managers must supply biodegradable waste and bewilling to pay a reasonable gate ee. Coordinatingthese supply contracts and guaranteeing su fcient

quantity and quality o eedstock can be an issueor large centralised anaerobic digestion acilities.This model can provide the dual benefts o creatingsecurity o eedstock supply or the biomethaneplant and guaranteeing income or even job security

or the local armers.

Alternatively, armers could use a cooperativestructure to own and operate the biomethaneplant. In such a structure, armers would worktogether to fnance, build and run the acility

thereby reducing the number o intermediaries andpromoting the acility within a community (whichcan reduce planning risk by limiting the level opublic opposition to the plant). This model has beensuccess ully adopted by arming co-ops in Denmarkand Germany.

Finally, a municipal model could involve a largeacility to treat municipal waste (source segregated)

and to produce biomethane within the city environswhich may be used or on-site CHP, transport uel(as in Stockholm) or injected into the grid or use asa natural gas substitute.

Market awareness and the planning processInterest in renewable energy has grown signifcantlyin recent years. However, public interest andknowledge around anaerobic digestion is low. Thislack o understanding leads to public concern orhealth, sa ety and environmental issues whenplanning applications are made or anaerobicdigestion plants; particularly or those that processbiodegradable waste. The Sustainable EnergyAuthority o Ireland (SEAI) identifed marketawareness as a barrier in 2004 and, despite e ortsby a number o private and public sector bodies, thelevel o understanding among the general public obioenergy rom waste remains low.

Opportunities for biomethane injection into the gridGaslink is the independent operator o the naturalgas transportation system in the Republic oIreland. The Code o Operations details the rightsand obligations o each party involved in thetransportation o gas through the gas grid. The codeplaces obligations on suppliers to book specifccapacity, make entry nominations and complywith pressure regulations. Changes to the Code oOperations would need to be made to acilitate the

widespread deployment o small biomethane entrypoints to the grid.

Many countries have standards governing the qualityo biomethane that may be injected into the grid;in Austria, or example, the standard is GW G31.The standard specifes the biomethane in terms oessential components such as minimum methanecontent and energy value, maximum hydrogensulphide content and a Wobbe index. The values inthe standards are very achievable using upgradingtechnology. In Ireland, the natural gas specifcationis outlined in the Code o Operations.

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The two particular issues that require considerationwith respect to the current specifcation arethe oxygen content and the assessment o theimplications o unspecifed chemical constituentsassociated with biomethane produced romparticular waste streams.

Biomethane as a transport fuelConsiderable investment has been made in thenatural gas grid in recent years, resulting in anexpansion o the pipeline to include the Midlands,Galway and Mayo regions. While the gas network isrelatively extensive, there is a large proportion o thecountry, mainly in the North West, without access

to the network. Biomethane produced in these o -grid areas could, however, be used as a transportuel. The EU Bio uels Directive and the Government

White Paper set a target o 4% bio uel market share(by volume) in the transportation sector by 2010 and10% by 2020. Biomethane could be an economicallyviable transport uel(Table 3) and is already used

in other countries. Again, the potential or blendedgaseous transport uel (90% natural gas and 10%biomethane) would allow or a cheap transport

uel and compliance with RES-T. It should be notedthat the EU Renewable Energy Directive allows adouble credit or bio uel rom residues and romlignocellulosic materials (such as grass) whenassessing compliance with the 2020 target o 10%renewable energy in transport.

Around 25% o biogas produced in Sweden in 2008was used as a vehicle uel. Public awareness othe advantages o biogas is increasing in Swedensuch that the demand or biogas as a vehicle uel is

greater than the supply in some regions, such as theStockholm area. Bus services in Stockholm, Upsalaand Linkoping all utilise biomethane as a transport

uel and the number o biogas flling stations in thecountry as a whole amounts to more than 120.23

Table 3: Comparison of vehicle fuel costs

Unit cost Energy value Cost per unitFuel (/litre) (M /litre) energy (/M )Petrol 1.172 30 0.039Diesel 1.054 37 0.028Biomethane ( rom grass silage) 1.25 37 0.034CNG Austria 0.89 37 0.024CNG U 0.71 37 0.019CNG Germany 0.70 37 0.019BioCNG (90% CNG U , 10% grass biomethane) 0.755 37 0.020Source: Adapted rom Murphy , 2008, Bio-CNG Transport Fuel o the Future, Bioenergy News 2008, the Sustainable Energy Authority o Ireland.

Note: CNG = Compressed Natural Gas.

FARMERS COULD USE ACOOPERATI E STRUCTURE TO OWN AND OPERATE THEBIOMETHANE PLANT


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CONCLUSION ANDRECOMMENDATIONSThis study has ound that biomethane represents asignifcant and under-utilised source o renewable energy inIreland. The ollowing recommendations might assist in thedelivery o biomethane as a uture energy resource.

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IRELAND HAS AT ITS DISPOSAL THEMEANS TO PRODUCE GREEN ENERGY WHILE SATISFYING EU REGULATIONSRELATING TO WASTE MANAGEMENTAND MEETING RENEWABLE ENERGYSUPPLY TARGETS

Recommendation 1: Set targets for gas demand to be met withbiomethaneFor example, the National Biomass Action Plan orGermany set targets or biomethane supply as apercentage o gas demand o 6% by 2020 and 10%by 2030.24

Recommendation 2: Review REFIT tariffs provided for anaerobicdigestionThe Government should review the REFIT schemeto provide a tari or biomethane ed directly intothe gas grid. The eed-in tari should recognise thatbiomethane produced rom organic wastes suchas OFMSW, where a gate ee exists, is currentlyeconomically viable. However, biomethane producedusing agricultural waste or silage may require ahigher tari , to encourage uptake by the armingcommunity.

The German system, as described by the RenewableEnergy Source Act and the Renewable EnergiesHeat Act 16, o ers tari s or biogas based on anumber o criteria, some o which are included

below in a simplifed orm:

7c/kWh i energy crops, such as grass, areused as a eedstock or biogas production.

2c/kWh or biogas upgrading to biomethane. 11.67c/kWh or CHP production using

biomethane sourced rom the gas network.

The International Energy Agency (IEA) has statedthat the high investor security provided by theGerman eed-in-tari has been a success, resultingin a rapid deployment o renewables, the entranceo many new actors to the market and a subsequentreduction in costs.25

Recommendation 3: Implement new energy regulations to encouragebiomethane injection into the gridChanges to the Code o Operations need to occurto encourage the injection o biomethane into thegas grid. Changes relating to compression, gasanalysis, nominations and balancing should be keptsimple to allow small producers to come onlinewith minimal bureaucracy. Suitable standards needto be set to regulate the quality o biomethanethat can be injected into the gas grid, speci yingthe chemical properties and energy content o thegas stream. Policy should also be implementedto encourage the use o the biomethane injected

into the grid. Companies and building owners alsoneed to be incentivised to purchase biomethanein o -grid areas. The EU Directive 2009/73/ECrequires Member States to take concrete measuresto assist the wider use o biogas and gas rombiomass, such as providing non-discriminatoryaccess to the gas system, taking into account thenecessary quality and sa ety requirements.26 Thislatest policy development may provide su fcientimpetus to make the necessary changes to the Codeo Operations.


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Recommendation 4: Align renewable energy and waste managementpolicyIreland landflled 1.4 million tonnes o biodegradablewaste in 2007; an increase o 4% on the previousyear.27 Ireland appears to be moving urther away

rom the frst Landfll Directive target o less thanone million tonnes o biodegradable municipal wasteto be landflled by 2010 and just over 450,000 tonnesby 2016. In act, 91.4% o organic waste produced in2007 was landflled. For s has stated that Irelandscomparatively poor per ormance can be tracedback to a ailure to deliver key waste managementin rastructure by local authorities. Clearly, additional

capacity will be needed or the OFMSW i Ireland is tomeet the target set under the EU Landfll Directive.28

Irelands target under the EU Renewable EnergyDirective or 2020 is or renewable sources to account

or 16% o total fnal energy use. This will be achievedthrough 40% o electricity generation, 12% o our heatingdemand and 10% o our transport uels coming romrenewable sources. The contribution rom renewableswas 3.7% and 1.2% or heat and transport energyrespectively in 2008.29 Biomethane produced rommunicipal solid waste could contribute signifcantly toIrelands renewable heat or transport targets while at thesame time diverting organic waste away rom landflls.

High levels o uncertainty about the direction oIrish waste management policy have discouragedinvestment in waste in rastructure. A clear anddefnitive policy should be implemented encouragingthe diversion o 870,000 tonnes per annum o organicwaste to anaerobic digestion acilities. A policy suchas this, that guarantees eedstock supply and hasthe added economic beneft o a gate ee, in additionto the tari s provided by REFIT, would encourageinvestment in the production o biomethane. Such apolicy could generate up to 60 million m3 o natural

gas quality uel (assuming all OFMSW is utilised),which could be used as a source o thermal ortransport energy, in addition to ensuring that Irelandmeets its Landfll Directive target.

Recommendation 5: Implement new support structures for agricultureFamily Farm Incomes have dropped signifcantly inthe past ew years. The biomethane industry cansupplement the income o armers while ensuring theproduction o sustainable bio uel and the maintenanceo an aesthetic countryside. A grant scheme should beinitiated to provide an incentive to armers to produce

eedstock or biomethane production.

Recommendation 6: Additional research and development funding forrenewable gas technologiesMore unding should be directed at research,development and demonstration o renewablegas technologies to build upon core expertise inbiotechnology and in ormation technology.

Ireland has at its disposal the means to produce greenenergy while satis ying EU regulations relating to

waste management, meeting renewable energy supplytargets in heating and transport, improving securityo supply, creating jobs, all the while maintaininga grass-based agricultural system. Ireland has anextensive gas grid connected to over 640,000 homesand businesses, which can provide or the deliveryo renewable gas and in so doing make a majorcontribution towards meeting our renewable energytargets by 2020. There are challenges that need to beovercome to capture this opportunity but these arenot insurmountable. Action now in addressing theseissues will establish a market or a renewable gasindustry in Ireland which will beneft all our ellowcitizens or years to come.

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APPENDI A - REFERENCESA.1. Eurostat European Commission, Panorama o

energy: Energy statistics to support EU policyand solutions (Luxembourg: O fce or O fcialPublications o the European Communities, 2009).

2. Howley M, Gallachir B and Dennehy E,Energy in Ireland 1990-2008 (Cork: Energy PolicyStatistical Support Unit, the Sustainable EnergyAuthority o Ireland, 2009).

3. Gaslink Gas System Operator, TransmissionDevelopment Statement 2008/09 to 2014/15(Cork: Gaslink, 2009).

4. Howley M, Gallachir B, Dennehy E and OLearyF, Renewable Energy in Ireland 2008 Report(Cork: Energy Policy Statistical Support Unit, the

Sustainable Energy Authority o Ireland, 2008).5. Government White Paper March 2007, Deliveringa Sustainable Energy Future or Ireland.

6. See 2.7. SEAI Provisional Energy Balance 2009, published

March 31 2010.8. Fitzgerald , Bergin A, Cone rey T, Di ney S,

Du y D, earney I, Lyons S, Malaguzzi aleri L,Mayor , and Tol R, Medium Term Review 2008 2015 (Dublin: Economic and Social ResearchInstitute (ESRI), 2008).

9. See 2.

10. See 2.11. Curtis , Anaerobic Digestion: Benefts or

Waste Management, Agriculture, Energy, andthe Environment ( ohnstown Castle, Wex ord:Environmental Protection Agency (EPA), 2005).

12. Murphy D, Mc eogh E and iely G, Technical/economic/environmental analysis o biogasutilisation, Applied Energy, 77(4) (2004), 407-27.

13. See 12.14. Singh A, Smyth BM and Murphy D, A bio uel

strategy or Ireland with an emphasis onproduction o biomethane and minimisation oland take, Renewable and Sustainable EnergyReviews, 14(1) (2010), 277-88.

15. See 14.16. See 14.17. See 14.

18. For s, Waste Management Benchmarking Analysis

and Policy Priorities (Dublin: For s, 2008).19. EC, Council Directive 1999/31/EC o 26 April 1999on the landfll o waste (Luxembourg: O fcial

ournal o the European Communities, 1999).20. See 2.21. EC, Directive 2009/28/EC o the European

Parliament and o the Council o 23 April2009 on the promotion o the use o energy

rom renewable sources and amending andsubsequently repealing Directives 2001/77/ECand 2003/30/EC (Strasbourg: O fcial ournal othe European Union, 2009).

22. Curtis , Bioenergy opportunities oragriculture, industry and waste management( ohnstown Castle, Wex ord: EnvironmentalProtection Agency (EPA), 2006).

23. AEBIOM, A Biogas Road Map or Europe(Brussels: AEBIOM European BiomassAssociation, 2009).

24. BMU and BMEL , National Biomass Action Planor Germany (Berlin: Bundesministerium r

Umwelt, Naturschutz und Reaktorsicherheit(BMU) and Bundesministerium r Ernhrung,Landwirtscha t und erbraucherschutz (BMEL ),2009), available on http://www.erneuerbare-energien.de/inhalt/44591/3860/.

25. IEA, OECD. Energy Policies o IEA CountriesGermany 2007 Review. Paris: InternationalEnergy Agency and Organisation or EconomicCo-operation and Development; 2007.

26. EC, Directive 2009/73/EC o the EuropeanParliament and o the Council o 13 uly 2009concerning common rules or the internalmarket in natural gas and repealing Directive2003/55/EC (Brussels: O fcial ournal o theEuropean Union, 2009).

27. Le Bolloch O, Cope , urz I, Meaney Band Higgins T, National Waste Report 2007( ohnstown Castle, Wex ord: Environmental

Protection Agency (EPA), 2009).28. See 19.29. See 4.



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B.APPENDI B - ABBRE IATIONSThe ollowing abbreviations are used in this report:

AD Anaerobic digestionCAD Centralised anaerobic digesterCCGT Combined cycle gas turbineCER Commission or Energy RegulationCH4 MethaneCHP Combined heat and powerc/kWh Euro cents per kilowatt hourCNG Compressed natural gasCO2 Carbon dioxideE W Energy rom wasteERI Environmental Research InstituteESRI Economic and Social Research InstituteEU European UnionGHG Greenhouse gasGHS Greener homes schemeH2S Hydrogen sulphidekt ilotonnesktoe ilotonnes oil equivalentktpa ilotonnes per annumkWh kilowatt hour

M Million eurosm3 Cubic metresM Megajoules (1 x 106 joules)Mm3 Million cubic metresMt Million tonnesMtpa Million tonnes per annumMW Megawatt (1 x 106 watts)OFMSW Organic raction o municipal solid wasteP Petajoule (1 x 1015 joules)REFIT Renewable energy eed-in tariReHEAT Renewable heat deployment programmeRES-E Electrical energy rom renewable sourcesRES-H Thermal energy rom renewable sourcesRES-T Transport energy rom renewable sourcesROI Republic o IrelandSEAI Sustainable Energy Authority o Irelandt Tonnest/a Tonnes per annumUCC University College Cork



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