David Balussou: Band 41
David Balussou: Band 41
David Balussou
Band 41
by
David Balussou
Karlsruher Institut für Technologie
Institut für Industriebetriebslehre und industrielle Produktion
u. Deutsch-Französisches Institut für Umweltforschung
Impressum
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i
Abstract
Based on the model results recommendations for plant operators and policy-
makers are formulated. Maintaining current subsidy levels for biowaste and
small-scale manure installations appears necessary in order to ensure the
profitable and sustainable development of German biogas plants. Strategy
planning and flexible plant operation as well as the increased valorization of
residues in agricultural plants represent key challenges. An improved
mobilization of biowaste potentials combined with better heat valorization
would contribute to the creation of local and circular bio-economies in line
with the planned national energy transition. The transferability of the
methodological framework used in this work to other countries and
bioenergy pathways is further analysed. A model implementation is possible
especially in countries showing stable legal framework conditions for
bioenergy (e.g., Feed-In-Tariffs) and benefiting from lessons learned and best
practices from past projects.
ii
Table of contents
Abstract....................................................................................................... i
Table of contents........................................................................................iii
1 Introduction .......................................................................................... 1
1.1 Motivation ........................................................................................ 1
1.2 Objectives and overview................................................................... 4
iii
Table of contents
iv
Table of contents
v
Table of contents
vi
Table of contents
Appendix .................................................................................................269
Bibliography ............................................................................................291
vii
List of Figures
Figure 1.1: Interactions between input data and the simulation
and optimization models (author’s own
representation) ........................................................................... 9
Figure 2.1: Main bioenergy conversion pathways (author’s own
representation according to [16]) ............................................. 12
Figure 2.2: Main process steps involved in the operation of a
biogas plant (author’s own representation according
to [27]) ...................................................................................... 23
Figure 2.3: Classification of available fermentation processes
(author’s own representation according to [47]) ..................... 33
Figure 3.1: Biogas plants number repartition in Europe at the end
of the year 2015 [10], [66] ........................................................ 42
Figure 3.2: Biomass feedstock mix used in 2015 for biogas
production in various European countries (in % mass)
[68] 43
Figure 3.3: Biomass feedstock potentials in all European countries
by 2020 [69] .............................................................................. 44
Figure 3.4: Historical development for German biogas plants [10] ............ 47
Figure 3.5: German electricity production from biomass in 2014
under the EEG framework [77] ................................................. 48
Figure 3.6: Main feedstocks employed in German biogas plants at
the end of 2014 [78] ................................................................. 49
Figure 3.7: Main energy crops employed in German biogas plants
at the end of 2014 [79] ............................................................. 49
Figure 3.8: Time schedule for the setting up of the different
subsidy mechanisms supporting biogas in Germany
ix
List of Figures
x
List of Figures
Figure 6.2: Considered operator models under EEG 2012 and EEG
2014 legal frameworks ............................................................ 113
Figure 6.3: Classification of the required model input data ..................... 117
Figure 6.4: Capacity repartition for the existing biogas plant types
at the end of the year 2012 .................................................... 121
Figure 6.5: Acquisition costs structure for typical E, EM and B
biogas plant sizes .................................................................... 128
Figure 6.6: Specific investment for agricultural and biowaste
plants (EM and B plants) as a function of the installed
electric power ......................................................................... 131
Figure 6.7: Usable surface area as a function of the transport
distance [205].......................................................................... 143
Figure 6.8: Usable mass amount for energy crops as a function of
the collection radius [79], [205] .............................................. 144
Figure 6.9: Specific biomass transport costs for energy crops as a
function of the collection radius [206], [207], [208] ............... 145
Figure 6.10: Specific biomass transport costs for energy crops as a
function of the transported energy crops mass amount ........ 146
Figure 6.11: Specific manure transport costs as a function of the
collection radius [214], [215] .................................................. 147
Figure 6.12: Specific manure transport costs as a function of the
feedstock mass amount .......................................................... 148
Figure 6.13: Biowaste collection zones (author’s own
representation) ....................................................................... 149
Figure 6.14: Biowaste collection radius as a function of the
biowaste mass amount ........................................................... 151
Figure 6.15: Biowaste transport costs as a function of the biowaste
mass amount ........................................................................... 152
xi
List of Figures
xii
List of Figures
Figure 7.10: Sensitivity analysis for the most profitable E plant size
under EEG 2014....................................................................... 185
Figure 7.11: Sensitivity analysis for the most profitable B plant size
under EEG 2014....................................................................... 186
Figure 7.12: Pros and cons regarding the methodology employed
for the analysis of current electricity production from
biogas in Germany .................................................................. 194
Figure 7.13: Comparison of revenues from the electricity sale in
each plant type under EEG 2014 and EEG 2017 subsidy
schemes for installations smaller than 150 kWel .................... 197
Figure 8.1: Regional total capacity evolution up to 2030 under EEG
2012 and EEG 2014 ................................................................. 207
Figure 8.2: Regional total evolution of electricity production from
biogas up to 2030 under EEG 2012 and EEG 2014 .................. 208
Figure 8.3: Regional cumulated new built capacities for EM plants
up to 2030 ............................................................................... 209
Figure 8.4: Regional electricity production linked to new built EM
plants up to 2030 .................................................................... 212
Figure 8.5: Regional cumulated new built capacities for B plants
up to 2030 ............................................................................... 213
Figure 8.6: Regional electricity production linked to the new built
B plants up to 2030 ................................................................. 214
Figure 8.7: Regional cumulated new built capacities for E plants
up to 2030 under EEG 2012 .................................................... 215
Figure 8.8: Regional electricity production linked to new built E
plants under EEG 2012 ............................................................ 216
Figure 8.9: Capacity evolution for new built EM plants in the base
scenario and under an energy crop costs shock ..................... 218
Figure 8.10: Assumed EPEX-Peak electricity price developments
according to several scenarios ................................................ 219
xiii
List of Figures
xiv
List of Tables
Table 2.1: Process conditions and products composition according
to various pyrolysis processes [23] ............................................ 17
Table 2.2: Process conditions according to epidemiologic and
phytohygienic criteria for biowaste plants [42] ......................... 28
Table 2.3: Average biogas composition (author’s own
representation according to [44]) .............................................. 29
Table 2.4: Employed criteria for the characterization of different
biogas processes (author’s own representation
according to [47]) ....................................................................... 31
Table 3.1: Remuneration system for electricity generation from
biogas following EEG 2014 [102] ................................................ 58
Table 3.2: Results of an economic evaluation for three biowaste
plants located in the Federal State of Schleswig-
Holstein [121] ............................................................................. 66
Table 3.3: Decomposition of the specific electricity production
costs (in ct/kWhel ) for a biowaste and an agricultural
biogas plants [75] ....................................................................... 68
Table 3.4: Discrete versus continuous economic analysis of biogas
plants .......................................................................................... 73
Table 3.5: Modelling approaches for the analysis of future
electricity production from biogas in Germany ......................... 81
Table 4.1: Current simulation languages and software (author’s
own representation) .................................................................. 86
Table 4.2: Numerical values of the employed parameters for the
determination of the methane formation rates k ...................... 93
xv
List of Tables
xvi
List of Tables
xvii
Abbreviations
ADEME: French Environment and Energy Management Agency
xix
Abbreviations
FIT: Feed-In-Tariffs
xx
Abbreviations
xxi
Abbreviations
xxii
Acknowledgment
Firstly, and above all, I wish to thank my advisor Professor Wolf Fichtner,
leader of the Chair of Energy Economics at the Karlsruhe Institute of
Technology (KIT). His continuous encouragement, scientific knowledge and
constructive feedback were a great help in improving the quality of this thesis.
Secondly I wish to thank my co-advisor, Professor Dominik Möst, leader of the
Chair of Energy Economics at the TU Dresden. His very valuable suggestions
assisted me in defining and developing this work. My deep thanks also go to
my supervisor Dr. Russell McKenna for his critical remarks and for all the
fruitful discussions we had throughout the thesis period.
Many thanks also to Dr. Anne Kleyböcker and to Professor Hilke Würdemann
from the German Research Centre for Geosciences in Potsdam for their
positive collaboration during the Optgas project. I also want to acknowledge
Professor Frank Scholwin leader of the Institute of Biogas, Waste
Management and Energy for his support and valuable input.
xxiii
1 Introduction
1.1 Motivation
Climate protection, sustainable energy supply, natural resource preservation
as well as the satisfaction of a constantly increasing energy demand currently
represent key challenges worldwide. The substitution of limited fossil
resources combined with the improvement of energy efficiency and energy
savings appear vital. In this context, Germany has embarked upon an energy
transition (so called “Energiewende”) which has been described as “the most
important growth and modernization for the German society” [1]. Nature and
environmental protection as well as global climate change, the finite
character of fossil resources and the need for a secure and profitable energy
supply are the main drivers of this transition. In this context renewable
energies have an important role to play in the future energy system. Among
all renewable energy carriers bioenergy is often defined as a “multi-talent”
[2]. Bioenergy can deliver a significant share in the production of renewable
electricity, heat, cold and liquid biofuels. It greatly contributes to security of
supply, climate protection, and a demand-oriented electricity production.
Bioenergy leads further to the establishment of circular and sustainable bio-
economies with new job creation especially in remote areas [3].
1
1 Introduction
local and inland biomass potentials and to diversify its energy carrier mix. The
rational use of biomass potentials and especially residues can thus ensure a
long-term and sustainable security of supply. In the field of climate
protection, bioenergy strongly contributes to greenhouse gas reduction when
compared with fossil energy. In comparison to other renewable energies in
the heat sector, bioenergy shows the highest mitigation contribution with
about 31.2 million t of avoided greenhouse gases [5].
Since the year 2000, the German biogas sector expanded rapidly so that the
current installed capacity in this country accounts for around half of the
European total [9], [10]. This capacity development has been supported by
several Federal governmental incentives and in particular by the Renewable
Energy Sources Act (EEG) with the help of electricity Feed-In-Tariffs (FIT).
However, the German biogas sector had to cope with major structural
changes in 2014. The Renewable Energy Sources Act 2014, proposed by the
Federal Government and starting on the 1st of August 2014, represents a
2
1.1 Motivation
paradigm shift for German biogas plants. Indeed, a major cut in subsidies
attributed to biogas plants was proposed by the legislator in particular for
agricultural plants valorizing energy crops. For this plant type the specific
subsidies dedicated to energy crops valorization have been removed [11].
This subsidies cut has been carried out for two main reasons. The first one is
linked to high end-user electricity prices, especially for residential customers.
In the residential sector the electricity price including taxes increased from 14
ct/kWhel in year 2000 up to 29 ct/kWhel in 2014 [12]. By giving priority to
the development of more economical renewable energy conversion
technologies, like wind energy or photovoltaic, the Federal Government
intends to lower electricity bills for end customers. With average electricity
production costs at about 18 ct/kWhel for agricultural plants, biogas belongs
to the most expansive renewable energy conversion technologies [13], [14].
Another reason for this cut concerns the competition in the past between the
energy and food value chains regarding biomass resources and surface area.
In the past fifteen years priority was given to the valorization of energy crops
due to their high energy content and their high hectare yields in comparison
with other feedstocks. This led to the exclusive cultivation of certain
agricultural plants, so called monocultures, like maize silage or rape. In
addition, fertilizers and pesticides were intensively used for yield
improvements. These aspects negatively impacted the agricultural sector and
generated ecological risks (degradation of humus balance and biodiversity,
risks of soil erosion, reduction of the ground-water formation, landscape
modifications, loss of ecologically valuable surface areas). The subsidies for
biogas plants valorizing energy crops created tensions on maize and wheat
markets and have led to a “food versus fuel” debate. A consequence of this
induced competition was a generally poor public acceptance of biogas in
Germany [15].
3
1 Introduction
4
1.2 Objectives and overview
identification of the most profitable biogas plant sizes1 and types2 under the
economic frameworks of EEG 2012 and EEG 2014. Which installation types
and sizes should be built under these framework conditions in order to lead
to the highest profitability for German biogas plant operators?
1
The biogas plant size is defined by the installed electric power of the Combined Heat and Power
engines (CHP engines) transforming the biogas produced into heat and electricity.
2
The biogas plant type is linked to the feedstock valorized, e.g., energy and/or manure employed
in mono- or co-digestion plants or communal and/or household biowaste used in biowaste plants.
5
1 Introduction
Chapter 6 has for objective to define the system boundaries related to both
of the simulation and optimization models and to describe the methodology
for determining all required model input data. Three biogas plant types are
considered and valorize energy crops with manure (EM plant3), as well as
energy crops (E plant) and biowaste (B plant). For each plant type the main
model input data refers to the existing capacity, to current and future
available biomass potentials as well as to current and future costs and
revenues. Chapter 6 ends with an analysis of the main input data
uncertainties that impact the model results.
Chapter 7 presents and analyses the results of the simulation model. The
model outcomes provide an answer to the first research question dealing
with the identification of the most economically attractive plant types and
sizes under current legal framework conditions. The profitability criterion
refers to the determined specific operating profits 4. The most profitable plant
sizes can be identified for each plant type and the corresponding costs and
revenue structures are then analysed. In a further step sensitivity analyses of
the specific operating profits are performed for each of the most profitable
plant sizes. These analyses aim to identify and quantify the main profitability
drivers in each case. In addition to the economic analysis, a technical
assessment of the most profitable plant sizes is carried out by determining
3
This plant type is divided into two sub-categories: plant sizes from 0 to 75 kWel using mono-
digestion of manure and larger plant sizes employing co-digestion of energy crops with manure.
4
For a given plant the specific operating profit (in ct/kWh el) is defined as the difference between
specific revenues and specific electricity production costs. Taxes (e.g., value added, property,
income, corporate and trade taxes) and levies are not considered in the present work.
6
1.2 Objectives and overview
In chapter 8 the results of the optimization model are presented and analysed
in the framework of a base scenario. The model outcomes provide an answer
to the second research question dealing with the forecast of future capacity
for electricity production from biogas up to 2030, at the Federal States level
and under various legal frameworks. A further scenario aims to quantify the
impact of fundamental drivers on future capacity development. A comparison
with a capacity development forecast done under the new EEG 2017
framework is further carried out. The model results analysis enables the
formulation of strategy and policy recommendations concerning future
electricity production from biogas in Germany.
The main interactions between the model input data, the simulation and the
optimization models are represented in Figure 1-1. Three main plant types
are defined corresponding to the valorization of energy crops in mono-
digestion plants, to the co-digestion of energy crops and manure as well as to
biowaste fermentation. In a given plant type, the simulation model aims to
determine the most profitable plant sizes showing the highest specific
operating profit. For this a variable biomass input mass flow mi (in t/a) is
considered and leads in each simulation step to the determination of the
installed electric power pi (in kWel ). In section 4.3.3 a technical correlation
involving 49 biomass input mass flow steps and 49 electric power outputs is
obtained over the whole electric capacity bandwidth [0:20,000 kWel ].
7
1 Introduction
In the framework of the optimization model, the previous costs and revenues
correlations are firstly regionalized with the help of energy crop costs
determined in each Federal State for the base years 2013 and 2015 (section
6.6.1). These regional costs as well as other costs and revenues positions are
then forecasted up to the year 2030 (section 6.7). In addition, biomass
potentials for electricity production are annually calculated and forecasted up
to the year 2030 in each Federal State (section 6.4). Existing capacity for the
base years 2012 and 2014 is then determined with the help of a dedicated
biogas plant database (section 6.3).
With the help of these input data the optimization model aims to maximize
the total operating profit year on year up to 2030, over the 49 plant sizes 𝑝i
and in all Federal States r𝑖 (section 5.3). Two main constraints apply and
correspond to capacity development limitations by regional biomass
potentials as well as to annual capacity expansion caps set in the framework
of EEG 2012 and EEG 2014. In each Federal State and year on year a
development plan for plant capacity and electricity production from biogas is
obtained up to 2030 (section 8.1). Further scenarios quantify then the impact
of shocks related to energy crop costs, EPEX electricity price and biowaste fee
revenues on future developments (section 8.2).
8
1.2 Objectives and overview
Figure 1.1: Interactions between input data and the simulation and optimization models
(author’s own representation)
9
1 Introduction
The thesis ends with summary, conclusions and outlook in chapter 10.
Recommendations and further challenges concerning current and future
German electricity production from biogas are outlined.
10
2 Background aspects regarding
bioenergy and biogas
In this chapter the main bioenergy conversion pathways valorizing biomass
for energetic purpose are firstly described based on literature data in section
2.1. A focus is then set in section 2.2 on the biochemical conversion of
biomass feedstock into biogas. A complete biogas supply chain is described
starting from the biomass feedstock management up to the biogas
production process and further valorization into electricity, heat or gaseous
biofuels (sections 2.2.1, 2.2.2 and 2.2.4). The technological options available
for the digestate treatment and valorization as fertilizer are also described in
section 2.2.3.
The conversion of biomass into solid, gaseous and liquid fuels and into heat
and/or electricity can be realized through various processes (see Figure 2-1).
Basically, one should distinguish between the thermochemical, physical-
chemical and biochemical conversion processes which will be further
described in detail.
11
2 Background aspects regarding bioenergy and biogas
Figure 2.1: Main bioenergy conversion pathways (author’s own representation according to
[16])
12
2.1 An overview of bioenergy conversion pathways
In the fixed bed combustion process the solid biofuel slowly moves following
combustion air and without leaving the fixed bed. Fixed beds are used in
underfeed or in grate combustion processes. Solid biomasses characterized
by fine-grains and low-ash-content are employed in the case of an underfeed
combustion. Possible fuels are pellets, cereal grains, barks or wood chips.
Usually, this combustion process concerns a rated thermal input lower than
6 MWth . Grate combustion processes are more suited to woody combustion
plants with larger rated thermal input. Grate combustion plants can be
divided according to their forms into push, reciprocating, travelling, vibration
and roller grates. All these grate types use fuels with different particle sizes,
13
2 Background aspects regarding bioenergy and biogas
water contents and mixtures and can easily resist to slaggings. The flue gases
produced are characterized by a low dust content.
In fluidized bed combustion processes the inflow velocity and the flow force
impacting the fuel particles increase strongly. During this combustion process
the fuel particles are suspended in a bed of ash, sand or limestone. Jets of air
provide the necessary oxygen for the combustion process. One should
distinguish between stationary and circulating fluidized bed combustion
processes. The relatively low combustion temperatures (800 to 900 °C) avoid
the presence of slaggings and of nitrogen oxides. Stationary bed combustion
processes are mainly characterized by a rated thermal input between 10 and
20 MWth . Circulating bed combustion processes are operated starting from
30 MWth and are subjected to a higher flow velocity than in the case of
stationary processes. This leads to a better control of the solid fuel
combustion process with high ash-content. A large range of biomasses
including finely chipped wood or barks can be employed in fluidized bed
combustion processes.
A dust combustion occurs if all fuel particles are conveyed together with the
gas flow. These combustion systems are suited for the valorization of very fine
and dry fuels with 15 to 20% water content (e.g., chips, sawdust and other
fine-grained wood residues). Dust combustion processes are employed
starting from a rated thermal input of 200 kWth . However, they appear to be
unprofitable in most cases due to a high level of specific investment-related
and operating costs [18].
14
2.1 An overview of bioenergy conversion pathways
15
2 Background aspects regarding bioenergy and biogas
16
2.1 An overview of bioenergy conversion pathways
Table 2.1: Process conditions and products composition according to various pyrolysis
processes [23]
Short solids
retention time
Temperature at
about 500 °C
Intermediate 50 in two 25 25
Short hot vapour phases
residence time
between 10 and
30 s
Moderate solids
residence time
Temperature at
about 400 °C
Slow
Long hydraulic 35 35 30
residence time
17
2 Background aspects regarding bioenergy and biogas
employed reactors for the fast pyrolysis process are linked to fluid beds,
spouted fluid beds, transported beds, rotating cones and ablative reactors.
Fast pyrolysis processes are mainly used for materials pre-treatment and
densification and as a source of biofuels or chemicals. They are also used in
the processing of by-products or residues in lignocellulosic bio-refineries. The
use of fast pyrolysis for biomass pre-treatment aims to substantially increase
biomass density through the production of bio-oils (density at about 1,200
kg/m3 ). Bio-oils produced by fast pyrolysis processes can be valorized into
heat and/or electricity with the help of boilers, engines or turbines. Another
possibility consists of substituting phenolics in wood resin with bio-oils. The
use of bio-oils as liquid biofuels represents a sustainable alternative to fossil
liquid fuels. Biofuels can be directly produced from bio-oils with the help of
catalytic upgrading of liquid or vapour. An indirect pathway consists of
gasifying bio-oils and processing them using a hydrocarbon or an alcohol
synthesis [23]. The intermediate pyrolysis can process more difficult biomass
feedstock than the fast one. This especially concerns materials subject to
handling, feeding and/or transport problems. Charcoal represents in this case
about 25% of the mass products and is made of small size particles. The liquid
products can be divided into the organic phase which can be used in engines
and the aqueous phase. The gas products can for their part be valorized in
engines.
Slow pyrolysis can occur under indirect or direct heating with air addition. It
mainly applies to pre-sorted and processed organic waste with an optimal
particle size of 1 to 2 mm and having a moisture content lower than 10% 5.
Slow pyrolysis processes are traditionally used in order to obtain solid fuels
for cooking and also for the metallurgy and silicon industries in Brazil and
Australia [23]. A recent application concerns the production of biochar as a
fertilizer in order to increase soil fertility and agricultural productivity. A
5
A low feedstock moisture content ensures a high heat transfer rate.
18
2.1 An overview of bioenergy conversion pathways
Pressing and extraction process is used to produce fuel oils from biomass. The
biomasses employed are rape and sunflower seeds, peanuts and corn which
contain fatty or oily components. These crops are only cultivated in certain
regions and are difficult to grow so that their potentials are very limited. The
production of vegetable oils from biomass can be realized by pressing, simple
extraction or a combination of both processes. A one- or two-stage pressing
operation aims at separating the oil from the oil seeds. An oil cake containing
4 to 10% oil is produced and can be used e.g., as a cattle feed material [25].
The extraction process is realized by using a solvent applied to large-scale
units. The extraction products correspond to a saturated solvent containing
oil and an oil-free extraction residue also saturated with the solvent. In a
further step the solvent is removed from the two product streams by heating
and then reused in a recycling loop. The use of a solvent enables the
extraction of a much higher share of oil than in the case of the simple pressing
process.
19
2 Background aspects regarding bioenergy and biogas
2.1.2.2 Esterification
20
2.1 An overview of bioenergy conversion pathways
21
2 Background aspects regarding bioenergy and biogas
phase6 can increase if the compost remains in an unfinished state. This can
happen e.g., if the compost contains too little oxygen, an inadequate
moisture content, a high level of organic acids or has extreme pH values. Ideal
conditions for an optimal composting process correspond to temperatures in
the range of 55°C to 65°C, pH values going from 6.5 to 8 and moisture mass
contents of 50 to 60% [26]. The optimal C:N ratio 7 should vary between 25:1
and 35:1 and the available O2 concentration remains higher than 10% [26].
Finally, feedstock particle sizes smaller than 25 mm also contribute to an
optimal composting process [26].
6
The curing phase length can vary widely between one to four months in most of the commercial
processes [26].
7
Among the many elements required for microbial decomposition, C and N appear as the most
critical [26].
22
2.2 Description of a complete biogas supply chain
Figure 2.2: Main process steps involved in the operation of a biogas plant (author’s own
representation according to [27])
23
2 Background aspects regarding bioenergy and biogas
The entire maize plant is chopped during the harvesting step and loaded in
bunker silos. The Dry-Matter content (DM-content) must remain between
28% and 36% in order to avoid leachates and energy losses and to limit the
lignin share in the feedstock [28]. After the storage in bunker silos the reduced
maize plant components are compressed with the help of wheel loaders and
covered with a hermetic film for approximately 12 weeks (ensilage phase).
They are then transported to the biogas plant. Chaff is the most widespread
harvesting technique for grass silage. The DM-content of grass silage can
theoretically vary between 25 and 50%. In the case of further valorization in
biogas plants the value of 35% should not be overrun [29]. For higher DM-
contents the high lignin- and fibre-contents can affect the feedstock
degradability and thereby lower the methane yield. Most of the cereal
categories are suited for the production of cereal silage but rye and triticale
are generally used. The harvesting process is similar to that for maize silage
with a chopping and ensilage step. The harvesting phase should ideally take
place at the beginning of the dough stage. At this time point the harvesting
yields reach their highest values. The harvesting yields of cereal silage can
vary between 7.5 and 15 t DM /ha and the DM-content remains between 30
and 35% [29]. Cereal grains display high methane yields due to their high level
of degradability. The methane yields can be further maximized by a
preliminary shredding step. Cereal grains can be also used in the food
industry, as livestock feed or for alcohol production. Seven classes of cereal
grains exist: wheat, barley, rye, oat, corn, sorghum and rice.
24
2.2 Description of a complete biogas supply chain
from the 1st of January 2015 [31], [32]. This measure aims to enable a more
sustainable biowaste valorization especially in biogas plants. At the end of the
year 2012 a global potential of about 4.2 million t kitchen biowaste and 4.7
million t green waste in households was estimated [33]. In [33] it is further
assumed that 60% of kitchen biowaste and 25% of green waste potentials
could be valorized into biogas. Thereby a total potential of 3.7 million t for
biowaste plus green waste feedstock was estimated to be available for biogas
applications.
The harvested energy crops and manure are transported to the biogas plant
location by using agricultural vehicles. Agricultural vehicles are generally
tractors with two tipping trailers or with a tank trailer. In the case of biowaste
transport closed collection trucks are mainly employed. The transport
distance and the amount of transported biomass feedstock logically increase
with the plant size. After the transport step the feedstock mass is quantified
during the feedstock delivery process which takes on the site location of the
biogas plant. This step also applies to co-substrates that do not belong to the
agricultural farm and whose quality and quantity should be drastically
controlled. After the biomass feedstock delivery, the storage step follows. The
biomass feedstocks should be stored in a closed building equipped with an
exhaust air purification system. Finally, some legal requirements apply to the
storage of feedstocks that are submitted to hygienisation criteria like
biowaste. For example, critical feedstocks must be stored separately from the
25
2 Background aspects regarding bioenergy and biogas
8
Since EEG 2012 a post-composting unit for the raw digestate combined with a valorization as
compost is compulsory in the case of biowaste plants [35].
26
2.2 Description of a complete biogas supply chain
9
Bovine Spongiform Encephalopathy is commonly referred to as “mad cow disease”.
27
2 Background aspects regarding bioenergy and biogas
Table 2.2: Process conditions according to epidemiologic and phytohygienic criteria for
biowaste plants [42]
The onsite supply of biomass to fermenters consists of the conveying and the
loading steps. Several conveying and loading technologies can be used
according to biomass feedstock quality (pumpable or stackable). Electric
pumps are used to transport pumpable feedstock like manure to the
fermenters. Various technologies are available, e.g., centrifugal pumps or
positive displacement pumps depending on the valorized feedstock type [43].
The pumpable feedstock conveyed is stored and homogenized in a closed
dump. The dump can be further used to mix, shred and liquefy stackable co-
substrates that cannot be directly loaded into the fermenter [40]. The
conveying step for stackable feedstock is carried out automatically. For this,
scrapers, pusher plates, connecting rods and screw conveyors are mainly used
and can horizontally convey most of the stackable feedstock. These devices
are however not suited to loading processes. Screw conveyors can transport
stackable, cleaned and shredded feedstock in all directions [43]. The loading
processes can be divided into direct and indirect loading. In the case of an
indirect loading the stackable feedstocks are firstly brought to the dump and
mixed with pumpable substrates. Direct loading offers the possibility to treat
the stackable feedstock independently from pumpable substrates. The DM-
content and consequently the biogas productivity are generally increased if
stackable and pumpable feedstocks are loaded separately.
28
2.2 Description of a complete biogas supply chain
Table 2.3: Average biogas composition (author’s own representation according to [44])
The biogas formation step can be divided into four phases, as described
below. The organic matter is degraded by various interdependent groups of
bacteria. The organic raw material has a complex structure of proteins,
carbohydrates and fats. This structure is decomposed during the first phase
of the degradation process, i.e., the hydrolysis phase, into simple organic
components like amino acids, fatty acids and sugars. The hydrolytic bacteria
involved in this process use a variety of enzymes, e.g., cellulases, amylases
and proteases, in order to build monomers. These intermediary products are
then transformed into short-chain organic acids like propionic and butyric
acids and into carbon dioxide, alcohols, and hydrogen. For this, acid-forming
bacteria are employed during the acidogenesis phase. The anaerobic bacteria
require oxygen and are the basis for further anaerobic methane formation.
29
2 Background aspects regarding bioenergy and biogas
The acetic acid formation, i.e., acetogenesis phase, represents the third phase
of the biogas formation process. The organic acids and alcohols built are
further transformed into acetic acids and hydrogen under the action of
bacteria. Another possible reaction corresponds to the conversion of
hydrogen and carbon dioxide into acetic acid [45]. The methane formation,
i.e., methanogenesis phase, can be carried out following two pathways.
Methane can be built through the separation of acetic acid according to
following equation (Eq. 2.1).
Kaltschmitt identified that about 70% of the biogas production is derived from
the separation of acetic acid (Eq. 2.1) and only about 30% from the reaction
between carbon dioxide and hydrogen (Eq. 2.2) [43]. On the other hand, in
[40] and [46] biogas produced by agricultural plants mostly results from the
oxidation of carbon through the reaction between carbon dioxide and
hydrogen. The four phases of the biogas formation process take place
simultaneously and without physical separation. The term “single-phase
process” is employed e.g., for agricultural plants. The term “two-phase
processes” characterizes a separation of the hydrolysis and the acidogenesis
from the acidogenesis and methane formation. This last process is never
employed in practice mainly due to its unprofitability. The living conditions of
methane bacteria10 are clearly improved by the phase separation into two
reactors. This increases the biogas yields but generates higher costs due to
10
The microorganisms involved have different and specific requirements regarding their living
environment (e.g., pH-values, temperature, nutrient supply).
30
2.2 Description of a complete biogas supply chain
In Table 2-4 the main criteria used to characterize biogas formation processes
are detailed. They concern the feedstock DM-content, the loading method
and the process temperature and enable a differentiation of all available
fermentation processes [47].
Table 2.4: Employed criteria for the characterization of different biogas processes (author’s
own representation according to [47])
31
2 Background aspects regarding bioenergy and biogas
32
2.2 Description of a complete biogas supply chain
33
2 Background aspects regarding bioenergy and biogas
34
2.2 Description of a complete biogas supply chain
11
Fresh and finished composts are defined according to the RAL quality insurance (German
institute for quality insurance and labelling). A fresh compost is hygienized and has a rotting
degree of II or III. This corresponds to an intensive decomposition process. A finished compost
refers to a hygienized and biologically stabilized compost with a rotting degree of IV or V [55].
35
2 Background aspects regarding bioenergy and biogas
The cleaned biogas can be further valorized (e.g., in CHP gas engines) for
simultaneous electricity and heat production. According to [58] about 77% of
the engines employed for biogas combustion are gas-Otto-engines. The
electricity produced is then fed into the grid and directly sold on the electricity
market and/or subsided in the framework of Feed-In-Tariffs (FITs) defined by
the Renewable Energy Sources Act (EEG). The heat produced can be recycled
to the biogas plant for fermenter heating among other uses. Supplementary
external heat sinks have to be found in order to improve plant efficiency and
its profitability. External heat sinks are generally social buildings, stalls, drying
processes or district heating networks [59].
36
2.2 Description of a complete biogas supply chain
37
2 Background aspects regarding bioenergy and biogas
is the removal of CO2 from the crude biogas. This can be carried out by means
of various technologies (e.g., Pressure Swing Adsorption, water scrubbing,
organic physical or chemical scrubbing, membranes, cryogenic upgrading). A
detailed description and comparison of all CO2 -removal processes employed
can be found in [64]. Before injection into the grid the cleaned biogas has to
be conditioned in order to meet the combustion characteristics of natural gas
(e.g., gross calorific value and Wobbe index). This conditioning step is
generally realized using liquid gases and potentially by adding air (in L-gas grid
areas). Odorization according to the DVGW G280-1 worksheet and a pressure
in-crease up to 16 bar12 are then carried out before the final injection.
Biomethane injection stations are equipped with measurement technologies
in order to monitor limit values for different parameters according to DVGW
worksheets G260 and G262. For example, biomethane volume, composition
and gross calorific values must be estimated using process gas chromato-
graphs and combustion calorimeters [65].
2.3 Summary
In this chapter an overview of all available bioenergy conversion pathways
has been given with a focus on the biochemical conversion of biomass into
biogas. Due to the variety of resources and valorization pathways bioenergy
can be considered as the most versatile energy conversion technology. The
anaerobic digestion of biomass feedstock can further lead to a flexible and
demand-oriented electricity from biogas. It enables the production of
renewable heat and digestate which can be further valorized as a fertilizer.
These two products generate local markets and facilitate the implementation
of circular economy with sustainable job creation. This added value
contributes to a decentralization of the German electricity system in line with
the objective of the German energy transition. In the next chapter the past
and current situation of biogas in Europe and more particularly in Germany is
12
Corresponds to the natural gas grid pressure level.
38
2.3 Summary
39
3 Situation of biogas in Europe and in
Germany
In this chapter the situation of biogas in Europe and Germany is described
regarding past developments and current situation (sections 3.1 and 3.2). In
section 3.3 the legal framework for bioenergy and biogas in Germany is
assessed. In particular the Renewable Energy Sources Act is presented as an
important subsidy scheme for the electricity production from biogas. A
literature review follows in section 3.4. Its objective is to describe all main
existing studies related to the analysis of current and future electricity
production from biogas in Germany. In addition, a review of existing biomass
potentials studies for biogas applications is realized. Based on these
assessments the scientific contribution and added value of this thesis is
emphasized by pointing out the knowledge gap filled by the present work.
This chapter ends with a summary in section 3.5.
41
3 Situation of biogas in Europe and in Germany
8.861
10.000
1.555
10 7
1
Sweden
Slovakia
Spain
Finnland
Hungary
Ireland
Italy
France
Switzerland
Poland
Czech Republic
Latvia
Greece
Croatia
Estonia
Belgium
Denmark
Norway
Slovenia
Serbia
Germany
United Kingdom
Cyprus
Romania
Netherlands
Luxembourg
Iceland
Portugal
Austria
Lithuania
Bulgaria
Figure 3.1: Biogas plants number repartition in Europe at the end of the year 2015 [10], [66]
42
3.1 Biogas situation in Europe
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Figure 3.2: Biomass feedstock mix used in 2015 for biogas production in various European
countries (in % mass) [68]
43
3 Situation of biogas in Europe and in Germany
kt
90.000
80.000
70.000
60.000
50.000
40.000
30.000
20.000
10.000
0
Figure 3.3: Biomass feedstock potentials in all European countries by 2020 [69]
The support schemes currently involved in each European country are shown
in Table A-1 of the Appendix [70]. The most common support schemes are
Feed-In-Tariffs and national subsidies (existing in 14 countries). Premium
mechanisms like the market premium model in Germany have been
developing strongly in the past five years and are currently employed in 9
European countries. Incentives for research and development programs are
only existing in 3 countries.
44
3.2 Past developments and current situation for biogas in Germany
13
Carbon sequestration occurs in soils through organic carbon building-up.
45
3 Situation of biogas in Europe and in Germany
biogas. The main objective of the EEG 2014 is to continuously and cost-
efficiently increase the share of renewable energy sources in the gross
electricity demand [74]. The target to be reached is for about 40% of German
gross electricity demand to be met for renewable energy sources by 2025 and
about 55% by 2035 [74]. As mentioned in the EEG 2014 the support schemes
for German renewable electricity should focus on the least cost intensive
technologies [74]. With an electricity production cost of about 18 𝑐𝑡/𝑘𝑊ℎ𝑒𝑙 ,
biogas belongs to the most expensive renewable electricity sources [13], [14].
This is mainly due to high energy crop costs, which represent more than half
of total electricity production costs [75]. By removing the subsidies for energy
crops valorization, the EEG 2014 clearly intends to slow down the
development of agricultural plants. This also aims to avoid competition with
the food value chain in terms of surface area and resources.
46
3.2 Past developments and current situation for biogas in Germany
Installed
Biogas plants electric
number power
(MWel)
10.000 4.500
9.000 4.000
EEG 2014
8.000 EEG 2012
3.500
7.000
3.000
6.000
2.500
5.000
EEG 2009
2.000
4.000
1.500
3.000
0 0
1994
2002
1992
1993
1995
1996
1997
1998
1999
2000
2001
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Biogas plants number Installed electric power including flexible capacities
About 614 TWhel electricity have been produced annually in Germany by the
end of 2014 [76]. Renewable energy sources have, with 26.2%, the main share
in the total German electricity generation before brown coal and hard coal.
Nuclear energy has a share of about 15.8%. This share will continue to
decrease following the decommissioning plan for nuclear reactors which was
decided in Germany after the Fukushima disaster in 2011. Natural gas and
fuel oil currently play a secondary role in the electricity mix with production
shares lower than 10% [76]. German renewable electricity production - about
160.9 TWhel by 2014 - is mainly driven by wind energy and bioenergy with
respective shares at about 34.8% and 30.6%. Photovoltaics follows with a
share of approximatively 21.7% whereas hydropower supplies 12.8% of the
47
3 Situation of biogas in Europe and in Germany
0,9% 4%
22,8%
Total
38.16 TWhel
72,3%
Figure 3.5: German electricity production from biomass in 2014 under the EEG framework [77]
Finally Figures 3-6 and 3-7 provide information regarding the main feedstocks
employed in German biogas plants. With about 52% and 43% respectively
energy crops and manure represent the main biomass types used in Germany
for biogas production. Biowaste and agro-industrial residues play a minor role
with shares lower than 4% [78]. The valorization of energy crops into biogas
is principally driven by maize silage with a share of 73% in the total energy
crops feedstock mix. The remaining 27% are made up of grass silage (12%),
cereal silage (7%) and miscellaneous energy crops (cereal grains, sugar beet,
catch crop, miscellaneous crops) [79].
14
A supplementary amount of 14.12 TWhel has to be added and corresponds to the total electricity
production from biogas by other technologies than CHP (e.g., gas turbines or Stirling engines) [6].
48
3.2 Past developments and current situation for biogas in Germany
2% 3%
Total
43% 112.6 million t 52%
Energy crops
Manure
Industrial and agricultural residues
Communal biowaste
Figure 3.6: Main feedstocks employed in German biogas plants at the end of 2014 [78]
2%
2%
2%
2%
7%
12%
Total
58.6 million t
73%
Figure 3.7: Main energy crops employed in German biogas plants at the end of 2014 [79]
49
3 Situation of biogas in Europe and in Germany
The Energy Economics Law concerns the heat, electricity and gas supply in
Germany. It came into force on July 13th 2005 and was updated on August
29th 2016. The objective of the EnWG is based on the so called “target
triangle”. The EnWG defines targets for economic efficiency, security of
supply and environmental compatibility regarding the supply of heat,
electricity and gas in Germany [80], [81].
The Energy Economics Law defines in particular the rights and duties between
energy suppliers and consumers and encourages the liberalization of the
German electricity market. One of the key tasks of this law is the unbundling
of discrimination, cross-subsidization and other distortions of competition in
the field of network operation. To achieve this, the energy economic
functions like production, sale and storage should be separated from network
operation, i.e. transmission and distribution. Another important task of the
50
3.3 Legal framework for renewable energies and biogas in Germany
The Renewable Energies Heat Act (EEWärmeG) came into force on January
1st 2009 and deals with the use of renewable energies in new residential and
non-residential buildings. According to the EEWärmeG, a certain share of the
end energy heat consumption has to be covered by renewable energies. A
share of 14% by 2020 is set as an objective [83]. The heat energy consumption
relates to heating, hot water production and cooling. Further objectives
concern the limited use of fossil resources, an independence from energy
imports as well as the continuous development of innovative heating
technologies. The share of energy consumption that should be covered by the
building owners is specifically defined for different technologies. For example,
solar collectors must cover at least 15% of the heat/cold energy consumption.
If solid biofuels, geothermal or environmental heat are used then 50% of the
demand must be satisfied. Finally, if biomethane is used for heating then it
must represent at least 30% of heat energy consumption [84].
51
3 Situation of biogas in Europe and in Germany
The Renewable Heat Law is a Federal law applied in the state of Baden-
Württemberg. It came into force in 2008 and was updated in July 2015 [87].
In the framework of the EWärmeG the owners of existing buildings 15 are
obliged to use renewable energies if they modify their heating systems [88].
A difference is further made between residential and non-residential
buildings. According to the EWärmeG, 15% of the heating energy demand has
to be covered by renewable energies. Possible renewable heating
technologies are solar thermal energy, wood based central heating, heat
pumps, biogenic oils and biogas. Similarly, to the EEWärmeG alternative
measures, such as thermal insulation, cogeneration, connection to heating
networks or photovoltaic plants can be applied.
The new version of the Cogeneration Act came into force by the end of 2015
and aims to increase the net electricity production of cogeneration plants
(CHP-plants) up to 110 TWhel by 2020 and 120 TWhel by 2025 [89]. By the
end of the year 2014, CHP-plants have produced electricity at a level of 97.6
TWhel which is already close to the objective set for the year 2020 [90]. The
new version of the Cogeneration Act is then characterized by a very moderate
expansion strategy. The new Cogeneration Act regulates the use and
subsidies linked to the electricity produced by existing, new modernised and
repowered cogeneration plants employing lignite, hard coal, solid waste,
waste heat, biomass, gaseous or liquid fuels. It further defines the modalities
of the supplements payments by the Transmission System Operators (TSO)
for the expansion of heat and cold networks and storage. The level of these
supplements as well as the associated modalities are further described in
[91]. Bioenergy conversion plants including biogas installations can be
financially supported under the Renewable Energy Sources Act (EEG) or the
15
Buildings constructed before the 1st of January 2009.
52
3.3 Legal framework for renewable energies and biogas in Germany
In the last fifteen years the Renewable Energy Sources Act (EEG) has mainly
contributed to the expansion of renewable energies in Germany in the
electricity sector. Targets of at least 35% renewable energies in the German
gross electricity demand up to the years 2020 and at least 50% up to the year
2030 are defined by the German Federal Government [93]. These objectives
should contribute to reach the renewable energies share set by the European
Union for the year 2020 in the national end-energy demand16. In 1991 and
16
In [94] a 18% share of national end-energy demand must be met by renewable energies in
Germany by the year 2020.
53
3 Situation of biogas in Europe and in Germany
under the “Electricity Feed-In Law”, which was the precursor of the EEG, the
share of renewable energies in German gross electricity demand was only
3.1% [95]. On April 1st 2000, the first version of EEG came into effect. Since
this date, the share of wind and solar energy, hydropower, biomass and
geothermal energy has increased from 6.2% to about 31.6% in year 2015 [95].
The EEG contains some basic principles, which were defined in the first
version of the year 2000 and which ensure a certain investment security for
investors and plants operators. The grid operators must connect new plants
to their electricity transport network. Simultaneously to the grid connection,
the plants receive a feed-in priority as well as fixed Feed-In-Tariffs (FIT) for
the electricity produced with a horizon of the next twenty years from the year
of commissioning. In addition to these basic principles the EEG is regularly
amended in order to follow current market conditions. Since the year 2009,
numerous evolutions have been proposed by the German Federal
Government in order to financially support the development of biogas. Figure
3-8 shows the time schedule used for the setting up of the different subsidy
mechanisms. These mechanisms are further analysed from sections 3.3.6.4 to
3.3.6.7.
54
3.3 Legal framework for renewable energies and biogas in Germany
Figure 3.8: Time schedule for the setting up of the different subsidy mechanisms supporting
biogas in Germany (author’s own representation according to [96], [11], [35])
55
3 Situation of biogas in Europe and in Germany
paid by the industrial and private final consumers and appears on their
electricity bill. For the year 2017 the highest historical value was reached at
about 6.88 ct/kWhel for household consumers [98]. The EEG aims to inhibit
the strong cost progression of the renewable energy levy by limiting the
development of the most expensive renewable energy conversion
technologies. In particular in the field of electricity production from biomass
a maximal increase of installed capacity of about 100 MWel per year is
defined in the framework of the EEG 2014 [99].
According to the EEG 2014 framework biogas plants with an installed electric
power greater than 100 kWel must be equipped with technical remote-
control devices that enable plants operators to reduce the electrical output
and avoid network overloads. At least one of the post-digesters has to be gas-
proofed and must show a minimal hydraulic residence time of 150 days. A
supplementary gas valorization infrastructure also has to be installed in order
to prevent a high release of biogas into the atmosphere [100]. Biogas plants
valorizing exclusively manure are free from the obligation of covering the
post-digester and of respecting the minimal residence time [100].
56
3.3 Legal framework for renewable energies and biogas in Germany
broad definition is further considered in this work and it is also assumed that
several CHP units connected to the same biogas production plant (anaerobic
digester) are seen as a single plant.
57
3 Situation of biogas in Europe and in Germany
Table 3.1: Remuneration system for electricity generation from biogas following EEG 2014
[102]
≤ 500 11.78
≤ 5,000 10.55
In order to receive subsidies biowaste plants should use at least 90% of the
following three biowaste types coming from [105]:
17
With at least 90% biowaste mass amount according to the Annex 1 of the Biowaste Ordinance
[103]
18
For small manure plants: at least 80% of the manure must be valorized in the digester [104].
58
3.3 Legal framework for renewable energies and biogas in Germany
Since EEG 2012 every biogas plant operator in Germany has the possibility to
directly self-market the electricity produced in the framework of the so called
“market premium” [73]. In addition to the revenues from the sale of the
electricity German biogas plant operators receive a supplement i.e., the
“market premium”. The market premium corresponds to the difference
between the plant specific EEG-subsidies and the revenues from electricity
sales on the Exchange market (average EPEX values of the hourly contracts
passed on the EPEX Spot EEX bourse). The market premium is determined for
each past calendar-month as follows [106] (Eq. 3.1):
With:
In the middle of the year 2015, the direct electricity marketing model
concerned a total biogas plant capacity of about 2,650 MWel which
corresponds to about 66% of the total installed capacity at this time point
(4,018 MWel ) [107].
59
3 Situation of biogas in Europe and in Germany
The rated power PRat is multiplied by a correction factor fCor of 1.1 for biogas
and 1.6 for biomethane representing the real load. The Capacity Component
CC is set at 130 €/kWel of supplementary electric power, according to [110].
In the new framework of EEG 2014 the flexibility premium has been replaced
by a flexibility supplement of 40 €/kWel for new built plants larger than 100
kWel and commissioned after the 1st of August 2014 [111]. In July 2015 the
flexibility regime concerned about 2,692 plants with a total cumulated
capacity of 1,519 MWel [107].
In the context of the Renewable Energy Sources Act 2017, which came into
force on January 1st 2017, tendering procedure mechanisms include an
60
3.3 Legal framework for renewable energies and biogas in Germany
auction system19 [112]. This mechanism aims to provide an impetus for the
future development of bioenergy plants in Germany especially in line with the
grid expansion. Another objective is to improve the economic
competitiveness of bioenergy in order to facilitate in particular its integration
into the German electricity system. In the planned auction process the best
placed bioenergy plants thus receive a payment linked to the power that they
can deliver. New built bioenergy installations smaller than 150 kWel are
excluded from the tendering procedure and will thus receive the Feed-In-
Tariffs [112]. All existing plants including plants smaller than 150 kWel can
take part in the tendering procedure and be financially supported for 10 years
if the electricity is produced under a flexibility regime [112]. The German
Federal Ministry aims to support the most cost-efficient bioenergy
technologies and the auction mechanism is consequently designed to sup-
port plants showing the lowest annual electricity bid price. New plants
offering electricity bid prices higher than a value of 14.88 ct/kWhel are
automatically excluded from the auction system [112]. In this new mechanism
installations showing the lowest electricity bid price receive an EEG subsidies
level relative to their plant size. From 2017 to 2019, a total installed capacity
of 150 MWel per year is thus involved in this tendering procedure. This
maximal allocable capacity will further increase to 200 MWel per year from
2020 to 2022 [112].
3.3.6.7 Critical analysis of the past and current subsidy mechanisms for
biogas in Germany
Since the year 2000 the Feed-In-Tariffs defined in the framework of the
Renewable Energy Sources Act have provided a major impetus for the
development of biogas plants in Germany. In particular the energy crops and
manure bonuses, defined in EEG 2004 and EEG 2009, have contributed to a
strong development of agricultural biogas installations and especially co-
digestion plants. In the context of EEG 2014 the Federal Government has
19
This price amounts to 16.9 ct/kWhel for existing plants which can also participate in the tendering
procedure.
61
3 Situation of biogas in Europe and in Germany
enacted a cut for the subsidies related to an energy crops valorization into
biogas. This has for effect to threaten the profitability of agricultural
installations and to limit future developments to biowaste and small-scale
manure plants. Pros and cons concerning this decision are pointed out in
Figure 3-9. The shift towards a subsidy support scheme mainly dedicated to
plants based on waste and residues will lead to a more ecological electricity
production from biogas in the forthcoming years. Manure and biowaste
installations generally show a lower green-house gas potential than the
agricultural plants as well as lower GHG-mitigation costs [113]. The energetic
use of biowaste and manure does not impact the food value chain and thus
contributes to a better acceptance for biogas in Germany. On the contrary
the past valorization of energy crops in order to produce biogas has led to a
“food versus fuel” debate and to public criticisms [114]. Small-scale manure
and biowaste plants often show higher specific investments and higher
electricity production costs than energy crops installations [115], [116].
Consequently, trade-offs had to be found between the environmental
benefits induced by biowaste and small-scale manure plants and the
economic performance related to energy crops-based installations. By
operating a cut on the energy crops subsidies, the Federal Government clearly
intends to slow-down future capacity development and to move towards a
more environmentally friendly electricity production from biogas.
62
3.3 Legal framework for renewable energies and biogas in Germany
PROS PROS
- Show the lowest specific
investment - Show the lowest greenhouse gas
mitigation costs
- Show the lowest electricity
production costs - Avoid "food versus fuel" debate
CONS CONS
-Show the highest greenhouse gas - Show the highest specific
mitigation costs investment
- Lead to "food versus fuel" - Show the highest electricity
debate production costs
Figure 3.9: Pros and cons characterizing energy crops-based versus biowaste and small-scale
manure plants (author’s own representation)
63
3 Situation of biogas in Europe and in Germany
64
3.4 Literature review on techno-economic aspects
20
It is further assumed that one t of biowaste corresponds here to 250 kWhel in the case of
continuous dry fermentation processes [120].
21
Under the assumption that 1 ton of biowaste corresponds to 225 kWh el for discontinuous dry
fermentation processes according to [120].
65
3 Situation of biogas in Europe and in Germany
Table 3.2: Results of an economic evaluation for three biowaste plants located in the Federal
State of Schleswig-Holstein [121]
In [123] two biogas plants respectively with 500 kWel and 1,000 kWel installed
power are economically assessed. Both of the two plants valorize 60% maize
silage, 30% silage grains and 10% manure in co-digestion processes. The 500
kWel plant size has specific electricity production costs at about 18.7
66
3.4 Literature review on techno-economic aspects
ct/kWhel compared with 16.5 ct/kWhel for the 1,000 kWel plant size. In [124]
the profitability of five agricultural biogas installations is assessed. A small-
scale manure plant with 75 kWel valorizing about 11,100 t/a manure shows
specific electricity production costs of about 21.4 ct/kWhel . The profitability
analysis of a 150 kWel plant valorizing exclusively maize silage gives specific
electricity production costs of about 26.23 ct/kWhel . A third plant with the
same installed capacity employing 70% maize silage and 30% manure in co-
digestion has specific electricity production costs of about 24.98 ct/kWhel .
Finally, the two last plants have an electric capacity of 500 kWel and valorize
maize silage in mono- and in co-digestion with manure. In this case specific
electricity production costs amount to about 20.6 ct/kWhel and 23.3
ct/kWhel . Figure 3-10 sums up and compares all the previously mentioned
electricity production costs both for biowaste and agricultural plants.
ct/kWhel
50
40
30
20
10
0
0 200 400 600 800 1.000 kWel
Biowaste plants Agricultural plants
Figure 3.10: Literature values for specific electricity production costs relative to biowaste and
agricultural biogas plants in Germany (own representation according to [75], [117],
[118], [119], [120], [121], [122], [123], [124])
The results in Figure 3-10 show that the specific electricity production costs
for agricultural plants are systematically lower than those for biowaste plants.
Table 3-3 shows the positions involved in the electricity production costs of a
biowaste and an agricultural plant of comparable size [75]. It appears that the
67
3 Situation of biogas in Europe and in Germany
investment-related costs are higher in the case of biowaste plants than for
agricultural installations. This is mainly due to cost-intensive biowaste pre-
treatments like hydrolysis, pasteurization or hygienization. These process
steps are not required for agricultural plants where the substrates can be
directly fed into the digesters. The biowaste pre-treatment operations also
require supplementary manpower which impacts the personnel costs level.
The digestate issued from the biowaste valorization has to be treated
whereas no treatment is necessary for agricultural plants (direct valorization
on the soils of the farmer’s exploitation). All these factors explain then the
visible gap in Figure 3-10 concerning the specific electricity production cost
levels for these two plant types.
Table 3.3: Decomposition of the specific electricity production costs (in ct/kWhel) for a
biowaste and an agricultural biogas plants [75]
68
3.4 Literature review on techno-economic aspects
ct/kWhel
35
30
25
20
15
10
0
0 500 1.000 1.500 2.000 2.500 kWel
Figure 3.11: Electricity production costs from the biogas measurement program II [125]
69
3 Situation of biogas in Europe and in Germany
Three research works deal with the determination of most profitable biogas
plant sizes in other European countries under a continuous assessment. In
[127] the most cost-effective size of agricultural biogas plants in Austria is
identified. The term “cost-effective” relates to the plant sizes showing the
lowest costs of electricity production from biogas in ct/kWhel . The plant type
assessed valorizes maize silage in a mono-digestion process. The electricity
production costs are determined based on the annual costs and on the
amount of electricity produced annually. Annual costs are divided into
investment-related, maize silage, personnel, maintenance, transport and
insurance costs. Electricity production costs are continuously calculated for
plant sizes varying from 25 to 2,000 kWel in increments of 25 kWel . For this,
specific correlations linking each cost position to the installed power are
obtained from surveys and literature data. The most cost-effective plant size
is estimated at about 875 kWel assuming a maize silage availability rate of
10%. For an availability rate of 20% the most cost-effective size would remain
at about 1,150 kWel . The effect of several key-parameters like maize silage
costs and availability, investment-related costs and feedstock transport costs
is quantified with the help of a sensitivity analysis. The calculations also
70
3.4 Literature review on techno-economic aspects
In [128] an analysis of the most profitable size for manure co-digestion plants
in the South of Italy is performed with the help of an investment decision tool.
Based on mass and energy balances the plant electric power is expressed as
a function of the biomass input mass flow. In a second step electricity
production costs and revenues24 as well as the projects Net Present Value and
Internal Rate of Return are determined for five plant sizes all along the
capacity bandwidth [50:1,000 kWel ]. Sensitivity analysis on the electricity
production costs and on the Internal Rate of Return are also realized. The
main profitability drivers are the plant location, the manure transport costs,
the operating costs and finally the effect of co-digestion with other feedstock
(energy crops, biowaste). The highest Internal Rate of Return is reached at
about 22.9% for a 250 kWel plant size.
22
In the case of biogas plant sizes greater than 1,000 kWel.
23
In the case of biogas plant sizes up to 100 kWel.
24
Revenues from the electricity sale are notably derived from the Italian Feed-In-Tariffs for biogas
plants.
71
3 Situation of biogas in Europe and in Germany
72
3.4 Literature review on techno-economic aspects
Specific
Electricity Specific Electricity operating
production operating production profit, NPV or
costs profit NPV, IRR costs IRR
Calculations calculations calculations calculations calculations
[75], [117], [118],
[120], [121],
[122], [123],
[124], [125]:
German plants
[119]:
German plants
[126]:
Greek plants
[127]:
Austrian plants
[128]:
Italian plants
This work:
German plants
The estimation of biomass potentials for the future valorizable surface areas
into electricity from biogas appears as a key-issue. It represents the basis for
an estimation of future biogas plant capacity developments. This section aims
to describe reference studies assessing current and future biomass potentials
for biogas production in Germany. The study “Global analysis and estimation
of the biomass area utilization potential” from the university of Hohenheim
[129] is first analysed. This publication delivers a systematic analysis of
surface area use, agricultural production, population and food demand. The
objective is to estimate current and future potentials for bioenergy and food
under different sustainability scenarios. A competition in surface use for food,
animal feed, nature protection, settlement area and transport is taken into
account. The methodology for the potential estimation concerning “non-food
73
3 Situation of biogas in Europe and in Germany
In a further step the study estimates the surface area which is not dedicated
to energetic applications. Technical potentials can thereby be determined.
The global potential for Germany is calculated under the assumptions that
the country first meets its food self-sufficiency rate and that supplementary
potentials can be used for bioenergy applications. The global potential is
corrected for agricultural export quantities in order to take into account the
contribution to worldwide food security. Additional potentials come from
agricultural over-production and from potentials for fallow land. In addition
to the reference scenario, three scenarios consider alimentary behavior,
productivity, expansion of bioenergy surface areas and the degree of surface
utilization. In the reference scenario Germany shows a supplementary
national area potential of about 2.26 million ha dedicated to “Non-Food-
Production”. This supplementary potential can be divided into fallow land (0.5
million ha) and about 1.8 million ha of arable land. The potential for energy
crops is estimated at about 1.97 million ha which leads to a total potential
area of about 4.23 million ha by 2012. For the year 2020 a global potential
area of 6.15 million ha is calculated. By 2030 and by 2050, 7.46 million ha and
9.87 million ha are estimated.
The German biomass research center carried out a potential analysis relative
to energy crops, forestry and organic waste residue at the Federal State level
for the years 2008 and 2020 [130]. In this study technical potentials for
several organic biomass fractions dedicated to energetic utilization are
calculated. The potentials for energy crops are determined based on
statistical data relative to cultivable areas, field crops, hectare yields and
nature protection areas. The potentials are allocated according to the
different utilization pathways for energy crops. Assumptions are made
concerning the individual share of field crops involved in an energetic
74
3.4 Literature review on techno-economic aspects
In [132] an assessment of technical potentials for biogas is carried out for the
year 2013. The biomass feedstocks are divided into four categories: energy
crops (e.g., maize silage and wheat), animal effluents (e.g., pig and cattle
manure), industrial and agricultural residues (e.g., material for landscape
conservation, marsh) and finally municipal residues (e.g., biowaste). The
potential calculations were realized at the level of each Federal State and the
results are shown in Figure 3-12.
75
3 Situation of biogas in Europe and in Germany
Bremen
Hamburg
Berlin
Saarland
Rhineland-Palatinate
Thuringia
Hesse
Saxony
Saxony-Anhalt
Brandenburg
Mecklenburg-West Pomerania
Schelsiwg-Holstein
Baden Württemberg
North Rhine-Westphalia
Lower Saxony
Bavaria
0 20 40 60 80 PJ
Energy crops Animal rejections Industrial residues Municipal residues
Figure 3.12: Technical biogas potentials for the main biomass feedstock types valorized in
German biogas plants at the Federal State level [132]
In light of the results in Figure 3-12, it can be mentioned that the biogas
potentials are dominated by energy crops which represent 70% of the total.
The 30% remaining are mainly made of animal effluents. Three Federal States,
Bavaria, Lower Saxony and North Rhine-Westphalia, represent more than
50% of the technical total biogas potentials. The study mentioned in [132]
represents the only existing analysis dedicated to regional potentials for
biogas substrates. It has been further used for the determination of biomass
potentials input data for the optimization model (section 6.4.1).
76
3.4 Literature review on techno-economic aspects
Figure 3.13: Aggregation levels of main available energy conversion technologies (author’s own
representation)
77
3 Situation of biogas in Europe and in Germany
The research work in [134] aims to determine how a flexible biogas plants
park should behave from the perspective of the whole German electricity
system in 2030. This work provides answers regarding the potential changes
to be operated in the baseload electricity production in order to lower the
overall system costs. Interactions with conventional energy sources are
considered and a flexible biogas plants park leads by 2030 to a reduction of
the electric power from fossil plants dedicated to residual load coverage. This
model focuses on the interactions of the future electricity production from
biogas with other renewable and conventional electricity sources by
considering a demand-oriented and systemic approach. It does not however
highlight regional developments for differentiated biogas plant types,
technologies and sizes. It considers further the flexibilization option more
from a system perspective than from the plant operator point of view.
Another aggregation level concerns analysis carried out within the bioenergy
system. In the framework of this assessment future developments for biogas
plants are impacted by interactions with other bioenergy technologies.
78
3.4 Literature review on techno-economic aspects
In its “Milestone 2030” report, the German biomass research center delivers
a comprehensive model-based analysis of the future bioenergy mix up to the
year 2030 [135]. The employed Bioenergy Simulation Model (BENSIM) aims
to model future competition between the main available bioenergy
technologies. The assessment takes into account in particular the satisfaction
of a certain demand level in the heat, electricity and transport sectors [135].
The model input data refers to investment-related and operating costs, to
revenues for heat, electricity and to co-products including GHG-emissions and
digestate. The starting point of the BENSIM model is the determination of
existing bioenergy plant capacity. In a second step current and future
available biomass potentials are estimated. The costs of production for the
end products - heat, electricity and biofuels - are then determined. In the case
of biogas, the production costs are linked to the bioelectricity produced
through Combined Heat and Power systems (CHPs). The potentially new built
biogas plants are then sorted by the solver according to their electricity costs
of production level. Plants showing the lowest electricity production costs are
built until enough biomass potentials remain. The BENSIM model offers then
the possibility to carry out a complete simulation of the future German
bioenergy system by considering interactions between the different available
technologies. However, in the case of the BENSIM model, the evolution of the
German biogas plant capacity is currently not regionalized and no
differentiation between agricultural, biowaste and manure-based
installations is done. The model results related to biogas show that an
79
3 Situation of biogas in Europe and in Germany
25
Assuming a CHP-electric efficiency of 38%
80
3.4 Literature review on techno-economic aspects
assumed according to the expansion cap defined in the EEG 2014. By the end
of 2030 a total cumulated installed capacity of 1,700 MWel is foreseen [137].
The forecasts published in [136] and [137] solely integrate already planned
events, namely capacity expansion caps under the EEG 2014 framework and
plants decommissioning starting from 2020. They cannot thus be seen as
complex model-based assessments.
Table 3.5: Modelling approaches for the analysis of future electricity production from biogas
in Germany
81
3 Situation of biogas in Europe and in Germany
3.5 Summary
In this chapter the current situation and legal framework conditions for biogas
in Germany have been described highlighting the central role of the EEG
subsidy schemes for the electricity produced. In the framework of a literature
review existing studies regarding the analysis of current and future electricity
production from biogas have been assessed. Especially the content and
methodology applied in these studies have been described in detail and the
scientific contribution of the present work has been emphasized. The two
models proposed in this thesis intend thus to bridge a knowledge gap
between existing studies. The simulation model aims to provide a continuous
economic evaluation of biogas plant sizes in Germany under variable and
differentiated biomass input. This continuous profitability analysis currently
does not exist and complements all existing discrete evaluations already
carried out for German biogas plants. The optimization model characterizes
the evolution of German biogas plant capacity at the Federal State level and
from a plant operator’s perspective up to the year 2030. It further takes into
account different plant types and subsidy frameworks. This modelling
perspective aims to deliver new insights for future electricity production from
biogas in comparison to past assessments which are based on a systemic
approach.
82
4 A simulation model for the analysis
of current electricity production
from biogas in Germany
Increasing energy crop costs and frequently changing subsidy schemes
strongly impact the development of German biogas plants. These evolving
framework conditions are the source of complexity and the economic analysis
of biogas installations thus appears to be a difficult task for plant operators.
In this context simulation models are a suitable tool for optimal plant design
and operation. In particular one of the key-problem that can arise when
planning a biogas plant concerns the determination of the most profitable
plant size to be built. Biogas plant operators aim to build, operate and
maintain plant sizes giving a maximal operating profit. Biogas plant sizes are
defined by the installed electric capacity in kWel and intuitively increase with
the valorized biomass input mass flow. The plant revenues in ct/kWhel are
generally lower for large-scale installations than for small ones mainly due to
size effects. The electricity production costs (in ct/kWhel ) also remain
generally lower for large-scale plants than for small-scale installations.
Consequently, the determination of the most profitable plant sizes is com-
plex and requires the use of decision support tools. This chapter has thus the
objective to describe the simulation model developed for the economic
analysis of currently existing biogas plants.
83
4 A simulation model for the analysis of current electricity production from biogas in Germany
and the different methodological steps are described. A first step consists of
calibrating the biogas plant and is then followed by a process simulation
under a variable and differentiated biomass input mass flow. This simulation
step delivers correlations between the installed electric power and the
valorized biomass mass flow. These correlations provide the basis for a
further economic analysis presented in chapter 7.
84
4.1 General introduction to simulation models
Due to the scope and diversity of questions it is clear that one single method
or one model cannot answer all research questions. There is no “single”
model of a biomass supply chain, and thus there is no “best” methodological
approach. Modelling tools are generally developed for quite specific types of
systems (e.g., static/dynamic). These modelling platforms consider the
requirements of specific users, e.g., from a mechanical engineering, chemical
engineering or economic point of view. A brief description of current
simulation software and programs is shown in Table 4-1.
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4 A simulation model for the analysis of current electricity production from biogas in Germany
Table 4.1: Current simulation languages and software (author’s own representation)
Specific simulation Databases are available for specific ASPEN PLUS, ASPEN
systems language models with specific field DYNAMICS, ASPEN CUSTOM
applications. The problem is MODELLER (ACM), IPSEPro,
described through an interactive PROSIM, SuperPro Designer, …
graphic interface or through a script
language.
Parameterized The simulation tool is only suited for All the above-mentioned tools
simulation system a restricted type of structures. Some coupled with additional
model parameters can be modified applications
and parameterized.
26
EM plant sizes between 0 and 75 kWel correspond to installations valorizing exclusively manure
in mono-digestion processes. For larger sizes the co-digestion of manure with various energy crops
is assessed (see section 6.2.1).
86
4.2 Objectives and general methodology
Once the whole biogas plant is calibrated a simulation of the plant’s energetic
behaviour is carried out assuming a variable biomass input mass flow mi . For
each variation step i the corresponding biogas output volumetric flow Yi and
further the electric power Pel,i are determined. These technical correlations
represent the basis for a further economic evaluation integrating costs and
revenues input data and leading to the determination of specific operating
profits in each simulation step. The results are further represented in the form
of characteristic “specific operating profit versus installed electric power”
diagrams (see section 7.2) which leads to the identification of the most
profitable plant sizes. The economic analysis is carried out in chapter 7 by
considering for each plant type two different electricity subsidy schemes
namely EEG 2012 and EEG 2014. A costs versus revenues assessment for the
most profitable plant sizes combined with a sensitivity analysis aims to
identify the main profitability drivers for each plant type. The most profitable
plant sizes are technically assessed by determining global plant energetic
efficiencies. Based on the model results strategic recommendations for policy
makers and plant operators are finally formulated.
Figure 4-2 sets out the main methodological steps employed in the
framework of the simulation model.
87
4 A simulation model for the analysis of current electricity production from biogas in Germany
Figure 4.2: Main methodological steps employed for the analysis of current electricity
production from biogas in Germany (own representation)
The software chosen for the process simulation is SuperPro Designer, which
is a modular type computer program and allows steady state calculations.
This software offers the possibility to design biogas plants in particular by
modelling anaerobic digesters. An integrated solver controls all parts of the
simulation such as input and output data, flow chart analysis and model
88
4.3 Process simulation with the help of SuperPro Designer
The energy crops management step starts with the transport from the
cultivation area to the biogas plant location. The transport of energy crops
and/or manure is carried out with the help of agricultural trucks. The
transported energy crops are then stored in bunker silos where the ensilage
process takes place. During this process, the energy crops are subject to a
mass loss specified at about 12% according to [140]. Manure is mixed with
energy crops in order to obtain a mash. In the case of biowaste, the transport
takes place from the biowaste collection point to the biogas plant location
and is carried out with the help of trucks. The biowaste is further loaded in a
storage tank before the pre-treatment step.
27
Design parameters concern e.g., the equipment size, temperature, pressure, input mass flow,
volume, power or recycling loops.
89
4 A simulation model for the analysis of current electricity production from biogas in Germany
In the case of energy crops and/or manure valorization, the mixed biomass
feedstock (mash) is pre-heated before entering into the digester. The process
temperature has a decisive influence on the degradation efficiency and on the
biogas quality. In the case of agricultural plants, the mixed solid is heated at
a temperature of 38°C specified in SuperPro Designer interface and
corresponding to a mesophilic process temperature. A screw conveyer is used
to bring the solid biomass to the blending storage tank. The blending tank is
modelled as a vessel with an agitator to simulate the biomass storage for a
certain period here assumed as 10 h. Some heat transfer operation units (heat
exchangers) are then necessary to warm up the substrate to the mesophilic
digestion temperature. The biowaste pre-treatment starts with the shredding
step and is followed by the separation of metal and impurities. These pre-
treatment steps generate a global biowaste mass loss specified at 8% of the
transported biowaste mass [141].
After this operation the biowaste mass flow is mixed with water during a
hydrolysis reaction. The hydrolysed biowaste mash is further pre-heated to a
specified temperature of at least 70°C. This aims in particular to satisfy the
epidemiologic and phytohygienic criteria related to biowaste installations
(see Table 2-2). The pre-heated biowaste feedstock is finally loaded into the
fermenter where the anaerobic digestion process can start.
The objective of this section is to describe the model that has been developed
with the help of SuperPro Designer in relation to the biogas production
process. Biogas is produced by the fermentation of biomass feedstock under
the action of bacteria. The biomass residence time in the fermenters is given
by Eq. 4.1.
𝑉𝑊
𝜏= 𝑉̇𝑜
(4.1)
90
4.3 Process simulation with the help of SuperPro Designer
With:
𝑉𝑜̇ : input material volumetric flow entering the digester (in 𝑚3 /ℎ)
In the present work, the substrate is CH1.8 O0.5 N0.2 and is further transformed
into methane, carbon dioxide and ammonia through Eq. 4.5 which represents
the simplified biogas formation equation.
𝑣𝐵𝑖𝑜𝑚𝑎𝑠𝑠 𝜌𝐵𝑖𝑜𝑚𝑎𝑠𝑠
𝑌𝐶𝐻4 = 𝑣𝐶𝐻4
∙𝑘 ∙ 𝜌𝐶𝐻4
∙ 𝑉𝑊 (4.6)
With:
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4 A simulation model for the analysis of current electricity production from biogas in Germany
With:
By combining Eq. 4.6 and Eq. 4.7, the methane formation rate k can be
expressed as a function of the biomass input mass flow (Eq. 4.8).
𝑣𝐶𝐻4 × 𝜌𝐶𝐻4 × ß
𝑘= 𝑉𝑊 × 𝑣𝐵𝑖𝑜𝑚𝑎𝑠𝑠 × 𝜌𝐵𝑖𝑜𝑚𝑎𝑠𝑠
∙ 𝑚̇𝐵𝑖𝑜𝑚𝑎𝑠𝑠 (4.8)
Eq. 4.8 can be further simplified by introducing the residence time defined in
Eq. 4.1 (Eq. 4.9):
𝑣𝐶𝐻4 ∙ 𝜌𝐶𝐻4 ∙ ß
𝑘= 𝜏 ∙ 𝑣𝐵𝑖𝑜𝑚𝑎𝑠𝑠
(4.9)
92
4.3 Process simulation with the help of SuperPro Designer
The methane formation rate can be finally determined for each plant type by
using following numerical values (Table 4-2)
Table 4.2: Numerical values of the employed parameters for the determination of the
methane formation rates k
In each plant type, the numerical values of the methane formation rates are
mentioned in Table A-2 of the Appendix and are specified in SuperPro
Designer interface. This aims to calibrate the fermenters according to the
specific methane yields mentioned in Table 6-1.
𝑌𝐶𝐻4
𝑌𝑖 = (4.10)
𝜇
28
The values for each plant type have been determined based on the specific methane yields
mentioned in Table 6-1.
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4 A simulation model for the analysis of current electricity production from biogas in Germany
After the anaerobic digestion process, the biogas mass flow amount 𝑌𝑖 is
burned in a Combined Heat and Power system (CHPs). The CHPs is
represented here by a single stage gas turbine because SuperPro Designer
offers no straightforward possibility to model a gas engine. The gas turbine
system is made of a centrifugal gas compressor coupled to a gas expansion
unit and in between a combustion chamber. Biogas is mixed and burnt in the
combustion chamber simultaneously with air. The air volume flow stream
enters the combustion chamber at a temperature of 90 °C and under a
pressure of 50 bar. The temperature inside the combustion chamber is 1,200
°C [149]. The methane combustion reaction with oxygen is defined by Eq.
4.11:
The reaction enthalpy for methane equals to -55,643 kJ/kg and corresponds
to an exothermal reaction. Finally, the model of the gas turbine has been
adapted to that of a CHP gas engine by considering the electric and thermal
efficiencies mentioned in [150].
In the case of agricultural plants, the digestate issued from the fermentation
is assumed to be directly used on soil as fertilizer so that no treatment process
is required. The digestate produced by the biowaste fermentation is treated
by a decanter centrifuge in order to obtain a solid digestate mass representing
50% of the raw digestate according to [141]. The solid digestate is further
valorized in a post-rotting process in order to obtain a solid compost mass
flow which represents 30% of the biowaste input mass flow [141].
94
4.3 Process simulation with the help of SuperPro Designer
After the biogas plant calibration the next step consists of determining the
evolution of the electric power 𝑃𝑒𝑙,𝑖 (output variable) as a function of the
biomass feedstock mass flow 𝑚̇𝑜,𝑖 (input variable). Figure 4-3 represents the
different mass and energy flows that characterize each simulation step i.
Detailed flowsheet examples issued from SuperPro Designer interface and
related to the modelling each of the plant type are further mentioned in
Figures A-1, A-2, A-3 and A-4 of the Appendix.
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4 A simulation model for the analysis of current electricity production from biogas in Germany
Figure 4.3: Schematic representation of the mass and energy flows in each simulation step i
In each simulation step i, the installed electric power Pel,i can be expressed as
a function of the biomass feedstock mass flow ṁ0,i according to Eq. 4.12:
ß ∙ 𝐻𝑔,𝐶𝐻4 ∙ 𝜂𝐸𝑙,𝐶𝐻𝑃,𝑖
𝑃𝑒𝑙,𝑖 = 𝑂𝐻
∙ 𝑚̇0,𝑖 (4.12)
96
4.3 Process simulation with the help of SuperPro Designer
With:
- 𝐻𝑔,𝐶𝐻4 : Methane gross calorific value set at 9.97 𝑘𝑊ℎ/𝑚3 according to [151]
By combining Eq. 4.9 and 4.12 a more detailed correlation between Pel and
ṁ0,i is obtained and involves all specified parameters under Super Pro
Designer interface (Eq. 4.13):
The linear relation obtained between Pel,i and ṁ0,i according to Eq. 4.13 is
represented in Figure 4-4 in the case of the co-digestion of energy crops with
manure (EM plant29).
29
The two further correlations characterizing E and B type plants can be found in Figures A.5 and
A.6 of the Appendix.
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4 A simulation model for the analysis of current electricity production from biogas in Germany
kWel
10.000
9.000
8.000
7.000
6.000
5.000
4.000
3.000
2.000
1.000
0
0 20.000 40.000 60.000 80.000 100.000 120.000 140.000 160.000 180.000 200.000 220.000 t/a
Figure 4.4: Correlation between the CHP-electric power and the biomass input mass flow
4.4 Summary
Due to the frequently evolving legal framework conditions as well as to
volatile energy crops and electricity prices, the economic assessment of
biogas plants represents a difficult task for biogas companies and plant
operators. In particular challenges remain in the identification of the most
economically attractive plant sizes. Simulation models offer a suitable tool for
estimating the profitability for various plant sizes and types. For a given plant
type, the objective is to identify the most profitable plant sizes by assuming a
variable and differentiated annual biomass input mass flow. In this chapter a
model aiming at the operative simulation of the three main biogas plant types
valorizing energy crops, biowaste and manure is presented. For this the
process simulation software SuperPro Designer is employed. The simulation
variable corresponds to the annual biomass input mass flow. All main steps
of the biogas supply chain going from the biomass feedstock transport up to
heat, electricity and digestate production are modelled. The anaerobic
98
4.4 Summary
99
5 An optimization model of future
German electricity production from
biogas
An unstable economic context characterizes the German biogas industry with
in particular volatile energy crops and electricity prices as well as frequently
evolving framework conditions. For this reason, the analysis of future
electricity production from biogas as well as the forecasting of mid-term
capacity developments are of considerable assistance to biogas plant
operators. Due to their recurrent use in the framework of the energy system
analysis, optimization models represent a well-adapted solution for assessing
the evolution of the future German biogas system. The objective of these
models is to provide plant operators and decision-makers with valuable
insights regarding future developments for biogas in Germany. Optimization
models should further contribute to identifying and quantifying the main
economic drivers. In this chapter an optimization model developed in the
programming language GAMS (General Algebraic Modeling System) is
presented and has the objective to analyse the evolution of future capacity
and electricity production from biogas in Germany. A general introduction to
optimization models applied in particular to energy system analysis is first
carried out in section 5.1. In section 5.2 the general methodology employed
for the analysis of future electricity production from biogas in Germany is
detailed. This analysis is based on a regional linear mixed-integer optimization
model which is described in section 5.3. This model aims at maximizing the
total profit over all plant sizes, the whole time period and all Federal States
combined. It further provides a forecast of regional capacity and electricity
production at the Federal State level analysed in chapter 8.
101
5 An optimization model of future German electricity production from biogas
102
5.2 General objective and methodology
103
5 An optimization model of future German electricity production from biogas
Figure 5.1: Main methodological steps employed for the analysis of future electricity
production from biogas in Germany (author’s own representation)
In the model input data determination phase the currently existing biogas
plant30 capacity is first estimated for each Federal State and installation type.
30
In § 3 Nr. 1 of the EEG 2009, the definition of a biogas plant is given and refers to the totality
of all functional and technical components dedicated to the electricity production from biogas (e.g.,
CHP, fermenter, gas storage, digestate storage tank, biomass feedstock pre-treatment unit) [101].
This broad definition is further taken into account in this work and it is also assumed that several
104
5.2 General objective and methodology
For this purpose, a biogas plant database is built. In addition, literature data
concerning existing biomass potentials at the Federal State level is used. In a
second step investment-related costs, operating costs including in particular
regional energy crop costs and revenues are calculated based on literature
and plant operator’s data. This techno-economic data, described in chapter
6, feeds the model core structure developed in the programming language
GAMS, which contains an objective function and model constraints. The
objective function aims to maximize the total operating profit by plant type,
for all Federal States aggregated, over the whole time period and all plant
sizes. A first constraint corresponds to the limitation of future capacity
expansion by regional biomass potentials dedicated to electricity production
from biogas. A second constraint concerns the limitation of the electric
capacity that could be built for each plant type, in a given year for all Federal
States combined (capacity expansion cap defined by the EEG legal
frameworks). The model results thereby provide an economically optimal
development plan of new built biogas capacity up to the year 2030, seen from
the plant operator point of view. In addition to this analysis the sensitivity of
future capacity developments to a strong variation of three main market
drivers for biogas plants in Germany is assessed. The main profitability drivers
firstly correspond to energy crop costs, and to revenues derived from the
EPEX-Peak electricity sale received by plant operators in the framework of the
electricity direct marketing. The third driver concerns the biowaste fee
revenues which are linked to the valorization of biowaste into biogas and
further into renewable energy.
CHP units connected to the same biogas production plant (anaerobic digester) have to be seen as
a single plant.
105
5 An optimization model of future German electricity production from biogas
49
𝑀𝑎𝑥(𝑍) = 𝑀𝑎𝑥[∑16 16
𝑟=1 ∑𝑡=1 ∑𝑖=1 𝛼𝑡 ∙ 𝑂𝐻 ∙ 𝑋𝑖,𝑡,𝑟 ∙ (𝑟𝑒𝑣𝑖,𝑡,𝑟 − 𝑒𝑝𝑐𝑖,𝑡,𝑟 )]
(5.1)
In addition to the objective function Eq. 5.2 models the recursive capacity
evolution from year t-1 to year t and integrates a capacity expansion variable
Exp Decom
Xi,t,r as well as a decommissioning parameter Xi,t,r for plants older than 20
years. This equation allows the solver to build new capacities year on year in
selected Federal States.
𝐸𝑥𝑝𝐷𝑒𝑐𝑜𝑚
𝑋𝑖,𝑡,𝑟 = 𝑋𝑖,𝑡−1,𝑟 + 𝑋𝑖,𝑡,𝑟 + 𝑋𝑖,𝑡,𝑟 ꓯ i,t,r (5.2)
106
5.3 Objective and structure of the optimization model
Additional constraint equations concern the annual limitation for each plant
type and in each Federal State of future capacity expansion by biomass
potentials dedicated to electricity production from biogas At,r (Eq. 5.3). This
ensures that no capacity can be further built if the corresponding biomass
potentials are not sufficient.
∑49
𝑖=1 𝑂𝐻 ∙ 𝑋𝑖,𝑡,𝑟 ≤ 𝐴𝑡,𝑟 ꓯ t,r (5.3)
A second constraint models the annual capacity expansion cap defined in the
framework of the EEG 2012 and EEG 2014 (Eq. 5.4). This capacity expansion
limitation ensures that not all the plant sizes are built in the first year of the
time period due to a full valorization of biomass potentials.
49 𝐸𝑥𝑝
∑16
𝑟=1 ∑𝑖=1 𝑋𝑖,𝑡,𝑟 ≤ 𝑊𝑡 ꓯ t,r (5.4)
Under the EEG 2012 framework the annual capacity expansion cap has been
set for each plant type following an historical growth rate of 6% for the years
2012 to 201431 according to [156], [157] and [158]. In the context of the EEG
2014, the Federal Government defined an annual capacity expansion cap of
100 MWel in order to better drive and control future capacity developments
[159]. In the present work this annual capacity expansion limit has been
equally distributed between biowaste plants and agricultural plants. Finally,
Eq. 5.5 ensures a mixed-integer capacity expansion for all the buildable
capacity unit sizes P in each year and region r. In each plant size i, year t and
31
Years prior to 2012 have not been taken into account because there was a strong increase in
German biogas plants development over that period. This strong expansion was mainly due to the
very favourable legal framework for agricultural plants employing energy crops and manure in the
context of EEG 2006 and 2009. Since the year 2012, the Federal Government considers that the
biogas sector is mature enough to be integrated into the German electricity market. This integration
should be achieved with fewer subsidies and using new mechanisms like the market and the
flexibility premium defined by the electricity direct marketing model. The EEG 2012 thus caused
a slowdown in German biogas plant development due to the introduction of these new
mechanisms. It appears then more realistic to set an annual maximum capacity rate up to 2030,
taking into account this paradigm shift and without considering the effect of the years before 2012.
107
5 An optimization model of future German electricity production from biogas
5.4 Summary
The use of optimization models appears as well adapted to the analysis of
various energy systems of different aggregation levels and scopes. In the
framework of this thesis the energy system considered concerns the whole
German biogas plant park. The objective of the regional optimization model
developed is to provide a forecast for the evolution of future plant capacity
as well as for future electricity production from biogas up to the year 2030.
For this an objective function is defined aiming at maximizing the total profit
over all plant sizes, the whole time period and all Federal States combined.
Several constraints such as the limitation of future capacity expansion by
biomass potentials and by caps defined under the EEG legal framework are
also specified. The modelling approach is then resource-based meaning that
the evolution - and the limitations - of future biomass potentials impacts the
development of biogas plant capacities. Furthermore, the model assumes
that the biogas plant operator’s objective is to maximise profit over the
installation’s lifetime
108
6 Model input data determination
This chapter aims to describe the input data that has been employed for both
the simulation and the optimization models. In each model two separate
assessments, under the EEG 2012 and the EEG 2014 legal frameworks, have
been carried out. The model input data refers then to the base year 2013 for
the assessment done under the EEG 2012 framework. In the case of an
analysis under the EEG 2014 framework, the base year 2015 has been
selected. In section 6.1 the system boundaries characterizing the analysed
biogas plants are set. In section 6.2 an overview of all required input data
including a general description of methodology is given. The underlying
assumptions and methodology for the determination of each data set are de-
scribed in detail in sections 6.3 to 6.7. Technical input data consists of biomass
properties, plant operation mode, existing biogas plant capacity as well as
current and future biomass potentials for electricity production (sections 6.2,
6.3 and 6.4). Economic input data corresponds to the cost and revenue
positions of a biogas plant project and is described in sections 6.5, 6.6, and
6.7. In section 6.8 an assessment of uncertainties and a plausibility check of
the specified input data is carried out. This chapter ends with a summary
(section 6.9).
109
6 Model input data determination
The substrates are firstly harvested and cultivated in the case of energy crops
or collected and stored in the case of bio-waste and manure. The
transportation stage of cultivated or collected biomass feedstocks to the
biogas plant follows. On the plant site the biomass feedstocks can be
mechanically or thermally pre-treated before the fermentation. After the
anaerobic digestion process the output streams (heat, electricity and
digestate) leave the biogas plant. In the case of electricity, the system
boundaries are set at the transmission station so that the costs for trans-
formers and cables are included in the economic evaluation. The heat
produced does not all leave the biogas plant and can be reused for heating
the anaerobic digesters or be valorized through external heat sinks.
For agricultural plants it is assumed the raw digestate is used for free by
farmers. For biowaste plants the solid digestate, treated by a compost
110
6.2 Overview of the required input data for the simulation and the optimization models
The first plant type (EM plant) corresponds to the valorization of energy crops
with manure in co-digestion process as well as to the mono-digestion of
manure. EM plants with an installed power smaller or equal to 75 kWel are
assumed to exclusively valorize manure in mono-digestion processes. For an
installed power greater than 75 kWel EM plants are assumed to use a biomass
feedstock input mix containing 58% maize silage, 20% manure, 10% grass
silage, 10% cereal silage and 2% cereal grains. E plants are characterized by
an input mix of 58% maize silage, 20% grass silage, 20% cereal silage and 2%
111
6 Model input data determination
cereal grains. The valorized maize silage and cereal grains mass share are thus
in line with the specific cap of 60% set for these feedstocks under EEG 2012
[161]. Finally, B plants exclusively valorize biowaste in mono-digestion
processes. The energetic properties of all employed feedstocks are given in
the Table 6-1.
Manure 17 55 31
In the case of agricultural plant types, maize silage, grass silage, cereal silage
and cereal grains are selected due to their high biogas yield and also due to
their high degradability. As mentioned in [79], these biomass types also
represent by the end of the year 2014 the most common energy crop
feedstocks in German biogas plants. Animal effluents like pig manure are
often located in the proximity of agricultural biogas plants and are assumed
to be available for free. The valorization of manure into biogas aims at
reducing methane emissions and thus shows environmental benefits as
described in [164]. In the present work biowaste feedstocks are assumed to
come from German household kitchens and gardens and can be easily
transformed into biogas by micro-organisms through anaerobic digestion
processes. Finally, the digestate issued from the fermentation is assumed to
112
6.2 Overview of the required input data for the simulation and the optimization models
Figure 6.2: Considered operator models under EEG 2012 and EEG 2014 legal frameworks
According to a study from the German biomass research centre the average
operating hours for biogas plants running in baseload in Germany has been
estimated in 2014 at about 7,886 h/a [165]. This figure is derived from a
questionnaire involving 567 biogas plants from which 284 were in the power
range 151-500 kWel and were operated for 8,033 h/a in baseload. In the
present work the operating hours for baseload capacity have been
systematically set at 8,000 h/a for all concerned plant sizes.
113
6 Model input data determination
The operating hours OHFlex for flexible capacity have been determined
according to Eq. 6.1:
With:
With:
The part-load hours for flexible capacity PLH are derived from Eq. 6.2 (Eq. 6.3):
𝑃𝐸𝑙,𝐵𝑎𝑠𝑒−𝐿𝑜𝑎𝑑
𝜂𝐶𝐻𝑃,𝐵𝑎𝑠𝑒−𝐿𝑜𝑎𝑑
𝑃𝐿𝐻 = 𝑃𝐸𝑙,𝐵𝑎𝑠𝑒−𝐿𝑜𝑎𝑑 𝑃𝐸𝑙,𝐹𝑙𝑒𝑥𝑖𝑏𝑙𝑒 ∙ 𝐹𝐿𝐻 (6.3)
+
𝜂𝐶𝐻𝑃,𝐵𝑎𝑠𝑒−𝐿𝑜𝑎𝑑 𝜂𝐶𝐻𝑃,𝐹𝑙𝑒𝑥𝑖𝑏𝑙𝑒
114
6.2 Overview of the required input data for the simulation and the optimization models
For a given plant size, the flexible CHP capacity has been set at 80% of
baseload capacity which leads to simplifications in Eq. 6.4. In the analysis
mentioned in [166] a doubling of the baseload CHPs is taken into account in
order to obtain flexible capacity. The conservative assumption of the present
work should however be balanced against the fact that all considered existing
and future new built plant involved in the electricity direct marketing are
supposed to be systematically transformed into flexible capacities.
𝐹𝐿𝐻
𝑃𝐿𝐻 = 𝜂 ∙ 𝐹𝐿𝐻 (6.4)
1 + 0.8 ∙ 𝐶𝐻𝑃,𝐵𝑎𝑠𝑒−𝐿𝑜𝑎𝑑
𝜂𝐶𝐻𝑃,𝐹𝑙𝑒𝑥𝑖𝑏𝑙𝑒
baseload and corresponding flexible electric CHP capacities. The annual full-
load hours FLH are equal to 8,760 hours. Thereby constant annual operating
hours for all new built flexible capacity have been estimated at about 4,713
h/a. The flexibilization of existing baseload CHPs requires supplementary
flexible CHP gas engines but also new gas storage. The supplementary gas
storage volume due to the flexibilization of existing CHP is systematically
determined for each plant size by using the calculator of the Federal Office
for Agriculture of Thuringia (TLL) [167]. An example calculation can be found
in Table A-3 of the Appendix for a plant equipped with an existing CHP of
1,000 kWel and a gas storage with a volume of 4,000 m3.
Beside data characterizing the biomass feedstocks and the plant operation
mode, information regarding the estimation of existing plants, the
determination of current and future biomass potentials, annual costs and
revenues for the biogas plants operation is necessary. For the simulation
model all positions concerning revenues, operating and investment-related
costs are estimated in each simulation step and lead to the calculation of
115
6 Model input data determination
In the case of the simulation model the results are assessed nationally by
considering an average value of the regional energy crop costs that has been
determined in section 6.6.1.7. The revenues and costs that have been
estimated in the simulation model also feed the optimization model for the
base years 2013 and 2015. They are further forecasted up to the year 2030
with the help of annual evolution rates. Regional energy crop cost
contributions (in ct/kWhel ) are determined in each Federal State in section
6.6.1.9 and are further integrated in the optimization model. Thereby specific
operating profits can be derived year on year for each plant type, size and
region.
The specification of the existing biogas plant capacity for the base years 2013
and 2015 also represents an important information that has to be fed into the
optimization model. The determination of existing plants in each Federal
State is a starting point for the estimation of future capacity development
concerning the whole German biogas plant park. These developments are
driven by the evolution of regional biomass electrical potentials up to the year
2030 specified for each of the three reference plant types (EM, E and B).
Figure 6-3 sums up the necessary input data for both the simulation and
optimization models.
116
6.2 Overview of the required input data for the simulation and the optimization models
The methodology and the literature sources that have been employed for the
determination of all technical and economic input data are summed up in
Table 6-2. The model input data is determined on the basis of questionnaires
sent to plant operators, according to published information or derived from
methodological assumptions. In particular total capital investment has been
estimated by using the Multiplier Value Method (section 6.5.1) and energy
crop costs have been quantified in each Federal State on the basis of regional
biomass hectare yields (section 6.6.1).
117
6 Model input data determination
Table 6.2: Literature sources and methodology employed for the models input data
determination
Technical Biomass feedstock properties Literature data from [145], [161], [162], [163]
input data
Operating hours for flexible CHP Based on:
Supplementary gas storage Specific plant operator models (section 6.2.2)
volume Calculation tool from the Federal Office for
Agriculture of Thuringia (TLL) [167]
Existing biogas plant capacity Biogas plant database (web-based research)
Biomass potentials for electricity Potentials estimation and forecast based on
production literature data (section 6.4)
Economic Total capital investment Estimation based on literature data and
input data according to the Multiplier Value Method
(section 6.5)
Additional investment Based on:
(flexibilization) Specific plant operator models (section 6.2.2)
Calculation tool from Federal Office for
Agriculture of Thuringia (TLL) [167]
Energy crop costs Calculations are carried out at the Federal
State level according to literature data and
based on regional hectare yields (section
6.6.1).
Biomass feedstock transport costs Based on literature data (section 6.6.2)
Specific transport costs models are defined for
biowaste according to various collections
zones (section 6.6.2.3)
Electricity consumption costs
Process utilities costs
Digestate treatment costs
Revenues from heat sale Based on literature data (sections 6.6.3,
Revenues from digestate sale 6.7.3., 6.7.4 and 6.7.5)
Revenues from biowaste
valorization
Personnel costs Derived from questionnaires sent to plant
operators
Maintenance costs
Revenues from electricity sale Based on literature data (sections 6.6.3, 6.7.1
Flexibility premium and and 6.7.2) and on the defined plant operator
supplement models (sections 6.2.2)
118
6.3 Estimation of existing biogas plant capacity
In the next section, the methodology used to determine each input data set
is described in detail. Firstly, existing biogas plant capacity is estimated
(section 6.3). In a second step current and future technical biomass potentials
are evaluated and forecasted at the Federal State scale up to the year 2030
(section 6.4). A final step focuses on the estimation and forecast of current
and future revenues and costs for each of the three plant types (sections 6.5,
6.6. and 6.7).
In a third step the database is further discretized into 49 power ranges along
the electric capacity bandwidth [0:20,000 kWel ] as described in Figure 6-4. It
appears that most of existing biogas plants in the database are located in the
power range [100:500 kWel ] followed by the range [500:1,000 kWel ]. Plants
smaller than 75 kWel and larger than 5,000 kWel currently play a marginal
32
Agricultural EM and E plant types also include the valorization of agricultural residues such as
cereals straw, grain maize straw and harvest residues.
119
6 Model input data determination
role in the capacity mix. This repartition is in line with the observed situation
by the end of 2012 [168].
In a fourth step the plant typology and capacity repartition obtained for the
1,323 installations in the database are scaled-up to the whole German biogas
plant park, which amounts to about 7,366 installations for a total installed
capacity of 3,091 MWel at the end of 2012 [156]. Finally, a regionalization of
the installed capacity is carried out for each of the three plant types at the
level of the German Federal States according to repartition keys derived from
[156] and [157]. The regional plant repartition shows that more than half of
German biogas plants are located in Lower-Saxony, Bavaria and Baden-
Württemberg. No plants dedicated to electricity production from biogas exist
in the Federal States of Berlin, Hamburg and Bremen.
Table 6.3: Estimated capacity repartition according to the three defined plants EM, E and B
120
6.3 Estimation of existing biogas plant capacity
80%
60%
40%
20%
0%
Plant B Plant E Plant EM
5,000 to 20,000 kWel with a capacity subrange unit interval of 1,000 kWel
3,000 to 5,000 kWel with a capacity subrange unit interval of 400 kWel
1,000 to 3,000 kWel with a capacity subrange unit interval of 200 kWel
500 to 1,000 kWel with a capacity subrange unit interval of 100 kWel
100 to 500 kWel with a capacity subrange unit interval of 50 kWel
75 to 100 kWel
70 to 75 kWel
50 to 70 kWel
30 to 50 kWel
10 to 30 kWel
Figure 6.4: Capacity repartition for the existing biogas plant types at the end of the year 2012
33
Under EEG 2012 the total capacity subject to flexibilization can be divided into 96.7% baseload
installations and 3.3% flexible plants. Under EEG 2014 base-load capacity represents 64.15% of
the total capacity whereas 35.85% are linked to already existing flexible plants.
121
6 Model input data determination
In the next section annual biomass potentials for energy crops, manure and
biowaste dedicated to electricity production from biogas are determined for
each Federal State up to the year 2030.
Table 6.4: Existing capacity concerned by flexibilization under EEG 2012 and EEG 2014
operator models
The use of renewable energy carriers in order to deliver electric, thermal and
chemical energy can be estimated with the help of potentials. In the literature
the potentials are split into the theoretical, technical, economic and
deducible one [48], [171]. The theoretical potential corresponds to the upper
boundary of energy delivery and describes the theoretical, physical usable
energy supply which is available in a certain region and at a certain time point.
It can be for example the global current energy contained in energy crops
mass in Germany if the country is set as a physical boundary. Due to certain
122
6.4 Estimation of current biomass potentials and evolution up to 2030
The economic potential describes the part of the technical potential that can
be used given economic restrictions. A variety of parameters have an
influence on this potential (e.g., depreciation, interest) which is then more
time and space dependent than the technical potential. As there are
numerous possibilities to ensure the profitability of a plant, several economic
potentials exist. As economic restrictions are permanently evolving (e.g.,
costs of renewable electricity production, changes in tax system,
CO2 certificate trading) it is not possible to determine the economic potential
exactly and precisely. Finally, the deducible potential is a limitation of the
economic potential and is set by considering additional restrictions like
production capacities, administrative limitations or pre-existing plants. The
study published in [132] and described in section 3.4.2 provides an analysis of
technical biomass potentials for the main feedstock employed i.e., energy
crops, biowaste and manure. This study has been used in the present work
for the determination of potentials dedicated to electricity production from
biogas. Technical biomass potentials are converted into potentials for
electricity generation assuming an average CHP electric efficiency of 38%
123
6 Model input data determination
In Germany and at the end of 2012 a total biomass potential of about 36.7
TWhel linked to onsite electricity generation from biogas was estimated
according to [132]34. This potential is mainly located in the Federal States of
Bavaria, Lower Saxony and North Rhine-Westphalia which contain more than
20 TWhel . An allocation of this total potential to the three analysed plant
types is carried out for the base year 2013 by using the repartition rates
mentioned in Table 6-3 (see Figure A-7 in the Appendix).
This gives a repartition of about 22.2 TWhel for the EM plants, about 12
TWhel for E plants and about 2.4 TWhel for B plants. The level of the
currently used biomass potentials dedicated to electricity from biogas is also
relevant. As mentioned in [172] about 90% of the available biomass potential
linked to energy crops for biogas is already used. This figure amounts to 50%
in the case of manure or biowaste valorization [172] which indicates that
development perspectives for the energetic use of biogenic waste and
agricultural effluents are remaining. On the opposite the valorization pathway
related to energy crops conversion into bioelectricity is almost saturated
which could lead to very limited developments in some Federal States.
34
In [132] a total potential of 99.4 TWh both relative to biogas and biomethane is mentioned. The
assumption of a global electric CHP-efficiency of 38% in all Federal States leads to a total
electrical potential of 37.8 TWhel. From this value 1.1 TWhel are linked to the decentralized
electricity production from bio-methane and must be subtracted in order to obtain the total
electrical potential dedicated to biogas.
124
6.4 Estimation of current biomass potentials and evolution up to 2030
125
6 Model input data determination
Table 6.5: Employed assumptions for the determination of current and future biomass
potentials
The specific investment-related costs are fixed costs derived from the total
capital investment TCI in the biogas plant. Investment-related costs consist of
depreciation, imputed interest and insurance costs. They are proportionally
126
6.5 Specific investment-related costs
𝑇𝐶𝐼
𝐷= (6.6)
𝑡
Imputed interest is derived from the total capital investment TCI and from the
rate of interest j35 according to Eq. 6.7 and assuming a residual value equal to
zero.
𝑇𝐶𝐼
𝐼𝑛𝑡 = 2
∙𝑗 (6.7)
Finally, insurance costs are estimated at 0.5% from the total capital
investment according to [178], [179]. In the next section the methodology
employed for the estimation of the total capital investment is described in
detail.
The starting point for the total capital investment estimation is to collect
equipment acquisition costs from questionnaires sent to German biogas plant
operators. Acquisition costs can be divided into expenditure for plants and
machines and also include indirect expenditure for construction and
engineering. More precisely acquisition costs for plants are incurred by
fermenters36, feedstock and digestate storage tanks. Acquisition costs for
machines apply to CHP, feedstock delivery technology and process
equipment for digestate treatment. Figure 6-5 mentions the acquisition costs
that have been considered for typical sizes of each plant type E, EM and B.
35
A rate of interest of 6% is assumed according to [75].
36
The correlations linking fermenters acquisition costs as a function of the fermenter’s volume
and also as a function of the installed electric power are given in Figures A.10 and A.11 in the
Appendix [105], [167], [180], [181].
127
6 Model input data determination
€
8.000.000
7.000.000
6.000.000
5.000.000
4.000.000
3.000.000
2.000.000
1.000.000
0
E EM E EM B E EM E EM B E EM E EM B E EM
plant plant plant plant plant plant plant plant plant plant plant plant plant plant plant plant plant
type type type type type type type type type type type type type type type type type
250 kWel 500 kWel 750 kWel 1,000 kWel 1,500 kWel 2,000 kWel 2,500 kWel
Feedstock delivery Feedstock tank storage Anaerobic digester
Digestate storage CHP gas engines Digestate treatment
Figure 6.5: Acquisition costs structure for typical E, EM and B biogas plant sizes
128
6.5 Specific investment-related costs
−0.392
𝑆𝐼𝑀𝑎𝑛𝑢𝑟𝑒𝑃𝑙𝑎𝑛𝑡𝑠 = 3,0334 ∙ 𝑃𝑒𝑙 (6.9)
Table 6.6: Employed multipliers values for the total capital investment estimation
37
In [116], a 30 kWel small scale manure plant shows a specific investment of 8,000 €/kW el,
whereas 6,560 €/kWel are related to a 50 kWel plant and 5,587 €/kWel correspond to a 75 kWel one.
129
6 Model input data determination
Total multiplier value Sum of the multipliers values for the 1.92 2.51
M above-mentioned positions
A gap in the specific investment is observed in Figure 6-6 when moving from
75 kWel to 100 kWel , due to a technological change for plants larger than 75
kWel . Starting from 100 kWel , manure is valorized with energy crops in co-
digestion plants which requires another fermenter type (dry fermentation)
and generates higher specific investment than in the case of small-scale
manure plants (wet fermentation).
130
6.5 Specific investment-related costs
€/kWel
90.000
85.000
80.000
75.000
70.000
65.000
60.000
55.000
50.000
45.000
40.000
35.000
30.000
25.000
20.000
15.000
10.000
5.000
0
10 100 1.000 10.000 kWel
EM plant B plant
Figure 6.6: Specific investment for agricultural and biowaste plants (EM and B plants) as a
function of the installed electric power
For comparison [147] mentions similar specific investment values for both
biowaste and agricultural plants. Agricultural plants remain clearly less capital
intensive than biowaste plants mainly due to the high level of investment in
the biowaste pre-treatment process38 and in the anaerobic digester
technology39.
38
Biowaste pre-treatment processes generally correspond to hygienization, hydrolysis or
pasteurization.
39
The anaerobic digesters for biowaste plants often employ a dry fermentation process which is
more expensive than the wet technology used in agricultural plants.
131
6 Model input data determination
As mentioned in [189] the energy crop price paid by the biogas plant
operators at the gate of their installation is set in the framework of supply
contracts with local farmers. The first aspect to define in a supply contract is
the biomass amount delivered. For each variety of energy crops the form of
the delivered biomass as cultivable areas (ha), fresh mass (t FM) or silage
should be specified. The margin between minimum and maximum Dry-Matter
contents should be as small as possible in order to avoid fluctuations in
feedstock quality. The second point concerns the place where the biomass
should be delivered. Logistical aspects are thereby defined. For example, it
has to be clearly mentioned if the biomass should be harvested and
132
6.6 Specific operating costs
133
6 Model input data determination
2013. For this purpose, the following sequential steps have been followed and
are described in detail:
• Estimation of regional mass flows for each feedstock type and in each
Federal State
• Regional maize silage costs calculations by using regional mass flows
and hectare yields derived from national costs data
• Regional grass silage costs calculations based on national hay costs, on
reference values for nutrient and dry matter contents and on regional
mass flows and hectare yields
• Regional cereals grain costs estimation derived from national costs for
wheat, triticale and rye and from regional mass flows and hectare
yields
• Regional cereals silage costs calculation derived from national cereals
grain costs, from specific methane yields and from regional mass flows
and hectare yields
• Estimation of the regional energy crop costs for the base year 2013
• Estimation of the electrical yields μi linked to feedstock organic dry
matter and methane content in biogas, to reference methane yields
and to average CHP efficiencies
• Estimation of the energy crop costs contribution into the electricity
production costs from biogas in each Federal State and for each plant
type in the base year 2013
6.6.1.2 Estimation of regional mass flows for each feedstock type and in
each region
In a first step the calculation of each regional energy crops mass flow Mi,r is
carried out by multiplying in each Federal State the regional surface area Si,r
dedicated to each energy crops feedstock for biogas production (in ha) by
regional hectare yields ηi,r (in t/ha) following Eq. 6.10
134
6.6 Specific operating costs
The regional hectare yields for maize silage and rapeseed are derived from
average historical values covering the year 2006 to 2010 [191] and are
mentioned in Tables A-5 and A-6 of the Appendix. The regional hectare yields
for grass silage correspond to average values for roughage in the years 2010
and 2011 [192] and can be found in the Table A-7 of Appendix. The term
roughage covers meadows and pastures, legumes for whole plant harvest
(e.g., clovers) and grass cultivation on arable land. The regional hectare yields
for cereal grains mentioned in the Table A-8 of the Appendix are linked to
average values for rye, winter cereals, winter wheat and triticale 40 between
the years 2006 and 2010 [191]. The regional hectare yields for cereal silage
are derived from the values for cereal grains (Table A-9 of the Appendix). An
average corn-straw ratio of 1:1.2 and a DM-content of 87% for cereal grains
and 33% for cereal silage are assumed [193]. The regional surface area Si,r is
then determined for each energy crops feedstock type. The estimation (e.g.,
for maize silage) is based on the regional agricultural surface area for energy
crops41 SEC,r on the previously determined regional hectare yields ηi,r and on
the share α of each feedstock in the total national energy crops mass issued
from [194] (Eq. 6.11).
𝛼𝑀𝑎𝑖𝑧𝑒−𝑠𝑖𝑙𝑎𝑔𝑒
𝑆𝑀𝑎𝑖𝑧𝑒−𝑠𝑖𝑙𝑎𝑔𝑒,𝑟 = ∙ 𝑆𝐸𝐶,𝑟
𝜂 𝛼𝑀𝑎𝑖𝑧𝑒−𝑠𝑖𝑙𝑎𝑔𝑒 𝛼𝐺𝑟𝑎𝑠𝑠−𝑠𝑖𝑙𝑎𝑔𝑒 𝛼𝐶𝑒𝑟𝑒𝑎𝑙−𝑠𝑖𝑙𝑎𝑔𝑒 𝛼𝑀𝑎𝑖𝑧𝑒−𝑔𝑟𝑎𝑖𝑛𝑠
𝑀𝑎𝑖𝑧𝑒−𝑠𝑖𝑙𝑎𝑔𝑒,𝑟 ∙ ( + + + )
𝜂𝑀𝑎𝑖𝑧𝑒−𝑠𝑖𝑙𝑎𝑔𝑒,𝑟 𝜂𝐺𝑟𝑎𝑠𝑠−𝑠𝑖𝑙𝑎𝑔𝑒,𝑟 𝜂𝐶𝑒𝑟𝑒𝑎𝑙−𝑠𝑖𝑙𝑎𝑔𝑒,𝑟 𝜂𝑀𝑎𝑖𝑧𝑒−𝑔𝑟𝑎𝑖𝑛𝑠,𝑟
(6.11)
The calculated regional surface area 𝑆𝑖,𝑟 for each energy crops feedstock type
is set out in Table A-10 of the Appendix.
Regional manure mass flows MManure,r employed in the EM plant type are
further determined. In the present case it is assumed that the valorized
manure is exclusively produced by cattles. According to German Federal
Statistical Office about 12.7 million cattles are identified at the end of the year
40
Triticale is a hybrid with wheat as the female partner and rye as the male partner.
41
The regional agricultural surface area for energy crops is based on values from the biogas plant
database described in Section 6.3.
135
6 Model input data determination
2013 and can be split into milk cows (4.3 million) and remaining cattle (8.4
million). According to [195], [196], [162] an average specific manure
production rate Q Milk−cows is estimated at about 19.8 m3 of manure per milk
cow which leads to a milk cow manure mass at about 85.4 million t. A single
remaining cattle produces about 8.3 m3 manure (Q Remaining−cattles ) which
implies a manure mass dedicated to the remaining cattle of about 69.5 million
t [197], [198], [162].
The total manure mass produced by German cattle amounts thus to about
154.9 million t. According to [199] about 33.2 million t cattle manure are
dedicated to biogas plants which leads to a valorization factor w of 21.4%
applied to each Federal State. In each Federal State r the existing milk cows
and remaining cattles amount, NMilk−cows,r and NRemaining−cattles,r , is
estimated based on historical data for the year 2010 from [197], [198]. The
results are mentioned in Table A-11 of the Appendix. The total manure mass
flow MManure,r in each Federal State can be therefore estimated according to
Eq. 6.12 and the regional values are mentioned in Table A-12 in the Appendix.
136
6.6 Specific operating costs
Maize silage costs Net profit loss due to the rapeseed non-cultivation Variable maize silage costs
(6.13)
With:
The variable costs for maize silage and winter rapeseed in €/ha have been
determined based on data from [201]. According to [201] the average costs
for winter rapeseed per Dry-Matter feedstock mass amounts 297 €/t DM . The
hectare yields (in t/ha) for maize silage are estimated in each Federal State
based on the historical values observed from the year 2006 to 2010 [191].
𝐷𝑀𝐺𝑟𝑎𝑠𝑠 × 𝑁𝐺𝑟𝑎𝑠𝑠
(𝑐𝐺𝑟𝑎𝑠𝑠 )€/𝑡 = (𝐶𝐻𝑎𝑦 )€/𝑡 ∙ (6.14)
𝐷𝑀𝐻𝑎𝑦 × 𝑁𝐻𝑎𝑦
137
6 Model input data determination
With:
Regional costs for cereal grains correspond to average costs of wheat, triticale
and rye. They have been provided by the Agricultural Market Information
society (AMI) and concern the years 2009/2010, 2010/2011 and 2011/2012
[202].
Regional costs for cereal silage are derived from cereal grains costs and from
average feedstock methane specific yields [162], [203] (Eq. 6.15).
𝑉̇𝐶𝐻4 (𝐶𝑒𝑟𝑒𝑎𝑙−𝑆𝑖𝑙𝑎𝑔𝑒)
𝑐𝐶𝑒𝑟𝑒𝑎𝑙−𝑆𝑖𝑙𝑎𝑔𝑒 = 𝑉̇𝐶𝐻4 (𝐶𝑒𝑟𝑒𝑎𝑙−𝐺𝑟𝑎𝑖𝑛𝑠)
∙ 𝑐𝐶𝑒𝑟𝑒𝑎𝑙−𝐺𝑟𝑎𝑖𝑛𝑠 (6.15)
With:
̇
- 𝑉𝐶𝐻 (𝐶𝑒𝑟𝑒𝑎𝑙 − 𝑆𝑖𝑙𝑎𝑔𝑒): specific methane yield for cereal silage in
4
3
𝑚𝑚𝑒𝑡ℎ𝑎𝑛𝑒 / 𝑡𝐶𝑒𝑟𝑒𝑎𝑙 𝑠𝑖𝑙𝑎𝑔𝑒,𝑜𝐷𝑀
138
6.6 Specific operating costs
̇
- 𝑉𝐶𝐻 (𝐶𝑒𝑟𝑒𝑎𝑙 − 𝐺𝑟𝑎𝑖𝑛𝑠): specific methane yield for cereal grains in
4
3
𝑚𝑚𝑒𝑡ℎ𝑎𝑛𝑒 / 𝑡𝐶𝑒𝑟𝑒𝑎𝑙−𝐺𝑟𝑎𝑖𝑛𝑠,𝑜𝐷𝑀
6.6.1.7 Estimation of the energy crop costs for the base year 2013
The previous energy crop costs have been determined at the Federal State
level for the year 2012. As the economic evaluation starts in 2013, an
estimation of these costs has to also be realized for the base year 2013. The
regional energy crop costs have thus been calculated according to Eq. 6.16
and the results are mentioned in Table A-13 of the Appendix
𝑐2012,𝑖,𝑟
𝑐2013,𝑖,𝑟 = 𝑐2013,𝑖,𝑛𝑎𝑡𝑖𝑜𝑛𝑎𝑙 ∙ (6.16)
𝑐2012,𝑖,𝑚𝑜𝑦
With:
- 𝑐2012,𝑖,𝑟 : regional specific costs for each feedstock i determined for the
base year 2012 in each Federal State r (€/t)42
- 𝑐2012,𝑖,𝑚𝑜𝑦 : for each feedstock type, average value over all Federal State of
the previously determined regional feedstock costs for the base year 2012
(€/t)
In a further step the contribution of energy crop costs to the total electricity
production costs should be determined. Therefore, the above-mentioned
energy crop costs expressed in €/t should be converted into ct/kWhel with
42
Determined in sections 6.6.1.3 to 6.6.1.6.
139
6 Model input data determination
the help of feedstock specific electrical yields in kWhel /t. For each of the
energy crops feedstock the electrical yield in kWhel /t is defined according to
Eq. 6.17:
With:
3
𝑣𝐵𝑖𝑜𝑔𝑎𝑠,𝑖 : biogas yield for feedstock i (𝑚𝐵𝑖𝑜𝑔𝑎𝑠 /𝑡𝐹𝑀,𝐹𝑒𝑒𝑑𝑠𝑡𝑜𝑐𝑘,𝑖 )43
43
The corresponding numerical values for each feedstock are given in [162].
44
The methane gross calorific heating value is to 9.97 kWh/m3 according to [151].
45
An average CHP electric efficiency of 38% is assumed for the electrical yields determination.
140
6.6 Specific operating costs
𝜀2013,𝑖,𝑟 ∙ 𝑝2013,𝑖,𝑟
𝐶𝐹𝑒𝑒𝑑𝑠𝑡𝑜𝑐𝑘𝐶𝑜𝑠𝑡𝑠,2013,𝑖,𝑟 = ∑4𝑖=1 ∑16
𝑟=1 𝜇𝑖
(6.18)
With:
i: feedstock type
𝑝2013,𝑖,𝑟 : regional specific costs for each feedstock i the base year
2013 in each Federal State r (€/t)
For each of the two agricultural biogas plants E an EM and in each Federal
State r the numerical values of the energy crop costs contribution in the
electricity production costs are set out in Figures A-13 and A-14 of the
Appendix. In the case of E plant type, the energy crop costs contribution
varies from 7.03 ct/kWhel in the Federal State of Bavaria up to 10.88
ct/kWhel in Brandenburg. The average energy crop costs contribution is
estimated at about 9.01 ct/kWhel for the base year 2013. The co-digestion of
energy crops with manure in EM plants has the effect of lowering the costs
contribution of energy crops in the electricity production costs as manure is
available for free. In this case the average energy crop costs contribution for
the year 2013 amounts about 7.94 ct/kWhel . The lowest costs contribution
46
The regional electric share 𝜀2013,𝑖,𝑟 for energy crops feedstock i is defined as the ratio between
the electricity flow amount Ei,r linked to a feedstock i in a region r and the total electricity amount
for all energy crops in a region r.
141
6 Model input data determination
is observed in Bavaria with 6.35 ct/kWhel and reaches its maximum in the
Federal State of Brandenburg with 9.79 ct/kWhel .
Forecasts for the previously determined energy crop costs contribution (in
ct/kWhel ) up to the year 2030 are then established for each Federal State.
The high volatility relative to seed price leads to unpredictability in the energy
crop costs forecasts [190]. In the forthcoming years a progressive
introduction of agricultural residues in German biogas plants should occur.
Simultaneously the future energy crops demand for biogas should slow-down
mainly due to the subsidy cut related to energy crops valorization decided in
the framework of EEG 2014. Agricultural residues are available for free on the
site of the biogas plant and do not require transport costs. Their future
increased use should reduce the volatility of energy crop costs. Considering
all these aspects an energy crop costs stability47 up to the year 2030 is
assumed in the framework of a base scenario and in all Federal States. In
addition to the analysis in the base scenario, energy crop costs shocks are
carried out in the framework of a further scenario. More precisely an energy
crop costs in-crease of +10% per year between 2020 and 2025 is considered
(section 8.2).
47
This cost stability does not integrate the annual discount rate of 6% applied to all cost flows up
to the year 2030.
142
6.6 Specific operating costs
the collection radius (km) from the biogas plant is provided and represented
in Figure 6-7.
ha
5.000
4.500
4.000
3.500
3.000
2.500
2.000
1.500
1.000
500
0
0 1 2 3 4 5 6 7 8 9 10 11 12 km
Figure 6.7: Usable surface area as a function of the transport distance [205]
Table 6-7 provides specific feedstock hectare yields and a typical feedstock
mass repartition for 1 ha agricultural surface area. By combining this
information with the results of Figure 6-7 a correlation between the usable
feedstock mass and the transport distance can be established for each energy
crops type (Figure 6-8).
Table 6.7: Specific hectare yields and mass repartition of energy crops for 1 ha surface area
143
6 Model input data determination
500.000 1.600
450.000 1.400
400.000
1.200
350.000
300.000 1.000
250.000 800
200.000 600
150.000
400
100.000
50.000 200
0 0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Collection
radius
(km)
Usable mass maize silage (t) Usable mass cereal silage (t)
Usable mass grass silage (t) Usable mass cereal grains (t)
Figure 6.8: Usable mass amount for energy crops as a function of the collection radius [79],
[205]
In a second step and according to [206], [207], [208] specific transport costs
in €/t can be estimated as a function of the energy crops collection radius in
km (Figure 6-9).
144
6.6 Specific operating costs
€/t
25
20
15
10
0
0 5 10 15 20 km
Maize and cereal silage Cereal grains Grass silage
Figure 6.9: Specific biomass transport costs for energy crops as a function of the collection
radius [206], [207], [208]
Only a single public study deals with the estimation of transport costs
functions applied to grass silage for biogas in Germany [208]. In this study
transport costs for maize silage have also been analysed and remain clearly
lower than the transport costs for grass silage. This thus confirms the gap
observed in Figure 6-9. For a given farm this study provides, assuming a
transport distance of 5 km, grass silage costs of about 1.72 €/t and maize
silage costs of about 1.02 €/t. The main driver explaining this difference seems
to be linked to fixed costs. Biomass transport costs are made of variable
machine costs, fixed costs and personnel costs. Total fixed costs can be split
into fixed costs for machines and equipment and fixed costs for storage
buildings. Fixed costs for storage buildings are similar for maize silage and for
grass silage due to them having approximately the same feedstock density.
The costs discrepancy can therefore be explained by the high investment in
machines and equipment linked to grass silage. For grass silage specific annual
depreciations of about 87.29 €/ha are already mentioned for the machines
and equipment with 79.66 €/ha for tractors and 7.63 €/ha for rotary mowers
[209]. In the case of maize silage, the total fixed costs amount to 82.45 €/ha
145
6 Model input data determination
[210] which is lower than depreciations for machines and equipment relative
to grass silage. The combination of the two correlations set out in Figures 6-8
and 6-9 finally provides for each feedstock type specific biomass transport
costs (in €/t) as a function of the transported mass amount in t (Figure 6-10).
€/t
35
30
25
20
15
10
0
1 10 100 1.000 10.000 100.000 t
Maize silage Cereal silage
Cereal grains Grass silage
Figure 6.10: Specific biomass transport costs for energy crops as a function of the transported
energy crops mass amount
As stated in section 6.6.1.2, about 12.7 million cattle and about 158,000 cattle
farms were identified in Germany at the end of 2013 [211]. This corresponds
to about 80 cattle per farm. Furthermore, the total manure mass produced
by German cattle was estimated at about 154.9 million t in section 6.6.1.2.
The cattle manure mass amount per km48 is further determined in Table 6-8.
The calculations are based on the total surface area of Germany, which is
357,000 km2 , and take into account a manure valorization factor of about
68% [212], [213].
48
The collection radius r (in km) is linked to the surface area S (in km2) by Eq. 6.19: S = π.r2 (6.19)
146
6.6 Specific operating costs
€/t
9
8
7
6
5
4
3
2
1
0
0 5 10 15 20 25 30 35 km
Figure 6.11: Specific manure transport costs as a function of the collection radius [214], [215]
147
6 Model input data determination
€/t
9
8
7
6
5
4
3
2
1
0
0 2.000 4.000 6.000 8.000 10.000 12.000 14.000 16.000 18.000 20.000 t
Figure 6.12: Specific manure transport costs as a function of the feedstock mass amount
In the case of biowaste four concentric zones are firstly defined according to
various collection radiuses in km (Figure 6-13 and Table 6-9). In each zone
population density (a1 to a4), biowaste per habitant amount (b1 to b4) and
the maximal biowaste amount per zone (m1,max to m4,max ) are determined
(Figure 6-13 and Table 6-9).
148
6.6 Specific operating costs
m1,max = a1 b1 10 2
m2,max = a2 b2 (30 − 10 )
2 2
(S1)
m3,max = a3 b3 (60 − 30 )
2 2
m4,max = a4 b4 (120 − 60 )
2 2
In order to estimate the biowaste transport costs two functions are defined
in Table 6-9 according to [218]. A first cost function covers the zone 1 (from 0
km to 10 km) and refers to the biowaste collection in close range and in the
urban area. A second function is applied for zones 2, 3 and 4 and corresponds
to a transport distance greater than 10 km in peri-urban and rural areas. Table
6-9 sums up the input data that have been assumed in order to estimate the
biowaste transport costs.
149
6 Model input data determination
Table 6.9: Collection radius, maximal amount per inhabitant and specific transport costs for
biowaste
In a zone i and based on the collection zones represented in Figure 6-12 the
biowaste collection radius ri can be expressed as a function of the
transported biowaste amounts mi,k according to the following equations
system (S2):
m1, k
r1 =
(S2) a1 b1
r m2 , k − m1, max
= 10 2 +
2
a 2 b2
m3, k − m2 , max − m1, max
r3 = 30 2 +
a3 b3
m4 , k − m3, max − m2 , max − m1, max
r4 = 60 2 +
a4 b4
49
In a zone i the maximal biowaste amount mi,max is determined based on the maximal biowaste
collection radius ri,max, on the population density ai and on the annually produced biowaste
amount per inhabitant bi according to Eq. 6.22: mi , max = r i , max2 ai bi (6.22)
150
6.6 Specific operating costs
By using the numerical values of Table 6-9 in each equation of (S2), correlation
functions between the collection radius ri in each zone i and the collected
biowaste amount mi,k are obtained and represented in Figure 6-14.
km
120
110
100
90 Zone 4
80
70
60
50 Zone 3
40
30
20 Zone 2
10
Zone 1
0
0 50.000 100.000 150.000 200.000 250.000 300.000 350.000 400.000 450.000 500.000 t
Figure 6.14: Biowaste collection radius as a function of the biowaste mass amount
Finally, by combining the results of Figure 6-14 with the costs functions of Eqs.
6.20 and 6.21 specific biowaste transport costs (in €/t) can be expressed as a
function of the collected biowaste amount (in t) (Figure 6-15).
151
6 Model input data determination
€/t
120
110
100
90
80
Zone 4
70
60
50
40 Zone 3
30
20
10
Zone 2
0 Zone 1
0 50.000 100.000 150.000 200.000 250.000 300.000 350.000 400.000 450.000 500.000 t
Figure 6.15: Biowaste transport costs as a function of the biowaste mass amount
152
6.6 Specific operating costs
Table 6.10: Main assumptions related to electricity consumption, process utilities, personnel,
maintenance and digestate treatment specific costs
Specific process 10,000 €/a [75] 1.2 €/t for impurities elimination.
utilities costs Impurities correspond to 2% of the
biowaste mass input which is valorized at
60 €/t [220]
1 FTE employed from 0 to 750 kWel and 2 FTEs from 750 to 1,000 kWel
From 1,000 to 6,000 kWel: 1 supplementary FTE every 500 kWel
From 6,000 to 10,000 kWel: 1 supplementary FTE every 1,000 kWel
From 10,000 to 20,000 kWel: 2 supplementary FTEs every 1,000 kWel
Specific Maintenance costs for existing and new CHPs in ct/kWhel as a function of
maintenance electric power (Eq. 6.23) [150]: C= 17.053.P-0.4782 (6.23) The maximal unit size
costs of one CHP equals to 2,000 kWel (see Figure A-16 in the Appendix).
153
6 Model input data determination
In a further step Table 6-11 sums up the assumed annual evolution rate for
each costs position up to the year 2030. The annual evolution for electricity
consumption, process utilities, maintenance and digestate treatment costs is
assumed to follow an average inflation rate set at 1% per year. According to
[221] an average evolution rate of +3.6% concerning German salaries has
been observed between the years 2015 and 2016. Technicians and workers
are the most employed personnel category in biogas plants companies. For
this reason, a lower evolution rate at about 2% has been assumed in the
model as a conservative assumption for personnel costs. Investment-related
costs are assumed to remain constant from a year to another. Biogas plants
are supposed to represent a mature and established technology in Germany
which is not subject to disruptive innovations. Finally, all biomass feedstock
related costs, i.e., energy crop purchase and transport costs have been
assumed as constant from a year to another. This costs stability is firstly
explained by the progressive introduction of agricultural residues – available
for free – in German biogas plants. Another aspect concerns the slow-down
of the energy crops demand in the biogas sector due to the subsidy cut for
energy crops valorization in the framework of the EEG 2014. Both of these
aspects should thereby tend to stabilize future energy crop costs for biogas
plants in Germany.
154
6.7 Revenues estimation and forecast
Table 6.11: Assumed annual evolution rates for each costs position up to the year 2030
Based on the two operator models described in Figure 6-2 in section 6.2.2
following revenues are defined for the electricity sale (Table 6-12).
155
6 Model input data determination
Revenues from the FIT are assumed to decrease by 2% per year. In the case
of the direct marketing model, it is assumed that plant operators sell the
electricity produced at a price corresponding to the yearly average of monthly
EPEX electricity prices in Peak time. According to [12] the average EPEX-Peak
electricity price was 43.13 €/MWhel for the year 2013 and 35.09 €/MWhel
for 2015. The evolution of these annual prices up to 2030 is based on a
forecast from EWI Prognos and GWS published in 2014 [222]. The monthly
average EPEX-Base electricity prices used for the calculation of the market
premium are derived from the BDEW50 annual report [12]. Average prices
have been considered for the years 2013 and 2015 and amounted to 37.78
and 31.68 €/MWhel respectively.
50
German Association of Energy and Water Industries
156
6.7 Revenues estimation and forecast
Table 6.13: Thermal own requirements rates for the years 2013 and 2015 [225], [226]
157
6 Model input data determination
Regarding economic aspects, the Working Group for Heat and Heating
Economics published a price comparison for district heating in Germany. In
2011, the average district heating price in Germany was estimated at about
7.6 ct/kWhth [227]. In [119] revenues for external heat sale and use of 5
ct/kWhth were assumed. In the present work and for all biogas plants
analysed, a value of 4 ct/kWhth 51 is taken into account as conservative
assumption. Assuming a future development of the market for renewable
heat in Germany an annual increase of 2% per year up to 2030 has been
further considered for the revenue from the external heat sale.
51
The average revenue from heat sale is mentioned in ct/kWh th and must be converted into the
specific electric functional unit in ct/kWhel. For this, mathematical functions linking thermal and
electric yields to the electric capacities are determined according to values mentioned in Figure
A.15 of the Appendix [150].
158
6.8 Model input data uncertainties and plausibility
increase of 1% per year for the revenues from the digestate sale has been
assumed up to 2030.
Plant operators can receive, in addition to the electricity, heat and digestate
revenues, municipal fee revenues for the valorization of biowaste into biogas.
These fee revenues should in principle cover the costs associated with the
digestate composting process, which follows the anaerobic digestion. The
level of these revenues is very heterogeneous and can vary between 20 and
100 €/t [229]. It often remains confidential information, which is rarely
published by plant operators. These specific revenues are moreover not
directly linked to the plant location so that a regionalization at the Federal
State level is currently not possible. Considering all these uncertainties factors
an average fee revenue level of 60 €/t for the valorization of biowaste is
assumed for all Federal States. Revenues for biowaste valorization are also
assumed to increase by 2% per year up to 2030. This can be justified by a
supposed increasing valorization of biowaste in biogas plants in the future.
159
6 Model input data determination
A plant and size typology for existing biogas capacities has been determined
on the basis of a data base containing 1,323 plants which is a representative
160
6.8 Model input data uncertainties and plausibility
sample of the whole plant park (about 8,900 plants by 2015). In this sample
the capacity and plant distribution obtained has then been scaled up to the
level of the whole biogas plant park, which appears as a suitable approach.
The uncertainty level concerning the existing biogas plant portfolio remains
then relatively low.
161
6 Model input data determination
to the year 2030. This costs stability is firstly explained by the progressive
introduction of agricultural residues – available for free – in German biogas
plants. Another aspect concerns the assumed slow-down of energy crops
demand in the biogas sector due to the subsidy cut for energy crops
valorization in the framework of EEG 2014. Both of these aspects should
therefore tend to stabilize future energy crop costs for biogas plants in
Germany. The determined regional energy crop costs contribution for EM and
E plant type remain in a cost bandwidth going from 6.35 to 10.87 ct/kWhel
(see section 6.6.1.9). Real data from the biogas measurement program II
shows in Figure 3-11 that most of the electricity productions costs for
agricultural plants vary between 15 and 20 ct/kWhel . The cost bandwidth for
energy crops is then in line with real data as the energy crops cost generally
represent between 40 and 60% of the total electricity production costs [231].
This validates the plausibility of the determined values for the regional energy
crop costs contribution.
162
6.8 Model input data uncertainties and plausibility
€/kWel
100.000
90.000
80.000
70.000
60.000
50.000
40.000
30.000
20.000
10.000
0
10 100 1.000 10.000
kWel
Data from existing plants Model input data
Figure 6.16: Specific investment for biowaste plants according to model input data and to data
from existing plants [117], [118], [232]
The specific acquisition costs for agricultural plants can be compared to real
values provided by German plant operators for 55 installations in the
framework of the “Biogas Measurement Program II” [125]. The specific
acquisition costs involved in the model data for agricultural biogas plants are
in line with the values derived from the “Biogas Measurement Program II”
(Figure 6-17).
163
6 Model input data determination
Figure 6.17: Specific acquisition costs for agricultural EM plants52 according to model input data
and to data from existing plants [125]
Costs for process utilities (use of water or anti-foam) are drawn from plant
operator data and estimated as constant at about 10,000 €/a for all plant sizes
and all plant types [75]. This simplification generates data uncertainty but has
a low impact on plant profitability as the share of process utilities costs in
52
Explanations justifying the visible gap observed in the acquisition costs when moving from 75
kWel to 100 kWel are available in section 6.5.1.
164
6.8 Model input data uncertainties and plausibility
total electricity production costs is not significant. Personnel costs have been
set according to plant operator data at a unitary FTE cost of 30,000 €/a. The
number of FTE employed is further directly correlated to the plant capacity
range. In practice it also depends on the fermentation and digestate
treatment process complexity and is difficult to generalise. For this reason,
the correlation between personnel costs and plant size involves uncertainties.
Maintenance costs for CHP are estimated as a function of the total installed
electric power according to the correlation of ASUE mentioned in [150]. The
number of maintained CHP units as a function of installed power is specified
in Figure A-16 of the Appendix (own assumptions). A CHP unit size of 2,000
kWel is assumed over the whole plant capacity bandwidth [0:20,000 kWel ]. In
practice a systematization and generalization of maintained CHP unit
numbers as a function of total installed power appears to be difficult as it
varies between plant operators. Thereby the correlation linking maintenance
costs to installed electric power is subject to uncertainty. Finally, electricity
consumption costs are determined on the basis of electricity own
requirement rates [219]. The values assumed for electricity prices are
15.11 ct/kWhel for 2013 and 15.23 ct/kWhel for year 2015 according to [12].
Therefore, the specified input data regarding this cost position appears
plausible and is subject to a low level of uncertainty.
In the present work it has been assumed that plant operators involved in the
direct marketing model sell the produced electricity at a price corresponding
to the yearly average of monthly EPEX electricity prices in Peak time. For the
base year 2013, a price of 43.13 €/MWhel has been taken into account and
corresponds to the yearly average of all monthly EPEX electricity prices
observed in peak time [12]. Similarly for the year 2015 the average EPEX price
for the electricity sold is about 35.09 €/MWhel in Peak time [12]. For
comparison in [233], the revenue structure of 500 kWel agricultural plant is
detailed under the EEG 2014 framework. The electricity direct marketing
model is considered there and three levels for the EPEX electricity price are
assumed: 40, 50 and 60 €/MWhel . The EPEX price for the electricity sold thus
165
6 Model input data determination
53
In Table 6.14 the green colour corresponds to data with very low uncertainty level, whereas data
with a more important uncertainty level are marked in orange. This classification aims to
characterize the degree of uncertainty for all techno-economic input data.
166
6.8 Model input data uncertainties and plausibility
Uncertainty Comment
level
Technical Biomass feedstock properties The uncertainty level results
Uncertainties Operating hours for flexible CHP here from the systematic
Supplementary CHP size and gas approach followed in this work.
storage volume In practice plant specific
operation strategies involving
specific technical parameters
should be considered.
167
6 Model input data determination
Further uncertainties which are not involved in the input data perimeter
should be pointed out. The first one relates to the legal frameworks that have
been analysed. A continuation of the EEG 2012 and EEG 2014 legal
frameworks up to the year 2030 has been taken into account in the
optimization model in order to carry out the forecasts. In practice new legal
frameworks will be enacted in the next ten years and then impact the
development of biogas in Germany. Another uncertainty concerns the effects
of potential disruptive innovations notably related to fermenters and to CHPs.
Disruptive innovations could lead to an increase of plant efficiencies and to
major electricity production costs decrease. These effects have not been
integrated in the present work. It has been assumed that existing
technologies for biogas production and valorization are well-established and
mature so that they will not be displaced by new technologies.
6.9 Summary
This chapter describes the methodology and assumptions used for
determining the input data for both the simulation and optimization models.
In a first step the existing German biogas plant park has been estimated by
the end of the year 2012. A discretization of the existing capacities into three
plant types (EM, E and B) and 49 plant sizes has been realized. The second
step of the model input data determination concerns the estimation of
current and future potentials for electricity generation relative to each of the
three above mentioned plant types. Existing potentials have been evaluated
at the Federal State level and for each plant type on the basis of literature
data. Future potentials for agricultural plants are directly correlated to the
evolution of agricultural surface areas whereas future biowaste potentials are
closely linked to the evolution of household biowaste mass amounts. Data
related to existing biogas plant capacity is used by the optimization model
which is described in chapter 5. In a further step costs and revenues input
data is determined. Costs data is divided into investment-related costs and
operating costs. The determined investment-related costs in ct/kWhel
168
6.9 Summary
54
Depreciations have been linearly derived from the total capital investment over the whole
investment lifetime. The total capital investment was estimated with the help of the Multiplier
Values Method and relates to all main equipment acquisition costs.
55
A dedicated methodology for estimating regional energy crop costs in each Federal State was
developed and is presented in section 6.6.1.
169
7 Model-based analysis of current
electricity production from biogas
in Germany
The objective of this chapter is to present and analyse the results of the
simulation model concerning current electricity production from biogas in
Germany. The simulation model aims to identify the most profitable biogas
plant sizes under various legal frameworks. These installations correspond to
the plants showing the highest specific operating profit determined under a
variable and differentiated biomass input mass flow. In section 7.1
correlations linking the electricity production costs and revenues to the
installed electric power are established. They result from the combination of
technical correlations obtained by the process simulation model in chapter 4
with the economic input data specified in chapter 6. In a further step
correlation involving specific operating profits as a function of the installed
electric power are then derived in section 7.2 under the legal frameworks of
the EEG 2012 and EEG 2014. In each case the most profitable plant sizes are
identified. The costs and revenues structure of these plant sizes is then
assessed in section 7.3. A further sensitivity analysis realized in section 7.4
aims to identify and quantify the main profitability drivers. In section 7.5 a
technical assessment of the most profitable plant sizes is carried out and has
for objective to determine for each installation biological and global energetic
efficiencies all along the biogas supply chain. A discussion of the methodology
and results follows in section 7.6 emphasizing pros and cons of the simulation
model employed. Based on the model results policy recommendations and
strategic outcomes are then formulated for biogas plant operators and
decision-makers in section 7.7. Chapter 7 ends with a summary in section 7.8.
171
7 Model-based analysis of current electricity production from biogas in Germany
In the case of EEG 2014 flexibilization costs of 40 €/kWel apply starting from
an installed capacity of 150 kWel . These costs remain constant up to 20,000
56
For more information see the evolution of the specific investment in Figure 6.6.
57
The maximal unit size for one CHP is set in the present work at 2,000 kWel.
172
7.1 Costs and revenues functions
ct/kWhel
16
14
12
10
8
6
4
2
0
10 100 1.000 10.000 kWel
Investment related costs Process utilities costs
Electricity consumption costs Flexibilization costs
CHP maintenance costs Biomass feedstock costs
Personnel costs Transport costs
Figure 7.1: Specific annual costs for EM plants as a function of the electric power for the base
year 2015 and under EEG 2014
The specific revenues for electricity sale can be divided into the EEG-
subsidies, the EPEX monthly average and the EPEX-Peak electricity sale price
accrued from electricity direct marketing. Their evolution is represented in
Figure 7-2. For small-scale manure plants with an installed power between 0
58
This energy crop costs value represents the average of all regional energy crop costs determined
for the base year 2015 for EM plants (see section 6.6.1.9).
173
7 Model-based analysis of current electricity production from biogas in Germany
174
7.1 Costs and revenues functions
ct/kWhel
24
22
20
18
16
14
12
10
8
6
4
2
0
10 100 1.000 10.000 kWel
Revenues for electricity sale Heat sale revenues
Revenues for digestate sale Flexibility supplement
Figure 7.2: Specific annual revenues for EM plants as a function of the electric power for the
base year 2015 and under EEG 2014
59
A profitability domain corresponds to the case where specific revenues are higher than specific
electricity production costs. An unprofitability domain refers to the case where specific electricity
production costs are higher than revenues.
175
7 Model-based analysis of current electricity production from biogas in Germany
ct/kWhel
34
32
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
0
10 100 1.000 10.000 kWel
Electricity production costs Revenues
Figure 7.3: Specific electricity production costs and revenues for EM plants as a function of the
electric power for the base year 2015 and under EEG 2014
176
7.2 Identification of most profitable plant sizes
The results under the EEG 2012 framework are illustrated in Figure 7-4. Small-
scale manure plants, with an installed electric power lower than 75 kWel ,
appear there as the most profitable option. This plant type shows the highest
specific operating profit at about 10.85 ct/kWhel . For plant sizes up to 900
kWel the co-digestion of energy crops with manure systematically leads to the
highest profitability. Starting from 900 kWel biowaste plants turn out to be
the most economically attractive option. A maximal specific operating profit
at about 9.29 ct/kWhel for a 3,000 kWel installation is thereby reached.
Finally, the valorization of energy crops in mono-digestion plants remains the
least profitable alternative. The operating profits are in that case less than 4
ct/kWhel and become negative above 7 MWel of installed electric power.
ct/kWhel
12
10
8
6
4
2
0
-2 10 100 1.000 10.000 kWel
-4
-6
-8
-10
-12
-14
-16
EM plant E plant B plant
Figure 7.4: Plant specific operating profit as a function of the electric power for the base year
2013 and under EEG 2012
Under EEG 2014 energy crops and manure co-digestion plants display the
highest specific operating profits up to an installed power of 550 kWel (Figure
177
7 Model-based analysis of current electricity production from biogas in Germany
7-5). For larger capacities biowaste plants become the most profitable
installation type. A maximal specific operating profit at about 6.54 ct/kWhel
for a 3,000 kWel plant is reached in this case. Manure plants, smaller than 75
kWel , do remain the most economically attractive installation type with a
corresponding maximal operating profit of about 8.95 ct/kWhel . Agricultural
plants larger than 75 kWel using energy crops with manure in co-digestion or
employing energy crops in mono-digestion processes are then analysed.
These plants appear as unprofitable over the whole capacity bandwidth, i.e.,
from 0 to 20,000 kWel . This unprofitability mainly results from the energy
crops subsidy cut which was defined in the framework of EEG 2014.
ct/kWhel
10
8
6
4
2
0
-2 10 100 1.000 10.000 kWel
-4
-6
-8
-10
-12
-14
-16
EM plant E plant B plant
Figure 7.5: Plant specific operating profit as a function of the electric power for the base year
2015 and under EEG 2014
As a result of the simulation model following most profitable plant types and
sizes can be identified (see Table 7-1).
178
7.3 Costs and revenues structure
Table 7.1: Most profitable plant types and sizes under EEG 2012 and EEG 2014 frameworks
From EEG 2012 to EEG 2014 a profit loss of -2.75 ct/kWhel is observed for the
most profitable B plant size. This is mainly due to lower electricity sale
revenues observed in the year 2015 than in 2013. A drastic profitability loss
of -4.98 ct/kWhel is observed from the EEG 2012 to EEG 2014 for E plants due
to the energy crops subsidy cut enacted by the German Federal Government.
Finally, a slight profitability loss of -1.9 ct/kWhel between the two EEG
versions applies to small manure plants characterized by a size of 75 kWel .
This installation type remains however profitable with a specific operating
profit close to 9 ct/kWhel under EEG 2014. The results show that the EEG
2014 framework is generally less economically favourable than the version of
2012.
179
7 Model-based analysis of current electricity production from biogas in Germany
are shown below for each plant type exemplarily under the EEG 2014 legal
framework.
Under EEG 2014, the most profitable capacity size for EM plants is 75 kWel .
Investment-related costs are in that case the main driver in the total
electricity production costs with a contribution at about 7.2 ct/kWhel (Figure
7-6). The other main costs positions are personnel, electricity consumption
and CHP maintenance costs. These costs positions have been estimated at
about 3 ct/kWhel , 2.67 ct/kWhel and 1.96 ct/kWhel respectively on the basis
of the correlations in Figure 7-1. Costs for utilities only play a minor role with
a contribution lower than 1 ct/kWhel . About 96% of the total revenues comes
from electricity sale and is estimated at about 23.53 ct/kWhel The other
revenue position corresponds to heat sale estimated at about 0.88 ct/kWhel .
Total electricity production costs for the most profitable EM plant size
amount to 15.47 ct/kWhel and the corresponding specific operating profit is
determined at a value of 8.95 ct/kWhel .
180
7.3 Costs and revenues structure
25
Specific operating
20 profit: 8.95 ct/kWhel
15
10
0
Specific costs Specific revenues
Revenues for electricity sale Heat sale revenues
Investment-related costs Process utilities costs
Personnel costs CHP maintenance costs
Electricity consumption costs
Figure 7.6: Costs versus revenues for the most profitable EM plant size under EEG 2014
In the case of energy crops mono-digestion the main costs positions are
represented by the biomass feedstock costs (8.05 ct/kWhel ) and by the
investment-related costs (3.93 ct/kWhel ) (Figure 7-7). The costs for utilities,
personnel, maintenance, biomass transport and the costs for flexible
electricity production only play a minor role in the economic balance. From
the revenues side the main contributors are the electricity sale with about
10.62 ct/kWhel and the heat sale generating a specific revenue of 2.25
ct/kWhel . Revenues for digestate sale and from the flexibility supplement
have a low influence on the plant profitability. The electricity production costs
for the most profitable plant size are estimated at about 16.19 ct/kWhel . A
corresponding negative specific operating profit is therefore observed at a
level of -0.97 ct/kWhel .
181
7 Model-based analysis of current electricity production from biogas in Germany
16 Specific operating
profit: -0.97 ct/kWhel
14
12
10
0
Specific costs Specific revenues
Revenues for electricity sale Revenues for digestate sale Heat sale revenues
Flexibility premium Investment-related costs Biomass feedstock costs
Process utilities costs Flexibilization costs Personnel costs
CHP maintenance costs Electricity consumption costs Transport costs
Figure 7.7: Costs versus revenues for the most profitable E plant size under EEG 2014
As shown in Figure 7-8, the electricity production costs for the most profitable
biowaste plant size are mainly driven by the digestate treatment costs (11.89
ct/kWhel ) and by the investment-related costs (8.54 ct/kWhel ). The costs
positions for maintenance, process utilities, electricity consumption,
personnel, biomass transport and for flexible electricity production only play
a minor role. The main revenues positions concern the fee revenue for
biowaste valorization into biogas (17.62 ct/kWhel ) and electricity sale (10.6
ct/kWhel ). Revenues from compost and heat sale and from the flexibility
premium only have a small influence on the plant profitability. The electricity
production costs for the most profitable biowaste plant size amount
182
7.4 Sensitivity analysis
Figure 7.8: Costs versus revenues for the most profitable B plant size under EEG 2014
183
7 Model-based analysis of current electricity production from biogas in Germany
ct/kWhel
25
20
15
10
5
0
-60% -40% -20% 0% 20% 40% 60%
-5
Domain of variation
-10
Electricity consumption costs Investment-related costs
Maintenance costs Personnel costs
Revenues for electricity sale
Figure 7.9: Sensitivity analysis for the most profitable EM plant size under EEG 2014
For the most profitable E plant size an increase of about 30% of the EPEX-Peak
electricity price leads to a profitable situation. Similarly, a decrease of -13%
of the energy crop costs generates a positive specific operating profit. Finally,
if the investment-related costs decrease by about -20%, then the E plant
becomes profitable (Figure 7-10).
184
7.4 Sensitivity analysis
ct/kWhel
4
3
2
1
0
-1-60% -40% -20% 0% 20% 40% 60%
-2
-3 Domain of variation
-4
-5
-6
Yearly average EPEX Peak electricity price Revenues for digestate sale
Figure 7.10: Sensitivity analysis for the most profitable E plant size under EEG 2014
185
7 Model-based analysis of current electricity production from biogas in Germany
ct/kWhel
20
15
10
0
-60% -40% -20% 0% 20% 40% 60%
-5
Domain of variation
-10
Yearly average EPEX Peak electricity price
Heat sale revenues
Investment-related costs
Revenues for biowaste valorization
Digestate treatment costs
Yearly average EPEX Base electricity price
Figure 7.11: Sensitivity analysis for the most profitable B plant size under EEG 2014
186
7.5 Technical assessment
With:
̇
𝑉𝐵𝑖𝑜𝑔𝑎𝑠 : annual biogas output volume flow (𝑚3 /a)
In the case of the most profitable EM plant size employing about 10,270 t/a
of manure in mono-digestion the biogas produced amounts about 0.32
million m3 /a and a biogas gross calorific value of 5.48 kWh/m3 60 is assumed.
The lower heating value for manure is estimated at about 0.72 MJ/kg
according to [235] on the basis of 70.3% moisture content. For the most
profitable biowaste plant size, about 9.19 million m3 biogas is produced
annually from the fermentation of 74,750 t/a of biowaste and the biogas
gross calorific value amounts in that case to 5.98 kWh/m3 biogas. The
biowaste lower heating value is estimated at about 5 MJ/kg i.e., 1,389 kWh/t
[236]. At the gate of the fermenter about 35,421 t agricultural feedstock are
60
The biogas gross calorific value is derived from the one of natural gas (9.97 kWh/m3 ) and from
the methane content in biogas. The methane content assumed for each feedstock can be found in
Table 6.1.
187
7 Model-based analysis of current electricity production from biogas in Germany
With:
The following electric and thermal efficiencies, and external heat use rates
are further assumed for the most profitable sizes according to [150], [224],
[226] (Table 7-2).
61
The fermenter input mix of the most profitable E plant size is made up of 20,544 t/a maize
silage, 7,084 t/a grass silage, 7,084 t/a cereal silage and 708 t/a cereal grains. The energy crops
lower heating values correspond to 6.7 MJ/kg for maize silage [237], 6.1 MJ/kg for grass silage
[238], 6.2 MJ/kg for cereal silage [239] and 13.1 MJ/kg for cereal grains [240].
188
7.5 Technical assessment
Table 7.2: Assumed electric and thermal efficiencies and external heat use rates [150], [224],
[226]
Plant Most Electric Thermal Electric own Thermal own Rate for
Type profitable CHP CHP requirements requirements external
plant size efficiencies62 efficiencies heat use
EM 75 kWel 34.47% 51.76% 6.1% 42.3% 57%
B 3,000 Existing: 41% 7.1% 18.4% 57%
kWel 42.4%
New flexible:
39.47%
E 2,000 Existing: 40.65% 7.1% 18.4% 57%
kWel 42.69%
New flexible:
39.75%
The gross electricity amount is determined for base-load existing CHPs with
8,000 full-load hours per year and for the new flexible CHPs running about
4,713 h/a63. The useful heat corresponds to the share of the produced heat
which is finally used by external heat sinks (and not for plant own
requirements).
The global efficiency of each plant can be thus derived from Eq. 7.3:
Table 7-3 sums up the results from the energetic assessment for the most
profitable plant sizes.
62
Electric CHP-efficiencies for most profitable plant sizes have been determined based on the
values set out in Figure A-15 in the Appendix for both existing base-load and new flexible
capacities.
63
Flexible CHP are assumed to run at 4,713 h/a according to the value given in Table A.3 in the
Appendix.
189
7 Model-based analysis of current electricity production from biogas in Germany
Table 7.3: Results from the energetic assessment of agricultural and biowaste plants
Useful
heat
amount
0.29
GWhth
B 74,750 9.19 Gross
electricity 3,000 52.9 58.7 31
production
23.34
GWhel
Useful
heat
amount
10.59
GWhth
E 35,421 7.78 Gross
electricity 2,000 63.2 52.2 32.9
production
15.56
GWhel
Useful
heat
amount
7 GWhth
The results of Table 7-3 related to the technical assessment of most profitable
plant sizes indicates that small-scale manure installations are the most
energetically efficient plants. These outcomes should be however considered
with caution as the energetic plant concept can strongly vary from an
190
7.6 Discussion of methodology and results
7.6.1 Methodology
The objective of the simulation model is to identify the most profitable biogas
plant sizes under a variable and differentiated biomass feedstock input. In
order to achieve this an economic assessment coupled to a process simulation
is carried out. After a calibration step of all components of the biogas plant a
simulation of plant profitability is realized under a variation of the biomass
input mass flow. This enables the identification of plant sizes showing the
highest specific operating profit values (defined as the most profitable plant
sizes). This simulative approach has pros and cons which are analysed in detail
in the following.
191
7 Model-based analysis of current electricity production from biogas in Germany
plant design. They have a direct influence on the biogas plant size and
consequently on the installation profitability. They represent thus an
adequate simulation variable in order to identify most profitable biogas plant
sizes. The economic assessment was carried out by considering specific
operating profits as a profitability indicator. Specific operating profits
represent a valuable economic indicator for analysing the profitability of a
biogas plant on a given year. They can then easily lead to the identification of
the most economically attractive installations. Complementarily to the
economic assessment a sensitivity analysis was carried out and clearly
identifies and quantifies the main profitability drivers in each plant type. The
performed sensitivity analysis assesses the robustness of the plant
profitability and represents then a valuable approach for integrating input
data uncertainties in the economic evaluation.
192
7.6 Discussion of methodology and results
193
7 Model-based analysis of current electricity production from biogas in Germany
Figure 7.12: Pros and cons regarding the methodology employed for the analysis of current
electricity production from biogas in Germany
194
7.6 Discussion of methodology and results
For plant sizes larger than 550 kWel biowaste valorization appears to be the
most profitable option. No literature study mentioning specific operating
195
7 Model-based analysis of current electricity production from biogas in Germany
The biowaste mass amount also generates costs for the treatment of the
produced digestate. As shown by the sensitivity analysis in section 7.4.3 the
revenues from the biowaste valorization and the digestate treatment costs
represent the main plant profitability drivers. In the model calculations 60 €/t
was assumed for the biowaste valorization revenues whereas 44.6 €/t should
be taken into account for the digestate treatment costs. Revenues for
biowaste valorization are then higher than digestate treatment costs which
implies that profitability increases with the plant size. The results reveal
however a profitability decrease starting from 3,000 kWel plant sizes. This can
be explained by major biowaste transport costs increase as mentioned in
Figure A-20 of the Appendix. In the case of large-scale biowaste plants the
effects of the costs for biowaste transport and for the digestate treatment are
then stronger than the effect of the bio-waste valorization revenues.
The economic analysis of EEG 2014 plants smaller than 150 kWel can be
compared to that done for EEG 2017. Indeed, under EEG 2017, biogas plants
with capacity smaller than 150 kWel are not involved in the tendering
procedure [112]. These plant sizes benefit from Feed-In-Tariffs up to 100
kWel and then from the electricity direct marketing model up to 150 kWel .
Figure 7-13 compares the revenue levels from electricity sales for each of the
three plant types under both EEG 2014 and EEG 2017. In all plant types a very
slight decrease is observed between EEG 2014 and EEG 2017. Just as under
EEG 2014, the EEG 2017 framework offers economically attractive framework
196
7.6 Discussion of methodology and results
conditions for plant sizes smaller than 75 kWel valorizing manure in mono-
digestion. On the other hand, the economic situation still remains
unprofitable for plants smaller than 150 kWel using energy crops and/or
biowaste.
ct/kWhel
30
25
20
15
10
0
0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 kWel
EM plant EEG 2014 EM plant EEG 2017 B plant EEG 2014
B plant EEG 2017 E plant EEG 2014 E plant EEG 2017
Figure 7.13: Comparison of revenues from the electricity sale in each plant type under EEG 2014
and EEG 2017 subsidy schemes for installations smaller than 150 𝐤𝐖𝐞𝐥
64
This critical biowaste mass flow is estimated at about 81,250 t/a for a 3,000 kWel plant size.
197
7 Model-based analysis of current electricity production from biogas in Germany
The model results should of course not be used as a substitute for detailed
profitability assessment considering in particular real data and taking into
account plant specific operation concepts.
65
The valorization of biowaste into biogas does not compete with critical pathways such as the
food value chain. A “food versus fuel” debate can therefore be avoided which is not the case for
agricultural plants. Moreover biowaste installations generally show a lower greenhouse gas
potential than the agricultural plants [164].
198
7.7 Model outcomes evaluation
The subsidies cut applied to energy crops in the framework of EEG 2014 slows
down the development of agricultural plants. More precisely all agricultural
plants larger than 75 kWel appear to be unprofitable under the EEG 2014
framework. The profitability of agricultural plants could be further improved
if agricultural residues were valorized (e.g., from wheat straw or corn). These
residues are available for free and are directly located on the site of the biogas
plant so that no or limited transport costs would appear in the economic
balance. A recommendation would be thus to develop agricultural plants
based on residues. This would also avoid “food versus fuel” competition.
199
7 Model-based analysis of current electricity production from biogas in Germany
On the costs side a major aspect concerns the definition of successful biomass
feedstock purchase strategies especially for agricultural plants employing
energy crops. As mentioned in [75] energy crop costs contribute to more than
half of the electricity production costs and represent a major profitability
driver for agricultural biogas plants. The high volatility characterizing, among
others, wheat and maize silage prices is a source of uncertainty for biogas
plant operators. Hedging strategies have to be applied in order to minimize
the risks level. The negotiation of feedstock delivery contracts between
farmers and plant operators should therefore integrate this price volatility
[189].
200
7.7 Model outcomes evaluation
operating of a biogas plant these synergy effects are however not systematic
and farmers must often rely on external companies. Therefore, training
courses and continuing education programs should be offered to farmers for
instance in the field of process engineering, microbiology or energy
economics. This would increase their autonomy and further reduce the
operating costs of their biogas installations. In the case of biowaste plants
mutualization effects can also occur if a fermenter is added on the site of an
existing composting unit. The personnel employed on the composting plant
site could then be used for the operation and the maintenance of the
supplementary biogas plant. This would contribute to reduce personnel costs.
Optimization of the plant energy consumption coupled with strategic
purchase of the required electricity could further significantly lower the
energy costs and thus improve the plant’s economic balance.
201
7 Model-based analysis of current electricity production from biogas in Germany
7.8 Summary
The economic model input data detailed in section 6 leads to correlations
between the cost/revenues and the installed electric power for each of the
three assessed plant types (section 7.1). The results analysed in section 7.2
reveal a paradigm shift concerning the profitability of agricultural biogas
plants type. These installations are assessed as profitable under EEG 2012 and
show positive specific operating profits on the capacity bandwidth [250:7,500
kWel ]. Under the EEG 2014 framework all agricultural plant sizes larger than
75 kWel show negative operative profits and are thus identified as non-
profitable. This can be explained by the subsidy cut applied to energy crops
valorization under this legal framework.
Biowaste plants are the most profitable option under EEG 2014 for plant sizes
starting from 550 kWel . Small-scale manure plants with an installed power of
75 kWel represent the most attractive option with specific operating profits
higher than 8 ct/kWhel in both EEG 2012 and EEG 2014 legal frameworks.
Most profitable plant sizes are further identified in each plant type. For
example, under the EEG 2014 framework the most profitable biowaste plant
size relates to installations with an electric power of 3,000 kWel . The costs
and revenues structure of the most profitable sizes is analysed in section 7.3
and completed by a sensitivity analysis in section 7.4. In the case of the
agricultural EM type plants, the main profitability drivers are the EPEX-Peak
electricity price and the energy crop and investment-related costs. The
profitability of biowaste plants is mainly influenced by revenues from
biowaste valorization, by investment-related costs and by digestate
treatment costs. A technical assessment of the most profitable biogas plant
sizes is realized in section 7.5 in addition to the economic analysis. Biological
and global energetic efficiencies are determined all along the biogas supply
chain. The results show that small-scale manure plants display the highest
global energetic efficiency due to a high biological efficiency superior to 85%.
On the contrary the low biological efficiencies characterizing energy crops and
biowaste mono-digestion plants lead to lower global energetic efficiencies.
202
7.8 Summary
The methodology and results of the simulation model are then discussed in
section 7.6. Pros and cons are highlighted concerning the modelling approach
and a plausibility control validates the obtained results which are in line with
current policy for biogas in Germany. The model results lead then to the
formulation of policy recommendations and strategic outcomes in section
7.7. Increasing valorization fee revenues for small to mid-scale biowaste
installations would facilitate the development of decentralized biowaste
plants and further generate local circular bio-economies. A fostered
development of manure-based installations would contribute to more
sustainable electricity production from biogas as these plant types offer
economic but also environmental benefits. Operating costs minimization and
revenue maximization measures are further presented as strategic outcomes
for plant operators.
203
8 Model-based analysis of future
electricity production from biogas
in Germany
The objective of this chapter is to analyse the results of the optimization
model relative to the evolution of future biogas capacity and electricity
production from biogas up to the year 2030 in Germany. In section 8.1 the
results are presented in the framework of a base scenario characterized by
the model input data described in chapter 6. The mid-term evolution of
electric capacity and electricity production are first shown at the Federal State
level for all plant types aggregated. In a second step the new built capacity
and the number of new built plants for each installation type are presented.
Further scenarios are assessed in section 8.2. They quantify the impact of a
strong variation of three main profitability drivers, i.e., the EPEX-Peak
electricity price, energy crop costs and biowaste valorization revenues on
future capacity developments. The methodology employed and results are
then discussed in section 8.3. Finally, the model results are used to formulate
policy recommendations and strategy outcomes for plant operators and
policymakers in section 8.4. Chapter 8 ends with a summary in section 8.5.
205
8 Model-based analysis of future electricity production from biogas in Germany
4,713 hours per year in part-load (see Table A-3 in the Appendix). According
to the operator models defined in Figure 6-2 flexibility applies to capacity
larger than 750 kWel under EEG 2012. In the case of the EEG 2014 framework
flexibility concerns plants having a capacity larger than 100 kWel .
As shown in Figure 8-1 and under the EEG 2012 framework, baseload capacity
should continuously increase, starting from about 3,832 MWel at the end of
2016 up to about 4,211 MWel in 2020 (see the coloured bars). The main
capacity developments should take place in the Federal States of Lower-
Saxony and North Rhine-Westphalia. Starting from 2020 a general decrease
for base-load capacity is observed mainly due to the decommissioning plan
for biogas plants older than 20 years. These plants are thereby not subsidized
by the EEG framework anymore, which leads to unprofitability. The global
decommissioning plan would concern a total capacity of about 2,319 MWel at
the end of 2030. Finally, a global capacity of about 3,771 MWel is observed by
2030 of which 2,015 MWel concerns baseload installed capacity, 708 MWel
arise from the flexibilization of existing capacities in the year 2012 and 1,047
MWel relate to the flexibilization of new built capacity (see the black dotted
bars in Figure 8-1). At the end of the year 2030 the installations should mainly
be located in Lower-Saxony and North Rhine-Westphalia with respective
capacity of about 486 MWel and 369 MWel .
Under EEG 2014 and as shown in Figure 8-1, base-load capacity should slightly
increase from about 3,664 MWel at the end of 2016 up to about 3,830 MWel
in 2020, especially in the Federal States of Lower-Saxony and North Rhine-
Westphalia (see the coloured bars). Starting from the year 2020 a generalized
base-load capacity decrease is observed in all Federal States mainly due to
the decommissioning process of biogas plants older than 20 years. At the end
of 2030 a total electric capacity of about 3,966 MWel is observed. From this
amount 1,905 MWel come from baseload installed capacity, 1,759 MWel are
derived from the flexibilization of existing capacity in the year 2014 and finally
206
8.1 Model results analysis in base scenario
302 MWel are issued the development of new built flexible capacity (black
dotted bars in Figure 8-1).
MWel
6.000
5.000
4.000
3.000
2.000
1.000
0
EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG
2012 2014 2012 2014 2012 2014 2012 2014 2012 2014 2012 2014 2012 2014 2012 2014
2016 2018 2020 2022 2024 2026 2028 2030
BW BY
BB HE
MV NI
NRW RP
SL SN
ST SH
Figure 8.1: Regional total capacity evolution up to 2030 under EEG 2012 and EEG 2014
207
8 Model-based analysis of future electricity production from biogas in Germany
TWhel
35
30
25
20
15
10
0
EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG
2012 2014 2012 2014 2012 2014 2012 2014 2012 2014 2012 2014 2012 2014 2012 2014
2016 2018 2020 2022 2024 2026 2028 2030
BW BY BB HE MV NI NRW RP SL SN ST SH TH
Figure 8.2: Regional total evolution of electricity production from biogas up to 2030 under EEG
2012 and EEG 2014
Under the EEG 2012 framework, base-load installations with 8,000 full-load
hours per year and valorizing energy crops and manure are expected to
develop continuously up to the year 2020 (Figure 8-3). The main capacity
expansion occurs in North Rhine-Westphalia, Lower-Saxony and Bavaria. A
capacity expansion is viable in these Federal States as sufficient biomass
potentials remain available and the specific operating profits observed are
among the highest. At the end of 2020, the cumulated base-load capacity
expansion reaches about 705 MWel (coloured bars). After this time, there is
no further capacity expansion because the total biomass potentials of all the
Federal States are fully utilised. By 2030 a total new built capacity of about
1,271 MWel including supplementary flexible capacity (black dotted bar) is
208
8.1 Model results analysis in base scenario
MWel
1.400
1.200
1.000
800
600
400
200
0
EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG
2012 2014 2012 2014 2012 2014 2012 2014 2012 2014 2012 2014 2012 2014 2012 2014
2016 2018 2020 2022 2024 2026 2028 2030
BW BY
BB HE
MV NI
NRW RP
SL SN
ST SH
TH Cumulated supplementary flexible capacities
Figure 8.3: Regional cumulated new built capacities for EM plants up to 2030
New built capacity mainly concerns 900 kWel plants as they show the highest
specific operating profit values. As they are larger than 750 kWel these plants
can be operated under the electricity direct marketing model which appears
to be economically more attractive to plant operators than the Feed-In-Tariff
model relating to plants smaller than 750 kWel .
209
8 Model-based analysis of future electricity production from biogas in Germany
Table 8.1: Number of new built EM base-load plants according to their unit size under EEG
2012
< 75 kWel 13
1,000 kWel 69
Under the EEG 2014 legal framework a total cumulated new built capacity for
EM plants of about 611 MWel , including new built baseload and new flexible
CHPs, is reached by 2030 (Figure 8-3). About 1,271 MWel are reached under
the EEG 2012 subsidy scheme. The much lower value observed under EEG
2014 is mainly explained by the cuts in the energy crops subsidies, which
came into effect on the 1st of August 2014, and drastically reduced agricultural
plant specific operating profits. Another explanation is related to the new
built flexible capacity which is clearly higher under the EEG 2012 than under
the EEG 2014 framework. Table 8-1 shows that under EEG 2012 most of the
new built plants are larger than 750 kWel and can thus benefit from
flexibilization according to the operator model defined in section 6.2.2. As
mentioned in Table 8-2 most of the new built installations under EEG 2014
are base-load manure plants with a size of 75 kWel . Following the operator
model defined under EEG 2014 these base-load capacities do not benefit from
flexibilization. This explains then the much lower new built flexible capacity
observed under EEG 2014 than under EEG 2012. A further analysis of the
observed results shows that the main capacity developments under EEG 2014
should take place in the Federal States of North Rhine-Westphalia, Hesse and
Mecklenburg-West-Pomerania which display the highest specific operating
profit values for EM plants. A slow-down in capacity development occurs
starting from 2024, mainly due to biomass potentials depletion but also due
to plant unprofitability in several regions. A clear paradigm shift is also
210
8.1 Model results analysis in base scenario
observed in terms of unit sizes for the newly built plants. The cut of the energy
crops subsidy, applied in 2014, strongly lowers the number of new built plants
using energy crops. In contrast to the EEG 2012 framework, a major increase
of the number of new built small manure plants – not affected by the subsidy
cut – is foreseen (Table 8-2).
Table 8.2: Number of new built EM base-load plants according to their unit size under EEG
2014
50 kWel 2
70 kWel 2
75 kWel 5,065
2,000 kWel 45
3,800 kWel 10
At the end of the year 2030 electricity production from new built EM plants
is estimated at about 5.65 𝑇𝑊ℎ𝑒𝑙 under the EEG 2012 framework and at
about 4.06 𝑇𝑊ℎ𝑒𝑙 under EEG 2014 (Figure 8-4).
211
8 Model-based analysis of future electricity production from biogas in Germany
TWhel
6
0
EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG
2012 2014 2012 2014 2012 2014 2012 2014 2012 2014 2012 2014 2012 2014 2012 2014
2016 2018 2020 2022 2024 2026 2028 2030
BW BY BB HE MV NI NRW RP SL SN ST SH TH
Figure 8.4: Regional electricity production linked to new built EM plants up to 2030
The results are firstly analysed under the EEG 2012 framework. By the end of
2030, the total cumulated new built capacities for biowaste plants amount to
about 389 MWel of which 216 MWel are base-load CHPs (coloured bars) and
173 MWel flexible capacities (black dotted bar). The major capacity
expansions occur in Bavaria, North Rhine-Westphalia and Low-Saxony. Only
large-scale 3,000 kWel biowaste plants are newly built and the commissioning
of 72 new plants is predicted over the whole period.
212
8.1 Model results analysis in base scenario
MWel
500
400
300
200
100
0
EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG
2012 2014 2012 2014 2012 2014 2012 2014 2012 2014 2012 2014 2012 2014 2012 2014
2016 2018 2020 2022 2024 2026 2028 2030
BW BY
BB HE
MV NI
NRW RP
SL SN
ST SH
TH Cumulated supplementary flexible capacities
Figure 8.5: Regional cumulated new built capacities for B plants up to 2030
The results of Figure 8-5 reveal a stronger global capacity development under
the EEG 2014 framework than under the EEG 2012 version, with cumulated
new built capacity of about 448 MWel being reached by 2030. This stronger
evolution is mainly explained by a larger annual capacity expansion limit,
increased to 50 MWel in 2014 from 12 MWel in the year 2012. Table 8-3 shows
the new built B plant numbers observed at the end of 2030 under EEG 2014.
New built biowaste capacity should therefore focus on the development of
mid to large-scale installations and especially 3,000 kWel unit sizes.
Finally, the total electricity production related to new built B plants amounts
to about 1.54 TWhel in the case of the EEG 2012 framework and 1.99 TWhel
by 2030 under the EEG 2014 framework (Figure 8-6).
213
8 Model-based analysis of future electricity production from biogas in Germany
Table 8.3: Number of new built B base-load plants according to their unit size under EEG
2014
TWhel
2
1,5
0,5
0
EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG EEG
2012 2014 2012 2014 2012 2014 2012 2014 2012 2014 2012 2014 2012 2014 2012 2014
2016 2018 2020 2022 2024 2026 2028 2030
BW BY BB HE MV NI NRW RP SL SN ST SH TH
Figure 8.6: Regional electricity production linked to the new built B plants up to 2030
214
8.1 Model results analysis in base scenario
MWel
700
500
300
100
BW BY
BB HE
MV NI
NRW RP
SL SN
ST SH
TH Cumulated supplementary flexible capacities
Figure 8.7: Regional cumulated new built capacities for E plants up to 2030 under EEG 2012
The new built base-load capacities result from the commissioning of 424 new
plants mainly with 900 kWel unit sizes (Table 8-4).
215
8 Model-based analysis of future electricity production from biogas in Germany
Table 8.4: Number of new built E base-load plants according to their unit size under EEG
2012
700 kWel 3
1,000 kWel 55
TWhel
0
2016 2018 2020 2022 2024 2026 2028 2030
BW BY BB HE MV NI NRW RP SL SN ST SH TH
Figure 8.8: Regional electricity production linked to new built E plants under EEG 2012
216
8.2 Results under other scenarios
Finally, no capacity expansion occurs under the EEG 2014 framework for E
plants, due to unprofitability. In each Federal State, a negative specific
operating profit is observed for all years and all plant sizes, mainly due to the
energy crops subsidies cut enacted in August 2014.
66
In the case of the electricity sold volatility applies in particular to the EPEX-Peak spot prices
which are set hourly on the European Power Exchange in Paris. In the case of energy crops
volatility concerns feedstock prices which are set on the MATIF Commodity Stock Exchange in
Paris. Revenues from biowaste valorization can vary strongly from a plant to another between 20
and 100 €/t [229].
217
8 Model-based analysis of future electricity production from biogas in Germany
MWel
700
600
500
400
300
200
100
0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Scenario "Energy crop costs shock" Base scenario
Figure 8.9: Capacity evolution for new built EM plants in the base scenario and under an energy
crop costs shock
Under the electricity direct marketing model, German biogas plant operators
receive, in addition to the market premium, revenues for electricity sold on
the European Power Exchange (EPEX-wholesale price). It is assumed that the
operators sell the electricity produced in Peak time characterized by a high
electricity demand. In the base scenario represented by the green line in
Figure 8-10, the EPEX-Peak wholesale electricity price follows a forecast up to
the year 2030 made in 2014 by EWI Prognos and GWS [222]. A wholesale
electricity price of 6.7 ct/kWhel is thus reached by 2030. The red line in Figure
8-10 corresponds then to the price forecast in a “high scenario” with an EPEX-
Peak electricity price increase of +30% per year applied during the period
2020-2025. This increase can be justified by future necessary investment in
the replacement of existing production plants especially for conventional
energy conversion technologies [248].
218
8.2 Results under other scenarios
ct/kWhel
12
10
0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Yearly average EPEX-Peak electricity price shock: +30%/a from 2020 to 2025
Base scenario
Figure 8.10: Assumed EPEX-Peak electricity price developments according to several scenarios
219
8 Model-based analysis of future electricity production from biogas in Germany
MWel
700
600
500
400
300
200
100
Base scenario
Base scenario
Base scenario
Base scenario
Base scenario
Base scenario
Base scenario
Base scenario
Base scenario
Base scenario
Base scenario
Base scenario
Base scenario
Base scenario
Base scenario
Base scenario
High scenario
High scenario
High scenario
High scenario
High scenario
High scenario
High scenario
High scenario
High scenario
High scenario
High scenario
High scenario
High scenario
High scenario
High scenario
High scenario
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Figure 8.11: Capacity development of the main new built EM plants under EEG 2014 with and
without consideration of electricity price shock
220
8.3 Discussion of methodology and results
MWel
450
400
350
300
250
200
150
100
50
0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Base scenario Biowaste valorization revenue shock: -20%/a from 2020 to 2025
Figure 8.12: Capacity evolution for new built B plants in the base scenario and under a biowaste
valorization revenue shock
8.3.1 Methodology
Positive aspects firstly concern the type of model approach that has been
selected. The objective of biogas companies is to maximize the total operating
profit related to the installations that they operate over their whole lifetime
221
8 Model-based analysis of future electricity production from biogas in Germany
222
8.3 Discussion of methodology and results
the profitability of the investment in the different biogas plant types could
have been estimated. Especially if the IRR remains over a defined Weighted
Average Capital Cost (WACC) then the investment is profitable. An example
of a WACC value has been published concerning KTG Agrar which is one of
the leading biogas production companies in Germany. In [249] a WACC value
of 4.5% is given by the end of the year 2015. Further analysis would then
estimate the IRR level for each plant type, over all plant sizes and all Federal
States combined. Comparing the resultant IRR level with the WACC value of
4.5% previously mentioned would indicate if the investment was profitable
or not. However, this requires long-term cash flow forecasts. For example, the
decision to commission a plant or not e.g., in 2028 would imply having a cash-
flow forecast for the next 20 years. This means that the specific revenues and
electricity production costs would have to be estimated up to the year 2048
which leads to data uncertainty. Another disadvantage concerns the
modelling approach which focuses solely on the biogas sector and does not
integrate other electricity production options (renewable or conventional).
The interactions of biogas with other electricity sources impacts the
electricity wholesale price and thus the revenues from the plant opera-tor
side. In the framework of this thesis a simplified assumption has been made
concerning the EPEX-Peak electricity price. This price level has been initially
set according to the average of monthly values observed in 2013 for the
assessment under the EEG 2012 framework. Under the EEG 2014 framework
the average of monthly values for the year 2015 has been assumed. In a
further step a forecast of these two prices has been carried out according to
the study of [222]. Two reference studies, mentioned in section 3.4.3, deal
with the integration of biogas into the electricity system and consider an
interaction with other electricity sources [133], [134]. However, they do not
highlight regional developments for biogas in Germany and make no
differentiation between agricultural, biowaste and manure-based plants. The
present resource-oriented model follows a different approach based on the
plant operator perspective. It provides insights concerning the evolution of
the future whole biogas plant park portfolio according to various plant types
and plant sizes. Therefore, the optimization model developed represents an
223
8 Model-based analysis of future electricity production from biogas in Germany
Pros Cons
MODELLING APPROACH
MODELLING APPROACH
SHOCK SCENARIOS
- Quantify the impact of main SHOCKS SCENARIO
profitability drivers on future capacity - Scenarios quantifying the impact of
developments. specific strategies for the electricity sale,
- Provide plausible assessments flexibility and feedstock purchase have
complementarily to the base not been considered.
scenario.
Figure 8.13: Pros and cons regarding the methodology employed for the analysis of future
electricity production from biogas in Germany (author’s own representation)
224
8.3 Discussion of methodology and results
Biowaste plants are not concerned by this phenomenon as 50% of the existing
biowaste potentials are still unused.
The second key driver is plant economics. Revenues derived from the two EEG
subsidy schemes and from biowaste valorization as well regionalized energy
crop costs play an important role in plant profitability analysis. Furthermore,
the price level of the electricity sold directly (EPEX-Peak wholesale electricity
price) also has a major influence on capacity development. Plants selling the
electricity produced at a very high price tend to be the best positioned for
capacity expansion. From the costs side plant capacity expansions most likely
occur in Federal States with the lowest energy crop costs.
The last driver, namely the decommissioning of German biogas plants older
than 20 years, has been taken into account starting from 2020. This plant
decommissioning dramatically impacts mid-term capacity development as
225
8 Model-based analysis of future electricity production from biogas in Germany
most of the currently existing German biogas plants were built between the
years 2000 and 2010. However, the possibility for existing plants to benefit
from a subsidy scheme extension will be taken into account in the EEG 2017
legal framework. It would thus be prudent to consider that existing plants
older than 20 years might not be systematically decommissioned.
Table 8.5: Considered comparison criteria for the model results validation
The first comparison criterion concerns the total new built capacity in the
years 2015 and 2016 under the EEG 2014 framework. The model results are
compared ex-post with real data derived from annual statistics published by
the German Biogas Association [250] (Table 8-6).
The total new-built capacity from the model results has thus been very slightly
under-estimated in comparison to real data (-1.4%). Table 8-7 shows the
capacity expansion provided by the model results for each plant type and
during the first two years under each legal framework.
226
8.3 Discussion of methodology and results
Table 8.6: Total new built capacity in 2015 and 2016: real data versus model results
Table 8.7: Model results relative to past capacity expansion under EEG 2012 and EEG 2014
Under the EEG 2012 framework the capacity expansion delivered by the
model results in the years 2013 and 2014 is in line with the observed national
policy at that time. The development of agricultural plants is strongly
encouraged especially through the manure and energy crops subsidies.
Biowaste plants are only subject to a moderate development. The model
results observed between 2015 and 2016 under the EEG 2014 framework
reveal a paradigm shift which is in accordance with the reality. Under this
subsidy scheme the development of bio-waste plants appears to be favored
in comparison to the agricultural plants. This is in line with current national
trend for biogas in the framework of EEG 2014. As mentioned in [251] the
future development of biogas plants should mainly focus on biowaste and
manure installations.
A comparison is then made between the results of the simulation and the
optimization models. More precisely Table 8-8 compares the most profitable
plant sizes determined in the simulation model for the base year 2013 and
227
8 Model-based analysis of future electricity production from biogas in Germany
2015 with the most frequent new built plants sizes under EEG 2012 and EEG
2014 prospective scenarios in the optimization model.
Table 8.8: Comparison of the most profitable plant sizes from the simulation model with the
most frequent new built plant sizes from the optimization model
Under EEG 2012, the most profitable size for EM plants as determined by the
simulation model is 75 kWel (specific profit at about 10.85 ct/kWhel )
followed by 900 kWel (5.63 ct/kWhel specific operating profit). However, the
75 kWel plant size is not the most frequent new built capacity in the
optimization model. Over the period 2013 to 2030, installations with a
capacity of 900 kWel dominate. This can be explained by the fact that the
simulation model only considers one year for the economic evaluation (2013),
whereas 18 years are taken into account in the optimization model. Over this
18 years period the evolution of the operating profit is more favorable to 900
kWel plants than to 75 kWel installations. As the optimization model aims to
maximize the total plant operating profit (in €) over the whole period, the
number of new built 900 kWel plants is consequently higher than the 75 kWel
installations. In the case of E plants, 900 kWel capacity is the most profitable
size and also the most built capacity in both the simulation and optimization
models. Finally, 3,000 kWel B plants are the most profitable and the most
frequent new built installations in both models.
228
8.3 Discussion of methodology and results
Under EEG 2014, 75 kWel represents the most profitable and the most
frequent new built size for EM plants. According to the simulation model, a
plant capacity of 2,000 kWel shows the highest specific operating profit
among all E installations. This specific operating profit however remains
negative (-0.97 ct/kWhel ) which explains why no E plant capacity is built over
the whole period. Similarly to EEG 2012, B plants with a capacity of 3,000 kWel
are the most profitable size as determined by the simulation model. They also
represent the most frequent new built capacity in the optimization model.
The results of the optimization model concerning the size of new built
capacity are then in line with the outcomes of the simulation model.
67
This scenario corresponds to an agricultural surface area dedicated to biogas of about 0.78
million ha by 2020 and 0.96 million ha by 2030. In this scenario it is further assumed that 75% of
the potentials dedicated to manure and biowaste are valorized into biogas.
229
8 Model-based analysis of future electricity production from biogas in Germany
TWhel
35
30
25
20
15
10
0
2016 2020 2030
DBFZ "Milestone 2030" report, 2015 [135]
DBFZ Background paper, 2016 [136]
OptiKoBi2 project, 2014 [134]: Min scenario without capacity decommissioning
OptiKoBi2 project, 2014 [134]: Min scenario with capacity decommissioning
This work under the prospective scenario "EEG 2012"
This work under the prospective scenario "EEG 2014"
German electricity production from biogas by 2016 [252]
Figure 8.14: Comparison of results from various studies regarding future electricity production
from biogas in Germany (author’s own representation)
230
8.3 Discussion of methodology and results
caps of 150 MWel over the period 2017-2019 and of 200 MWel from 2020 to
2022 are defined [112]. It is also assumed that the 200 MWel yearly expansion
caps are maintained after the year 2022 and up to the year 2030. The capacity
expansion caps correspond to the maximal yearly allocable capacity for
bioenergy technologies during tendering procedures. Thereby three
scenarios are considered for the capacity forecasts under EEG 2017. In the
“Low scenario”, it is assumed that only 10% of the allocable capacity is won
by biogas technologies up to the year 2030. In the “Mid scenario”, it is
assumed that half of the maximal allocable capacity is attributed to biogas
technologies. Finally, in the “High scenario” the maximal allocable capacity is
assumed to be attributed to biogas technologies. The forecasts under the EEG
2017 framework are then compared to the model results under the EEG 2012
and EEG 2014 frameworks. The new built plants capacity is evaluated over the
period 2017-2030 in each of the three subsidy schemes. The results are shown
in Figure 8-15 for the years 2020, 2025 and 2030.
MWel
3.000
2.500
2.000
1.500
1.000
500
0
2020 2025 2030
Figure 8.15: Evolution of total new built capacity under EEG 2012, EEG 2014 and EEG 2017 legal
frameworks
231
8 Model-based analysis of future electricity production from biogas in Germany
In the “High” and “Mid” scenarios the capacity expansion forecasts carried
out under EEG 2017 appear as more favorable than the optimization model
forecasts realized under EEG 2014. A breakeven point is also determined. It
represents the critical capacity share which has to be attributed to biogas
technologies under EEG 2017 tendering procedures in order to reach a plant
capacity at least equal to the capacity forecast under the EEG 2014 framework
by 2030. Therefore if 29.4% of the yearly allocable capacity is attributed to
biogas technologies, then the forecasted capacity by 2030 would remain at
the same level under EEG 2017 as under the EEG 2014 framework.
The results of the optimization model emphasize the role and impact of
different subsidy schemes, namely EEG 2012 and EEG 2014, on future
capacity development. Under the EEG 2014 framework and according to the
optimization model results, the future capacity developments up to the year
2030 would mainly concern small-scale manure plants and large-scale
biowaste installations, which is in line with the objectives of the Federal
Government [251]. For these installations a future capacity expansion
contributes to a maximization of the total operating profit for German biogas
plant operators. The German biogas sector will thus face a paradigm shift with
the increase of biowaste and small-scale manure installations. On the other
hand, the results show that agricultural installations should not undergo any
major future developments. Contrary to agricultural plants, biowaste and
manure installations are not concerned by the “food versus fuel” debate. This
should lead to an increase in the public acceptance of biogas in the
forthcoming years. Considering all these aspects a first policy
recommendation consists in encouraging the valorization of manure and
biowaste in biogas plants by maintaining the current corresponding level of
subsidies on a mid-term horizon.
232
8.4 Model outcomes evaluation
The results of the simulated shocks concerning the EPEX electricity price,
energy crop costs and biowaste valorization revenues show that the future
biogas capacity development is dependent on externalities linked to the
electricity, feedstock commodities and biowaste markets. These could be a
source of both threats and opportunities. Therefore, mastering the financial
risks related to these uncertainties remains a key challenge for biogas plant
operators. International agricultural commodity markets generate
uncertainties in profitability forecasts, due to high price volatility (see section
6.6.1.1). In the present work regional energy crop costs have been assumed
to remain stable up to the year 2030 due to a potential future increase of
agricultural residues use in German biogas plants. A future challenge for plant
233
8 Model-based analysis of future electricity production from biogas in Germany
234
8.5 Summary
8.5 Summary
This chapter analyses possible future developments for German biogas plant
capacities as well as for the electricity production from biogas up to 2030. For
this purpose, a regional optimization model is employed and future
developments are assessed under the EEG 2012 and EEG 2014 legal
frameworks. The base scenario characterized by an energy crop costs stability
shows that the EEG 2012 framework - if maintained - would have fostered the
development of agricultural plants, especially co-digestion plants valorizing
energy crops and manure (see section 8.1). The EEG 2014 framework stops
the expansion of energy crops mono-digestion plants, which will no longer be
built as they are unprofitable. The German biogas market will thus face a
paradigm shift and move towards the increase of biowaste and small-scale
manure plants. Plant flexibilization options have further a major impact on
future capacity developments. Additional scenarios analyse the impact of
shocks concerning energy crop costs, the EPEX-Peak electricity price and the
biowaste revenues on future capacity development (see section 8.2). A strong
variation of these fundamental drivers impacts future developments. A
discussion in section 8.3 emphasizes pros and cons regarding the
methodology employed and confirms the plausibility of the results gained.
The observed evolutions for the new built capacities between the years 2013
235
8 Model-based analysis of future electricity production from biogas in Germany
and 2016 are in line with past and current national biogas policy. Based on
the model results policy recommendations and strategic outcomes linked to
future electricity production from biogas are derived (see section 8.4). The
development of biowaste and residues-based plants as well as small manure
installations should be politically fostered as they lead to a maximization of
the total profit up to the year 2030 and over all Federal States. The volatility
characterizing energy crop costs, EPEX-Peak electricity price and biowaste
valorization revenues is a source of opportunities but also of risks for the
future development of German biogas plants. Biogas plant operators then will
face new challenges and must be able to master the risks and opportunities
linked to the volatile evolution of these main profitability drivers.
236
9 Transferability of the developed
methodology
The objective of this chapter is to analyse the transferability of the developed
methodology to different contexts beyond Germany. This is done by analysing
four case studies in several countries. The considered countries involve other
pathways than the electricity production from biogas. The main available
bioenergy conversion routes, like e.g., bioethanol in the transport sector or
woody biomass combustion for renewable heat production, are then covered
(Figure 9-1). The first case study deals with biomethane injection in France,
the second with district heating from biomass combustion in Finland, the
third with bioethanol production in Brazil and the last one with biodiesel
production from jatropha in Indonesia. In each case study the current
situation as well as the lessons learned are assessed. In a further step the
transferability of the developed methodology for biogas in Germany to these
countries is discussed in order to identify future drivers and challenges.
237
9 Transferability of the developed methodology
The first injection of biomethane into French natural gas grids occurred in
August 2013. Since this time the French biomethane market has continuously
grown and by the end of the year 2016 about 26 biomethane plants were
running [253]. The French energy transition law enacted on August 17 th 2015
has defined a national target for biomethane which must cover 10% of total
gas consumption by 2030 [254]. A decree adopted on April 26th 2016 sets mid-
term objectives for biomethane injected into the gas grids of 1.7 TWh/a by
2018 and 6 to 8 TWh/a by 2023 [255]. Specific targets are also defined for
biomethane as a transport fuel for vehicles with 20% of Natural Gas Vehicles
consumption to be reached by 2030 [255].
238
9.1 Biomethane injection in France
In France biomethane projects can be divided into five categories. The first
corresponds to autonomous agricultural projects with biomethane plants
valorizing agricultural materials from a group of farmers. Territorial
agricultural projects are generally linked to co-digestion plants using more
than 50% of input feedstock from agricultural farms and the rest from
territorial waste (e.g., biowaste or sewage sludge from wastewater treatment
plants). The third category valorizes household waste and biowaste. Fourthly
sewage sludge fermentation projects involve urban and industrial
wastewater treatment plants in which sludge is transformed into biomethane
through anaerobic digestion. The last category, i.e., the territorial industrial
projects, gathers partners from various sectors like agriculture, industry and
waste treatment. Figure 9-2 highlights the share of the different project
categories in total biomethane installed capacity (in TWh/a). By the end of
2016 about 0.41 TWh/a capacity was installed on the French territory [254].
Household waste and biowaste installations as well as autonomous and
territorial agricultural plants represent the major share in the total installed
capacity (about 25% each).
11%
25%
14%
0.41 TWh
26% 24%
239
9 Transferability of the developed methodology
240
9.1 Biomethane injection in France
and then injected into the gas grids. The injected gas, also called 2 nd
generation biomethane, is seen as a promising driver for the achievement of
the 2030 target which specifies that 10% of total demand should be met by
renewable gas by 2030 [254]. A first demonstration project named GAYA is
currently operating [261]. It aims to quantify production yields as well as to
evaluate the economic and environmental relevance of 2nd generation
biomethane production in France. Based on this analysis an industrialization
phase involving new pyro-gasification projects is expected by 2020. Adequate
financial support schemes appear crucial, however, in order to ensure the
profitable development of future projects.
The French biomethane market has been growing strongly in the past five
years. These developments have been driven by specific Feed-In-Tariffs
dependent on project size and on the valorized biomass feedstock. Research
questions concerning the identification of the most profitable biomethane
plant sizes and types as well as forecasts of future French biomethane
injection appear as important but have currently not been answered. The
methodology used for the analysis of current and future electricity production
from biogas in Germany appears to be transferable to the case of biomethane
injection and electricity production from biogas in France. The model input
data regarding existing biomethane plants as well as biomass potentials for
biomethane production is available in [256]. Economic analyses from existing
projects are already published in [260]. Revenues from the biomethane Feed-
In-Tariffs can be estimated with the help of a calculation tool developed by
the French Club Biogas [262]. In addition, specific revenues from digestate
sale and/or biowaste valorization remain similar to those considered in
Germany for biogas. The results gained from the simulation model could
deliver strategic information for plant operators and policymakers regarding
the most economically attractive biomethane installations given current legal
framework conditions. The optimization model outcomes could provide
241
9 Transferability of the developed methodology
242
9.2 Biomass combustion for district heating in Finland
District heating represents the main driver of the total Finnish heating market
with a share of almost 50% [267]. More than half of house buildings and
offices are connected to district heating systems which meet 90% of building
heat demand [267]. More than 400 medium and large-scale plants – mainly
CHP – are valorizing biomass in combustion or co-combustion processes using
peat or coal [267].
Among all existing national initiatives for the promotion of biomass district
heating, the project of North Karelia68 provides best practices for future
project implementations in Finland or in other Baltic states [268]. The project
objective is to plan, build and operate a wood chip district heating plant in
order to create local jobs and to lower the dependence on external (fossil)
energy sources.
68
The North Karelia region is located in the east of Finland at about 300 km from Russian boarder.
Forestry and forest-based bioenergy represent an important economic driver there. Woody biomass
represents about 50% of the local primary energy consumption and the local renewable energy
sector employs about 1,300 persons each year.
243
9 Transferability of the developed methodology
of 49.2% wood energy represents by far the main renewable energy source
in the region, followed by fossil fuels (24.1%), hydropower (9.3%) electricity
import (8.9%), peat (6.9%), heat pumps (1.3%) and other bioenergy feedstock
(0.4%) [268]. Renewable energy represents about two-thirds of the primary
energy consumption of North Karelia and is mainly drawn from woody
biomass (81%) [268].
The North Karelia region has been a forerunner in renewable energy in recent
years. In 2013 a new biorefinery simultaneously producing bio-oil, heat and
electricity was opened in Joensuu [268]. About 50,000 t of bio-oil is produced
yearly meeting the heating requirements of 10,000 households and this new
plant has led to the creation of 65 new local jobs [268].
A Climate and Energy Program has been developed for North Karelia with
defined targets to be reached by 2020 [268]. This program focuses on the
sectors of energy (supply and consumption), transport, infrastructure, land
use planning, construction, waste management, agriculture and forestry. As
North Karelia is the most advanced region in Finland for the use and
production of renewable heat, it has been selected as a demonstration region
in order to establish best practices and to benefit from lessons learned.
For this, two surveys of plant operators have been carried out. Workshops
have been organized in Joenssu, Koli and Valtimo. The results and experience
gained have been transferred and applied to the municipality of Masku and
to the counties of Pirkanmaa and Pohjois-Savo [268]. The main barriers for
the profitable development of district heating projects have been identified
and are the poor viability and low availability of funding as well as a lack of
knowledge of subsidies, legal framework conditions, accounting and taxes
[268]. The storage of wood and cooperation between manufacturers were
not considered as problematic. From the plant operator side, challenges
remain in the use of best available technologies needed to improve wood chip
quality [268]. Clarification of the legal processes related to heat and electricity
sale for small-scale CHP-plants is also needed. High level of investment
required at the beginning of the operation and the low price of energy in
244
9.2 Biomass combustion for district heating in Finland
The recent developments for biomass district heating plants in Finland are
very encouraging and will have to be fostered. In particular the identification
of the most profitable biomass heating plant sizes would facilitate the
implementation of new installations. A possible approach would be to assess
the profitability of CHP district heating plants according to variable biomass
feedstock mass flow and type (e.g., wood chips and fuel wood). The
simulation model developed for biogas in Germany could be then applied to
Finnish biomass district heating plants. Best practices transfer from existing
projects or local implementation approaches, such as those in the region of
North Karelia, is necessary in order to gather input data concerning the costs
of heat and/or electricity production. On the revenues side a main barrier to
future model implementation concerns the subsidy level for the heat and
electricity produced. The subsidy level has decreased over the last few years
so that the visibility and profitability of future projects remains uncertain. CHP
district heating plants currently benefit from Feed-In-Tariffs but only for a
period of 12 years which is shorter than is the case of Germany (20-years
period). Plant operators receive a fixed subsidy at 50 €/MWh for the heat
produced which has a major influence on plant profitability. Data
uncertainties for the biomass input feedstock also remain especially
concerning resource price and quality. The implementation of a regional
optimization model for the analysis of future district heat production from
biomass in Finland is currently not feasible. A regionalization of the required
techno-economic data does not exist which limits future model
developments at a regional scale. This also applies to currently available and
future regional biomass potentials which have not been evaluated. The land
use competition between bioenergy and wood industry should be taken into
account for future regional biomass mass flows and potentials estimation.
245
9 Transferability of the developed methodology
With about 28 billion liters of ethanol produced in 2016 Brazil is the second
largest producing country behind the United States and also the largest
sugarcane ethanol producer worldwide [269]. Past governmental initiatives
such as PROALCOOL, the National Plan for Agroenergy and the Plan for
Supporting Innovation in the Sugar-Energy and Sugar-Chemistry sectors have
led to continuous development of the Brazilian bioethanol sector [270].
Research work has provided major impetuses for improvements in bioethanol
production both at the agricultural and industrial scales. Sugarcane
246
9.3 Bioethanol for transportation in Brazil
productivity has doubled since the 1960s due to research efforts in genetic
breeding [270]. Technological innovations, e.g., in vinasse treatment or in the
field of process energy efficiency, have accelerated industrial developments
and were always supported by governmental incentives. Another main driver
for bioethanol growth in Brazil was the introduction of flex-fuel engines in the
early 2000s [271]. Due to different energy content, bioethanol and gasoline
cannot be perfectly substituted from each other and the price of bioethanol
has to remain under 70% that of gasoline in order to be competitive for
consumers [271].
The bioethanol production in Brazil raises a “food versus fuel” debate. The
conversion of sugar cane into bioethanol potentially impacts land-use and
food security as it valorizes an edible crop into fuel. These impacts - and their
significance - have been assessed in [273] based on a regional simulation
model. A multi-period computable general equilibrium model (CGE) of Brazil
has been developed. It follows a bottom-up regional representation of 15
aggregated Brazilian regions and involves 38 sectors, 10 household types and
labor grades. It is further combined to a land use change (LUC) model which
69
This area expansion would be caused by a stagnation of the sugarcane yields, as no new
feedstock variety are currently developed [272].
247
9 Transferability of the developed methodology
tracks land use evolution in each region. In particular land-use change results
from various parameters such as an increase of non-land inputs, a greater use
of dedicated crop land and a conversion of pasture and unused lands to crop
land. Model results show that the sugarcane production will be concentrated
in regions characterized by a productivity increase. In order to reach the 2022
bioethanol target only 0.07 million ha new land and only 0.02% additional
deforestation rates are necessary. An increase of bioethanol production
would further have a very limited impact on food security [273].
70
The 2nd generation bioethanol results from the conversion of lignocellulosic and starchy
materials in fermentable sugars that are able to be further processed into a sustainable biofuel [274]
248
9.3 Bioethanol for transportation in Brazil
71
A possible way to obtain regional bioethanol production costs in Brazil would be to evaluate
and to integrate regional biomass feedstock costs in the optimization model.
72
In [275] the adjoining regions of Sao Paulo are identified as economically attractive for a future
bioethanol production.
249
9 Transferability of the developed methodology
73
Biodiesel is a chemically modified alternative fuel which can be used in diesel engines. It can
be derived from vegetable oils and animal fats, soybean, cottonseed, groundnut, sunflower,
rapeseed, sesame, palm oil, coconut, linseed, castor, camelina, hemp, olive, jatropha, corn, tallow,
lard, poultry and rendered fats, used frying oil [277].
74
The RPJMN objective is to encourage “sustainable growth, increasing value added of natural
resources with the sustainable approach, increasing quality of the environment, disaster mitigation
and tackling climate change”. It concerns in particular the reduction of greenhouse gas emission
in the forestry and peat lands, agriculture, energy and transportation, industrial and waste sectors.
A specific target 26 % is set by 2019, in line with the National Action Plan for Greenhouse Gas
Emission Reduction (RAN – GRK) [278].
250
9.4 Biodiesel production from jatropha in Indonesia
The growth of the Indonesian palm oil industry, however, incurred high
environmental and social costs [279]. Increasing local palm oil production
caused a massive land clearing of most of the carbon-dense forests and rising
greenhouse gas emissions. Further environmental problems were
biodiversity losses in forest areas as well as pollution due to combustion in
palm oil plantations [279]. Social conflicts over land use frequently arise
between local population and industrial palm oil corporations. An alternative
to palm oil valorization consists in producing biodiesel from jatropha curcas.
The use of jatropha curcas as a biodiesel source was first promoted in 2005
by the Indonesian government. The objective was to lower the effects of
increasing world crude oil prices by developing jatropha-based biodiesel.
Table 9.1: Advantages and disadvantages of jatropha curcas [280], [281], [282], [283]
Advantages Disadvantages
Non-edible plant which does not Jatropha generally takes four to five
compete with the food supply chain years to reach maturity
when used for biodiesel production.
The seed cakes cannot be used as
Can be used as a hedge against soil animal feed.
erosion and desertification.
There is a risk of land use
Can be grown on degraded poor soils in competition with food crops if the
semi-arid conditions. plantations are cultivated on arable
soils
Has low nutrient requirements and
requires limited labour input (perennial Only limited agronomic data
crop). concerning the plant are available
(yield and production costs
Seed cakes contain nitrogen and can thus uncertainty, unknown environmental
be used as organic fertilizer. impacts).
251
9 Transferability of the developed methodology
Due to its non-competition with the food value chain the cultivation of
jatropha curcas on degraded soils at first sight represents a potentially
interesting option for biodiesel production especially in remote areas.
However, numerous research and development projects have been launched
in recent years and have produced, unfortunately, disappointing and negative
results. A lack of theoretical and scientific knowledge regarding the crop
cultivation, low commercial availability, poor profitability and insufficient
yields have induced major failures but also led to the identification of new
challenges described in the next section.
252
9.4 Biodiesel production from jatropha in Indonesia
253
9 Transferability of the developed methodology
9.5 Summary
The model transferability towards other valorization pathways than biogas in
Germany has been assessed in several case studies and leads to
heterogeneous conclusions. The biomethane injection in France is strongly
developing and is mainly driven by a stable legal framework corresponding to
Feed-In-Tariffs. First techno-economic assessments and data are already
published and current as well as future biomass potentials have been clearly
identified. This creates suited conditions for a model transfer from the
German biogas experience to French biomethane injection. A simulation
model would help plant operators to identify most profitable biomethane
plant capacity under a variable biomass feed-stock input. The optimization
model would lead to a forecast of future biomethane injection capacity.
Future developments could be then compared to the defined national
objective for biomethane under various scenarios.
Biomass district heating plays a major role in the Finnish renewable energy
system. Best practice exchanges already exist, e.g., in the North Karelia
region. However, an instability related to the employed Feed-In-Tariffs as well
as the lack of regional data for biomass feedstock prices and potentials render
the model transferability at the regional scale difficult. Future challenges
consist in developing new projects in young and small-scale forests. This
would contribute to reach defined national targets for wood chip energetic
valorization.
254
9.5 Summary
255
10 Summary, conclusions and outlook
10.1 Summary
In this thesis, a model-based framework is developed for the assessment of
current and future electricity production from biogas in Germany. It provides
answers to two main research questions. The first one concerns the
identification of the most profitable biogas plant sizes and types under
different legal frameworks of the Renewable Energy Sources Act (EEG 2012
and EEG 2014). Which installation types and sizes should be built under these
framework conditions in order to lead to the highest profitability for German
biogas plant operators? The second research question concerns future
developments regarding new built biogas plant capacity on a mid-term time
horizon, i.e., up to the year 2030. Which future capacity developments can be
foreseen up to the year 2030 at the Federal State level in order to ensure
maximal operating profits for German biogas plant operators?
257
10 Summary, conclusions and outlook
258
10.1 Summary
The results show that the EEG 2012 framework – if maintained – would have
strengthened the development of agricultural plants and especially co-
digestion plants valorizing energy crops and manure. The EEG 2014
framework stops the initially expected development of energy crops mono-
digestion plants which will not be built anymore as they are unprofitable
(negative specific operating profit for all plant sizes in all regions and over the
whole time period). At the end of 2030 and under the EEG 2014 framework,
an installed electric power of about 4 GWel should be reached over all Federal
States. This total capacity is split into 1.94 GWel linked to base-load capacities
and 2.06 GWel related to existing and new built flexible capacities. Further
scenarios quantify the robustness of the optimization model in reaction to
shocks applied to revenues from the annual average EPEX-Peak electricity
sale, to the energy crop costs and to biowaste valorization revenues between
the years 2020 and 2025. A strong EPEX-Peak electricity price increase favours
the development of large-scale plants and limits the expansion of small-scale
manure installations. A strong energy crop costs increase generates
unprofitability in several Federal States which limits future capacity
developments. An important decrease of biowaste valorization revenues
freezes future capacity expansion. The results linked to these “shock
scenarios” represent precious information for policymakers and plant
operators as they contribute to quantify the potential threats and
opportunities for the future German biogas market on a mid-term horizon. A
259
10 Summary, conclusions and outlook
forecast comparison with existing studies as well as with the recently enacted
EEG 2017 legal framework is further realized.
260
10.2 Conclusions
10.2 Conclusions
Several conclusions and recommendations can be formulated in relation to
the analysis of current and future electricity production from biogas in
Germany. Currently only discrete economic analyses of individual German
biogas plants exist. The added-value of the simulation model developed is
thus to enable a continuous profitability assessment under variable biomass
input and taking into consideration different legal frameworks (versions 2012
and 2014 of the Renewable Energy Sources Act). The simulative approach
further provides indications regarding the most profitable biogas plant sizes
to be built under various legal frameworks. The identification of the most
profitable plant sizes combined with the quantification of the main
profitability drivers through a sensitivity analysis provides a useful assistance
to plant operators. It enables more strategic installation design taking into
account existing legal frameworks for biogas in Germany. The simulation
model thus gives valuable insights for plant operators wishing to operate their
installation in the most profitable way.
261
10 Summary, conclusions and outlook
plants. The development of these plant types and sizes should lead to the
highest profitability from the plant operator perspective. This forthcoming
shift into the development of waste and residues-based plants should clear
the main acceptance problems which have raised in the past years for biogas
in Germany [15]. Acceptance problems in Germany concern notably the “food
versus fuel” debate and in particular the increasing use of maize silage for
biogas production. In addition, citizens are potentially concerned by the
commissioning of new biogas plants close to their housings. They fear
negative impacts due to biogas like increasing road traffic or odour emissions
[15]. The model results further show that a generalized decommissioning will
occur starting from 2020 for plants older than 20 years. This aspect must be
balanced by a continuously improved integration of biogas into the German
electricity market. According to the model results, about 50% of the electricity
from biogas will be produced in 2030 by flexible plants based on the direct
electricity marketing model. The simulation and optimization models deliver
insights for plant operators regarding the current and future electricity
production from biogas in Germany. Based on these outcomes,
recommendations are addressed.
262
10.3 Outlook
10.3 Outlook
Future challenges and research needs for biogas in Germany are remaining
and should be pointed out. In the context of volatile biomass feedstock and
263
10 Summary, conclusions and outlook
264
10.3 Outlook
265
10 Summary, conclusions and outlook
Biogas plants are more and more involved in local approaches dedicated to
autonomous energy supply. In Germany the “Bioenergiedorf” concept has
been developed in several villages like in Jühnde [295]. In this village a
decentralized energy supply is deployed and includes citizen participation. A
biogas plant valorizing energy crops and manure in co-digestion, as well as a
wood chip heating plant connected to a local heating network fully satisfy the
266
10.3 Outlook
local energy demand. A research project dealing with the profitability analysis
of a flexible biogas plant has been launched there and highlights the
importance of local heat valorization in the plant profitability. The European
Institute for Energy Research (EIFER) also analysed the “Bioenergiedorf”
concept in six villages located in Germany and in France [296]. In each village
a case study has been developed. In a first step, biomass potentials and the
energy consumption have been spatialized. Sociological, environmental as
well as economic studies have been further carried out. This led to the
elaboration of scenarios for local authorities, based on local data and
dedicated to a local valorization of biomass resources. Most of the developed
concepts had a positive impact on the heat production costs in comparison
with a “Business as usual” scenario. Local pollutant emissions could be
significantly reduced (especially CO2 , SO2 and fine particles), e.g., by
replacing the fuel oil energetic use by woody biomass or by implementing
more efficient energy conversion systems (e.g., micro-cogeneration). Further
research work is required in order to enlarge the “Bioenergiedorf” approach
to new villages and to identify the main barriers and drivers for a future
implementation.
75
In the context of the German heat transition a share of 14% of renewable energy sources of the
heat demand has to be reached by 2020 [87].
267
10 Summary, conclusions and outlook
268
Appendix
Tables
Table A. 1: Current support schemes for the electricity production from biogas in each
European country [70]
Quo Net
Prem ta Tax R Grid
FI ium Ten Syst Mete Investmen Subs Lo regula & conne Ot N
T Tariff ders em ring t grants idy an tion D ction her /A
Austria
Belgium
Bulgaria
Republic of
Cyprus
Czech
Republic
Germany
Denmark
Estonia
Greece
Spain
Finland
France
Croatia
Hungary
Ireland
Italy
Latvia
Luxembou
rg
Lithuania
Malta
Netherlan
ds
Poland
Portugal
Romania
Sweden
Slovenia
Slovakia
United
Kingdom
269
Appendix
Table A. 2: Numerical values of the methane formation rate for each plant type
Table A. 3: Technical input data for the estimation of the flexibility premium
Unit Value
Existing base-load biogas plant
Initial installed electric power (input data) [kWel] 1,000
Electric efficiency of the initially installed [%] 42.62 (see Figure
CHP (input data) A.15)
Full-load hours of the initially installed CHP [h] 8,000
(input data) (own author’s
assumption)
Electricity amount fed into the grid and [kWhel] 8,000,000
linked to the initially installed CHP
(calculated)
Methane concentration in biogas (input % 52 [162]
data)
Biogas volume flow for the initially installed [m3/h] 453
CHP (calculated)
Daily gas production in baseload (calculated) [m³] 10,862
Existing effective gas storage volume (input [m3] 4,000
data) (own author’s
assumption)
Plant upgrading: flexibilization
Installed electric power for the [kWel] 800
supplementary flexible CHP (input data)
Electric efficiency for the supplementary [%] 39.7 (see Figure
flexible CHP (input data) A.15)
Biogas volume flow for supplementary CHP [m³/h] 391
in part-load (calculated)
Global plant
Total installed electric power (calculated) [kWel] 1,800
Installed electric power linked to part-load for [kWel] 800
flexible CHP (input data)
Full-load hours of the global flexible plant [h] 4,713
(calculated)
270
Appendix
Unit Value
271
Appendix
272
Appendix
Saxony-Anhalt 13.71
Schleswig-Holstein 21.71
Thuringia 18.71
273
Appendix
Table A. 10: Regional surface area for each energy crops type
274
Appendix
Table A. 11: Number of existing milk cows and remaining cattle at the end of the year 2012
[197], [198]
275
Appendix
Saarland 589,235
Saxony 6,270,098
Saxony-Anhalt 4,259,527
Schleswig-Holstein 13,781,874
Thuringia 4,118,872
Table A. 13: Regional energy crop costs for the base year 2013
276
Appendix
277
Appendix
Figures
278
Appendix
279
Appendix
280
Appendix
281
Appendix
kWel
10.000
9.000
8.000
7.000
6.000
5.000
4.000
3.000
2.000
1.000
0
0 50.000 100.000 150.000 200.000 t/a
Figure A. 5: Electric power as a function of the biomass input mass flow (E plant)
kWel
10.000
9.000
8.000
7.000
6.000
5.000
4.000
3.000
2.000
1.000
0
0 50.000 100.000 150.000 200.000 250.000 300.000 t/a
Figure A. 6: Electric power as a function of the biomass input mass flow (B plant)
282
Appendix
Bavaria
Lower Saxony
North Rhine-Westphalia
Baden-Württemberg
Schleswig-Holstein
Mecklenburg-West…
Brandenburg
Saxony-Anhalt
Saxony
Hesse
Thuringia
Rhineland-Palatinate
Saarland
Berlin
Hamburg
Bremen
0 1 2 3 4 5 6 7 8 9 TWhel
EM plant E plant B plant
Figure A. 7: Allocated biomass potentials for electricity production at the end of the year 2012
in each Federal State
TWhel
25
20
15
10
5
0
Plant E Plant EM Plant E Plant EM Plant E Plant EM Plant E Plant EM
2015 2020 2025 2030
BW BY BB HE MV NI NRW RP SL SN ST SH TH
Figure A. 8: Evolution of biomass potentials for E and EM plants up to the year 2030 at the
Federal State
283
Appendix
TWhel
4
0
2015 2020 2025 2030
BW BY BB HE MV NI NRW RP SL SN ST SH TH
Figure A. 9: Evolution of biomass potentials for B plants up to the year 2030 at the Federal State
level
€/m3
400
350
300
250
200 y = 1189.9x-0.282
150
100
50
0
0 1.000 2.000 3.000 4.000 5.000 6.000 7.000 m3
Figure A. 10: Specific acquisition costs for fermenter as a function of the fermenter working
volume (EM plants)
284
Appendix
€/kWel
1600
1400
1200
1000
800
600
400
200
0
10 100 1.000 10.000 kWel
Figure A. 11: Specific acquisition costs for fermenter as a function of the installed electric power
(EM plants)
€
150.000
120.000
90.000
60.000
30.000
0
0 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000 m3
Figure A. 12: Capital investment for gas storage as a function of the storage volume [188]
285
Appendix
ct/kWhel
11
10
9
8
7
6
5
4
3
2
1
0
BW BY BB HE MV NI NRW RP SL SN ST SH TH
Figure A. 13: Energy crop cost contribution in the total electricity production costs for E plants
and in each Federal State (year 2013)
ct/kWhel
10
9
8
7
6
5
4
3
2
1
0
BW BY BB HE MV NI NRW RP SL SN ST SH TH
Figure A. 14: Energy crop cost contribution in the total electricity production costs for EM plants
and in each Federal State (year 2013)
286
Appendix
70%
60%
50%
40%
30%
20%
10%
0%
0 500 1.000 1.500 2.000 kWel
Electrical efficiency initially installed base-load CHP
Electrical efficiency supplementary flexible CHP
Thermal efficiency initially installed base-load CHP
Thermal efficiency supplementary flexible CHP
Figure A. 15: Thermal and electric CHPs efficiency for base-load CHPs and supplementary flexible
CHPs as a function of the installed electric power [150]
10
0
0 2.000 4.000 6.000 8.000 10.000 12.000 14.000 16.000 18.000 20.000 kWel
Figure A. 16: Number of CHP gas engines as a function of the installed electric power
287
Appendix
ct/kWhel
35
30
25
20
15
10
5
0
10 100 1.000 10.000 kWel
Investment-related costs Process utilities costs
Electricity consumption costs Flexibilization costs
CHP-maintenance costs Personnel costs
Transport costs Energy crop costs
Figure A. 17: Specific annual costs for E plants as a function of the electric power for the base
year 2015
ct/kWhel
16
14
12
10
8
6
4
2
0
10 100 1.000 10.000 kWel
Revenues from digestate sale Revenues from heat sale
Revenues from electricity sale
Figure A. 18: Specific annual revenues for E plants as a function of the electric power for the base
year 2015 and under the EEG 2014 framework
288
Appendix
ct/kWhel
30
25
20
15
10
5
0
100 1.000 10.000 kWel
Electricity production costs Revenues
Figure A. 19: Specific electricity production costs and revenues for E plants as a function of the
electric power for the base year 2015 and under the EEG 2014 framework.
ct/kWhel
45
40
35
30
25
20
15
10
5
0
100 1.000 10.000 kWel
Investment-related costs Process utilities costs
Digestate treatment costs Electricity consumption costs
Flexibilization costs Maintenance costs
Personnel costs Biowaste transport costs
Figure A. 20: Specific annual costs for B plants as a function of the electric power for the base
year 2015
289
Appendix
ct/kWhel
30
25
20
15
10
0
10 100 1.000 10.000 kWel
Revenues from digestate sale
Revenues from heat sale
Revenues from electricity sale
Revenues from biowaste valorization
Figure A. 21: Specific annual revenues for B plants as a function of the electric power for the base
year 2015 and under the EEG 2014 framework
ct/kWhel
70
60
50
40
30
20
10
0
100 1.000 10.000 kWel
Electricity production costs Revenues
Figure A. 22: Specific electricity production costs and revenues for B plants as a function of the
electric power for the base year 2015 and under the EEG 2014 framework
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PRODUKTION UND ENERGIE
Karlsruher Institut für Technologie (KIT)
Institut für Industriebetriebslehre und Industrielle Produktion
Deutsch-Französisches Institut für Umweltforschung
ISSN 2194-2404
Die Bände sind unter www.ksp.kit.edu als PDF frei verfügbar oder als Druckausgabe zu bestellen.
Band 6 Julian Stengel
Akteursbasierte Simulation der energetischen
Modernisierung des Wohngebäudebestands
in Deutschland.
ISBN 978-3-7315-0236-4
Die Bände sind unter www.ksp.kit.edu als PDF frei verfügbar oder als Druckausgabe zu bestellen.
Band 13 Marian Hayn
Modellgestützte Analyse neuer Stromtarife für
Haushalte unter Berücksichtigung bedarfsorientierter
Versorgungssicherheitsniveaus.
ISBN 978-3-7315-0499-3
Die Bände sind unter www.ksp.kit.edu als PDF frei verfügbar oder als Druckausgabe zu bestellen.
Band 19 Sophia Radloff
Modellgestützte Bewertung der Nutzung von Biokohle
als Bodenzusatz in der Landwirtschaft.
ISBN 978-3-7315-0559-4
Band 24
Felix Hübner, Rebekka Volk, Oktay Secer, Daniel Kühn,
Peter Sahre, Reinhard Knappik, Frank Schultmann,
Sascha Gentes, Petra von Both
Modellentwicklung eines ganzheitlichen
Projektmanagementsystems für kerntechnische
Rückbauprojekte (MogaMaR):
Schlussbericht des Forschungsvorhabens.
ISBN 978-3-7315-0762-8
Die Bände sind unter www.ksp.kit.edu als PDF frei verfügbar oder als Druckausgabe zu bestellen.
Band 25
Karoline Fath
Technical and economic potential for photovoltaic
systems on buildings.
ISBN 978-3-7315-0787-1
Band 31
Rupert Hartel, Viktor Slednev, Hasan Ümitcan Yilmaz,
Armin Ardone, Dogan Keles, Wolf Fichtner, Anke Eßer,
Marian Klobasa, Matthias Kühnbach, Pia Manz,
Joachim Globisch, Rainer Elsland, Martin Wietschel (Hrsg.)
Dekarbonisierung des Energiesystems durch verstärkten
Einsatz erneuerbaren Stroms im Wärme-, Verkehrs-
und Industriesektor bei gleichzeitigen Stilllegungen
von Kraftwerken – Auswirkungen auf die
Versorgungssicherheit in Süddeutschland.
ISBN 978-3-7315-0879-3
Die Bände sind unter www.ksp.kit.edu als PDF frei verfügbar oder als Druckausgabe zu bestellen.
Band 32
Rebekka Volk, Richard Müller, Frank Schultmann, Jérémy Rimbon,
Thomas Lützkendorf, Joachim Reinhardt, Florian Knappe
Stofffluss- und Akteursmodell als Grundlage für
ein aktives Ressourcenmanagement im Bauwesen
von Baden-Württemberg „StAR-Bau“ –
Schlussbericht des Forschungsvorhabens.
ISBN 978-3-7315-0858-8
Die Bände sind unter www.ksp.kit.edu als PDF frei verfügbar oder als Druckausgabe zu bestellen.
Band 38 Florian Diehlmann
Facility Location Planning in Relief Logistics:
Decision Support for German Authorities.
ISBN 978-3-7315-1120-5
Die Bände sind unter www.ksp.kit.edu als PDF frei verfügbar oder als Druckausgabe zu bestellen.
INSTITUT FÜR INDUSTRIEBETRIEBSLEHRE UND INDUSTRIELLE PRODUKTION
DEUTSCH-FRANZÖSISCHES INSTITUT FÜR UMWELTFORSCHUNG
In this work a process simulation model coupled with an economic evaluation tool
identifies the most profitable German biogas plant types and sizes. The results show
that small manure and large-scale biowaste plants are currently the most economi-
cally attractive installations whereas the valorization of energy crops turns out to be
unprofitable. The future development of German biogas plants is assessed with an
optimization model. The objective function aims to maximize under constraints the
total operating profit for each of the main plant types using energy crops, biowaste
and manure up to the year 2030 at the Federal State level. Capacity expansion con-
cerns small-scale manure and biowaste installations rather than plants based on en-
ergy crops. The transferability of the methodology to other countries and bioenergy
pathways is examined. Stable framework conditions, the exchange of best practices
and lessons learned between actors are pre-requisites for successful implementation.
ISBN 978-3-7315-1035-2
ISSN 2194-2404
ISBN 978-3-7315-1035-2 9 783731 510352