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Biomethane Roadmap in the UK. London, 16 th December 2015 Dr Kiara Zennaro Head of Biogas, REA. The UK Gas Grid. UK has great gas grid 85% of domestic market connected to grid 95% of industry Power generation back up to wind
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Biomethane Roadmapin the UK London, 16th December 2015 Dr Kiara Zennaro Head of Biogas, REA
The UK Gas Grid • UK has great gas grid • 85% of domestic market connected to grid • 95% of industry • Power generation back up to wind • To build gas grid and central heating etc. would cost around £100 billion • Vital UK asset • All our Grid Owners are very supportive and have created an attractive regime to allow projects to go ahead at lower cost/quicker
The drivers • 45% of all UK energy is used for heating, responsible for about one third of the UK’s carbon emissions • Over 70% of the UK’s heating demand is met by gas • Renewable energy targets – 15% of energy from renewables by 2020 and UK sub-target to meet 12% heat from renewable sources by 2020 • Climate Change Act 2008: 50% GHG emission reduction on 1990 levels by 2025 and 80% by 2050 • UK continental resources are running out
Renewable Heat Incentive • Renewable Heat Incentive, introduced in 2011, is the primary policy which supports biomethane in the UK • World-first financial incentive to promote the generation of renewable heat and biomethane • Funded through general taxation • Payments made quarterly over 20 year period on basis on metered biomethane injected (p/kWh) • Initially funded until March 2016. On 25th November Government announced that RHI will be continued to 2020/21 - £700 million less than originally planned.
Biomethane projects per year 2010-2016 1 in 2012, 2 in 2013, total of 50 projects injecting gas by end of 2015
UK Biomethane Projects 2012-15 2013 2012 2014 2015
Biomethane Market Forecast • UK total gas demand now is around 700 TWh/annum • Around 50% domestic heating, 25% power gen and 25% industry • Biomethane injected by end 2015 is around 2 – 2.5 TWh • Potential maximum biomethane by 2030 is around 20 to 30 TWh 3-4% of UK total gas demand, 7 – 10% of UK domestic gas demand. Could increase to 20% of UK gas demand if this decreases to ~150 TWh/annum
Tier 1 tariff • April 2015: 7.5 p/kWh • July 2015: 7.24 p/kWh • October 2015: 6.52p/kWh • January 2016: 5.87p/kWh • April 2016 and July 2016: ? RHI Degression
Barriers • Budget restraints and future tariff degression • Availability of waste feedstocks • The use of crops still under debate • Gas grid capacity • Cost of grid connections/delays • Energy content (CV) of biomethane v grid (propane) • Sustainably Criteria- in force from 5thOctober 2015 • 60% GHG savings compared to GHG EU fossil heat average • Consignment basis – no averaging • GHG criteria may be tightened up in the future
Biomethane in transport (1) • Considerable potential for biomethane to be used in transport, particularly in HGVs and buses • Study carried out by Ricardo-AEA for DfT (2014) showed that use of biomethane in vehicles could deliver substantial GHG savings, compared to use of petrol, diesel or natural gas • Only very limited amount of biomethane (0.1 Peta Joules) is produced for supply to the transport sector • Available biogas/biomethane goes into heat and/or power sector as current incentives provide better returns
Biomethane in transport (2) • Transport Energy Task Force set up by the DfT with the low CVP in 2014: • Recommendations made to increase support for biomethane for transport and to remove barriers to deployment of HGVs and buses • REA RTFG Renewable Gases Working group, working closely with DfT to identify role that biomethane and other renewable gases could play in transport to 2020 and beyond to 2030: • Potentially biomethane from AD and gasification could be around 300 PJ/yr (E4Tech) • What’s needed to unlock this sector ? • Adequate level of support for producers of renewable gases for transport • Support for refuelling infrastructure • Support to gas vehicles R&D and development of a mass market for gas vehicles
Thank you Contact details Kiara Zennaro RenewableEnergyAssociation – REA Biogas kiara@r-e-a.net Thanks to CNG Services for providing data Contact: John Baldwin john.baldwin@cngservices.co.uk