IEA Bioenergy ExCo77 workshop...IEA Bioenergy ExCo77 workshop The potenal role of biomethane in...
Transcript of IEA Bioenergy ExCo77 workshop...IEA Bioenergy ExCo77 workshop The potenal role of biomethane in...
IEABioenergyExCo77workshop
Thepoten7alroleofbiomethaneinItaliantransport
Rome-17May,2016
GiovanniPerrellaandWolfgangD’InnocenzoMinistryofEconomicDevelopment
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TheEuropean2030targetshavebeendefinedatEUlevel:- 27%RESinfinalconsumpLon- 40%reducLonofCO2emissionscomparedto2005- anenergyefficiencytarget
Inthecoming7metherewillbetheupdateofItaly’sNESwiththeEU2030targetsandamonitoringreport
TheEnergyUnionRoadmap2016:CommissionlegislaLveproposal&referencescenario2017:publicconsultaLon®ionalcooperaLonmechanismbetweenMSs2019:“EU2030”naLonalacLonplans
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NaLonalEnergyStrategy:foracompeLLveandsustainableenergy
Key elements of the Italian National Energy Strategy March 2013
Competitiveness: Significantly reduce the energy cost gap for consumers and businesses, with a gradual alignment to European prices
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Growth: Enhance sustainable economic growth through the development of the energy sector
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Environment: Outperform the environmental targets set by the ‘20-20-20 Package’ and take a lead role in the European ‘Roadmap 2050’ decarbonisation process
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Security: Strengthen security of supply, especially in the gas sector, and reduce the external energy dependence
Thechoicesofenergypolicyaresettoreach4mainobjec7ves,bothby2020andby2050
(€bn/year, difference between 2020 and 2012 (base year, total cost ~ €70 bn)
Development of electricity and gas bills – the incremental costs on the public are more than compensated by expected benefits
Estimated incremental costs to the public
4.0-5.04.0Total
Furtherinfrastructuredevelopment
~0.4
Gasandelectricitygriddevelopment ~0.6
Thermalrenewables ~0.7
RenewablePower 1.5-2.511.5
Energyefficiency ~0,8Tariffs
Red
uced
pric
es
Total ~13.5
~2.5
~2.1
Totalreducedprices ~8.9
Electricitybill ~4.5
Gasbill ~4.4
Gasbill
Electricitybill
Red
uced
vol
umes
(c
ompa
red
to b
asel
ine)
Estimated benefits on bills
Expectedbenefit~9bn€/yearontotalgasandelectricitybills2020vs.20122
1 The 2012 base doesn’t include installations subject to registries and auctions (non-PV) registered between 2012 and 2013 2 Assuming equal international commodity prices
The potential savings in Italian energy imports are significant (and reflect positively on security of supply) Billions of €/year, estimation based on the assumption of constant import prices
1 Assuming discontinuation of energy efficiency measures, discontinuation of renewables‘ incentives, natural decline of hydrocarbons production 2 Primary energy, Eurostat method, vs. 2010 values
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6
5 48
5
2011
Potential increase by 2020
in absence of measures1
Potential import in 2020 with measures
Hydrocarbons production
Renewables production
Energy efficiency
Net imports
62
-19 -14
Savings of ~20 Mtoe2
Increased production
by 15-16 Mtoe2 Increased production
by ~12 Mtoe2
Reducing imports equivalent to ~1% of additional GDP (and, at current terms, sufficient to shift the balance of trade in a structural surplus)
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petroleumproducts
negligibleamountsofcrudeoil,naturalgasandelectricity
crudeoil
naturalgas
petroleumproducts
electricity
coal
-61,4 -63,3
-33,1
-85
-70
-55
-40
-25
-10
5
20
35
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Tradeinenergyproductsandexternalenergybill(in€bn)
externalenergybill
e x p o r t s
i m p o r t s
Italy’sexternalenergybill
Naturalgasintransport1. NaturalgasintransportisanItalianspecialty2. 77%ofNGvehiclesintheEUcirculateinItaly3. ThenumberofNGfillingstaLonsexceeds1100andconsumpLonwasover1,1
bcmin2015;morefillingstaLonsareexpectedwithimplementaLonofDAFI4. NGvehiclesaleshavebyfaroutperformedtheregularvehiclemarket
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100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
2000 2003 2005 2008 2010 2012 2014
Vehicles-Italy
LDCNGvehiclesincirculaLon HDCNGvehiclesincirculaLon
0
200
400
600
800
1,000
1,200
2000 2003 2005 2008 2010 2012 2014 2015*
fillingsta7ons&gasconsump7onItaly
RoadsideCNGfillingstaLons(n.) Naturalgasconsumedintransport(Mcm)
4
0
1,000
2,000
3,000
4,000
5,000
6,000 NGbusesandtrucks-EuropeanUnion2014
MD+HDBuses
MD+HDTrucks
NaturalgasintransportNaturalgasintransportintheEU
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1
10
100
1,000Naturalgas(CNG)consump7on
intransport(logscale)ktoe,2014(Eurostat)
Eurostat2014(ktoe)
Italy 862 Germany 178 Bulgaria 100 France 91 Spain 51 Sweden 51 Netherlands 30 CzechRepublic 25 Austria 17 Greece 14 Portugal 12 Lithuania 5 Finland 4 CroaLa 3 Belgium 2 Estonia 2 Hungary 1 EU28 1.448
Publicac7ontoimplementnaturalgasintransport- lowtaxa7onofautomoLvemethane,consistentwiththeEUDirecLveonfueltaxaLon- useofbiomethaneintransporttoreachEU20-20-20targets- variouscarscrappageschemesovertheyearshavefavouredcleanfuelvehicles(CNG,LPG,electricityorhydrogen)
€0.00331 €0.0125
€0.17
€0.00
€0.05
€0.10
€0.15
€0.20
automoLve industrial residenLal(modalvalue)
excisetaxonmethane(in€/m3)asof1Jan.2015
Lawn.27/2012,para17“Liberalisa7onoffueldistribu7on”• FillingstaLonsshallbeprovidedwithseveraltypesoffuels,includingnaturalgas,ifthisobligaLondoesnotimplytechnicalbarriersorexcessivecosts;• TheMinistryofEconomicDevelopmentestablishesthegeneralprinciplesofdevelopmentofthenaturalgasdistribuLonnetworkconsistentlywiththeautonomyofRegionsandlocalAuthoriLes;• SimplificaLonofproceduresfortheinstallaLonandoperaLonoffaciliLesfornaturalgasdistribuLonforvehiclesandthoseforfueldispensers.
Publicac7ontoimplementnaturalgasintransport- mul7servicefuelpumpswithmethane(reducedminimumdistancerulesbetweengaseousandnongaseousfuels);- introducLonofselfserviceformethane;- reducedconnec7onfeesforfillingstaLonsbothtotransportanddistribuLonnetworks;- centralgovernmentacLonwithlocalgovernmentstoextendthefillingstaLonnetwork
Lawn.27/2012,para17“Liberalisa7onoffueldistribu7on”TheMinisteroftheInteriorandtheMinisterofEconomicDevelopment,incompliancewithsafetystandardsandtechnicalregulaLonsinforceinEUandconsistentlywiththeautonomyofRegionsandlocalAuthoriLes,idenLfycriteriaandproceduresfor:• self-servicesystemsinnaturalgasandLPGfillingstaLons,andinresidenLalcompressionfaciliLesofmethane;• simultaneousdispensingofliquidandgaseousfuels(methaneandLPG)inmulLproductdispensers.TheDecree31March2014alsolaysdownotherrequirementsfortheself-servicedistributorofCNGunamendedTheItalianRegulatoryAuthorityforElectricityandGassetsrulesforspeedinguptheconnecLonsofnewnaturalgasfillingstaLonsandforreducingtherelevantconnecLoncosts,mainlyinareaswheretheyarenotpresent.
Workinggrouptoreviselegisla7ononfirepreven7onIn2013ItalianfueldistribuLonoperatorstogetherwithothernaLonalstakeholders,joinedaworkinggroupestablishedbytheMinistryoftheInterior(NaLonalFireDepartment)withtheaimtoreviewItalianlegislaLontopreventfiresinnaturalgasfillingstaLonsinlinewithotherEuropeancountries.
LNGinmari7me&roadtransportDirec7veonAlterna7veFuelInfrastructure(Direc7ve2014/94/EU)–DAFIAnimportantsteptowardsfosteringnaturalgas(CNG/LNG/biomethane),hydrogenandelectrical
refuelinginfrastructures,bothinurbanareasby2020andalongtheexisLngTEN-TCoreNetworkby2025.ThiswillallownaturalgasmotorvehiclestomovethroughouttheEU.
InItalythetransposiLonintonaLonallegislaLonofDAFIwilloccurin2016;thetransposiLonprocess
wasprecededforLNGbyapublicstakeholderconsulta7onin2015thatproducedawealthofdata.ThreekeyaspectsemergedfromtheconsultaLon:I. overwhelminglyposiLveresponsefromallstakeholders;II. naturalgas(bothbioandconvenLonalandbothCNGandLNG)isregardedasthe
transiLonfuelintheEuropean2050EnergyRoadmaptowardsdecarbonisaLon;III. twocaveats:
a) maintainthefavorableexciseregimeforalternaLvefuelsb) addresssocialacceptanceissues,includingsafety(socialacceptancehasavery
limitednegaLveimpacttodaybutcouldgrowasinfrastructuresareexpanded).
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SafetyofCNGcylindersinLDandHDvehiclesAmajorpublicconcernandbothtechnologicalandlogisLcalchallengesincethe1950ies(aperWWIIItalyexperiencedashortageinpetroleumproducts;methane,discoveredinthatperiodinnorthernItaly,wasusedasasubsLtuteintransport).Adedicated,publiclycontrolledcompanywassetup-“eni-ServiziFondoBomboleMetano”(Act640of8July,1950)taskedwiththeperiodicsafety-checkofallCNGcylindersinstalledonvehicles(LDandHD).
eni-ServiziFondoBomboleMetano–opera7ons- collec7onofCNGcylinders(every4or5years)tobecheckedthroughanetworkofca.32accreditedcollec7oncentersandca.120accreditedcylinderswapgarages- inspec7onofCNGcylindersin2dedicatedinspecLonsites(Jesi(Ancona)andSanLazzaro(Bologna))andtwocontractedsites:approvedcylindersarehandedback,failedorexpiredcylindersarewrecked- numberofinspectedcylindersvarieseveryyear(420.000in2012,640.000in2013,420.000in2014,501.000in2015)andca.5%arewreckedandreplacedwithnewones(90%duetoendoftechnicallife)
eni-ServiziFondoBomboleMetano–finance- operaLonsarefinancedthroughasurchargeincludedinthepriceofCNGsoldinCNGfillingstaLonsfinanceseni-SFBMoperaLons(collecLon,inspecLonandreplacement)
- thesafetysurcharge–setbythepubliclycontrolledmanagementCommimee–currentlystandsat€0,035perm3;totalcostofthesystem:ca.€30.000.000p.a.
- typicalcostbornbyendusers:ca.€60-80percylinder(2-4cylindersperLDvehicle)every4or5yearstothegarageforman/hoursofwork(nocostforthenew/recycledCNGcylinder)
SafetyaspectsofCNGcylinders- ca.2.700.000CNGcylinderscurrentlyinuseinItaly
- internalpressureofcylindersca.200bar(!)
- cylindersbuilttoneverbreakduetoheatorexternalpressure;valvesbuilttowithstandheatandreleasegasatlowpressureincaseofextendedexposuretoheat
- lastrecordedaccidentduetofailureoftheCNGcylinderintheyear2000
Frombiogastobiomethane
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heat
power
upgrading/purification ofbiogas:frombiogas (about50-60%methane,about40%CO2)tobiomethane (about95%methane)
anaerobic digester
biogas
biomethaneotheruses
transportsector
Accoun7ngbiomethaneinthe10%biofueltargetInItalythereishugepotenLalforbiomethaneinthetransportsector.Italyconsumesoveronebillioncubicmeters(over1,1bcm)ofnaturalgasinroadtransportperyearandthisprovidesforasolidcontextforthedevelopmentoftheuseofbiomethaneintransport.Italyisdevelopinganobliga7onschemeforbiomethaneintransportconsistentandcomplimentarywiththeoneforliquidbiofuels(blendingscheme).The“ILUC”revisionofREDDirecLveprovidesfora“subtargetforadvancedbiofuels”inDirec7ve2015/1513/EU;Italyhasestablishedahighersubtarget(of1,6%by2020vs.0,5%minimumtarget)ofadvancedbiofuels.
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Withaspecificalloca7onofbiomethanetothetransportsector,nowpossibili7eswillbeprovidedtoreachthe10%target
IssueisveryhighinItalianGovernmentagenda- newobligaLonscheme
topromotetheuseofbiomethaneintransport
- reachthenew“advancedbiofuel”targetinlinewiththetargetsofDirecLveUE2015/1513.
Mcm 2016 2017 2018 2019 2020
annual - 50 100 200 300
cumulaLve - 50 150 350 650
Es7mateddevelopmenttrendofbiomethaneintransport2016-2020
UseofbiomethaneintransporttoreachEU20-20-20targets1. BasedontheobligaLon,placedongasolineanddieselsellers2. SellerstradecerLficatesamongeachother3. Biofuelsmustbecer7fiedassustainable4. BiofuelsDecree2014establishedthetrajectoryfrom2015to2022forthe
biofuelquotaobligaLon5. “Advancedbiofuels”areintroduced:biofuelsproducedfrombiomassfracLon
ofwastesandresidues,animalmanure,sewagesludge,grapemarcs,winelees,nutshells,non-foodcellulosicmaterials,etc...
6. Thesub-targetinadvancedbiofuelsisawaytopromoteadvancedbiofuels(includingbio-methanefromwasteandresidues)
Bio-methanecouldreachaproducLonofcloseto1Bcmp.a.,replacingtheuseofbiogasforpowergeneraLonandincreasingsustainabilityofthebiofuelmix
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EUframeworkforbio-methaneintransportisnecessaryCurrentEUROSTATmethodologydoesnotallowforproperaccounLngofbiomethaneinjectedintothegridandusedintransport:newESWGapproachisnecessary
Technicalchallengesofbiomethaneintransport- technicalspecificaLonsofbiomethane- networkcodesneedtobeupdated- Lmehorizonofinvestors:tooshort- valueofbiomethanecerLficates- noswitchingbetweenexisLngsupportschemes
- ->verymuchinterest,verylimleactualinvestmentsinbiomethaneproducLoncapacity- ->MinistryofEconomicDevelopmentisdrapingnewrulestoaddressissues
5%5.5%
6.5%
7.5%
9%
10% 10% 10%
1.2% 1.2% 1.6% 1.6% 2%
0%
2%
4%
6%
8%
10%
12%
2015 2016 2017 2018 2019 2020 2021 2022
Biofuelandadvancedbiofueltrajectories
Q% Q%Advancedbiofuel
Biomethaneaccoun7ngmechanismThecompulsorybiofuelblendingschemeforliquidfuelsinplace.Tocomply,transportfueldistributorscaneitherblendliquidbiofuels(biodiesel,bioethanol,etc.)orusebiomethaneinthetransportsector.GiventhathugequanLLesofnaturalgas(CH4)areusedintransport(over1,1Bcmp.a.)inItaly,partofthebiofuelblendingobligaLonderivingfromthesalesofliquidfossilfuelscanalsobecompliedwithbysellingbiomethane,insteadofnaturalgas.Inordertodoso,transportfueldistributorswhoalsosellnaturalgasneedtosignlong-termcontractswithbiomethaneproducersinordertobuybiomethaneinjectedintotheNGgrid.AnewDecreeforthepromo7onofbiomethaneisbeingdrajedAllcontractsandflowswillberegisteredinaspecificcentraliseddatabase,managedbyItalianstate-ownedRenewableEnergyAgency(GSE),allowingtotracetheflowofbiomethaneinjectedintothegridanddeterminethespecificuseofit.
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Theakribu7onofconsump7ontothetransportsectorwillbedrivenbythe10%obliga7onschemeandregisteredinacentraliseddatabase.
Technicalandsta7s7caltomakethecorrectalloca7ontothecorrectsectorofusewithoutanypropor7onalalloca7on.
Theproposedbiomethaneaccoun7ngsystemTHEITALIANBIOMETHANEMONITORINGMECHANISM(inprogress)GiventhecentraliseddatabaseofbiomethaneinjecLonsto,andwithdrawalsfrom,thegrid,inItalyallinformaLonontheuseofbiomethaneinthetransportsectorwillbebasedonhighqualityadministraLvedataandcentralizedarchives,consistentlywiththeEnergySta7s7csRegula7on1099/2008,ar7cle3,paragraph1,lekerc).
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CERTIFICATES–bothofsustainabilityandforproofoftheuseofbiofuels–willnotbeusedforsta7s7calpurposes;instead,“biomethanecerLficates”areissuedbyGSEandcanbetradedbetweenobligatedandnonobligatedenLLestoproveindividualcompliancewiththebiofuelobliga7onandsustainability.
TheItaliansystemisdesignedtomeasuretheflowofbiomethaneinjectedtothegridanddeterminewhetheritissoldtotransportfueldistributors,incompliancewiththecriteriastatedbyDirec7ve2009/28.
ADMINISTRATIVEDATA,i.e.datatakenfromcontractsregisteredinthecentralisedinjecLonandwithdrawalcontractsdatabasewillbeusedtoassesstheactualquan77esofbiomethaneusedinthetransportsector
Theproposedbiomethaneaccoun7ngsystem
THEITALIANBIOMETHANEMONITORINGMECHANISM(inprogress)ADMINISTRATIVEDATA,i.e.datatakenfromcontractsregisteredinthecentralisedinjecLonandwithdrawalcontractsdatabasewillbeusedtoassesstheactualquanLLesofbiomethaneusedinthetransportsector
1. ProducingenLty2. Geographiccoordinates&gridentrypoint3. Gastransportcontractwithgridoperator(nominatedcapacity,injecLonpressure,ecc.)4. BiomethanegasqualityspecificaLons(includingcalorificvalue)5. Biomethanefeedstock6. Biomethaneamountsold7. Controlonthebiomethane-methanesoldbyeach“CNGpumpstaLon”withtheFiscalAgency
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ThankyouforyouramenLon!
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