Biomethane for Power Generation in Cogeneration In order to achieve the best-possible positive impact on the conservation of our climate, the legislation of the German Federal Government aims at the application of biogas fed-in for power generation in cogeneration. The main device for this is the EEG, which explicitly includes power generation from fed-in biomethane and supports it by means of the technology bonus. However, the EEG bonus regulations effective since January 1st 2009 are applicable only in part. Thus, for example, in the case of the technology bonus, as already mentioned. Plants with an output of 350 Nm³/h receive a bonus of 2 ct /kWh, plants up to 700 Nm³/h 1 ct/kWh. For plants with more than 700 nm³/h biomethane there is no technology bonus. The manure bonus does not apply to the power generation from fed-in biomethane, at all. In spite of these confinements, the EEG market is viewed as the leading market for biomethane, since based on state-guaranteed tariffs, security and stability can be offered to private investors for 20 years. A remaining risk factor is the development of substrate prices, which could not be compensated due to the fixed tariffs (until the next reformation) and might directly affect business revenues. Biomethane as admixing product Biomethane as an admixing product in combination with fossil natural gas is already offered by some gas suppliers in admixing quotas ranging from 5 to 20 percent. The latter quota is especially common in Baden-Württemberg, where customers thus can fulfill the requirements of the Renewable Heat Law Baden-Württemberg. In contrast to the nationally effective EEWärmeG, which only calls for the utilization of biomethane in exceptional cases and only if used in a cogeneration process, the Heat Law of the State of Baden-Württemberg also allows the application in mere heat generation. Especially when considering that starting in 2010, the heat law in Baden-Württemberg will also apply to existing buildings, a growing demand can be expected in this segment. Currently however it is expected that this phenomenon will just affect Baden-Württemberg. There is also a trend toward a growing demand in national biomethane product sales. Similar to “green power” offers in the power sector, private end customers increasingly show the readiness to pay an eco premium for biomethane admixing products. According to a survey by the University of Hildesheim among 1000 end customers, 75 percent of the interviewees stated a general interest in the application of biomethane. Moreover, 37 percent were willing to pay more for such a product. Currently, however, only a few city works and nationwide gas supply companies have developed and implemented such products. The most prominent one, also known for its green power product, has won 50.000 clients. The market for biomethane admixing products in combination with natural gas is held to be an interesting sales market particularly by (bio) gas trading companies. For biomethane quantities originating in biomasses and residues not applicable for the EEG there is also no competition to the EEG market. Biomethane of this type is, however, not yet available in relevant quantities, and it will largely depend of the development of this demand. Biomethane application as bio fuel As a substitute to natural gas, biomethane can be used to fuel natural gas-dedicated vehicles. By means of gas grid feeding-in, it can be distributed to the German gas station network. Compared to other bio fuels, even those of the second generation like BtL, biomethane is a highly effective bio fuel with a high specific cropland yield . Therefore, from an economic and technological point of view, it is one of the most promising alternatives to sustainably apply biomass in the vehicle sector. The demand in this sector is very much dependent on the development of the natural gas-dedicated vehicle market. Currently, there are about 76.000 natural gas vehicles in Germany. So for the application of biomethane, the bio fuel market is merely a niche market under the current conditions. Due to the recent changes in the bio fuel quota regulation, however, a new impulse for this sales market is to be expected: biomethane can now be counted in context with the bio fuel quota goals of the Government.
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