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Changed market conditions for biogas production; Foeraendrade marknadsvillkor foer biogasproduktion

Abstract

The Swedish gas market consists mainly of the natural gas network that extends through the southwestern Sweden, and the local biogas markets. Biogas share of the Swedish gas market is growing steadily. The fact that the Swedish gas net is limited and fragmented forms an obstacle for biogas use to expand. That the gas market as a whole, natural gas included, must develop and expand is therefore a prerequisite for the large potential for Swedish Biogas to be realized. This in contrast with the ultimate objective to completely replace natural gas in the Swedish gas market. When policy changes are made in order to support biogas it is crucial for long-term competitiveness of biogas that these changes should not impact the natural gas market and hinder its development. Such a scenario would ultimately mean that also biogas development opportunities deteriorate. Biogas operations encounter three main problems that prevent or impede its expansion in the gas market. First, the potential for profitability in biogas production must be enhanced. Second, natural gas and biogas markets should be more integrated with each other. Thirdly, the biogas must be distributed in a cost-effective manner. The present investigation aims to supplement the Natural Gas Act  More>>
Publication Date:
Oct 15, 2010
Product Type:
Technical Report
Report Number:
EI-R-2010-17
Resource Relation:
Other Information: 12 refs., 11 figs., 8 tabs.
Subject:
09 BIOMASS FUELS; METHANE; NATURAL GAS; SWEDEN; ENERGY POLICY; FUEL SUBSTITUTION; NATURAL GAS DISTRIBUTION SYSTEMS
OSTI ID:
1005114
Research Organizations:
Energy Markets Inspectorate, Eskilstuna (Sweden)
Country of Origin:
Sweden
Language:
Swedish
Other Identifying Numbers:
TRN: SE1107009
Availability:
Also available from: http://www.energimarknadsinspektionen.se/Bibliotek/; OSTI as DE01005114
Submitting Site:
SWD
Size:
56 p. pages
Announcement Date:
Feb 24, 2011

Citation Formats

Colnerud Granstroem, Sigrid, Gaaverud, Henrik, and Glimhall, Alexandra. Changed market conditions for biogas production; Foeraendrade marknadsvillkor foer biogasproduktion. Sweden: N. p., 2010. Web.
Colnerud Granstroem, Sigrid, Gaaverud, Henrik, & Glimhall, Alexandra. Changed market conditions for biogas production; Foeraendrade marknadsvillkor foer biogasproduktion. Sweden.
Colnerud Granstroem, Sigrid, Gaaverud, Henrik, and Glimhall, Alexandra. 2010. "Changed market conditions for biogas production; Foeraendrade marknadsvillkor foer biogasproduktion." Sweden.
@misc{etde_1005114,
title = {Changed market conditions for biogas production; Foeraendrade marknadsvillkor foer biogasproduktion}
author = {Colnerud Granstroem, Sigrid, Gaaverud, Henrik, and Glimhall, Alexandra}
abstractNote = {The Swedish gas market consists mainly of the natural gas network that extends through the southwestern Sweden, and the local biogas markets. Biogas share of the Swedish gas market is growing steadily. The fact that the Swedish gas net is limited and fragmented forms an obstacle for biogas use to expand. That the gas market as a whole, natural gas included, must develop and expand is therefore a prerequisite for the large potential for Swedish Biogas to be realized. This in contrast with the ultimate objective to completely replace natural gas in the Swedish gas market. When policy changes are made in order to support biogas it is crucial for long-term competitiveness of biogas that these changes should not impact the natural gas market and hinder its development. Such a scenario would ultimately mean that also biogas development opportunities deteriorate. Biogas operations encounter three main problems that prevent or impede its expansion in the gas market. First, the potential for profitability in biogas production must be enhanced. Second, natural gas and biogas markets should be more integrated with each other. Thirdly, the biogas must be distributed in a cost-effective manner. The present investigation aims to supplement the Natural Gas Act with special provisions which takes into account the input and transmission of biogas. In addition to the production of biogas, it is now the producer's responsibility to clean the gas from water vapor, hydrogen sulfide and carbon dioxide and to augment the calorific value of the gas to the standard of Danish natural gas quality by propane addition and to ensure that the physical connection to network is available. There are thus a number of options available for shifting demarcation between biogas production and network operations. Short-term competitiveness of biogas would be strengthened most if purification and spiking the gas with propane and the connection to the network was imposed on network owners. In the longer term, it is not obvious that such a change would be beneficial for biogas as such a change could have long term adverse effects on the competitiveness of natural gas against other energy sources. The Energy Market Inspectorate has decided, therefore, not as desirable for the network owner to have responsibility for treatment or network connection. EI therefore considers that it is reasonable that the responsibility for propane spiking is imposed on the network operators. Network owner may then also able to refrain from propane spiking of the biogas and instead lower the heating value of the Danish natural gas - an attractive alternative if natural gas imports from other countries would be under consideration}
place = {Sweden}
year = {2010}
month = {Oct}
}