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Newsletter November 2024

English version

Welcome to the latest issue of the biogaspartner newsletter - an information service from the German Energy Agency (dena) covering all aspects of biomethane. This newsletter informs you, among other things, about our review of the biogaspartner annual conference, the takeover of bmp greengas by VNG and the amendment to the EU Monitoring Regulation with regard to biomethane imports from abroad.

Further information on the biogas partnership project and our partners can be found at www.biogaspartner.de

NEWS

Review biogaspartner annual conference

At our 16th biogaspartner annual conference, the role of biomethane in the future development of the gas grid infrastructure was analysed, the latest news on the trading and crediting of biomethane was highlighted and the sales prospects for biomethane in the electricity and heating sector were presented. Read the summary here and access the presentations.

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GENERATION

VNG officially takes over bmp greengas

Leipzig-based gas trader VNG Handel & Vertrieb GmbH has officially confirmed the takeover of biomethane trader bmp greengas GmbH from parent company EnBW. Despite the insolvency of bmp greengas in 2023, the biomethane portfolio, existing contracts and staff at the Munich site will be retained, with bmp greengas now operating as an independent subsidiary of VNG. The acquisition supports VNG's goal of expanding its green gas business in line with EU plans to increase biomethane production by 2030.

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Eggersmann Group and BETONT plan KOMPOTEC biomethane production plant

With the laying of the foundation stone for the KOMPOTEC energy plant in Nieheim, the Eggersmann Group has launched a pioneering project that fully utilises organic waste and offers innovative solutions for CO₂ reduction. The plant will produce 600 cubic metres of biomethane per hour, 22,000 tonnes of compost and 12,000 tonnes of liquid fertiliser. In addition, the CO₂ will be used to produce dry ice and stored in recycled building materials to avoid 20,000 tonnes of emissions every year. The energy plant is set to set new standards in sustainable energy and material cycle management.

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Südzucker plans to build a biomethane plant 

Südzucker AG is planning to build a new biomethane plant on a 15-hectare site in the Zeitz Chemical and Industrial Park in Saxony-Anhalt. Südzucker already operates several plants in Zeitz: a sugar factory, a wheat starch factory, a biocarbonic plant and a bioethanol factory. Work is currently underway on the construction of a bio-ethyl acetate factory. The aim is to achieve CO2-free production in the future, for which Südzucker has received a climate protection agreement from the Federal Ministry of Economics. The expansion of the site is seen as a signal for sustainable innovation in the chemical and energy sector and strengthens the regional economy.

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Insolvency proceedings also for Landwärme's service subsidiary

Landwärme Service GmbH (LWS), a subsidiary of the insolvent biomethane supplier Landwärme GmbH, has filed for insolvency in self-administration due to its weakened business basis. The market area manager Trading Hub Europe had previously cancelled the biogas balancing groups of LWS, and the management of these groups has since been handed over to other suppliers. The aim of the proceedings is to examine continuation options, including the possible integration of LWS into the parent company.

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MOBILITY

Billions in losses due to certificate fraud in the biogas industry

The scandal surrounding allegedly falsified CO₂ certificates and falsely declared biodiesel from China has caused prices for GHG quotas to fall dramatically, posing major financial challenges for the biogas industry. According to industry associations, the losses amount to billions and the first insolvencies, such as that of Landwärme GmbH, have already occurred. The fall in prices and the shaken confidence of the banks are jeopardising existing projects and hindering new investments. Lower Saxony's Environment Minister Christian Meyer is calling for tariff changes, increased utilisation of residual materials and greater integration of biogas into municipal heating planning in order to secure the future of the industry and contribute to the energy transition. In addition, biogas plant operators are increasingly looking for alternatives such as biomethane production.

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First place for Energy Farmer of the Year goes to concept for fuel production from manure

Christoph Terhorst from Walchum was honoured as Energy Farmer of the Year at the CERES AWARD 2024. On his farm of just five hectares, he successfully combines laying hen husbandry in accordance with Naturland guidelines with the production of biomethane from poultry manure, cattle manure and horse manure. His biogas plant, one of the first in Germany to feed directly into the natural gas grid, has been certified for the fuel market - with the humorous brand name ‘Sprit from Shit’. This innovative utilisation of manure and residual materials, combined with wind and solar energy, shows how even a small business can be successful in the energy market.

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Cooperation agreement between Remondis and Agravis on the use of bio-CNG in the fleet of waste disposal vehicles

Agravis Raiffeisen Tankstellen GmbH and Remondis GmbH & Co. KG have agreed a long-term cooperation to promote bio-CNG as an alternative fuel for heavy goods transport. In Münster, Agravis will build a new compressor station and a CNG filling station especially for lorries by spring 2025, which will be able to supply over 20 CNG vehicles from Remondis as well as other environmentally friendly waste disposal vehicles in the future. Bio-CNG is already being produced by an Agravis subsidiary and will also be produced in a new plant in Velen, in which Remondis has a stake, from 2025. The collaboration is initially scheduled to run until 2033 and could be extended to other locations.

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HEAT

MVV plans to decommission the natural gas distribution grids by 2035

The energy company MVV is planning to shut down the natural gas distribution network in Mannheim by 2035, meaning that gas heating systems in the city will no longer be able to be operated from this date. The reasons for the decision include the climate targets of the EU, federal government and local authorities as well as economic considerations, as the demand for natural gas will fall due to rising prices. As an alternative, district heating and heat pumps will be used for heating. Biomethane is not seen as an alternative due to its low availability and hydrogen due to its high costs.

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INTERNATIONAL

EU | European Emissions Trading Scheme 1: Amendment of the EU Monitoring Regulation with regard to section b) - Biomethane imports from abroad 

Biomethane from abroad must fulfil the sustainability criteria of the Renewable Energy Directive (RED) for energy use and be documented with proof from the Nabisy database. What is new is that prior promotion of sustainable biomethane abroad no longer prevents it from being recognised in emissions trading, as the EU Commission has clarified that subsidies in emissions trading do not constitute financial support within the meaning of the RED. This eliminates the risk of unauthorised double funding and facilitates reporting in emissions trading.

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JP | Elektrochaea takes over Japanese market for e-methane

Electrochaea GmbH has entered into a cooperation agreement with Hitachi, Ltd. to bring its power-to-gas technology for the production of sustainable methane to the Japanese market. Under the five-year licence agreement, a biomethanation plant is to be built in Japan by 2027, with the option of further projects. Electrochaea's technology uses methanogenic archaea to produce climate-neutral, grid-quality e-methane from hydrogen and CO₂, which can replace fossil natural gas. This partnership supports Japan's climate targets by efficiently storing surplus renewable energy and significantly reducing greenhouse gas emissions by 2050.R

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IT | Two new biomethane plants planned in Rome

The South Tyrolean companies Atzwanger AG and Ladurner GmbH have been awarded the contract for two biowaste fermentation plants in Rome, which are due to go into operation by 2026. The plants in Cesano (Atzwanger) and Casal Selce (Ladurner) each have a capacity of 100,000 tonnes of organic waste per year and will produce biomethane and compost fertiliser. The biomethane will be used to power waste collection vehicles, while both projects will utilise proven technologies that have already been successfully implemented in Italy.

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