Germany a failure in biogas from the EU's point of view

09/28/023
Source: Energy & Management Powernews

The installed capacity of biogas plants has grown by 0.8 percent in 2022. The industry association speaks of a muddled situation, but also sees positive developments.

"Stagnation instead of expansion" - this résumé draws the Biogas Association on development of the industry in the past year. "In times of an energy crisis and the much worse climate crisis, biogas production in Germany is not growing," said association President Horst Seide at the presentation of the figures for 2022. And also for the current year, skid marks are emerging.

According to the association's survey, installed electrical capacity rose by 49 MW compared to 2021 to 5,895 megawatts (MW) - an increase of 0.8 percent. The number of biogas plants was 9,876, compared to 9,799 in the previous year. 107 plants were built, while 30 were shut down. Electricity production amounted to 33.54 billion kWh. Biogas and biomethane production reached 91.27 billion kWh. This corresponds, as the association emphasized, arithmetically just under 11 percent of the natural gas consumption in the past year. It put the industry's sales at 13.2 billion euros.

For this year one expects a plus with the installed electrical achievement of only 0.17 per cent. According to the forecast, the figure will be 5,905 MW at the end of 2023, meaning that the number of plants will increase by just six on balance. Biogas and biomethane production is expected to reach 92.21 billion kWh. The industry turnover decreases by 100 million euros, the number of employees drops by 2,000 to 50,000.

Export world champion Germany

As little as the industry advances in the country - across the border, business is booming: "Biogas technology made in Germany is booming," reported association managing director Manuel Maciejczyk. He cited export sales of 2.5 billion euros. "We currently have over 120 countries to which our technology goes - we are the world market leader." For that to remain so, he said, a functioning domestic market is needed, and for that further political measures are needed.

Horst Seide spoke of a politically "muddled situation" from which it would be necessary to get out quickly. Meanwhile, the prospects for biogas in Berlin have apparently improved. "The positive message is: "One talks again with us and now also quite purposefully", said Heide about the new contact person of the association in the Federal Ministry of Economics.

The association president referred to goals of the European Union, which provide "that Germany also increases production, that we raise the free potentials until 2030." Germany is there a failure from the point of view of the EU. The German share of energy production from biogas and biomethane in total EU production is declining, he said, and in 2023 it will be 49 percent. The German government, he said, has hardly been involved in the discussion process on biomethane and biogas at the EU level.

Criticism of power plant strategy

The association believes it is possible to double biogas production without growing more energy crops. "Manure, biowaste and agricultural byproducts still hold a lot of energy potential," Seide said.

Seide cited permitting practices as a key reason why expansion in this country has been slow: "For many operators, the legal situation is enormously difficult." Construction projects would become considerably more expensive as a result.

In addition, many entrepreneurs would still have the discussion about the revenue skimming for the financing of the electricity price brake in the memory. And, "The willingness to invest is generally not high in the industry."

Investments are strongly opposed to the power plant strategy in Germany, Heide criticized. There is a focus on hydrogen-capable large-scale power plants, he said. Says Seide, "These plants start with natural gas." If one were to invest in a biogas plant for electricity production now, it would go into operation in three or four years, he said. "Two, three years later come these hydrogen-ready power plants, and they focus on the same market. We all know that we can't compete with green gas with a gray one."

Hopeful biomethane

Heide located a ray of hope in biomethane generation. Since 2021, he said, part of the industry "wants to get into the gas grid." The annual increase in such plants, which process raw biogas to natural gas quality and feed it into the gas grid, has risen from four to six, he said. According to preliminary figures from the Agency for Renewable Resources (FNR), Germany had reached 220 biomethane plants in 2022. Seide said, "In 2024 and 2025, we will see more new plants, so things are moving forward."

In a comparison of the German states, Bavaria was in first place in 2022 with a total of 2,707 biogas plants. The installed electrical capacity was 1,458 MW. This was followed by Lower Saxony (1,691 plants, 1,360 MW). In third place in terms of the number of plants was North Rhine-Westphalia with 1,136 (475 MW). According to the survey, seven new biogas plants with 4 MW of electrical output went into operation in NRW. "With these figures, it is forbidden to speak of new construction," commented Christian Mildenberger, managing director of the NRW Renewable Energy Association (LEE).

In Lower Saxony, 18 new biogas plants came online, of which two plants are outside the segment of small-scale manure plants up to 150 kW. Altogether 9 MW were added, communicates the LEE Lower Saxony/Bremen. Lower Saxony had been so far front runner in the development of the flexible balance energy, this trend is now broken.

Author: Manfred Fischer