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Sectoral Symbiosis - a Renewable Transport Initiative based on farm-derived biomethane resources.

Strategy for optimizing the presence of biomethane in Irish renewable energy matrix, with particular emphasis on maximal representation in transport for biomethane derived from livestock slurries.

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on 2 June 2014

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Transcript of Sectoral Symbiosis - a Renewable Transport Initiative based on farm-derived biomethane resources.

Farmgas Community Partners Ltd
".......it is of extreme national importance that the environmental and climate change issues attached to Ireland's dairy and livestock industry are tackled in the most effective way possible..."
"....and because the great bulk of road transport is concerned with food distribution.... by far the best way is the capture of biogas from stored slurry, and its upgrading to grid standard...."
.... in an economy that is unlikely to be in a position to offer adequate incentive measures ...
...and by overturning the prevailing "waste management/price" directed policy in favour of an enlightened "environment protection/value" led code of practise....
....some surprising and rather pleasing
extra benefits will acrue .....
Non-technological barriers are the main problem
2. Absence of adequate, or any, financial supports
These difficulties can be overcome by taking a different perspective - a little lateral thinking - giving another viewpoint
1. Competition from subsidized urban, organic waste feedstock
For starters, look what happens to slurry based bio/CNG when BG implement their savvy support measures....
Closing the deal prezi template. A photo realistic theme, perfect for presenting your business idea. Complete with a great handshake-visual at the end.
Empowering People - Unlocking Potential
This means that an affirmative action strategy must be instituted, to ensure exclusive access to the Transport sector for biomethane deriving from livestock slurry.

At the same time, biomethane that is derived from sources attracting a waste management subsidy must be directed to the Heat sector, where it will provide a price competitive stream.
"...large scale introduction of a bio/CNG blend to road transport .....basis of an integrated renewable transport and sustainable agriculture strategy..."
.... an ordinance instrument or, in other words - a regulatory structure - must replace the subsidy mechanism that is available in other domains ...
This requires a reordering - placing an emphasis on value, rather than price. In particular, it means a different way of looking at fossil NG as against biomethane.
And, in the same value/price context, this reorienting demands that the significance of the source of the biomethane is examined.
Rule #2
Primacy of the biomethane component in
the bio/CNG blend must be asserted and support
measures, consistent with this approach, must be put in place.
As a consequence, the NG supplier must be required to supply NG, the carrier fuel, at the premium tariff rate - the price paid by the top volume purchasers.

The biomethane producer must take charge of all aspects of the bio/CNG transport fuel business. This includes the necessary autonomy to establish a viable, and sustainable, on-farm biomethane business. Specifically included is the license to set the forecourt price for the company's bio/CNG blend.
Rule #1
Environmental, rather than waste management concerns, must direct policy which will proceed under the aegis of the new national value-before-price strategy.
*The Green Gas Certification scheme incorporates an identification system that will enable completion of this task.
**The comparison chart issued by the SEAI indicates the range of NG prices. Presumably, the Electricity sector avails of the best prices, and a similar arrangement should be installed for the burgeoning gas-in-transport sector.
Off-the-cuff estimates based on
(i) the popularly proposed blend of 9 parts fossil NG to 1 part slurry derived biomethane.
(ii) SEAI, Jan '14 fuel price summary.
"The Cost of Producing Biomethane"
On the filling station forecourt, the revised cost of the composite bio/CNG fuel costs now compute as follows:
0.9x3.64=3.276 c/kWh
Add cost of slurry biomethane component:
0.1x12.3=1.230 c/kWh
NG Band 4 Price:
4.50 c/kWh
or 45 c/m3 or
per litre eq
Even allowing for additional costs such as;
(i) Escalation in biomethane production costs since 2010
(ii) Conveyance costs from farm to grid
(iv) Sufficient profit margin to ensure and encourage investment
This strategy delivers a price competitive, clean, renewable fuel to the Transport sector ...
..and makes effective contribution to sustainability in Ireland's most important farming industries
On the other hand, if complacent acceptance of the proposed dysfunctional model is allowed to prevail ...
...ie waste to transport with fossil NG dominant, the figures follow the following pattern:
0.9 x5.77=5.193 c/kWh
NG Band 1 Price
Add Cost of Waste Biomethane Component:
0.1x1.40=0.140 c/kWh
5.30 c/kWh
or 53 c/m3 or
per litre eq
Off-the-cuff estimates based on:
(i) The popularly proposed blend of 9 parts fossil
NG to 1 part waste derived biomethane.
(ii)SEAI, Jan'14 fuel price summary.
"The Cost of Producing Biomethane"
In summary:

Biomethane costs for wastemanagement based model:
5.3 c/kWh
Biomethane costs for environmental protection based model:
4.5 c/kWh
And this happy situation only emerges following BG's agreement to extend the same level of support to Slurry based Biomethane in Transport...
...that it currently does for its major customers in the Electricity sector!!
For the environment, the transport sector and agriculture, the scale of the consequential benefits is obvious.
These include:
Full compliance with RES-T obligations from indigenous sources.
Significant employment in the rural economy.
Sustainability in the major traditional farming industries.
Introduction of a major carbon sequestration means
Renewable energy production without Land Use Concerns.
Major reduction in GHG emissions from Agriculture and Transport integration.
Health co-benefits from cleaner fuel.
Fuel import substitution assisting national balance of payments.
Improved air and water.
Much more.
But, the benefits of the slurry based model, that
are particular to BG, are worth examination:
Full transcript