The following information has been gathered as part of the CONCERTO Premium policy research.
Benefits of CONCERTO:
Key benefits:
Måbjerg BioEnergy is a bioenergy plant of unprecedented dimensions. It results in reduced pollutions from domestic animal production - this enables increased meat production in Måbjerg. In fact, Måbjerg BioEnergy (MBE) started as an environmental project, predominantly designed to limit the leaching of nitrogen and phosphates into of nutrients to water courses and fjords. A second goal was to help maintain jobs in the farming community and related businesses). The biogas scheme provided an alternative strategy for dealing with manure and hence offered an option for increasing livestock and consequently income for farmers. Furthermore, the project was created to utilize the biomass resources to support the community's energy balance and improve the climate. Annually 650,000 tons of biomass is transformed into energy (heat and power). Måbjerg BioEnergy has two socio-economic upsides: Energy production reduces cost and the farming community is able to maintain current production level while polluting less. Over 20 years the socioeconomic benefit is estimated at DKK 1 billion.
Skill development:
Workshops for farmers on energy management were held.
Barriers encountered:
Legal barriers:
The Danish CONCERTO community of Måbjerg faced significant regulatory problems with the Danish Waste tax during the creation of the Måbjerg BioEnergy Plant concept. This tax was introduced in 1985 to reduce the quantity of waste diverted to landfill and incineration in Denmark and increase recycling. As in the BioEnergy Plant, incineration of fiber fraction is included, farmers had to choose between reducing the amount of animal waste or paying the tax. The project was hampered by Unclear national and European framework and administrative barriers at national and EU level for the after treatment of the digested manure or insufficient financial incentives for the implementation of the project. Furthermore, a comprehensive process for obtaining all necessary permissions from authorities was the main difficulties encountered by Måbjerg. Administrative barriers caused from unclear national and European framework legislation due to tax issues regarding combustion of fibred fragment from manure and electricity tariffs.
Administrative barriers:
Time consuming cooperative organization posed a barrrier: Despite overcoming issues with legislation, Måbjerg is still fighting with local authority procedures. Farmers should apply to local authorities for environmental approval of any changes on the farm, including establishment of tanks for storing of the raw materials (organic waste). The process of authorisation by the local authority is time consuming.
Technical barriers:
Delays happened due to the harsh winter 2010/2011. However, they have been recovered later.;
Economic barriers:
In Denmark there were no feed-in tariffs for the production of electricity from renewable energy sources at the time of the Måbjerg CONCERTO project development. The implementation of Måbjerg BioEnergy has relied on a governmental decision on tariffs for selling biogas and biogas generated electricity. Negotiations with the Danish Government gave a positive result. In February 2008 the Danish Government and the Parliament entered into force a new Energy Political Agreement which gives new incentives regarding biogas. The Government guarantees a 60% regulation of this new, inflation linked, tariff.
Social barriers:
Some people worried about the plant and its possible effects on the local environment. (e.g. bad odours).
Success factors identified:
Technical Success Factors:
Implementation of an efficient monitoring system proved to be important - it can still be improved further with the help of the scientific council. Manure transport by pipelines reduces odor, reduces truck movements; furthermore a boiler which can incinerate the fiber fraction of digested manure (reduces the amount of nitrogen and phosphor).
Economic success factors:
The Government provided a new energy policy instrument regarding biogas. This political decision on tariffs for selling biogas and biogas which generates electricity has been indispensable, providing vital support and influencing the implementation of the CONCERTO project in general and the Måbjerg BioEnergy plant in particular.
Social success factors:
The project is so successful, despite all the barriers and delays encountered, because the right stakeholders were actively involved throughout the project’s lifecycle.
Business models used:
Funding Schemes combined CONCERTO + Premium and a fixed feed-in tariff for selling biogas generated electricity. This is sold to the grid with the feed-in tariff (this has been10 EUR cent – increased to 1.15 cent for all biogas plants) decision by parliament, delays were due to low subsidies, as it looked financially unattractive (not feasible).
The municipal utility was involved. In order to strengthen the organization behind the Måbjerg BioEnergy Plant, a newly formed company, Måbjerg BioEnergy Drift A/S (MBE Drift A/S), was established in 2009. This company is owned by Vestforsyning Varme A/S and Struerforsyning Varme A/S (these are local utilities in which the municipality is a stakeholder). MBE Drift A/S has entered into agreements on the purchase of manure and return of the wet fraction with farmers, organized in Måbjerg BioEnergy Suppliers. Måbjerg BioEnergy is basically constructed as a (central) heating supply project with a "neutral" financial goal which means that any profit or loss will affect the consumer price directly. This principle has made it possible for us to obtain a public backing of the funding which made it possible to raise money at very low interest.
Legacy – follow-on projects:
In the coming months the Måbjerg-team will continue to work with the connections that were made at Nordic Biogas Conference, and continue to pursue the goal of making their knowledge and expertise commercially available to the industry). There are now more and more biogas plants. Energy Drift formed Måbjerg consultant to spread knowledge. Based on Måbjerg, a new project is coming up which tries to upgrade bioethanol to natural gas quality.
Legacy – Policy Developments:
Development of special feed in tariffs for bioenergy .