Support mechanisms for biogas production

Support mechanisms for biogas production

1. 
   Green power
   

The producer of electricity from renewable energy sources can apply for Green Power Certificates (GPC). Per MWh produced from renewable sources (f.i. biogas), the producer will obtain 1 GPC. This is kept on an internet-based software platform. The producer can (virtually) trade these certificates of hand them in to fulfil his obligations (electricity are obliged to provide a certain percentage of their supplied electricity to the final consumers from the previous year from renewable energy). GPC certificates can be traded freely so their value is determined by the market. There is nevertheless a minimum price. For GPC from organic-biological matter this is 90€, and this is guaranteed until 10 years after commissioning.

2. 
   Combined heat and power (CHP)
   

3. 
   Investment
   

• 
  Ecology premium
  
• 
  Increased investment deduction
  
• 
  Support to demonstration projects for energy technologies
  
• 
  Growth premium
  
• 
  VLIF (Flemish Agricultural Investment Funds) support
  

4. 
   CO₂ bonus
   

The Flemish government wants to stimulate the use of these flue gasses for CO2-fertilization and has come up with a fiscal stimulus. Whenever a CHP is used for the production of CO2, the measures quantity of produced and used heat is increased by 10% for the calculation of heat savings.

5. 
   Green heat
   

6. 
   Green gas
   

According to Valbiom, Biogas production in the Walloon region (Belgium), 2007, some incentives may help stakeholders for biogas projects:

• 
  “Biomethanisation facilitator” who ensures the promotion of biogas production and utilization, negotiates with administrative and political authorities, carries out a prefeasibility study free of charge, informs stakeholders about subsidies, grant, licences or permits, calculates number of Green Certificates to be obtained, estimates the potential resources…;
  
• 
  Different types of subsidies: FIA, FEADER, for cooperative of farmers/ private companies…;
  
• 
  Subsidies for feasibility study;
  
• 
  Period for guaranteed value of Green Certificates has been extended to 15 years for biogas project.
  

1. 
   Aid(Subsidies) for economic development: grants for investments in a biogas plant located in the Walloon Region (grants from the Ministry of the Walloon Region- General Direction of Economy & Employment)
   

• 
  Individual
  
• 
  legal entity : small or medium Firm or company established in Wallonia
  
  • 
    small company: < 50 people employed, turnover < 7 million €
    
  • 
    medium company: <250 people employed, turnover < 27 million €
    

A grant of maximum 15% of investment programme (specific for the production of renewal energy). The amounts of the aid are adjusted according the size of the company and according the location of the plant site (economic activity zone or outside activity zone)

Conditions:

• 
  eligible investments: land, buildings, new equipment, purchase of licences or patents
  
• 
  minimum sum to invest:
  
  • 
    4,400 € (for a family firm (company) < than 21 people employed)
    
  • 
    125,000 € (for a small company employing < than 50 people)
    
  • 
    250,000 € (employing between 50 and 100 people)
    
  • 
    375,000 € (employing between 100 and 150 people)
    
  • 
    500 000 € (employing between 150 and 250 people)
    
• 
  a minimum of 25% of the investment have to be made by the company applying for the grant
  

2. 
   Fiscal aids (tax incentives)
   
   1. 
      Tax exemption on withholdings on real estates
      

2. 
   Possibilities for paying bigger capital allowances (rapid reimbursement) during 3 successive years.
   

3. 
   Aid for consultancy
   

• 
  consultant must be registered (authorized) by the Walloon Region
  
• 
  Physical or legal person based in the Walloon Region (exception for non-profit making association)
  

Amount of the aid: maximum 75% of consultant fees (with a maximum limit of 12,500€ and consultant fees of maximum 620€ per day)

Conditions:

• 
  support for pre-feasibility study in order to analyse general situation and the relevance of such a project
  
• 
  support for technical advise
  
• 
  not applicable for an audit
  

4. 
   Aids to farming sector in the case of the installation of a biogas plant in the Walloon Region (Agricultural Investment Fund)
   

• 
  Pyhsical or legal person operating in that agricultural activities (crop production, animal breeding). The applicant must be established (located) in the Walloon Region.
  
• 
  a cooperative having activity of processing and selling agricultural products
  

• 
  interest-rate subsidies: interest rate on investment amounts to 1% (with a maximum rate of 5%)
  
• 
  Public guarantee for reimbursement on capital investment or interest. (the total guarantee cannot exceed 75% of the capital borrowed)
  
• 
  Grant for capital if the farmer does not apply for a loan.
  

• 
  minimum amount of the loans: 6,197.4 €
  

5. 
   Subsidies from the Walloon Region to conduct a study of a project for the production & use of energy from wet biomass
   

Green Certificates mechanism for green electricity production also works: in order to finance additional cost of green electricity production and to ensure a definite quota of green electricity produced, transferable certificates (GC) are issued to producers for a number of kWh corresponding to a MWh divided by the CO2 saving rate. GC are market based instruments with a minimum price guaranteed at 65€/GC.

Now for biogas units, entitlement to the issuance of green certificates is guaranteed for 15 years as of the date of notification of acceptance by the Walloon Commission for Energy.

4. Impact Categories

1. NPK

2. Accumulated energy demand

3. Greenhouse Gas Emissions

4. Economics

5. Employment

5. Conclusion

Belgium is a federal state divided into two major regions (Flanders and the Walloon region) which are different from each other in terms of agricultural activities and legislation. Similar to many industrialised regions all over the world Belgium is characterized by intensive animal farming and reducing acres of arable land. Consequently, the manure production originating from such intensive animal farming exceeds in many cases the regional capacity for use as a fertilizer. This puts a heavy burden on the environment and has specifically in Flanders lead to overfertilisation and eutrofication of ground – and surface water. Subsequently, Belgium was in 2005 condemned by the European Court of Justice for breaches of the Nitrate Directive. In response the different regional governments ordered different measures aimed at a better nutrient management which should result in improved water quality and a reduced N and P soil surplus. In the last years improvements have been noticed for those two aspects, though continuous caution is still required. Better coordination and harmonisation of Flemish and Walloon manure policies (ex. Manure transport) could mean an important improvement for the current situation, though remains an important challenge at this point of time.

The introduction of obliged excess manure processing in Flanders has been an important driver in terms of nutrient management and has lead to the establishment of a nutrient processing industry in Flanders including amongst others separation units, biological treatment and anaerobic (co)digestion. Although technically a lot of progress has been made in anaerobic digestion, the full development of biodigestion is currently still hampered by unclarities and unstability in the legislative and supportive framework. Furthermore, there is a need for policy revision on digestate and its derivatives at the regional, national and European level to further develop biodigestion. The latter is highly necessary as it was stated that anaerobic digestion is a crucial factor in our attempts to achieve the Belgian 2020 guidelines. Finally, we also expect nutrient recuperation to become an important driver in future nutrient management and further sustainable development of anaerobic digestion.

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