Abstract
This paper studies biogas value chains and the effect from various economic support instruments on these value chains. This is done by comparing two European countries that are quite similar in size, income levels and environmental ambitions, but which are using very different instruments to support biogas development. Norway provides investment support combined with support for inputs, while Danish support is focused on the biogas output side. The aim of the comparison is to clarify whether the policies in use have affected the design of biogas value chains such that they are determined by national support and are not viable under alternative support structures. Based on the findings, possible modifications of national support and other biogas regulation policy are suggested. The comparative study assesses the costs and income of an exemplary Norwegian value chain and a Danish value chain. The cases are evaluated by assessing the economic consequences of implementing the Danish instruments for a Norwegian value chain and vice versa. We find that structural and regulatory conditions have a large impact on the configuration of the value chains. The Danish value chain in Norwegian settings results in a large deficit (− 12.7€/tonne), while it was profitable in Denmark (+ 4.9€/tonne). The same is observed for the Norwegian value chain, but to a lesser extent. The policy implication of end-use support in Denmark is large-scale plants, maximising the output through co-digestion of manure and high-yield substrates, while avoiding losses. Investment support in Norway has increased biogas production from organic waste with less emphasis on efficient gas usage, while input support regarding manure has led to an increase in the usage of manure as substrate.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Notes
Examples of this can be found in Lukehurst et al. (2010); however, it should be noticed that this is not always the case.
If the power producer also is supplied with other fuels such as natural gas, will the plant receive a feed-in premium for the electricity based on biogas.
References
Brudermann, T., Mitterhuber, C., & Posch, A. (2015). Agricultural biogas plants: A systematic analysis of strengths, weaknesses, opportunities and threats. Energy Policy, 76, 107–111.
Carrosio, G. (2013). Energy production from biogas in the Italian countryside: Policies and organizational models. Energy Policy, 63, 3–9. https://doi.org/10.1016/j.enpol.2013.08.072.
Clercq, D. De, Wen, Z., Gottfried, O., Schmidt, F., & Fei, F. (2017). A review of global strategies promoting the conversion of food waste to bioenergy via anaerobic digestion., 79(March 2016), 204–221.
Danish Energy Agency. (2017a). Energistyrelsens hjemmeside om Biobrændstoffer (DEA homepage on biofuels). https://ens.dk/ansvarsomraader/transport/biobraendstoffer
Danish Energy Agency. (2017b). Confidential data on biogas production.
Danish Energy Agency. (2017c). Basisfremskrivning 2017 (Danish energy projection 2017). https://ens.dk/sites/ens.dk/files/Basisfremskrivning/baggrundsrapport_til_bf_2017.pdf%0Ahttps://ens.dk/sites/ens.dk/files/Forsyning/bf2017_hovedpublikation_final_12_mar.pdf
Danish Energy Agency. (2017d). Støtte til biogas (support for biogas). 2017. https://ens.dk/ansvarsomraader/bioenergi/stoette-til-biogas
Danish Government. (2009a). Aftale om Grøn Vaekst (Green growth agreement).
Danish Government. (2009b). LOV nr 468 af 12/06/2009, Lov om bæredygtige biobrændstoffer (act on sustainable biofuels). Denmark. https://www.retsinformation.dk/Forms/r0710.aspx?id=125469
Danish Government. (2012). Energiaftalen 2012 (Energy agreement_2012).
Danish Government. (2016). LOV nr 1754 af 27/12/2016 lovændring til biobrændstofloven (act on changes in the act on biofuels).
Danish Government. (2017). Husdyrsgødningsbekendtgørelsen (regulation on manure usage in agriculture)., Pub. L. No. BEK nr 374 af 19/04/2017.
Danish Ministry of Climate. (2013). Regeringens Klimaplan - på vej mod et samfund uden drivhusgasser (the Governmental climate plan). The homepage of the ministry.
Danish Ministry of Environment. (2013). Fakta om Ressourcestrategien (Facts on the Danish Ressource strategy).
Danish Ministry of Environment. (2016). Kortlægning af kommunale affaldsordninger for husholdningsaffald (Mapping of municipal waste collection schemes for household waste). http://genanvend.mst.dk/projekter/projektbibliotek/2015/kortlaegning-af-kommunale-affaldsordninger-for-husholdningsaffald/
Delzeit, R., & Kellner, U. (2013). The impact of plant size and location on profitability of biogas plants in Germany under consideration of processing digestates. Biomass and Bioenergy, 52, 43–53.
Dubgaard, A., & Jacobsen, B. H. (2013). Analyse af omkostningseffektiviteten ved drivhusgasreducerende tiltag i relation til landbruget (analysis of cost efficiency of carbon reducing policies in agriculture).
Energinet.dk. (2017). Energinet.dks hjemmeside støtte til biogas (Danish TSO support for biogas). https://www.energinet.dk/Sol-vind-og-biogas/Biogas
Energistyrelsen. (2015). Bekendtgørelse om bæredygtig produktion af biogas (BEK nr 301 af 25/03/2015) (statue on sustainable biogas production). https://www.retsinformation.dk/pdfPrint.aspx?id=168945
EurObserv’ER. (2014). Biogas Barometer. https://www.eurobserv-er.org/biogas-barometer-2014/
European Comission. (2017). Circular economy strategy—Environment—European Commission. http://ec.europa.eu/environment/circular-economy/. Accessed 7 Aug 2017.
European Commission. (2014). Regional bioeconomy profile Central Denmark (DK) Structure of the Bioeconomy Institutional System.
European Parliament. (2009a). Brændstofkvalitetsdirektivet (European Directive on fuels_DIR2009/30/EF).
European Parliament. (2009b). VE direktivet (European Directive on renewables_DIR2009/28/EF)., Den Europæiske Unions Tidende 16–62.
Eurostat. (2016). Renewable energy statistics. http://ec.europa.eu/eurostat/statistics-explained/index.php/Renewable_energy_statistics
Eurostat. (2017). Electricity price statistics - Statistics Explained. http://ec.europa.eu/eurostat/statistics-explained/index.php/Electricity_price_statistics. Accessed 7 Aug 2017.
Eurostat. (2018). Energy Data. http://ec.europa.eu/eurostat/data/database
Eurostat - Statistics Explained. (2018). Table 5-Share of renewable energy sources in transport 2004-2016. http://ec.europa.eu/eurostat/statistics-explained/index.php?title=File:Table_5-Share_of_renewable_energy_sources_in_transport_2004-2016.png
Fevolden, A. M., & Klitkou, A. (2017). A fuel too far? Technology, innovation, and transition in failed biofuel development in Norway. Energy Research and Social Science, 23, 125–135. https://doi.org/10.1016/j.erss.2016.10.010.
FOR-2004-06-01-930. (2004). Forskrift om gjenvinning og behandling av avfall (avfallsforskriften) - National waste regulation. https://lovdata.no/dokument/SF/forskrift/2004-06-01-930. Accessed 8 June 2017
FOR-2014-12-19-1815. (2015). Forskrift om tilskudd for levering av husdyrgjødsel til biogassanlegg. (Regulation on supply of manure to biogas plants).
FOR-2016-09-14-1064. (2016). Forskrift om animalske biprodukter som ikke er beregnet på konsum (animaliebiproduktforskriften). (Regulation on animal coproducts.). https://lovdata.no/dokument/SF/forskrift/2016-09-14-1064?q=biprodukt
Grant, W. D., & Lawrence, T. M. (2014). A simplified method for the design and sizing of anaerobic digestion systems for smaller farms. Environment, Development and Sustainability, 16(2), 345–360. https://doi.org/10.1007/s10668-013-9480-y.
Hanssen, O. J., Skogesal, O., Møller, H., Vinju, E., & Syversen, F. (2013). Kunnskap om matsvinn fra norske husholdninger. Rapport til miljødirektoratet. Østfoldforskning AS. OR, 38, 13.
Harder, B. (2016). Vi er midt i biogassens største vækstår (We are in the middle of the highest growth of biogas), pp. 2016–2017.
Hiranandani, V. (2010). Sustainable agriculture in Canada and Cuba: A comparison. Environment, Development and Sustainability, 12(5), 763–775. https://doi.org/10.1007/s10668-009-9223-2.
Hjort-Gregersen, K., Blandford, D., & Gooch, C. A. (2011). Biogas from farm-based biomass sources developments in Europe and the US. EuroChoices, 10(3), 18–23. https://doi.org/10.1111/j.1746-692X.2011.00211.x.
Huttunen, S., Kivimaa, P., & Virkamäki, V. (2014a). The need for policy coherence to trigger a transition to biogas production. Environmental Innovation and Societal Transitions, 12, 14–30.
Huttunen, S., Manninen, K., & Leskinen, P. (2014b). Combining biogas LCA reviews with stakeholder interviews to analyse life cycle impacts at a practical level. Journal of Cleaner Production, 80, 5–16. https://doi.org/10.1016/j.jclepro.2014.05.081.
IEA Bioenergy. (2014). Task37 Biogas Country Overview (CountryReports).
Jacobsen, B. H. (2014). The economics of biogas in Denmark. International Journal of Agricultural Management, 3(3), 135–144. https://doi.org/10.5836/ijam/2014-03-02.
Jacobsen, B. H., Laugesen, F. M., Dubgaard, A., & Bojesen, M. (2013). Biogasproduktion i Danmark – Vurderinger af drifts- og samfundsøkonomi, in English: “Biogas production in Denmark - Assessments of private and socio economy.” Institut for fødevarer- og ressource økonomi. IFRO Rapport 220, Fredriksberg.
Jensen, I. G., Münster, M., & Pisinger, D. (2017). Optimizing the Supply Chain of a Biogas Plant from Farmers to Energy Consumers Including Mass and Energy Losses. European Journal of Operational Research, In Press, 1–33.
Jørgensen, P. J. (2013). Praktisk anvendelse af dybstrøelse som substrat på biogasanlæg – kommende som eksisterende (Practical use of deep litter as substrate on biogas plants - future and existing). Planenergi.
Lånke, A. F., Berg, H. Ø., Melbye, A., Helland, L., & Solberg, F. E. (2016). Markedsrapport. Biogass i Oslofjord-regionen. (Market report. Biogas in the Oslofjord region.).
Lantz, M., Svensson, M., Björnsson, L., & Börjesson, P. (2007). The prospects for an expansion of biogas systems in Sweden—Incentives, barriers and potentials. Energy Policy, 35(3), 1830–1843.
Larsson, M., Grönkvist, S., & Alvfors, P. (2016). Upgraded biogas for transport in Sweden – effects of policy instruments on production, infrastructure deployment and vehicle sales. Journal of Cleaner Production, 112, 3774–3784. https://doi.org/10.1016/j.jclepro.2015.08.056.
Lukehurst, C., Frost, P., & Seadi, T. Al. (2010). Utilisation of digestate from biogas plants as biofertiliser. IEA Bioenergy. https://energiatalgud.ee/img_auth.php/4/46/IEA_Bioenergy._Utilisation_of_digestate_from_biogas_plants_as_biofertiliser._2010.pdf
Lybaek, R., Christensen, T. B., & Kjaer, T. (2013). Governing innovation for sustainable development in the Danish Biogas Sector: A historical overview and analysis of innovation. Sustainable Development, 21(3), 171–182.
Lyng, K. A., Stensgård, A. E., Hanssen, O. J., & Modahl, I. S. (2018). Relation between greenhouse gas emissions and economic profit for different configurations of biogas value chains: A case study on different levels of sector integration. Journal of Cleaner Production, 182, 737–745. https://doi.org/10.1016/j.jclepro.2018.02.126.
Måge, J. (2015). Status biogass in Norge 2015. Presentation held at bioseminar arranged by Waste management Norway, September 2015.
Martinsen, J. (Mepex). (2012). Økt utnyttelse av ressursene i våtorganisk avfall.
Miljøministeriet. (2006). Bekendtgørelse om anvendelse af affald til jordbrugsformål (Slambekendtgørelsen) (Statute on the usage of waste on soil). https://www.retsinformation.dk/Forms/R0710.aspx?id=13056
Ministry of Finance. (2016). Avgiftssatser 2017 (Fees in 2017). regjeringen.no. https://www.regjeringen.no/no/tema/okonomi-og-budsjett/skatter-og-avgifter/avgiftssatser-2017/id2514838/. Accessed 7 Aug 2017
Nedland, K. T., & Ohr, K. (2010). Utvikling av biogass i Norge. Forprosjekt. (Development of biogas in Norway.) Avfall Norge-Rapport nr 3/2010. Asplan Viak AS.
Norwegian Climate and Pollution Agency. (2013). Underlagsmateriale til tverrsektoriell biogass-strategi (Background report for the national biogas strategy).
Norwegian Ministry of Climate and Environment. (2014). National cross sectoral biogas strategy (Nasjonal tverrsektoriell biogasstrategi).
OECD. (2016). Price level indicators. Price level indices. https://data.oecd.org/price/price-level-indices.htm
Olsson, L., & Fallde, M. (2014). Waste(d) potential: a socio-technical analysis of biogas production and use in Sweden. Journal of Cleaner Production. https://doi.org/10.1016/j.jclepro.2014.02.015.
Poeschl, M., Ward, S., & Owende, P. (2010). Prospects for expanded utilization of biogas in Germany. Renewable and Sustainable Energy Reviews, 14(7), 1782–1797. https://doi.org/10.1016/J.RSER.2010.04.010.
Raadal, H. L., Schakenda, V., & Morken, J. (2008). Potensialstudie for Biogass i Norge. Study on the biogas potential in Norway. Østfoldforskning, OR 21.08.
Raven, R. P. J. M., & Gregersen, K. H. (2007). Biogas plants in Denmark: Successes and setbacks. Renewable and Sustainable Energy Reviews. https://doi.org/10.1016/j.rser.2004.12.002.
Shahzad, A., & Hanif, S. (2014). Techno-economic feasibility of biogas generation in Attari village, Ferozepur road, Lahore. Environment, Development and Sustainability. https://doi.org/10.1007/s10668-013-9506-5.
Skovsgaard, L., & Jacobsen, H. K. (2017). Economies of scale in biogas production and the significance of flexible regulation. Energy Policy, 101, 77–89. https://doi.org/10.1016/j.enpol.2016.11.021.
Skovsgaard, L., & Jensen, I. G. (2018). Recent trends in biogas value chains explained using cooperative game theory. Energy Economics, 74, 503–522. https://doi.org/10.1016/j.eneco.2018.06.021.
Statistics Denmark. (2017). BY2: FOLKETAL 1. JANUAR EFTER KOMMUNE m.m (population with regards to municipality). http://www.statistikbanken.dk/10021
Statistics Norway. (2016a). Production and consumption of energy, energy balance, 2015, preliminary figures.
Statistics Norway. (2016b). Production and consumption of energy, energy balance, 2014-2015, final figures.
Statistics Norway. (2017a). Norwegian waste statistics. Waste in Norway by treatment and material 2015. https://www.ssb.no/en/natur-og-miljo/statistikker/avfregno.
Statistics Norway. (2017b). Statistics on energy use for transport purposes in Norway. https://www.ssb.no/energi-og-industri/artikler-og-publikasjoner/energibruk-til-transportformal-i-norge?tabell=317436
The Norwegian Department of Agriculture and Food. (2009). St. meld. Nr. 39. (2008–2009) Klimautfordringene – landbruket en del av løsningen. White Paper, agricultural sector.
Walla, C., & Schneeberger, W. (2008). The optimal size for biogas plants. Biomass and Bioenergy, 32, 551–557. https://doi.org/10.1016/j.biombioe.2007.11.009.
Wirth, S., Markard, J., Truffer, B., & Rohracher, H. (2013). Informal institutions matter: Professional culture and the development of biogas technology. Environmental Innovation and Societal Transitions, 8, 20–41. https://doi.org/10.1016/j.eist.2013.06.002.
Acknowledgements
The authors acknowledge the financial support from two projects: The BioValueChain project funded by the Norwegian Research council through the EnergiX programme (Grant Number: 228821) and the project “Optimisation of value chains for biogas production in Denmark” (BioChain) funded by the Danish Council for Strategic Research (DSF) (Grant Number: 12-132631). The authors have the full and sole responsibility for the content of this publication.
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
Lyng, KA., Skovsgaard, L., Jacobsen, H.K. et al. The implications of economic instruments on biogas value chains: a case study comparison between Norway and Denmark. Environ Dev Sustain 22, 7125–7152 (2020). https://doi.org/10.1007/s10668-019-00463-9
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10668-019-00463-9