ERGaR European Renewable

Gas Registry

European Renewable Gas Registry to facilitate the cross-border

transfer of sustainable biomethane certificatesBiogas Convention, Biomethane Workshop 15/11/2018, Hanover

ERGARTHE ASSOCIATION

European Renewable Gas Registry

▪ Established on 28th of September 2016

▪ Aisbl – International non-profit organisation

▪ Contact

o Jeppe Bjerg, President, Energinet.dk

o Attila Kovacs, Secretary General

o Stefanie Königsberger, Assistant Secretary General

o Website www.ergar.org

▪ LinkedIn https://www.linkedin.com/company/ergar/

▪ Address Rue d’Arlon 63-65, 1040 Brussels

20 ERGaR Members ■ ERGaR Members are established biomethane registries and

major stakeholders of the European biomethane market.

■ ERGaR welcomes new members:national biomethane registries, national biogas associations,natural gas industry partners, gas TSOs and DSOs and other stakeholders active inthe European biogas and biomethane industries.

National Registry

& ERGaR Member

ERGaR Member

National Registry

ERGaR Vision and Mission

Vision

▪ Renewable gas will be available cross-border in an increasingly

integrated European market through the natural gas network reaching all

end customer segments.

Mission

▪ Building on national registries to establish an independent,

transparent and trustworthy documentation scheme for cross

border transfer and mass balancing of renewable gas injected into

the European natural gas network securing the exclusion of double sale

and double counting.

2016

Founding of ERGaR

Submission of the ERGaR RED scheme to theEuropean Commission

2017

2018 2019

Creation of the ERGaR hub & Recognition process of the RED Scheme

ERGaR Timeline and Achievements

20 members

A EUROPEAN

BIOMETHANE MARKET

▪ The general function of trade (securing supply-demand

balances in time and space) is relevant to biomethane too.

▪ International companies with environmental awareness

want to have renewable fuel supplies in every European

country they operate.

▪ Gaseous biofuel (biomethane) or natural gas/biomethane

blends – having excellent GHG characteristics – must be

made available to motorists all over Europe.

European Biomethane Market - Benefits

▪ Processing and utilising all organic waste is in the

common interest of the mankind – it should not be limited by

short-sighted local policies.

▪ Organic waste utilisation becomes possible even in countries

where otherwise the conditions are not suitable (governments

not supportive, local market undeveloped, project finance

difficult).

▪ New biomethane producing projects can be developed

with a higher chance of success if not limited to the domestic

market.

European Biomethane Market - Benefits

ERGaR RED Schemevoluntary scheme seeking

recognition by EC

ERGaR RED Scheme

■ ERGaR RED Scheme - biomethane specific voluntary scheme

established and operated by ERGaR aisbl

■ ERGaR RED seeks recognition as a

voluntary scheme by the European Commission under RED

■ Function: mass balancing of biomethane consignments

distributed along the European natural gas network with

transfer of related sustainability certification

■ Core documents: Biomethane Proofs of Origin issued by

national biomethane registries

Mass balancing consignment by consignment

Challenges of cross-border biomethane administration

Value of biomethane:

▪ physical (in use) value + intrinsic („bio”) value

o Physical value: corresponds to prevailing

market value of natural gas

o Intrinsic value: „green”, renewable, sustainable

o can be only partially quantified

o BUT must be realised on the market

Conditions for biomethane export/import:

▪ The „bio” quality must be certified in the producer country

▪ The „bio” qualification from the producer country must be

acknowledged in the consumer country

MASS BALANCING OF BIOMETHANE CONSIGNMENTS

RED Recital (76):

“According to the mass balance method of verifying compliance,

there is a physical link between the production of biofuels (and

bioliquids) meeting the sustainability criteria and the

consumption of biofuels (and bioliquids) in the Community.”

The physical link between the production and consumption

of biomethane is the natural gas network, the administration

must ensure the balancing of every injected consignment with the

corresponding withdrawn consignment.

Mass Balancing Consignment by Consignment

Transfer of Sustainability Characteristics

The principal answer is in the RED which makes is

mandatory:

“Biofuel production should be sustainable. Biofuels used for

compliance with the targets laid down in this Directive, and those

that benefit from national support schemes, should therefore be

required to fulfil sustainability criteria.”

The business reasoning is also formulated in the RED:

“Sustainability criteria will be effective only if they lead to changes

in the behaviour of market actors. Those changes will occur only if

biofuels meeting those criteria command a price premium to

those that do not.”

The sustainability verification for biomethane injected into theEuropean natural gas network for export purposes should consistof two steps:

1. The first part of the chain of custody – from raw materialsupplies through production/upgrading to grid injection – will becovered by one of the established sustainability verificationprocedures, exactly like in case of liquid biofuels.

Chain of Custody for Biofuels

Chain of Custody for Biofuels

The sustainability verification for biomethane injected into theEuropean natural gas network for export purposes should consistof two steps:

2. The second part of chain of custody – from the moment ofgrid injection to the withdrawal by the end-user – will be coveredby the new voluntary scheme applying the mass balancing

methodology.

CROSS-BORDER BIOMETHANE

ADMINISTRATION

Three Pillars of the cross-border Biomethane Administration

1. European natural gas network (consisting of thetransmission and distribution systems) treated as singlelogistical facility with regard to injected biomethane.

2. Mass balancing of injected and withdrawnbiomethane consignments within the European naturalgas network.

3. Sustainability verification (prior to grid injection) andcross-border transfer of sustainability claims.

Mass Balancing Consignment by Consignment

THANK YOU !

Assistant to the Secretary General, Stefanie Königsberger, koenigsberger@ergar.org, +32 24 00 10 87

Find out more @www.ergar.org

ERGaR Hub Information Flow