Biogas in the Netherlands

From a Innovation System perspective

Name: Sanne de Groot Mike van Paassen Aram Tardast Jaap van der Veen Jan-Willem Versluis

Student number Leiden 1190431 1197622 1174959 0702447 0564559

Started IE in: sep 2011 sep 2011 feb 2012 sep 2011 sep 2011

Background: Architecture Chemical Engineering Social and behavioural sciences Chemistry Chemistry

Table of Content
Abstract Table of contents 1 Introduction 1.1 Relevance 1.2 Topic description 1.3 Bounding the topic 1.4 Problem definition 1.5 Research questions 1.6 Report structure 2 Context 2.1 Technology description 2.2 Technological Map 2.3 The anaerobic digestion and electricity production technology: 2.4 Stakeholders 2.5 Socio- technical history of biogas development 2.6 Method selection 2.7 Choice of methodology 3 Theory of methodological framework 3.1 Multi Level Perspective 3.2 Functions of Innovation Systems 3.3 Backcasting 4 Multi Level Perspective applied on biogas 5 FIS applied on biogas 6 Backcasting applied on biogas

6.1 phase 1 6.2 phase 2 6.3 phase 3 6.4 phase 4 6.5 phase 5 7 Conclusions

Chapter 1 Introduction
1. Introduction 1.1 Relevance of the topic
The essential role and dependence of energy within our society forces us to continuously search for energy (re)sources. Since fossil fuels are being depleted, sustainable alternatives are becoming popular (WRR, 2008). Unfortunately, the complete worldwide energy supply cannot be substituted by alternatives at once, creating our current dependency on fossil fuels. To ensure a sufficient energy supply in the future, a transition from fossil fuel -based production towards a more sustainable- based production of energy resources is needed. Thus, a current problem area which is the agriculture in the Netherlands because it is becoming more and more intensive and leading to more waste which is an issue that is worth taking a closer look at. For instance a large excess in manure and an increase of greenhouse gas emissions, is a problem, but one solution for this problem is using the waste to produce biogas.

1.2 Topic description

Biogas is a product of the anaerobic digestion, a process that decomposes organic matter like manure, crops or food waste to produce biogas and other byproducts, in other words by converting agricultural waste (biomass) in anaerobic conditions into gas. The gas can be combusted to produce electricity or combined heat and power (CHP), cleaned and upgraded to pipeline quality gas for injection into existing natural gas systems or cleaned to create compressed natural gas for vehicle fuels. Potential renewable energy in the Netherlands from anaerobic digestion of the 1.5 million tons available organic waste and 4.5 million tons of animal manure is 125 million m3 natural gas equivalent or a saving of 4 PJ (Escobar and Heikil, 1999). Besides this economic opportunity, there is also environmental gain, because methane is converted into carbon dioxide, which has a lower global warming potential. The heat produced, can be used for other means, for instance for heating the digesting process.

1.3 Bounding the topic

However, there are also problems with this technology. It has to compete with the fossil fuel based electricity generation and other RES sources, because the electricity and heat produced needs to be economically feasible. Next, it needs to compete with other technologies that use agricultural waste, they compete for the same resource. The focus in this report is on biogas production from 2000 until now in the Netherlands. To see what motors of change and back holders of change exist in the production by looking at some realized and halted projects that will be analyzed to draw conclusions from. The future developments will be analysed with a future vision for 2050. Agricultural waste is focused on as the source for biogas production. Stakeholders involved in the biogas niche, relevant regimes and landscape will be included in the research by using the multilevel perspective framework and Function of innovation systems analysis to gain insight in the biogas innovations as background for the research and then by looking at the past and the current situation of biogas(present), backcasting

will be used in order to make recommendations about the future and the full potential of biogas in the Netherlands.

1.4 Problem definition

The goal of this report is not just about increasing the amount of anaerobic digestion but to solve current problems in the agricultural and energy sector. Environmental and social problems are locked in the current system. Regulations try to reduce the problems with current technology optimisation. The agricultural sector is dominated by the conventional food industry. This produces a manure surplus. Regulations bound the amount of manure that can be distributed on the soil and steer towards injection in the soil. This diminishes the problems of eutrophication, loss of biodiversity and smell but locks out competing niches like organic agriculture. Regulations for the conventional food industry also apply for organic agriculture. Problems in organic agriculture are different from conventional agriculture so uniform regulations remove the level playing field. The lock in of conventional agriculture affects the behaviour of farmers that are reluctant to change and the absence of market creation. Problems in the energy sector are more transparent, with the temperatures rising on earth due to emissions of greenhouse gases by human activities there is a need for carbon neutral energy. Biogas is such a carbon neutral technology and therefor is able to solve the problem of climate change partially. Furthermore fossil fuels are depleting, biogas produced from biomass by anaerobic digestion is renewable and therefor more favourable. Thereby it decreases the dependence of the Netherlands from politically unstable areas like the Middle-East. The European Union has set the target to generate 20% of our total energy demand in a renewable way. To meet these targets it will be necessary to make use of all renewable energy sources available including biogas.

1.5 Research question

From these problems and our scope on biogas our research question has raised which is as follows; How can the past, present and future socio-technical innovations, in anaerobic digestion from agricultural waste, help to reduce the non-renewable resource use and the current agricultural problems in the Netherlands? The sub questions are: 1. In what way can the past, present and future developments be analysed? 2. Who are the different stakeholders involved in anaerobic digestion from agricultural waste? 3. What are the motors of change and back holders of change for anaerobic digestion from agricultural waste? 4. What are the possibilities for anaerobic digestion from agricultural waste in 2050? 5. What are the recommendations to the different stakeholders involved in anaerobic digestion from agricultural waste?

1.6 Structure of the Report

The outline of this report is as follows. The report consists of 7 chapters; the six chapters coming up describe what work is done and why it is performed. Chapter 2 contains an explanation of the technology used for biogas processing, technologies that are using biogas or involved in biogas production, the stakeholders involved, a socio-technical history of biogas and a methodology section in which the chosen frameworks will be introduced. These frameworks will be worked-out in further detail in chapter 3; Theory. In chapter 4 an analysis on the biogas regime will be performed by using a multilevel perspective. Subsequently in chapter 5 the FIS framework will be applied followed by the application of back-casting in chapter 6. Finally conclusions will be drawn in chapter 7 and a section in which the results are discussed will be provided.

7 Conclusion
The focus of our research were the past, present and future socio-technical innovations in anaerobic digestion applications from agricultural waste in the Netherlands. Problems in the energy sector are fueling the search for alternative energy sources. In the Netherlands the large amount of agricultural waste and especially manure sparked a lot of interest in biogas. To make anaerobic digestion help to reduce the non-renewable resource use and current agricultural problems the frameworks of multi level perspective, Functions of Innovation Systems (FIS) and backcasting have been used. In order to gain insight in the biogas innovations of the last ten years the Functions of Innovation Systems (FIS) has been used. The FIS framework has proven useful in our case to structure the complex system with clearer boundaries. The distinction within functions in different indicators has further helped to structure the information. This has led to a clearer image of the motors of change and back holders of change. The motors of change are currently function 7. Support of advocacy coalitions, function 6. Guidance of the search, function 5. Mobilization of resources 1. Entrepreneurial activities, function 2. Knowledge development, function 3. Knowledge diffusion. Entrepreneurial activities have increased to meet manure surplus reduction regulations even though they have not always turned out to be profitable. Anaerobic digestion technology has developed knowledge with the support of advocacy coalitions. Publication of positive results has resulted in knowledge diffusion. Support of advocacy coalitions has resulted in platforms that bring together stakeholders that are important for the renewable energy innovation system. Energy transition platforms have been developed to gather important stakeholders in the biogas infrastructure to collaborate and set visions in the future of biogas. European policies have guided the search of Dutch policies on manure surplus reduction and renewable energy for 2020. Mobilization of resources is still an important function because biogas production still depends on subsidies to be cost effective.

Back holders of the innovation system are Market formation, indicators counteract resistance and not in my back yard in the function Support of advocacy coalitions and indicator biomass feedstock in the function mobilization of resources. Market formation is currently not an important motor of change because there is no willingness to pay for biogas. Biogas is currently more expensive to produce than natural gas and consumers are in general not aware of the environmental benefits. Recent developments have decreased the role of mobilization of resources with subsidies being reduced and biomass feedstock getting scarce. Policy to limit the amount of manure surplus until 2004 has restricted the use of biomass feedstock for co-digestion. Since then policy has become less strict and has made anaerobic digestion more profitable. However there is a competition for biomass feedstock as the supply is limited. As a result the prices for feedstock have increased. This has resulted in lower profitability of biogas production. Insecurity of government policy and the lack of a long term vision has not led to the desired scale of implementation of anaerobic digestion. Furthermore the lock in effect of the energy regime is a back holder of the development of innovation that threatens their current practices. Backcasting is a useful framework to raise awareness to develop towards a certain direction. What should happen is not necessarily what will happen because of many uncertainties. Backcasting was used in order to make recommendations about the future of biogas. What has to be done by the government is to define a clear common objective related to biogas production and additionally some accountable targets. This latter is currently one of the main issues. Potential of biogas production from agricultural wastes is limited by the amount of available waste flows as indicated in chapter 7.2.3. The challenge is to realize the potential of biogas production to reach a more sustainable state in the agricultural and energy regimes. It is the government who has responsibility to some major terms and conditions. In the end it is the market that should take initiative suggested by the government. Market formation with the indicator of demand from energy consumers and awareness to take away the not in my back yard phenomenon will be necessary for the implementation of the anaerobic digestion technology. The government is coping with many objectives and interests, a cause for the fact that no rigid choices seems to be made. Therefore the effective potential of biogas needs to be clear, especially since the required biomass feedstock is also available to other energy production processes. Further research is encouraged on the integration of biogas infrastructures with other industrial streams.

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