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How and Why A Natural Gas Utility in Denmark is Now Denmark’s Largest Producer of Biogas

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Funen is beeingConnected with Africa. Gas pipe under the sea next week

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2008:

Time has run out for Naturgas Fyn. Customers choose alternatives to natural gas. As a consequence the company now has a deficit of 80 million DKK a year.

2008:

DONG ENERGY: We will run out of gas in 6 years

2010:

Denmark to be fossil free in 2050

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A green future for the Danish gas grid

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How do we produce biomethane?

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The Biogas plant is converting the carbons

from waste to methane for green energy purposes

Environmentallyharmful methane and

dinitrogen oxideevaporation is removed

from the farmland

The biogas is displacing fossil fuels in the industry, CHP’s,

house heating and transport

Vigtige næringsstoffer (fx fosfor og svovl) føres tilbage til jorden. Bedre nedsivning. Mindre lugt. Høstudbytte stiger med op til

10 pct.

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How did we gain a leading market share so quickly?

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Vaarst before Nature Energy

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Vaarst

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Nordfyn

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Holsted

14Korskro

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Our concept:

Build, own & operate

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What is the future for biomethane in Denmark?

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A week in February 2017

A week in June 2017

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Denmark has two gas storages that are 85.000 times larger thanthe Tesla battery in South Australia

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400.000 homes in Denmark are provided with gas

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More than 144.000 jobs in Denmark depend on gas

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The futureAnd necessary commercial developments

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Investment Consortium has not bought the Funen Nature Energy to let it go. Up to ten new biogas plants will be built in the coming years, and the new owners are

ready to invest up to 2.5 billion DKK.

Energy company sold for 1.1 billion. kr. New owner want to create more than 1300 new jobs

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2012 2013 2014 2015 2016

Green gas to grid in EuropeNumber of biomethane plants in EU

Source: European Biogas Association

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Necessary Commercial Developments• Making Biomethane a sustainable product in the

minds of consumers• Reducing GHG intensities• Reducing methane emissions• Increasing transparency on climate and

environment effects• Develop Sustainable uses of biomethane

• Plastics & Polymers• Develop a biomethane pathway for the long term

supply of hydrocarbons• In a zero emission economy we may still rely

heavily on hydrocarbons• Develop products and marketsrelated to biomethane

business• Organic Sulphuric Acid• Organic Retail Fertilizer products

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Necessary Commercial Developments• Cost must come down in investment

• More than 15% of investment does not create anyenergy

• Energy consumtion must come down• 50% of own energy consumption does not create

any energy• Reliability must come up

• More than 50% of current shutdowns/Reductionsare caused by faulty upgrade facilities

• Robustness must come up• Facilities should be better able to handle different

input streams and their effects on raw biogas

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Necessary Commercial Developments• Develop Co-production

• CO2 production• Feed production as part of upgrade process• Methanisation as part of upgrading facilities• Protein Feed from Grasses or algae fed by raw

biogas streams• Customized longer chain hydrocarbons can be

produced from mix of CO2 and methane