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Governmental Program for agricultural biogas production development in Poland – challenges and opportunities


Work package 2

Nov 09, 2010

“Biomass potential in Poland is estimated to enable biogas production in the amount of ca. 2 biollion cubic meter by 2020. In order to use this potential, Polish government has prepared the program entitled ‘Directions for agricultural biogas-plants development in Poland in 2010-2020’, which is currently discussed by the Council of Ministers”, says Mr Marek Sawicki, Minister of Agriculture and Rural Development of Poland.

Marek Sawicki

Currently no one asks in Poland whether biogas plants should be built, the question is rather where and how to invest in biogas producing plants. Poland, as a member state of EU, is facing a number of legal requirements that must be met, such as obligation to decrease the amount of solid waste that is landfilled and obligation to increase the production of energy from renewable energy sources. Production of biogas in Poland, especially from agricultural waste, may - to a great extend - help reach the above mentioned goals and simultaneously result in added value (synergy effect) such as increase of security of energy supply in Poland as well as in the whole Baltic Sea Region. It is also anticipated that invest

ment in biogas plants will be coupled with the professional activation of farmers in the energy sector. It is worth adding that in case of agricultural waste utilization, there is no risk of competition between food and energy production.

 

Towards biogas era

Considering the above mentioned, Ministry of Economy in Poland, in close cooperation with the Ministry of Agriculture and Rural Development, has prepared a document, which aims to direct changes taking place in Polish energy sector in the years 2010–2020 towards increased utilization of the existing biogas potential. Minister Marek Sawicki comments “Realization of this Program will enable construction of many biogas plants based on agricultural residues as

feed-in substrates. Significant quantities of residues from food production as well as animal breeding are generated on agricultural farms, which according to current laws and regulations are qualified as waste. Ministry, not even waiting for the final approval of the Program under preparation, has already taken action aimed at changing the legal classification of waste, which are not dangerous to environment or human beings. Previously waste and now residues, by-products or leftovers, will play a role of substrates for biogas production, which can be used for energy production (both heat and power) or production of biogas with parameters corresponding to those of natural gas. Furthermore, post-fermentation residues are still a valuable organic fertilizer, which makes it possible to utilize them in an environmentally friendly way, what saves costs which farmers would have to otherwise cover.”


Special attention is paid to the role that investments in biogas plants may play in terms of professional activation of Polish farmers. “I am confident that a farmer as a supplier of the basic substrate for biogas production, which determines the whole operation of the biogas plant and production of biogas, will be treated by both investors as well as energy companies as an equal actor in the Polish energy arena. If this condition is not met, I do not foresee any possibilities for successful realization of this Program and functioning of the agricultural biogas market in Poland” , adds Minister Sawicki. 

 

Questions on future origin of biogas

When asked, if agricultural biogas plants are a chance for development of Polish rural areas and if future belongs mainly to biogas plants operating based on agricultural residues or based on energy plants from farming dedicated to energy sector, Minister Sawicki answers “Decision, whether biogas plant will operate based on residues and by-products from food farming and food processing industry, or based on energy plants, or perhaps from a mixture of both of those substrates, has to be taken by investor himself, who is the only decision-maker in that case. Such a decision is dependent on local conditions – mainly the availability of substrates as well as the scale and type of the planned installation – whether it will be a biogas plant dedicated to generation and sale of energy or perhaps an installation focused on treatment of residues as the main goal, and producing energy and /or heat to be utilized locally as an added value rather than a goal. There is no possibility (and no need or will) to impose the type of substrates to be used by the investor. Of course, we are promoting the utilization of agricultural residues and by-products from food processing industry, since they constitute a serious problem for farmers and endanger natural environment, if not treated. This standpoint derives from the principal role of the agriculture sector i.e. food production, which by no means can be ever endangered by production of energy of any type.”

Main  challenges

Before biogas plant can be erected, potential investor is most often facing a number of difficulties. Minister Marek Sawicki says ”Given the current level of knowledge with respect to agricultural biogas production in Poland, it should be noticed that we are facing the scarcity of the national technologies. The creation of satisfactory and effective conditions for the biogas plants development via tax and other financial incentives, which will influence the build up of the national market of services and biogas technologies remains a huge challenge. The lack of specialists in the field of operation and maintenance of biogas plants is another barrier for market development. This calls for preparation of the educational programme, including trainings, conferences and promotional campaigns. Furthermore, there exists a need to elaborate a methodology of finding the proper location for biogas plants and selecting of proper technologies given available substrates. Projects, covering the above mentioned, are currently under preparation in the institutes subordinate and supervised by the Ministry of Agriculture and Rural Development”.

A number of questions arise also with respect to the scale of the biogas plant. Minister Sawicki adds ”Requirements regarding the security of the necessary and stable amount of substrates as well as the obligation to manage and treat the post-fermentation residues favor biogas plants with rather smaller installed electric power. However, currently available financial support of national and/or EU origin, are hardly available for farmers who are interested in investments less than Euro 2,5 million Euro Such a condition disqualifies financial support of biogas plants in the electric power range of 50-500 kWe and thus favors much bigger installations. Additionally, in majority of cases farmer cannot be the beneficiary of the support, which is targeted at the entrepreneurs. Therefore, Ministry of Agriculture and Rural Development has approached the National Fund for Environmental Protection and Water Management in Warsaw to suggest that the required level of minimal biogas investment shall be decreased. The National Fund agreed to consider this suggestion, after previous contracts with Polish Treasury”.

Another barrier of technological and organizational origin, which was depicted by Minister Sawicki, was related to the potential surplus of heat and in some cases also electric power that are generated in the biogas plant. The key to the successful investment is thus correlation of the availability of substrates (their type and stable amount), and what stems from that – the supply of energy, with the demand for energy – both heat and power. Minister Sawicki concludes ”Sale of energy to energy companies is unfortunately most often a very difficult process, if at all possible, due to the technical conditions related with connection of biogas-fired power plants to the grid. From information that reach Ministry it seems that apart from formal barriers that arise, investors also face financial barriers, since the cost of connection to the grid is extremely high, often even equal to the investment costs itself and thus too high for farmers or other investors”.

Green light for biogas

Minister Sawicki summarizes “There is still a long way ahead but first changes has already taken place – information and knowledge spread (also via media) resulted in the change of the attitude from skeptical towards positive, regarding both administration, as well as general public. Ministry of Agriculture and Rural Development organizes and actively participates in numerous seminars and conferences*, which are well attended and appreciated by wide spectrum of participants. The aim of those events is to share knowledge and promote utilization of agricultural biogas as well as to present solutions and technologies functioning in this field in other BSR and EU countries.” 

Bioenergy Promotion project is one of those initiatives that enable share of know-how and knowledge from a wider, Baltic Sea region perspective.

 

Katarzyna Bogucka, Adam Cenian, Jan Kiciński
Institute of Fluid-Flow Machinery Polish Academy of Sciences
Baltic Eco-Energy Cluster

*Representative of the Ministry of Agriculture and Rural Development participated in the Facilitation Workshop “Biogas for Pomerania”, which was organized within Bioenergy Promotion project on 10-11 May 2010 in Gdańsk, in the seat of the Institute of Fluid Flow Machinery