Biogas energy market in Québec

Biogas energy market in Québec Éric Camirand, ing.
Board member & President of the biogas committee
Canadian Biogas, March 5th, 2013
About AQPER
• Association Québecoise de la production d’énergie renouvelable
• Founded in 1991
• Industrial association with hundreds of members
• Representing interests of the following sectors:
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Wind
Hydro
Biogas
Biomass
Biofuels
Solar
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Qc biogas historical events
• ‘Programme de traitement des matières organiques par biométhanisation et compostage’
announced by MDDEP in November 2009
• Several projects and funding announcements in 2010 (over $600M)
• Publication of ‘lignes directrices sur la biométhanisation’ by MDDEP in 2011
• Commissioning of St‐Hyacinthe project in 2010‐11
• Several RFP & RFQ in 2012
• Modification of PTMOBC program in Feb. 2013
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Biogas project sectors
• On farms
• Industrial, commercial and institutional • Municipal
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Agricultural biogas
• ‘Prime vert’ program
 Up to $200 000 subsidy for a biogas plant
 Specific conditions
• The program is uncertain because currently migrating from MAPAQ (Ag.) to MRNF (Energy)
• No electrical feed‐in‐tariff or call for power from Hydro‐Quebec
• Natural gas network not developed in rural area
• No projects developed
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Industrial biogas
• ‘Programme de traitement des matières organiques par biométhanisation et compostage’
(PTMOBC) program
 Subsidy of 25% of capital cost for private projects
• Energy efficiency and fuel switch subsidies
• No electrical feed in tariff or call for power from Hydro‐Quebec
• Gaz Métro is offering to purchase raw biogas at approx. $5/GJ and liquefied biomethane
• Approx. 10 small projects in the last 4 years 6
Municipal biogas
• ‘Programme de traitement des matières organiques par biométhanisation et compostage’
(PTMOBC) program
 Subsidy of 66% of capital cost for municipal projects
• No electrical feed‐in‐tariff or call for power from Hydro‐Quebec
• Gaz Métro is offering to purchase raw biogas at approx. $5/GJ and liquefied biomethane
• 1 project since 2009
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Annonced projects
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Rivière‐du‐Loup (in planning)
Montréal (RFP for engineering)
Québec city (RFP for plant expected in 2013)
Laval (RFEOI in progress)
Longueuil (in planning)
Varennes (RFQ for equipments)
Beauharnois (in planning)
St‐Hyacinthe Phase 1 (operational)
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Projects in the works
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St‐Hyacinthe (Phase 2: co‐digestion of SSO)
Vallée du Richelieu (sludge)
La Prairie (sludge)
Vaudreuil
Haute‐Yamaska
Sherbrooke
Brome‐Missisquoi
Magog….etc.
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PTMOBC (v2) program
• Municipal biogas projects
– Subsidy 66%
• Private biogas projects
– Subsidy 25%
• Max. admissible project expenses
– $800 per tonne of capacity‐year for SSO
– $125 per tonne of capacity‐year for sludge (25% TS)
• Payments of subsidy:
– 1/3 on start‐up, 1/3 on financial report & 1/3 on 2nd year report
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Gaz Métro-Biomethane
• They are offering to purchase raw biogas at the price of natural gas at their network gate (approx. $5/GJ)
• They will upgrade the raw biogas to natural gas quality and inject it in their network at their own expenses
• Awaiting the decision from la Régie de l’Énergie du Québec (Energy Board) for their first project (St‐
Hyacinthe)
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Gaz Métro Solution
Transport-LNG
• They are offering to purchase liquefied biomethane (LBM) at the market price of liquefied natural gas (LNG)
‐3 LNG stations
‐3 Transporters on LNG in Qc
‐Over 200 heavy duty trucks on LNG
‐Several truck models available
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Summary
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Government is commited
Primarily a municipal market
Development of the municipal sector is slow
Government framework slow to adapt Confused development and pricing signals
No electrical market for the biogas energy
Biomethane pricing is low due to natural gas
LNG model is interesting for larger projects
Difficult for supplier chain to organize and prosper is such poor market conditions
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