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Biogas

Biogas in Denmark

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By State of Green | [email protected]
23 April 2015

The gas transmission network can be used for transporting renewable energy in the form of upgraded biogas - so-caled bio natural gas.

In order for biogas to be injected into the transmission network, it must be of a quality similar to that of natural gas. It must therefore be upgraded to so-called bio natural gas.

- Read more about: Biogas

Biogas is produced at a biogas plant and subsequently upgraded to bio natural gas at upgrading facilities through the removal of CO2. The quality of the bio natural gas is now comparable to that of natural gas and it is mixed with the natural gas in the gas system.

Biogas market model

Trading in bio natural gas in Denmark and across borders is conditional on the biogas being commercially injected into the transmission network, thus making it possible to sell bio natural gas produced in West Jutland to consumers in Zealand or Sweden, for example.

The bio natural gas seller brings the bio natural gas to the market and the shippers are responsible for handling the transport of bio natural gas in the transmission network and trading it in the Danish and European gas markets.

In the market model, access to the transmission system is provided through a bio natural gas entry point (BNG entry point).

- Download: Rules for Bio Natural Gas in Denmark

When a shipper commercially or 'virtually' has injected bio natural gas into the transmission system via the BNG entry point, the shipper may trade the gas in all existing points on the same terms and conditions as apply to other types of natural gas. And thus sell bio natural gas in the entire system.

Who does what?

  • A biogas producer is the natural or legal person producing biogas.
  • An upgrading facility is the facility for upgrading of biogas to bio natural gas. To inject bio natural gas into the distribution network or the transmission system, the owner of the upgrading facilty must enter into a connection agreement with the network owner, determining the individual terms and conditions for connection to and injection of bio natural gas into the distribution network or the transmission system.
  • A bio natural gas seller is the natural or legal person who enters into an agreement with a shipper on the transport of bio natural gas in the transmission system. Depending on the circumstances, a bio natural gas seller may either be a biogas producer, a bio natural gas producer or a third party. The bio natural gas seller concludes a sales agreement with a network owner, determining the individual terms and conditions for data communication between the bio natural gas seller and the network owner.
  • A network owneris the owner of the gas company establishing the connection of the Upgrading Facility to the Danish Gas System. The Network Owner may be a distribution company or Energinet.dk.
  • A shipper is any natural or legal person registered as a shipper in Energinet.dk's Register of Players in conformity with the provisions of 'Rules for Gas Transport', which constitute the overall set of rules governing the Danish gas market. When the biogas has been upgraded to natural gas quality, it will be of the same quality as that of natural gas. The transport of bio natural gas in the gas transmission system is therefore handled by shippers.

 

Source: Energinet.dk

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