Obligation to mix green gas boost for manure fermentation

Energy suppliers of natural gas to small consumers will be obliged to add green gas. A large demand market for green gas means a significant boost for manure fermentation. And with opportunities to make livestock farming more sustainable.

The recently published Climate and Energy Outlook 2023 (KEV) assumes that a maximum of 2030% of cattle manure and 25% of pig manure will be fermented in 50. With approximately 20 million tons of liquid manure, that is almost 30% of all liquid manure. That percentage is now approximately 5%. A significant scale-up of manure fermentation will be required in the coming years. The large demand market for green gas gives livestock farmers and manure intermediaries an attractive business case. In the report "Green gas blending obligation", CE Delft expresses the expectation that prices for green gas certificates could be high. The blending obligation for natural gas must compete with bio-LNG in the transport sector. The willingness to pay for bio-LNG is high.

Only Dutch green gas
The blending obligation is part of the energy transition. The bill is almost ready and its introduction is planned for 2025. The obligation only applies to green gas produced in the Netherlands and is an administrative obligation based on certificates. With certificates for the Guarantees of Origin (GVOs), energy suppliers can demonstrate that they comply with the blending obligation. Because GVOs are European certificates, a second certification layer (green gas units) is required to guarantee green gas produced in the Netherlands. These green gas certificates (GGEs) are issued to energy suppliers and not to biogas producers.

"Significant additional profits"
The working method with certificates for only the energy suppliers feels like a "far-away show" for livestock farmers and manure intermediaries as well as green gas producers. This involves the risk that producers are not sufficiently aware of their strong position in the new green gas market. Without biomass including manure, no green gas. In the report, CE Delft mentions the creation of "significant additional profits in the production chain" as a result of the blending obligation, competition with bio-LNG and relatively high end-user costs. If producers want a maximum selling price, they will have to negotiate sharply with the buyers of green gas. Knowing that the green gas certificates in the market will fetch a high price according to energy experts.

Extra fertilizer
At around 55%, manure is the largest bio-raw material for the green gas potential in our country in 2030 (CE Delft). The feasibility of the green gas ambitions is not possible without manure and (mono) manure fermentation. The co-products available in the Netherlands are already largely used for the production of green gas (RaboResearch). Import and cultivation of bio-raw materials will then partly determine whether to achieve the green gas ambitions for 2030. This will make extra manure available in the form of digestate for the manure market. The solution mentioned by CE Delft of recycling digestate and reusing it as fertilizer, using the practice in Denmark as an example, does not apply to the Netherlands for several reasons. With the introduction of the blending obligation, a coherent vision and approach is required for green gas ambitions and the sale of digestate.

Jaap Uenk

Jaap Uenk is the owner of consultancy Mestem and has more than 40 years of experience in various positions in the Dutch fertilizer sector.

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