Biomethane Clustering

Challenge

For producers of biogas the transition from electricity generation to biomethane upgrading requires substantial investments. Upgrading involves high capital expenditures and is resource-intensive, making it an economically unattractive option for many biogas plant operators.
The formation of biomethane clusters, where several biogas plants are interconnected and linked to a central upgrading and injection facility, allows the exploitation of economies of scale and typically reduces upgrading and connection costs by around 70%.

However, coordination among the various actors is highly complex and time-consuming. In addition, regulation significantly limits the role of distribution system operators.

Approach

To address these challenges, WECOM, together with a range of stakeholders, developed a replicable concept that makes the technical, economic, and social complexity of cluster formation manageable.
Stakeholders included producers, plant manufacturers, network operators, experts in the biomethane market, certification and mass balancing, as well as offtakers and energy supply companies.
By engaging such a broad pool of experts, WECOM was able to develop a reference model that enables cluster formation while taking into account and supporting the interests of all involved parties.

Results

The reference model provides an economically viable solution for connecting existing production facilities to the gas grid. It includes:

• a technical concept,
• a comprehensive allocation of tasks and roles among different actors (network operators, producers, investors, offtakers, etc.),
• a financial model for detailed business case calculations of specific clusters under various scenarios.

Before implementing a cluster, the WECOM Cluster Tool (see case study on the Cluster Tool) can be used to identify economically optimal cluster configurations.

The cluster concept offers significant advantages for all participants:

• Network operators, who currently handle a large number of connection requests, can consolidate them, drastically reducing capital, time, and personnel requirements.
• For biogas producers, the model provides an attractive opportunity to participate in the biomethane market without new investments, thereby securing long-term revenues.
• Through the reference model, large consumers and energy suppliers gain a resource-efficient way to procure the required quantities of biomethane.