Biogas is increasingly viewed as a viable alternative to both traditional as well as other renewable forms of existing transportation fuel, from gasoline and diesel to ethanol and biodiesel. A company with the right expertise and timing can capture it’s share of the billions that are invested in the infrastructure in the coming years. Where do the greatest market opportunities lie? Which technologies will be utilized in different regions? Which new players are entering the biogas market? The answers are all in this GIA white paper. This presentation shows selected slides from a GIA white paper. To download the entire white paper that you are interested in, please visit http://bit.ly/GIAinsightWP

1. How to Profit from Biogas
Market Developments
GIA Industries White Paper
June 2010
Global Intelligence Alliance©2010. All rights reserved.
Contact: info@globalintelligence.com www.globalintelligence.com

2. Table of contents
This contains excerpts from GIA’s “How to Profit from Biogas Market
Developments” White Paper. For the free white paper, please visit
www.globalintelligence.com or email info@globalintelligence.com.
Executive Summary 5
Global Outlook 8
Market Characteristics – Europe 16
Market Characteristics – USA, Asia Pacific Not included here
Conclusions Not included here
Appendix Not included here
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2

3. Introduction
• The global megatrends such as climate change are driving the
increased adoption of renewable energy sources in general, whereas
the price volatility, supply issues and environmental hazards of fossil
fuel production are about to accelerate the pace in the investments of
non-fossil fuels production in particular.
• Biogas, the most sustainable of biofuels, is in a starting point of an
exponential market growth curve.
• This paper will cover the latest developments and future scenarios of
the rapidly developing biogas business, starting with a global outlook
and going through special market characteristics of Europe, USA and
Asia Pacific.
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4. Concepts and abbreviations
Anaerobic Digestion Anaerobic metabolic processes caused through
microbial enzymatic activities
AD Anaerobic digester. An istallation to produce biogas
with anaerobic digestion of organic material
Biogas A combination of methane, CO2 and trace gases
released during anaerobic digestion
Distributed Generation Generating electricity from many small sources
WWTF Wastewater treatment facility
FIT Feed in tariffs
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5. Executive Summary
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6. Executive Summary
A company with the right expertise and timing can capture it’s share of the
billions that are invested in the infrastructure in the coming years
Primary profiteers of biogas industry growth
Under an optimistic
• Anaerobic digester providers, especially those in Asia today scenario, the 2 Billion
• Biogas condensation and upgrade technology developers EUR plant installations
• Centralized and specialized plants producing, utilizing and business to grow up to 25
distributing biogas Billion by 2020.
Secondary profiteers
Global suppliers to profit out • Suppliers of power plants and process equipment
of increased demand for • Maintenance, service and certification businesses
components, services and • Companies specialized in environmental management
chemicals • Chemical companies developing the production yield
and efficiency
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7. Executive Summary
As a global trend, the larger sites will improve the efficiency of power
generation, profitability of biogas upgrade and the utilization of by-products
“Laws similar to German model have lead to
growth in other markets as well.”
Andrea Horbelt, European Biogas Association
The US market to European Asia will be the
provide innovative companies and main growth area,
applications and technologies will be installing basic sites
new business the ones to watch on WWTF’s and
models between 2010-2015 landfills
“Price volatility of gas and oil will be the main
drivers for the biogas industry; a sufficient
price increase of gas and oil will make biogas
profitable everywhere!”
Kim Söderman, Finnish Biogas Association
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8. Global Outlook
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9. Global megatrends drive the biogas growth
Biogas industry growth
Unevitable end of Climate change Increased utilization
fossil oil and gas of technology
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10. Biogas – what’s in it for me? (1/2)
A chance to reduce both organic methane and fossile CO2 in the atmosphere
Global Greenhouse Gas Emissions
CO2 from
deforestation etc.
20 % Methane, key component of A chance to
biogas is 21 times a more profit out of
Methane powerful greenhouse gas than emissions trade
14 % carbon credits
CO2 . During the incineration
CO2 from fossil
Nitrous and government
fuels 57 % of biogas, methane is turned
oxide 8 % subsidies
into CO2 and water, thus
Others 1% reducing the negative
impact to the climate.
Source: US Environmental Protection Agency
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11. Biogas – what’s in it for me? (2/2)
A chance to reduce both organic methane and fossile CO2 in the atmosphere
Global Primary Energy Production
Solid fossil fuels A ready-to-use,
Due to the identical
25 %
economically
chemical composition
Natural sustainable source
(methane) upgraded biogas
Gas of energy and a
an be used as an alternative
23 % superior second
Oil 37% to all existing natural gas
generation
Nuclear 6% applications
transportation fuel!
Renewables,
hydro and other 9
%
“Biogas has better yield per Ha than ethanol or
biodiesel, making it the most sustainable of biofuels.”
Source: US Environmental Protection Agency
Kim Söderman, Finnish Biogas Association
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12. Agriculture shows greatest potential in biogas
75 %* of the biogas potential is in the 17%* in municipal 8%* in sewage
anaerobic digestion of agricultural crops, by- and industrial WWTF’s
products and manure organic waste
* The higher utilization rate of farmland as an energy resource could increase the share of manure, agricultural crops and by-products to
85%, leaving organic waste a 10% and WWTF’s a 5% share
Source: Biomass Magazine, Global Water Intelligence, American Biogas Council, Frost And Sullivan, European Biomass Association,
Eurostat, Iowa State University
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13. Current bottleneck of improved biogas
utilization is the cost of upgrade technologies
Biogas
Fed into existing
upgrade into
equivalent networks / used
Agriculture with natural directly as a
75% Anaerobic gas transportation fuel
Digestion
WWTF
17%
Combined heat &
Landfill energy
8%
Household use
To date only 7% of the plants in Germany are feeding the gas directly in
the existing natural gas network.
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14. Global players to aim at technology and
services to secure profit & positive image
Reproducable technologies and services for
Drivers and constraints locally operating biogas producers:
• Improvement of solid waste and sewage
• Climate change treatment processes
• The end of fossil oil and gas
• Process development of anaerobic digestion
• Increased utilization of
technology • Technolology for the production of heat and
energy out of biogas
• Lack of long term subsidies • Upgrade of biogas to suit existing natural gas
• ”Food to energy” in applications
developing countries
• Installations to extract chemicals such as CO2
• “No in my backyard” effect
• Condensation of upgraded biogas into liquid
biogas
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15. With many potential routes to market, where do
companies target limited resources?
Raw Upstream Biogas Biogas Downstream
End User
Materials Logistics Production Upgrade Logistics
Improvement of solid Process development of Technology for the
waste and sewage anaerobic digestion: production of heat and
1 treatment processes: 2 3 energy out of biogas:
Where does it take place Is there a technology jump What size of power plants
today? in sight? is required?
Upgrade of biogas to suit Installations to extract Condensation of
existing natural gas chemicals such as CO2: upgraded biogas into
4 applications: 5 6 liquid biogas:
Will there be biogas Is this a business Who to profit out of higher
refineries? opportunity? energy concentration?
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16. Market Characteristics
Europe
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17. The EU-wide targets to fight the climate change
and the existing infrastructure boost the business
• A target to reduce
greenhouse gases by • Arable land available
20% by 2020 also for non-food
plants
• Transportation fuels Biogas capacity
need to be blended with worth over 2 • High tech industry
renewables at an modern nuclear players in energy,
accelerated rate power plants chemistry and
automotive industry
• The initiatives are
implemented through • A well-established
national legislation natural gas network
EU Targets Infrastructure
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18. Germany, the biogas market leader, runs half
of Europe’s 9,000 biogas plants
• Most of the gas is currently
produced by independent Key outcomes of the German model
farmers out of biomass
1. Process know-how & global players in the
• A feed-in tariff (FIT) ensures a biogas plant installations market eg. Envitec
reasonable payback time for Biogas, Schmack Biogas and Biogas Nord
investments (4-5 years)
2. The rural areas have a new source of
• Existing natural gas network income and jobs as the profitability of the
accepts upgraded biogas agriculture in general is decreasing
3. Other European countries are starting to
• Larger, more centralized
copy the German model
sites are being built
• Biogas as a transportation
fuel is tax free
Source: Biomass Magazine
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19. Subsidies and country-specific strategies
Sweden: Innovation
FIT’s exist in most EU countries - their • Community buses
efficiency is rated 7 times higher to increasingly using biogas
other government support • Liquid biogas to enable long distance
+
Second generation biofuels such as
transportation
• Technologies to extract chemicals out
of biogas
ethanol and biodiesel are blended with
fossil fuels. The existing fuel
distribution infrastructure supports Poland today is
liquid fuels over gas. “Germany in 1990”
• Limited biogas production
• Excessive food production and wealthy
resources of arable land
The utilization of biogas as a • Good infrastructure and an existing
transportation fuel is neglected natural gas network in place
• A need to find alternatives for imported
natural gas
Source: Biocycle, Biomass Magazine
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20. A bright future for European high tech players
The market in Europe to The scope in the
More countries business to shift from
grow at a two-digit rate. adopt biogas in power generation to
transportation gas and chemicals
The main growth will take
place in refinery
projects and >1MW
power plants. Price of fossil fuels
Plants grow and
increases while biogas
centralize
upgrade gets cheaper
The share of exports
will increase from the
current 10 -15%.
Development of New players
equipment, enter market
enzymes, chemicals
and know-how
Source: Global Water Intelligence, Helmut Kaiser Consultancy
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20

21. Country trends highlighted by industry experts
“There’s a biogas boom in the UK. Poland
and Ukraine (non-EU) are showing growth.
Swedish market is interesting due to
innovations.
“Italy is a possible growing market in
Germany potentially to replace 10-20% of regards of biogas utilization in
natural gas with biogas.”
transportation, Sweden as well –
Jukka Rintala, Jyväskylä University City buses running on natural gas.
UK, France, Spain & Italy adopting
parts of the German model.”
Andrea Horbelt, European Biogas
Association
“Poland has lot’s of plans and
potential but so far not that much
action. Denmark and Norway are
rising, so is Sweden, at a high level.”
Kim Söderman, Finnish Biogas
Association
Source: GIA Survey
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22. Thank You for Your
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Profit from Biogas Market For additional information about the
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