OREANDA-NEWS. Naturdünger Münsterland (NDM) and RWE Innogy agreed jointly and amicably to stop the plans for the erection and operation of the biogas plant at Velen, Germany. The reason is the reform of the German Renewable Energy Act (EEG) which makes the planned biogas project uneconomical.

On 11 July, the Federal Council passed the EEG. Once signed by the Federal President, the Act can thus enter into force as planned on 1 August. The following amendments to the EEG have a significant impact on large biogas projects in Germany and also make the planned plant in Velen uneconomical:

Major reduction of remuneration rates for biogas,

Deletion of the input material remuneration categories, also for agricultural residues,

Deletion of the gas processing bonus without replacement.

NDM and RWE Innogy intended to construct and operate a modern biogas plant as equal partners. As a result of passing the current amendment to the Act both the project and the partnership will no longer progress. The project was supported by Westfälisch-Lippischer Landwirtschaftsverband (WLV), the cooperation partner of RWE Innogy in the biogas sector. Since the new EEG also prevents the likelihood of similar projects in the future, RWE Innogy and WLV are also ending their collaboration. WLV, NDM and RWE Innogy regret being unable to continue with the positive partnership at the present point in time.

Background information: The originally planned biogas plant in Velen, Germany

RWE Innogy and Naturdünger Münsterland GmbH & Co. KG intended to build a 4.2 megawatt biogas plant at Velen. Input materials: 90 percent of manure solids extracted from about 700,000 cubic meters of untreated manure and 10 percent of catch crops. The manure was to be separated at local facilities. Apart from processing and feeding the biogas into the natural gas grid, the innovative plant concept allowed for complete processing of the fermentation residues with fertiliser recovery, which would have offered a solution to the growing nutrient surplus in the region.

The original plan was to start the consenting and licensing process for the biogas plant in autumn 2013. Owing to the planned amendment to the EEG, however, RWE Innogy and NDM decided to postpone the application until the Act was passed. Since the EEG amendment deprives the project of its economic rationale, both partners amicably agreed to abandon this project following the endorsement by the Federal Council.