Adding gas from biomass to the gas grid - SGC

heating requirements above 250 kW which are located outside district heating and naturalgas distribution zones and areas,- ensuring that the establishment of new individual natural gas supplies in minor communitiesshall be dropped in favour of switching to biomass based district heating or CHP.• Contact the parties to the biomass agreement with a view to changing it in ways that can leadto:- making it possible within the framework of the agreement to replace its very exact quantitiesof straw and wood chips with a more flexible mix of straw and wood chips. This will providea flexibility that can reduce total costs while simultaneously introducing an element ofcompetition which can reduce the fuel prices.- permitting a general opening for the use of biomass in natural gas areas, in order to ensurethe possibilities of further development of biomass CHP after 2000.• Implement a demonstration and development programme for energy crops designed tocontribute to the evaluation of the long-term consequences of increasing the Danish biomassresources by energy crop production, in terms of finance, energy and environment, nature andlandscape, and commerce.• Carry out a limited experimental programme with a view to assessing the basis for thepermanent production and utilisation of biofuels.Taxation and incentivesGreen taxesIn 1995, the government passed collective legislation for trades and industries, the so-called EnergyPackage, as an instrument for reducing CO 2 emissions, and for contributing to fulfilment of thenational CO 2 targets. The package includes energy, CO 2 and SO 2 taxes on energy consumption,subsidies for energy-efficiency measures, entry into agreements for energy-intensive companies,reduction in taxation of labour, and subsidies to the self-employed. The energy and CO 2 taxes aredependent upon energy use, while the SO 2 tax is independent of energy use. In the private sector,energy use is categorized as heavy process, light process and space heating. CO 2 taxes dependupon CO 2 emissions on combustion, as the total tax for all fuels corresponds to € 13.4 per ton ofCO 2 emission. However, the CO 2 tax calculation rate on electricity is fixed and does not fluctuate asa result of changes in fuel consumption in the production of electricity. It is possible for energyintensivecompanies to enter agreements on energy efficiency and thereby reduce their CO 2 taxes.CO 2 taxes will therefore vary significantly, depending upon whether or not an agreement has beenentered, see table 55. Households are taxed with the full CO 2 tax of € 13.4 per ton of CO 2 emission.Energy taxes on fuel consumption for space heating in trade and industry are gradually increaseduntil 2002 as indicated in table 56.page: 99