Registering delivery of greened LNG

Fuel registration

The LNG to be registered must be released for consumption and delivered to the Dutch market by the registering party. The released LNG qualifies for registry as long as it is green with Guarantees of Origin (GvOs) for green gas. This greening of LNG through accounting is done by transferring the green gas guarantees to the NEa account in the Vertogas registry, prior to registry in the REV. HBEs are only created when the LNG-delivery is covered by the Guarantees of Origin.
 

Guarantees of origin (GvOs) Green gas GvOs are issued by Vertogas. They demonstrate that a certain amount of green gas was produced from renewable sources, has the same qualities as natural gas, and was fed to the gas grid (or a direct line). What is meant by registering greened LNG, as described here, is the greening through accounting with green gas GvOs. The same type of GvO is used when registering gaseous biofuel. For registering LNG as a liquid renewable fuel a different type is used. The latter makes use of a so-named “GvO for other gases”. The “GvO for other gases” serves to green hydrogen used in the production of LNG (as well as methanol and kerosene). GvOs for other gases are issued to thydrogen producers. Green gas GvOs are issued to green gas producers.

As a condition to registering LNG covered by a green gas GvO, the registering party must be able to showcase, with a certificate:

• A quantity of LNG was produced in the Netherlands equal to that of the registration;
• That same quantity of LNG was produced from natural gas originating from the Dutch gas transport network;
   

More information on the NEa’s expectations with regards to the shape and content of this certificate can be found on this page in due time.

Companies able to register

The LNG, greened with GvOs through accounting and registered, must be released for consumption by the registering company. This means only companies qualify for booking LNG through this method when they own a permit for mineral oils, are registered consignees for mineral oils or importers.

Demonstrating release for consumption

Registered deliveries of greened LNG must demonstrably be released for consumption. In other words, the registering company should, through their own accounting, be able to demonstrate the registered delivery was released for consumption. In most cases it means registered biofuel was released for consumption by the registering company itself. Deliveries under suspension of payment of excise duties also qualify to be registered in certain cases. The registering company doesn’t release the fuel and is not responsible for payment of excise duties, but instead extents the obligation to pay excise duties to a different AGP licensed party. Whether this is permitted depends on the type of fuel released as well as the destination of delivery. The fuel type also determines if additional burden of proof is necessary.

See also “Demonstrate release for consumption: fuels and end users” at Registering delivery of liquid biofuels.

HBEs for greened share of delivery

Only the share of the delivered LNG that was covered by GvOs will result in the creation of HBEs. For example, when the (energy)volume of delivered LNG is covered by the (energy volume of) the GvOs for 50%, the amount of HBEs will be based on that 50%. It is not allowed to green and register LNG for more than 100%. Neither may you register the same amount of green LNG as liquid renewable fuel.

The type of HBE received when registering greened LNG depends on the feedstocks specified on the used GvOs.

HBE calculation

• To determine the amount of HBEs to transfer, the energy-content of the GvO is multiplied by 0.85. This is due to the necessary energy required to liquify natural gas.
• Registrations of greened LNG may be double-counted when the GvO specifies the green gas was produced from feedstock that qualifies for double-counting. This should be evidenced with a double-counting certificate.
• In the rare cases of delivery to aviation, a multiplier of 1.2 is applied. In delivery to maritime shipping, a multiplier of 0.8 is applied (for the year 2022).
   

HBE amount = Energy-content GvO* x 0.85 x [2] (in case of double-counting) x [0.8 or 1.2] (in case of maritime shipping or aviation)

^{* converted to / expressed as GJ}

REV registration

The registering company registers the delivered volume of LNG and (energy)volume of the GvOs in the REV (Energy for Transport Registry). Before registration, the company must transfer the GvOs to the NEa-account in the Vertogas registry.

The following details must be entered into the REV when registering liquid renewable fuel:

• The amount of LNG (in kilograms) delivered,
• GvO details,
• Details on the location from which the delivery originates,
• Details of the LNG-certificate,
• When applicable, an double-counting certificate.