Biogas Asia Pacific Forum 2015 Commercial Integration of the Biogas - PowerPoint PPT Presentation

Biogas Asia Pacific Forum 2015 Commercial Integration of the Biogas Value Chain in Asia – Opportunities and Challenges for All 28 – 30 th April 2015 Sunway Pyramid Convention Centre Kuala Lumpur, Malaysia The Importance of Protocols and Standards in the Use of Biomethane for Vehicles Lee Giok Seng Executive Director

Asia Pacific Natural Gas Vehicles Association (ANGVA)  Trade association for NGV industry.  Vision: “To lead and promote Asia Pacific NGV industry towards sustainable growth”.  Promote natural gas as an environmentally friendly, economically viable, and energy security fuel for the Transport Sector.  Provide platforms for development and promotion of NGV markets. • Secretariat: Kuala Lumpur, Malaysia. • Website: www.angva.org.

Invitation to ANGVA 6 th Biennial International Conference & Exhibition – ANGVA 2015, 4 – 6 Nov

Transport Sector Vital to a Country Economic, Financial and Political Well-being • Transport sector:  moves people and goods - creates economic opportunities and growth.  major consumer of energy, ~ 35 – 40 % of final energy consumption, mainly in the form of oil (gasoline & diesel).  impact on energy security of a country - oil supply and price are volatile and unpredictable.  major impact on environment – vehicles major source of air pollutions especially in the cities. 4

Natural Gas Offers a Commercially Viable Clean Alternative Fuel for the Transport Sector  Natural gas was first used as a transportation fuel in Italy in the 1930s after World War II. Around 80 years ago.  Worldwide there are around 21.6 million natural gas vehicles (NGVs) and 25,600 refuelling stations in 83 countries.  Most of the natural gas vehicles are located in the Asia Pacific region.

Status of NGVs in Asia Pacific Region – 23 Countries at Various Stages of Development and Growth (Sept ‘14) Natural Gas NGV Vehicles Stations World ~21.6 ~25,600 million Asia ~11.4 ~12,300 Pacific million Ref: Asian NGV Communications & Others

Opportunity to Use Upgraded Biogas As Renewable Source of Natural Gas Usage Transportation & Distribution Biomethane Source: Upgraded Biogas Natural gas pipeline distribution system /grid Industries Trailers (mother – Fossil daughter system) Vehicles Natural Gas (NGV) Source: Gas & oil fields Commercial, Biomethane (also known as Renewable Natural Gas) is defined as methane Residential, produced from biomass (ISO 16559:2014), with properties close to natural gas. It can be produced by biochemical conversion (upgrading of biogas) or etc thermochemical conversion (bio-Synthetic Natural Gas)

Biomethane in Europe  Biomethane markets are already established in a number of European Union (EU) countries. Between countries, there are differences in the targets and intended main markets e.g.  heating (United Kingdom ((UK)  electricity with district heating (Germany)  vehicle fuel (Sweden, Germany, Austria, Finland, Iceland)  In Sweden and Iceland , biomethane supplied to vehicles were larger than those from fossil natural gas.

Biomethane as Renewable Fuel for Vehicles Usage Transportation & Distribution Natural gas pipeline distribution system /grid NGV Refueling Stations Trailers (mother – daughter system) Vehicles (NGV)

Framework of the Biomethane Value Chain hot spot for sustainability conversion to biogas biomass production grid injection + + + end use upgrading to biomethane provision grid take-off + conditioning register and certification technical demands Ref: Biomethane – Status and Factors Affecting Market support schemes Development and Trade. A Joint Study by International Energy Agency (IEA) Bioenergy Task 40 and Task 37. September 2014.

Biomethane Markets Lesson Learnt  A good framework is necessary to push forward the emergence, development and growth of biomethane .  Political and associated financial support are needed.  Policies such as tax reductions on clean vehicles and renewable fuel quota systems are important.  Next to a good policy framework, another important step is good information flow to the stakeholders and public.  Conditions should be created for revenue generation from environmental attributes of biomethane such as Renewable Identification Number (RIN) credits under the USA Renewable Fuel Standard (RFS) for the generation and use of biomethane as fuel for vehicles. Ref: Thrän et al. 2014. Biomethane – status and factors affecting market development and trade. IEA Task 40 and Task 37 Joint Study. September 2014.

Biomethane Certification in USA  The American Environmental Protection Agency (EPA) has established specific rules for determining biogas qualification for RINs.  To earn RINs, producers must demonstrate their feed stocks and the physical connection from the biogas source to where it is upgraded and injected all the way to where the gas is extracted to produce CNG, LNG or electricity, contractual arrangements must also be demonstrated.  The EPA determines on a case-by-case basis who along the process chain earns the RINs which provides market flexibility in the evolving business landscape.

Biomethane Certification in United Kingdom  The Green Gas Certification Scheme (GGCS)  Tracks biomethane , or ‘green gas’, through the supply chain to provide certainty for those that buy it.  Tracks each unit of green gas from its injection into the distribution grid, to any trades, to its sale to a consumer, or group of consumers. Tracks the contractual rather than physical flows to ensure there is no double-counting from production to end use.  Provides certainty for consumers who buy the gas, confidence in the green gas sector and an incentive for gas producers to inject green gas into the grid instead of using it to generate electricity.  Run by Renewable Energy Association’s subsidiary, Renewable Energy Assurance Ltd.  Marks & Spencer Secure Green Gas Certificates . 8 th Sept 2014. www.energylivenews.com  M & S announced today it will buy Biomethane Gas Certificates from Future Biogas to slash its carbon footprint emissions by more than 6,400 tonnes. Over the past couple of years, M&S has worked tirelessly to improve its carbon efficiency and innovate in sustainability.

Ref: Thrän et al. 2014. Biomethane – status and factors affecting market development and trade. IEA Task 40 and Task 37 Joint Study. September 2014.

Example of Biomethane Composition Ref: Andrew Hall, Xebec Adsorption. Kuala Lumpur. Malaysia. 17 Mar 2012.

Fossil Natural Gas Quality Standards For NGVs:  ISO 15403-1: 2006 :- Natural Gas – Natural gas for use as a compressed fuel for vehicles. Part 1: Designation of the Quality.  ISO/TR 15403-2: 2006 - Natural Gas – Natural gas for use as a compressed fuel for vehicles. Part 2: Specification of the quality. critical items are water content, sulfur compounds, particulate matter, higher  hydrocarbons, CO 2 , free oxygen, glycol/methanol, oil content and corrosive components. Pertains only to compressed natural gas as it enters the fuel containers on the vehicle. It does not apply to the natural gas delivered to a refuelling station.  SAE J1616 : – Recommended Practice for Compressed Natural Gas Vehicle Fuel (1994). (Under Annex 3 of UN ECE R110)  National standards e.g. Thailand, Malaysian, Indonesian standards, etc. German standard - DIN 51624:2008-02 :- Automotive fuels – Compressed natural  gas – Requirements and test methods. Swedish standard – SS 155438:- Motors fuels – Biogas as fuel for high-speed Otto  engines (1999). Currently the only standard regulating direct utilisation of biomethane as fuel for vehicles. For Natural Gas: ISO 13686:2013 :- Natural gas - Quality designation - specifies parameters required to describe finally processed and where required, blended natural gas. 16