Market Update on Green Gas Sector Biomethane and The CCC Net Zero - - PowerPoint PPT Presentation

Market Update on Green Gas Sector Biomethane and The CCC Net Zero

8th May 2019

John Baldwin CNG Services Ltd

john.baldwin@cngservices.co.uk www.cngservices.co.uk

“No burning of raw biogas and venting of CO2 at all, anywhere, anytime”

CNG Services Ltd

• Supports projects to inject biomethane

into the gas grid

– Around 98 existing projects – Estimated 20 new ones until end Jan 2020

• Supports back-up gas generation projects

– Connection of a 50 MW gas engine plant to 2 bar grid in 2017 (12,500 scmh)

• Part owner of CNG Fuels Ltd, a company

set up to build national network of Bio- CNG stations on the high pressure grid

– Leyland CNG Station, others in build – 84% saving in GHG compared to diesel

• Developer of Islay biomethane island

project to take gas to Islay to replace oil for the whisky industry

– Oil and whisky don’t mix

I predicted 4-0 so pay attention!

Agenda

• 1. What does @theCCCuk say

about Biomethane?

• 2. What does this mean for

Biomethane Production?

• 3. What does it mean for the 2019

customers of Biomethane?

• 4. Summary

• 1. WHAT DOES @THECCCUK SAY ABOUT

BIOMETHANE

Search on “Biomethane” in the Net Zero by 2050 Technical Report

Carbon 760 Hydrogen 533 Cost 472 Heat 420 Electricity 262 CCS/CCUS 226 Biomass 177 Hybrid 102 Wind 71 nuclear 56 Ammonia 50 Diesel 41 Solar 37 Heat Pump 33 Oil 27 Petrol 27 EV/Electric Vehicle 27 Natural gas 25 Electrolysis/electrolyser 22 Coal 21 Energy System 20 Biomethane 16 Smart 15 Steam Methane Reforming /SMR 14 Fuel Cell 12 District Heating 9 Tidal 6 Biogas 5 Hydro 4 Interconnector 3 Hot water storage 2 Demand Side Response/DSR 1 LNG 1 CHP 1 Wave energy 1 CCGT Shale Power to Gas/P2G Vehicle to Grid/V2G Smart Metering

Biomass constrained to biomethane from the 2030’s

Biomethane in heating

20 TWH/annum is around 500 projects We are 20% of the way to 2030 target

Biomethane in ‘direct firing’

5 TWH/annum is around 100 projects – we will be there by 2020

Biomethane in ‘HGV transportation’

Replacing diesel with Bio-CNG will facilitate the move to H2 and EV trucks by 2050…..obvious first step is 20% H2/80% Bio-CNG in the 2020’s

UK Gas Network - Summary

• Networks used for biomethane injection

– MP – 2bar – IP – 6.9bar – LTS – 12-70bar – NTS – 70 – 85 bar

• Networks used for 100% H2

– MP – 2bar – IP – 6.9bar – H2 needs new Transmission Grids

@theCCCuk Summary

@theCCCuk likes Biomethane but wishes there was more! If <7 bar gas grid converted to H2 for H2 domestic heating, and industry (but LTS/NTS remains CH4) :

– Use Biomethane for hard to electrify industry supplied by LTS – Use Biomethane for low load factor peak gas generation (LTS/NTS)

If the entire gas grid remains CH4 with hybrid heat pump/Green Gas heating then Biomethane can supply peak heat and low load factor back up generation

– Make as much as possible – Radical technology development

• 2. WHAT DOES THIS MEAN FOR

BIOMETHANE PRODUCTION?

If <7 bar gas grid converted to H2 for H2 domestic heating and industry (but LTS/NTS remains CH4)

• Biomethane projects that inject into IP and MP will need to

connect to LTS/NTS or make Compressed Biomethane (CBM) instead of local injection (see David Hurren distillery slide)

– Can also make Liquid CO2 and take both to the H2/CCS plants where the CH4 is made into H2 plus CO2 – There H2 is injected into the H2 grid and CO2 sent to offshore storage

• No issue with food grade CO2 when the CO2 is injected into old gas fields!
• Low GHG BECCS option!
• Biomethane in LTS and NTS

– Focus on making as much as possible – Make H2 at AD sites from electrolysis and react with CO2 to make CH4

• No CO2 should be vented – it will be too valuable given surplus electricity

– Import waste organic material from abroad to make biomethane at ports with good LTS/NTS (eg Teesside) – Also Bio-SNG from wood (eg Drax supply chain used to make CH4 with CCS)

• This is Biomethane (and Hydrogen) Heaven

If entire gas grid remains CH4 with hybrid heat pump/Green Gas heating then Biomethane can supply peak heat and low load-factor back up generation

• All Biomethane projects can continue to inject as today
• Grid can accept 20% H2 blend
• Focus on making more biomethane using low cost renewable

electricity to improve yield:

– No longer any biogas CHP – Heating from renewable electricity/industrial heat pumps – Thermal hydrolysis to improve yields – All sewage derived biogas made into biomethane – Import waste organic material from abroad to make biomethane at ports with good LTS/NTS (eg Teesside) – All CO2 made into CH4 with renewable electricity making H2 – No CO2 venting at AD sites – BIO-SNG from wood with CCS

• This is Biomethane (and Hydrogen) Heaven

• 3. WHAT DOES THIS MEAN FOR THE

2019 CUSTOMERS OF BIOMETHANE?

• 1. Gas Central Heating
• 1. RHI designed to support heating and it

has been successful – around 4 TWh/annum under existing with further 2TWh by 2021

• 2. Typical house uses 12,000 kWh/annum

so that’s 500,000 houses by 2021

• 3. But there a lot of alternatives for

domestic heating:

– Insulation to reduce demand – Ground, water and air source heat pumps – Electric storage heating – CHP/District heating

Biomethane use only possible in the hybrid heat pump/Green Gas via grid model

• 2. Back-up Power Generation
• 1. Growth in low load factor gas engine

power stations, typically 20MW

– Designed to run only when wind/solar etc needs back-up

• 2. <200 hours a year from 2040

– No staff, scheduled remotely

• 3. Biomethane that has been stored and is

delivered via the gas grid is a good

• ption to fuel these plants

Only possible in the <7 bar remains CH4 model – but a very attractive (low cost) way to supply <3% load factor windless week electricity

• 3. CHP in London
• 1. Most new London offices

have a basement gas engine plant which produces heating, cooling, electricity

– Gas pipeline in every street in London

• 2. The fuel for the gas engine

could use biomethane

– BioCollectors and ReFood

• 3. Option in London of using

the Thames and Water Source Heat Pumps with District Heating

– Link with Green Gas for peak

Gas CHP and Biomethane is a great option if the <7 bar gas grid remains CH4 – is there an alternative in practice in cities?

• 4. Biomethane Buses
• 1. Nottingham and Bristol have

joined 6 other towns/cities biomethane buses

• 2. Go with Biomethane, save money

and use that to reduce gas demand by insulating houses Biomethane buses meet air quality and GHG targets and encourage food waste recycling - keep until 2040 at least and use savings to fund insulation….

• 5. Trucks (1)
• 1. RTFO approved Biomethane as truck fuel is

great:

– RTFO to 2032 – Valuable option for Tier 2 and Tier 3 biomethane from waste – 84% saving in GHG – Very low NOX and PM10 – 50% reduction in noise

2. Using the £10 billion Local Transmission System represents a great option for UK

– For around £300 million we can have enough CNG stations for 75% of big trucks

3. New CNG Fuels/Agility 44 tonne Iveco 6 x 2 tractor is transformational

Likely that Bio-CNG continues to 2040 and valuable H2 is used instead to make fertiliser, steel and cement where the CO2 can be captured

• 5. Trucks (2)
• 1. Emerald Biogas CBM Filling Station
• 2. Biomethane upstream of Grid Entry

Unit

• 3. Compress into 250 bar storage and

then fuel trucks

• 4. First direct CBM filling station in GB

Food waste collected using Biomethane (made from food waste) trucks – hard to beat even in 2050

• 3. SUMMARY

Net Zero By 2050

• 1. Biomethane is the one CCC supported Biofuel
• 2. Massive incentive to produce as much Biomethane as possible in all

scenarios

– Including Bio-SNG from wood

• 3. If <7 bar goes to H2 then we need to move CBM to the ‘hard to move from

CH4’ customers

• 4. If grid remains CH4 but with very low load factor we need to make as

much Biomethane as possible and re-engineer plants to use renewable electricity for heating and process

• 5. HGVs should all be Bio-CNG by 2040 and can then move towards H2 to

2050 and beyond

• 6. No burning of raw biogas and venting of CO2 at all, anywhere, anytime

– Sewage derived biogas to biomethane in 2025 – 2030 period – AD CO2 reacted with H2 from surplus wind to make CH4

Its a Golden Age for Biomethane and H2 under ALL SCENARIOS