P ROGRAM M ODIFICATION E XHIBIT A2-8 To: FortisBC Energy Inc. - - PDF document

Log No. 42229 PF/FEI_Biomethane PIPM/Gen/A2-8 - Union Gas Presentation: City of Hamilton WWTP Renewable Natural Gas Project Overview

VIA EMAIL May 2, 2013

FORTISBC ENERGY BIOMETHANE POST IMPLEMENTATION & PROGRAM MODIFICATION EXHIBIT A2-8

To: FortisBC Energy Inc. Registered Interveners (FEI-Biomethane-RI) Re: FortisBC Energy Inc. Project No. 3698699/Order G-1-13 Post Implementation Report and Application for Approval of the Continuation and Modification

• f the Biomethane Program on a Permanent Basis

(2012 Biomethane Application) Commission staff submits the following document for the record in this proceeding: Union Gas Presentation City of Hamilton WWTP Renewable Natural Gas Project Overview and Lessons Learned by Union Gas Ltd. Yours truly, Erica Hamilton /dg Enclosure

City of Hamilton WWTP Renewable Natural Gas

Project Overview and Lessons Learned by Union Gas Ltd.

Drew Everett, P.Eng. 4th Annual Canadian Farm and Food Biogas Conference – March 6th, 2012

A2-8 FORTISBC ENERGY BIOMETHANE POST IMPLEMENTATION & PROGRAM MODIFICATION EXHIBIT

Union Gas At a Glance

Dawn Storage

Storage: 155 Bcf Underground Facilities: 23 Markets Served: Ontario, Quebec, Marketers

Transmission

Annual Throughput: 834 Bcf Transmission Pipe: 4,743 km Markets Served: Ontario, Quebec, US Northeast

Distribution

Retail Customers: 1.4 million Annual Throughput: 499 Bcf Distribution Pipe: 62,711 km

• Original business was based entirely on the distribution of locally

(Ontario) produced gas

• Continue to receive gas produced in Ontario from ~100 locations
• As of Nov. 2011, Union Gas began receiving renewable natural

gas from a WWTP in Hamilton, ON

Local Production History

Hamilton WWTP RNG Project

• Hamilton has operated a 1.6

MW cogeneration project since 2006

• Evaluated potential for

increasing biogas production at the plant with the intent to develop RNG

• Applied for and awarded a

grant to proceed through the Federal Infrastructure Sustainment Fund

Woodward Ave. WWTP, Hamilton, ON

Hamilton WWTP RNG Project

• Transportation agreement between the City of Hamilton and

Union Gas was established (M13 Contract)

• Union Gas provided the City and its EPC contractor with the

contractual obligations for gas quality

• The City evaluated and selected the Greenlane Biogas water

scrubbing technology

• Up to 10,000 m3/day of RNG

Union Gas Timeline

• Aug. 2010
• Mar. 2012
• Aug. 2011
• Nov. 2011
• Dec. 2010

Evaluation and design options Contractual arrangement and final design Construction Commissioning

Hamilton WWTP RNG Project

• Plant controls monitor and adjust for CO2 and H2S levels (to

ensure contract limits are not exceeded)

• Union Gas prescribed real-time monitoring for additional gas

quality criteria (signals provided from the clean-up system):

• CO
• H2
• O2
• Moisture content
• Union Gas constructed a custody transfer station at WWTP, and

completed a connection to nearby distribution system.

• Paid as a 100% aid to construct by the producer

Lessons Learned

Plan Actual Lesson Learned Station

(design, procurement, and construction) < 4 months 6 months + 6 months (realistic)

Utilities

(power and communication) − Direct connection to local utilities − Local utilities unable to provide dedicated service − Contracts amended for future reference

Commercial operation

• Oct. 31st, 2011

March, 2012 − Commissioning programs are unique … plan ahead!

Start-up protocol

(required by Union Gas) < 1 month 3 months + 1 month (realistic)

Lessons Learned

Plan Actual Lesson Learned Lab analysis

(main constituents, trace compounds, and bacteria) − 1-wk turnaround for analysis − Gas quality within contractual limits − Analysis turnaround delays − Minor gas quality concerns − Process optimization able to remedy all gas quality concerns

Market availability

− Urban setting with an abundance of market, year- round − Flow restrictions during winter market conditions − Station design issue resolutions − Operating adjustments possible

Gas quality monitoring

(in real-time: CO2, H2S, CO, H2, O2, and moisture content) − Producer to install and share signals with UG − Signal sharing is initially cumbersome − UG added redundant CO2 analyzer at transfer station − Less expensive alternative for Producer to install/operate and share signals

Lessons Learned

Urban Development (Experienced) Rural Development (Expected) Project oversight

− Sophisticated and process oriented engineering firm in Hamilton − Similar process necessary, sophistication may vary

Local operations

− Clean-up and injection is a primary function for a dedicated operator − Clean-up and injection may be a secondary function

Market availability

− Less concern for year-round injections (more customer attachments) − More concern for year-round injections (fewer customer attachments)

Length of tie-in required

− Adjacent or near distribution system − Less likely to be adjacent or near distribution system (expect longer tie-in requirements)

Union Gas commissioning and start-up protocol

− Operations restricted to intermittent flow until sampling program complete − Expect same approach

Thank you!

Drew Everett, P.Eng. Market Opportunity Development Project Manager, Union Gas Ltd. Telephone: 519-358-4239 Email: deverett@uniongas.com

Ullongas

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