3 rd Biogas Asia Pacific Forum Developing A Biogas Hub In Commercialization Biogas For Asia 2 – 4 th June 2014 JW Marriot Hotel Kuala Lumpur, Malaysia Opportunities for Biogas as an Alternative NGV Fuel by 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.
Natural Gas Vehicles 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 18.1 million natural gas vehicles and 24,400 refuelling stations in 83 countries. Most of the natural gas vehicles are located in the Asia Pacific region.
Estimated Number of NGV Vehicles in Asia Pacific and Worldwide (Jan ‘14) Total No. of No. Country Remarks Vehicles Stations Natural Gas NGV 1 IR of Iran 3500000 2074 Sept ‘13 Vehicles Stations 2 Pakistan 2790000 2997 Mar ‘13 3 World ~18.1 ~24,400 China 1577000 2800 May ‘13 4 million India 1500000 724 Feb ‘13 5 Uzbekistan 450000 213 June ‘13 Asia ~10.7 ~10,870 6 Thailand 441185 491 Jan ‘14 Pacific million 7 Bangladesh 220000 585 Apr ‘13 8 Malaysia 58000 176 Apr ‘14 9 Japan 42590 314 Mar ‘13 10 Korea 35872 190 Jan ‘12 11 Myanmar 30005 51 May ‘12 12 Tajikistan 10600 53 Dec ’07 13 Kyrgyzstan 6000 6 Dec ’07 14 Indonesia 6366 14 Jan ‘14 15 Singapore 5300 3 Dec ‘11 16 Australia 3500 51 Oct ‘11 United Arab 17 2800 17 Jan ‘14 Emirates 18 ██ Asia Pacific Region – 58 Countries Vietnam 462 7 July ‘12 19 New Zealand 201 14 Dec ‘10 ( Asia Pacific region comprises of 20 Philippines 61 2 Oct ‘11 countries in the United Nations Asian 21 Kazakhstan 3200 10 Dec ‘11 Regional Group and Australasia). 1,068,3952 10,869 (Source: Asian NGV Communications & GVR magazines & Others)
Example of NGV Refuelling Stations
Asia Pacific Will See The Most Growth in Heavy Duty Transportation Demand Through 2040 Transportation demand in Asia Pacific will double by 2040 Asia Pacific As economies expand and spur business activity, heavy duty vehicles will create greatest growth – up about 65 % from 2010 to 2040. North America Rest of World Europe Latin Middle East America Source: The Outlook For Energy: A View to 2040. ExxonMobil 2013
World Health Organization (WHO) Classified Diesel Engine Exhaust As Carcinogenic Note: Group 1 - The agent is carcinogenic to humans: This category is used when there is sufficient evidence of carcinogenicity in humans.
Opportunity for Biogas As Renewable Natural Gas Fuel For The Transport Sector Transport sector consumed around 30 – 40 % of final energy demand of a country, mainly Gasoline & Diesel. As a country develops, demand for transport increases, resulting in increase in demand for energy (gasoline & diesel) and air pollution (especially in cities). Natural gas offers a cleaner, cheaper and more secured source of energy for the transport sector (NGV). However, it is still a fossil source fuel. Upgraded biogas can be a new source of renewable and green fuel for the transport sector – known as Biomethane or Renewable Natural Gas.
Current Usage of Biogas Biogas Production Biogas Utilization Biomass Feedstock Heat (burner, furnance, etc) Electricity Anaerobic Electricity Digester Grid (Feed- (Biogas engine In-Tariff) / Gen-set, etc) Raw Mechanical Biogas Work (Biogas engine)
Upgrading of Biogas to Biomethane or Renewable Natural Gas Upgrading Biogas Production Technologies Upgraded Biogas Biomass Feedstock H 2 S Removal Biomethane / CO 2 Removal Renewable Anaerobic Digester Natural Gas H 2 O Removal Raw Contaminants Biogas Removal Upgraded to similar composition as fossil natural gas in the natural gas pipeline distribution systems.
Upgrading Technologies Are Already In Operation And Commercially Available Pressure Swing Adsorption (PSA) – purifies the gas by means of adsorption of impurities on active coal or zeolites. Physical absorption – water or another liquid such as alcohol can be used to bind carbon dioxide. When water is used, this is called water scrubbing or pressurised water wash (PWW). Chemical Absorption – chemical absorption is comparable to physical absorption. A liquid such as amine is chemically bonded to the carbon dioxide in order to recycle the solution, a heat treatment has to be applied. Membrane – methane can be separated from carbon dioxide using semi-permeable membranes. The force can be a pressure difference, a concentration gradient, or an electrical potential difference. Cryogenic – trace gases and carbon dioxide are removed by cooling down the gas in various temperature steps.
Transportation, Distribution and Usage of Biomethane / Renewable Natural Gas Usage Transportation & Distribution Natural gas pipeline Industries distribution system /grid Biomethane / Renewable Natural Gas Trailers (mother – Vehicles daughter system) (NGV) Commercial, Residential, etc
Transportation & Distribution Injection into the local Natural Gas Distribution Pipeline System / Grid. Transport by CNG Trailers
Biomethane / Renewable Natural Gas Has Low Well-To-Wheel GHG Emissions (Source: CONCAWE et al. Well-to-wheel analysis of future automotive fuels and powertrains in European context. 2007)
Challenges 1. Biogas Production - Feedstock availability / Actions: logistics / sustainability. Public awareness - Pricing. and appropriate legal framework. 2. Upgrading Technologies Government - Suitability. Policies, Supports - Gas quality / composition. & Incentives. - Pricing. Business case model for 3. Transportation & Distribution stakeholders - Grid injections. (Return on - Direct to customers. Investments) - Pricing. - Sustainability
Opportunity for Biogas As A Green & Renewable Fuel For The Transport Sector in Malaysia 1. Biogas Production – ample source of biogas. POME, MSW, Sewage. 2. Upgrading Technologies – commercially available in the market. 3. Transportation & Distribution – Gas distribution pipelines already in existence. Transport of Compressed Natural Gas (CNG) by trailers (mother - daughter systems) to NGV stations already in operation since 1992. Final Final 2012 Final Energy Consumption In Malaysia Final Energy Energy Energy Consum Consum Consum Agriculture ption, ption, ption, Resident Agricult Non- ial & ure, energy, Residential & Comm … 2.3%, … Commercial 16.0% … Transport Final Final Non-Energy Energy Energy Consum Consum ption, ption, Industri Transpor Industrial al, t, 29.8% … 36.8% … Source: Malaysia Energy Information Hub.
NGV In Malaysia Automotive Fuels Retail Price in Malaysia, April 2014 Gasoline RON 95 Gasoline RON 97 Diesel NGV RM/L RM/L RM/L RM/LE Retail Price 2.10 2.90 2.00 0.68 Actual Price 2.81 2.90 2.76 ~ 1.68 Government 0.71 0 0.76 * Subsidy *~RM1.00 ‘borne’ by PETRONAS. NGV Status as of April 2014 NGV Refuelling NGV Vehicles Stations Light Duty (mainly Operational – 176 taxis) ~ 57,200 (There are NGV stations Bus & Lorry ~ 800 in all states except Perlis, • Total = ~ 58,000 Sabah & Sarawak) The 58,000 NGVs is estimated to consume ~ 26 million liter equivalent of natural gas per month, thus saving government subsidy on RON 95 Gasoline of ~ RM18.46 million/month .
Malaysian Natural Gas Tariff & Automotive Fuels Retail Price Natural Gas tariff rates as approved by Automotive Fuels Retail government of Malaysia (Gas Malaysia Bhd) Price As of April 2014 Applicable Range Tariff Tariff RON 95 RM 2.10 per litre mmbtu/month Category RM/mmbtu Gasoline ~ RM64.42 /mmbtu (mmbtu/year) (subsidize) A 19.52 RON 95 RM 2.81 per litre 0 – 50 Gasoline ~ RM86.20 /mmbtu B 20.61 (0 – 600) (Actual) 51 – 416 RON 97 RM 2.90 per litre C 17.64 (601 – 5,000) Gasoline ~ RM88.96 /mmbtu (Actual) 417 – 4,166 D 18.14 (5,001 – 50,000) Diesel RM 2.00 per litre (subsidize) ~ RM54.05/mmbtu 4,167 – 16,666 E 19.00 (50,001 – 200,000) Diesel RM 2.76 per litre (Actual) ~ RM74.59/mmbtu 16,667 – 62,500 F 19.18 (200,001 – 750,000) NGV / CNG RM 0.68 per litre equivalent of gasoline 62,500 L 19.65 ~ RM20.86 /mmbtu (> 750,00) AVERAGE 19.32 (Source: www.gasmalaysia.com)
Conclusion Upgraded biogas (known as biomethane or Renewable Natural Gas) can be a new source of renewable and green fuel for the transport sector (in the form of NGV). The technologies to produce Biomethane / Renewable Natural Gas are already in operation in many countries and existing natural gas infrastructures can be utilised to transport, distribute, and use this green gas. Public awareness, appropriate legal framework, government policies, supports & incentives, and business case model are needed to develop and grow a sustainable Biomethane / Renewable Natural Gas markets.
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