Market Update on Green Gas Sector Biomethane and The CCC Net Zero 8th May 2019 “No burning of raw biogas and venting of CO2 at all, anywhere, anytime” John Baldwin CNG Services Ltd john.baldwin@cngservices.co.uk www.cngservices.co.uk
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 0 Shale 0 Biomass constrained to biomethane from the 2030’s Power to Gas/P2G 0 Vehicle to Grid/V2G 0 Smart Metering 0
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 Networks used for 100% H2 – – MP – 2bar MP – 2bar – – IP – 6.9bar IP – 6.9bar – – LTS – 12-70bar H2 needs new Transmission Grids – NTS – 70 – 85 bar
@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 option 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
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