Biomethane to Grid & Vehicles EU & UK Market Update
19th February 2014
Robert Mckeon
Project Manager CNG Services Ltd
robert.mckeon@cngservices.co.uk www.cngservices.co.uk
0121 707 8581
Biomethane Market Overview
1. CNG Services Ltd
2. Biomethane across Europe and UK Project Review 3. UK Market forecast and Conclusions
4. Biomethane Roadmap and Green Gas Certificates 5. CEN Standard and CNG in UK
6. Conclusions
CNG SERVICES LTD
CNG Services Ltd
• Supports projects to inject biomethane into the gas grid
– Didcot, Poundbury, Vale Green, Stockport, Doncaster, Minworth etc.
• Bio-CNG as a fuel for trucks
– Own UK’s largest CNG filling station
– Sell Bio-CNG (20% biomethane)
We are independent from all makers of plant, vehicles, clean-up, compression....we help clients get the best solution for their projects
Our Biomethane Projects Team
• Biomethane Projects
– Iain Ward, Lee Firth, Alison Cartwright, Terry Williamson, Robert McKeon, Greg Lee, Phil Winnard
• Pipelines and Compression Projects
– Ian Roughley, Bob Ingmire, Mick Beddows (LTS), Tony Pym, Mihaly Papp, Neil Morbey
• Commercial (RHI, NEA etc.)
– Peter Rayson
• Project Support
– Angela Bagshaw, Chris Toase, Christine Venables, Lauren Hamer
We support Biomethane Projects for a living
BIOMETHANE ACROSS EUROPE
EU Biomethane Projects
• Biomethane Projects
– By middle of 2013 biogas production was equivalent of 14billion m3 of natural gas
– 14 EU countries produced biomethane – 0.8billion m3/year – 11 injected into the grid, 12 used as vehicle fuel
• In UK alone 15 projects are going ahead in 2014
– And over 20 in 2015 for certain
• All projects going into grid
– Extensive UK Gas network
– RHI substantially greater than RTFO
– Green Gas Certificates to supply biomethane for vehicles
By 2030 3% of EU consumption of gas could be from biomethane Equivalent to 20billion m3
UK PROJECT REVIEW
Didcot – UK’s First BtG Project
Biogas upgrader Propane Storage
Gas bag
Energy & quality Measurement Propane Injector
Telemetry
H2S and Siloxane filters
Flow of biogas - 100 m3/hr First gas to grid on 3rd Oct 2010
Anaerobic Digesters
Poundbury
• UK’s first commercial scale biomethane to grid project
• 500 m3/hr. into grid (around 1 million therms)
• Membrane CO2 removal plant
• SGN providing biogas to biomethane conversion service
• Development is a JV between Duchy of Cornwall and some of its tenants
Prince Charles opened the project in Nov 12
Springhill (Vale Green) near Evesham
• Approximately 600 m3/hr biogas
• 490 kWh CHP
• Go live – August 2013
• CO2 separated via membrane and cryogenic system – used to grow more tomatoes
Future Biogas - Doncaster
• Agricultural feedstock
• Approximately 900 m3/hr biogas to biomethane
• 499 kWh CHP
• Went live in Oct 2013
• First project in National Grid area
BioCore - Beccles
• Agricultural
• Approximately 2,000 m3/hr biogas
• 490 kWh CHP
• Go live Q2 2014
Severn Trent Water - Minworth
• Sewage derived biogas
• Approximately 1,200 m3/hr biogas
• Existing 9 MWh CHP
• Go live Q2 2014
ReFood - Widnes
• Food waste
• Approximately 2,000 m3/hr biogas
• Go live 2014
Project in Scotland
• Waste
• 2 water wash plants, each capable of 2,500 m3/hr biogas
Chesterfield Biogas selected to build UK’s largest biomethane-to-grid project.COM
Chesterfield BioGas (CBG) has announced a new order for its biogas upgraders which will be central to a ground-breaking UK renewable energy project. The company, which is based in Sheffield, UK, is to supply gas-scrubbing water-wash upgraders and ancillary equipment to a site in UK.
When commissioned in late 2014, not only will it be the first facility of its kind, it will be the largest of any biogas-to-grid project so far announced or operating in the UK.
Raw biogas - derived from anaerobic digestion (AD) will be converted to biomethane suitable for injection into the national gas grid.
Such is the anticipated raw biogas input from the AD, upgrading units will need to be coupled in parallel to optimise an output of up to 5,000 cubic metres per hour of 98% pure biomethane. The model being supplied is the Totara +, the largest in the Greenlane® range.
Included in the service elements of the contract are a 3-year warranty, a guarantee of 98% system availability, and a monthly site visit by a CBG engineer.
The Greenlane water-wash process is proven in operation over the last 20 years and requires no heat and no chemicals. More 75 sites are operating successfully around the world, 30 of which employ theTotaramodel.
When the project is completed in late 2014, CBG will have six similar systems of various capacities installed in the UK - more than all other types of biogas upgrading units operational in the country put together, and more than any other single supplier.
Other Projects in 2014
• NWL Howdon
– Northumbrian Water’s STW near Newcastle – 2,000Nm3/hr biogas – Malmberg WW
• Euston Estates
– High Pressure LTS Connection project in Cambridgeshire
– IP main with remote compressors and ROV – 1st project to use this model
– 1,000Nm3/hr biogas – Pentair Haffmans plant
In total 15 projects will go ahead in 2014 and around 20 more in 2015 helping meet 2020 renewable energy targets
MARKET FORECAST AND CONCLUSIONS
Annual Biomethane to Grid and RHI for 2012-2015
£778,719
£4,943,425
£88,005,740
£148,736,270
£0
£20,000,000
£40,000,000
£60,000,000
£80,000,000
£100,000,000
£120,000,000
£140,000,000
£160,000,000
0.00 0.50 1.00 1.50 2.00 2.50
2012 2013 2014 2015
RHI/Annum TWh/Annum Forecast Biomethane to Grid & RHI Awarded per Financial Year
Feedstock Categories
Projects were also categorised according to sectors determined by the EU Green Gas Grids Project:
1. Sewage Sludge 2. Agricultural
a. Animal manure (slurry)
b. Agricultural by-products and residues c. Crops for Energy
d. Agricultural biomass is modelled as one sub-group as projects will often contain elements of all 3 streams
3. Industrial Food Processing waste
4. Food Waste (commercial, domestic, local authority)
5. Biodegradable waste (e.g. from an MBT plant or garden waste collected by local authority)
Proportion of Projects in Each Feedstock Category
Proportion of Projects in each Feedstock Category
Sewage Sludge Agricultural Food Waste Industrial Food Processing Biodegradable
GGG Feedstock Category Number projects in Category %
Sewage Sludge 9 15%
Agricultural 25 42%
Food Waste 12 20%
Industrial Food Processing 10 17%
Biodegradable 3 5%
Unknown 0 0%
Total Projects 59
Biomethane Market Forecast
• UK total gas demand now is around 800 TWh/annum
– Around 50% domestic heating, 25% power gen and 25% industry – Stretch maximum biomethane by 2030 is around 20 TWh
• For heat in cities there are few practical/economic alternatives
– Biomass (air quality), heat pumps (do not work in very cold weather), district heating (too late to dig up cities)
Biomethane to Grid Conclusions
• It has taken 6 years but the regime looks good:
• Over 50 projects in next 3 years is possible, all technologies
• Majority of biomethane from waste feedstock
• Need to focus on reducing capital costs
• Grid Entry Unit costs reduced by 50% in last 5 years
• New processes being developed for high pressure connections
• 7 active biomethane equipment providers in UK – competition
The biomethane market is set to grow, delivering significant benefits and helping meet 2020 renewable energy targets
BIOMETHANE ROADMAP
GGG Biomethane Roadmap
• Designed as a cross-border trading system for biomethane
• Solution when supply outweighs demand in one country
• EU has large gas network supplying all countries
– Includes UK and Ireland
– Interconnector from Zerbrugge to UK and UK to Dublin
• Currently very limited
• Most cross border biomethane via vehicle
– e.g. Gasrec supply LBM to Holland
• Currently the following countries have Green Gas Schemes
Austria: Biomethan Register Austria (AT)
Switzerland: VSG (Federation of Swiss Gas Industry) Germany: Biogasregister
Denmark: Energinet
France: GzDF Holland: Vertogas
UK: Green Gas Certification Scheme
GREEN GAS CERTIFICATES
REAL Green Gas Certificate Scheme
• Designed to allow ‘tracking of biomethane from injection point to customer’
• Integrity - no ‘double counting’
• Separate from the gas to provide flexibility
• Can only be used once
• National Grid
• British Gas
• E.ON
• Thames Water (Didcot)
• Adnams Biogroup (Adnams)
• Milton Keynes City Council
• CNG Services Ltd
• http://www.greengas.org.uk/
GGCS Launch Members
GGCS is the only UK scheme associated with the recent agreement to harmonise registry Green Gas Certificate rules
(http://www.greengasgrids.eu/info/news.html)
Gas shipper
AD Developer Organic
Material
Gas Distribution
Network Sale of
‘Certificates’
Normal grid gas
Purchase of biomethane
energy
Inject gas into grid Processing via
Anaerobic Digesters
AD Developer Sells Certs Direct to Gas Consumer
Clean-up plant and grid injection Gas can be
used to fuel trucks on CNG
or for CHP
Sale of gas Customer
Green Gas Certificates
• GGCS is not-for-profit and governed by its participants
• Participants pay a small annual membership fee (£500)
• A small gas throughput fee (0.01p/kWh)is levied as identifiers are retired
• GGCS does not legally confer any additional ‘value’ on the green gas contracts that flows through it (apart from buses – see later)
• GGCS does indicate ‘origin’ of the gas
• GGCS is closely linked to the RHI
• Participants are independently audited to ensure registrations are accurate
Opportunities for Green Gas Certificates
• Green Gas Certificates are included in guidance of Dept for Transport Low Carbon Emission Buses (LCEB) – buses can use GGC as proxy for biomethane
– The bus operator is allowed to claim a credit of 6p/km if a Green gas Certificate is presented to match gas used
• John Lewis has called for ‘DEFRA and DECC need to recognise Green Gas Certificates for transport carbon reporting
• Opportunities for Green Gas Certificates in Government Allowable Solutions programme for zero carbon buildings
• Sainsbury’s using for ‘carbon neutral store’ – next slide
Sainsburys
Duchy of Cornwall
CNG AND CEN STANDARD
CEN Biomethane Standard
• Biomethane is one of the few biofuels which is almost identical to its fossil fuel counterpart
• Biomethane standard is linked to Natural Gas Standard
• Need standard to ensure gas quality
– Contaminants – H2S, VOCs, Siloxanes
– Methane Number: Hydrogen – knocking <0.2%
– Oxygen level differs per country – UK <1%
• Not completed yet
– UK Grid Entry Specification for grid injection set – Biomethane standard similar with slight changes
• No odorant
• No propane addition
Parameter Biomethane quality
Temperature 1- 38 °C
Pressure Dependent
Odour No uncharacteristic or masking of odour
Hydrogen sulphide <= 5mg/Sm3
Hydrogen < 0.1 % vol
Carbon Dioxide ≤ 2.5% vol
Oxygen ≤ 1.0% vol
Nitrogen balance
Hydrocarbon dew temperature ≤ - 2°C at up to 85 barg Water dew temperature ≤ - 10 °C at up to 10 barg Incomplete combustion factor (ICF) ≤ 0.48
Sooting index (SI) ≤ 0.6
Wobbe Number (WN) 47.2 – 51.41 MJ/Sm3
Gross CV 36.9 – 42.3 MJ/Sm3
GSMR Contaminants No significant solids or liquids
Total sulphur ≤ 30 mg/Sm3
Organo Halides ≤ 1.5 mg/Sm3
Hydrogen chloride ≤ 1.5 mg/Sm3
Hydrogen fluoride ≤ 5 mg/Sm3
Ammonia ≤ 20 mg/Sm3
Xylenes (all isomers) <=100 mg/Sm3
Arsenic ≤ 0.1 mg/Sm3
Radioactivity ≤ 5 Bq/g
Siloxanes <= 5 mg Si/Sm3 ** expected
CBM vs CNG
• Direct compressed Biomethane is difficult
– Vehicles fill sporadically
– Biomethane runs constantly
• Will need large storage banks
– No fills over weekend for example
• Will cause issues to upgrade plant
• Use Gas Network as your storage
• Locate high pressure CNG station where fuel is needed
– Most biomethane plants rural not near distribution centres
Biomethane as a Vehicle Fuel
CNG Compressors
Storage Cascade Dispenser
Biogas supply from Anaerobic Digester Supply from gas grid
0.02 bar 7-16 bar
300 bar
Typically 2-7 bar
6-15 bar
Grid Entry Unit Propane & Odorant
Biogas Clean-up and upgrading plant
250 bar Vehicle Fill Profile
LTS 7-38 bar
Crewe CNG Station
• Official opening of our Crewe CNG filling station on 8th March 2013 – largest ever collection of CNG vehicles
• Filling dual fuel trucks for GIST/M&S, Brit European
http://www.youtube.com/watch?v=orxBtoXyjos
Largest grid supplied CNG station in UK – now selling biomethane via Green Gas Certificates
Brit European
• Provide transport services for JCB
• Run 36 dual fuel diesel-CNG trucks
• Purchase Green Gas Certificates to demonstrate gas sourced from UK organic feedstock
• Using mother-daughter concept
UK Gas Distribution Network
• Extensive UK and Ireland Gas Network
• Good for biomethane injection
• High Pressure LTS network ideal for CNG
• It would cost >£15 billion to build NTS/LTS
• Near many large distribution centres
UK gas system – Local Transmission System
LTS is a vital national asset - ideal for CNG
High Pressure CNG can help reduce diesel demand and CO2 emissions from HGVs
Conclusions
• Green Gas Certificates
• CNG for trucks and buses and CHP/District Heating for new housing
• REAL not for profit scheme is helping to facilitate biomethane projects
• UK still far behind Europe on CNG stations
• Italy – 1,200
• Germany – 950
• 100-200 in each Bulgaria, Switzerland, Sweden, Netherlands and Austria
• UK funding for Natural Gas Vehicles good
• TSB Competition with DfT – £11million
• Green Bus Fund – £2.1million (for CNG/biomethane buses)
• LCEB rebate – 6p/km
• TEN-T Funding – £5million for Bio-LNG stations
CNG market still in its infancy and there is a lack of vehicles Euro VI now complete, OEMs now concentrating on NG vehicles
