All Energy UK Biomethane to Grid Activity

20 May 2010

John Baldwin Managing Director, CNG Services Ltd C Eng M I Mech E, M I Gas E, MA (Oxon) john.baldwin@cngservices.co.uk www.cngservices.co.uk 0121 707 8581, 07831 241217

Summary y
CNG Services Ltd Making biogas Biogas clean up and upgrading Biomethane to grid plant BtG Projects j Making CBM CBM Vehicles Financial incentives:
Electricity G id i j ti (H t) Grid injection (Heat) Vehicle fuel

CNG Services Ltd

Supporting development of the BtG and CBM markets in the UK:
Cleaning bio-gas and injecting biomethane into the gas grid (BtG)
Creator of the UU Davyhulme BtG and CBM Project D Developing th Did t project f Th l i the Didcot j t for Thames W t SGN and C t i Water, d Centrica Supporting a further 15 potential BtG Projects in the UK for Water Companies and AD developers

Supporting introduction of compressed biomethane (CBM) fuelled vehicles in the UK

VW Caddy Ecofuel MB Sprinter NGT and Econic NGT Iveco Daily and Eurocargo MB and Volvo dual fuel tractors

We are independent from all makers of CHP plant, vehicles, clean-up, compression etc. Our aim is to support biogas producers in exploiting the biomethane to grid and compressed biomethane for vehicle opportunities

What is Biomethane?
Bio-gas from an anaerobic digester contains typically 65% methane, 35% CO2
Lager shandy

Natural gas contains around 90% methane with ethane propane methane, ethane, propane, butane, CO2 and nitrogen making up the rest
Blended whisky - made from dinosaur poo in a prehistoric AD, contaminated over the millenia

Biomethane is bio-gas without the CO2, containing around 98% methane

Malt whisky, the elixir of life, we all want to drink it

So, we can make biomethane from organic material in an AD (waste food etc) or from wood in a gasification plant better than landfill

Anaerobic Digester and Uses for Biogas

Drawing courtesy of the German Renewable Energy Agency http://www.unendlich viel energie.de/en/bioenergie/biogas.html http://www unendlich-viel-energie de/en/bioenergie/biogas html

Gasification and Methanation

Schematic courtesy of th I t S h ti t f the International G U i ti l Gas Union - B iti h G British Gas used to do this from coal (plant closed in 1985 when it was clear that UK had a lot of gas)

UK Biomethane Potential
UK gas production

The Renewable Heat Incentive will support biomethane production from 2011 UK can then start to catch up. By 2025, UK gas y g production from North Sea and from organic matter will be similar

UK Govt Vision for AD

This is good news for the environment and for the UK economy.....Lib-Con economy Lib Con coalition also strongly supportive, see below

Netherlands Green Gas

UK is similar to Netherlands
High population density, extensive gas grid Difference is UK is gas importer, Netherlands exports

Netherlands keen on both Green Gas and Biomethane fuelled vehicles

German Market
Germany has over 3,700 agricultural scale bi G h 3 700 i lt l l biogas plants l t The Biogas industry employs around 10,000 people The industry is worth about 1 Billion Euro / yr to the German economy BtG growing fast
Target of 10% of all German gas by 2020

The UK gas grid cost >25 billion to build and there is 50 billion central h ti and appliances, we h t l heating d li have t use th to them.

Making Biomethane

From Anaerobic Digester

Lots of ways of cleaning up raw biogas to make Biomethane with the technology shown as t h l h a black box
Gas Grid

This shows biomethane going into the gas grid, with addition of propane (to increase the calorific value) and ) odorant (to give a smell)

Biomethane to Grid (BtG) ( )

Widespread consensus that gas grid injection is attractive because of absence of uses for waste heat where renewable methane is made. Take the gas to the customers along existing pipelines and g y have high efficiency utilisation.

Biogas Clean up Technology Clean-up Briefing

19/05/2010

13

Water Wash

99% of biomethane to grid 1% methane vented grid, Can recover heat from larger plants (from cooling water) 12 m high can have planning issues Removes H2S and siloxanes Likely to be lowest cost option Didcot 2010 (Chesterfield Biogas)

Chemical Absorption

99.5% of biomethane to grid, <0.5% methane vented Needs significant heat to regenerate the chemicals (15 20% of biogas) Ideal if waste heat already available

Pressure Swing Adsorption

92% of biomethane to grid, 8% of methane goes with the CO2 This gas can be flared or burnt in CHP or boiler ( g (but needs to be brought back to 33% methane) No methane vented Small footprint Likely for UU Davyhulme 2011

Cryogenic Upgrading y g pg g

Appears to be a good technology, but not yet proven Liquid CO2 attractive for use as refrigerant Adnams Bio-Group 2010 (GTS)

Membrane Separation p

Few membrane plants Contamination of the membranes i an i C i i f h b is issue May be a good technology similar to PSA in that gives a waste CO2/CH$ stream that should be used to generate electricity or make heat

Biomethane to Grid Plant

BtG Plant
BtG Plant Biomethane to Grid plant comprises the following: f ll i
Propane storage and injection Odorant storage and injection Gas quality monitoring Gas CV measurement Gas fl G flow measurement t Pressure control Telemetry

The BtG plant is located after the Clean-up and Upgrading Plant and before the gas g g grid

BtG plant examples

Lille grid injection facility

Netherlands

Biomethane injection to gas grid (BtG) Propane Enrichment P E i h t

Required calorific value is around 39 MJ/M3 because UK gas is mostly high CV gas from Norway or LNG Biomethane CV is around 36 MJ/M3 4 - 5% propane to be added to the gas b volume (12% b energy) by l by )
Propane costs 120 p/therm, gas worth 40 p/therm Propane energy netted off from any renewable calculation

Odorant System y
Gas has a characteristic smell which needs to be added Very small volumes of mercaptans V ll l f t Small pump system

BtG: Gas quality monitoring and energy metering

G grid owners h Gas id have t monitor gas quality, to it lit key components:
Calorific value Wobbe Number (safety of gas when burnt in appliances) H2S Water dewpoint O Oxygen

Monitoring and metering is will cost around 150k, Danalyser 150k Danalyser
Looking for lower cost options (as next slide)

Lower cost gas quality and energy measurement from Netherlands

UK Biomethane to Grid Projects in 2010 - 2011

Thames Water at Didcot

CNG Services is designer and project manager

Up to 7 days

Up to 18 days

Initial separation Sludge Anaerobic Digesters

BioGas is currently wasted

Clean Cl Water
Odorant

Fertiliser Cake
Gas Analysis

Clean Biomethane to t consumers via existing network

Safety Pressure S f t P shut off control valve

From Summer 2010 gas is saved for treatment and beneficial use New plant to remove impurities in BioGas

Dedicated plant to apply safety controls at gas network entry

Adnams - BioGroup

CNG Services is providing design and other consultancy related to j gas the injection of g into NTS and biomethane sales

United Utilities - Davyhulme

CNG Services first proposed this project in 2007 First CBM and BtG now likely to be summer 2011

What about efficient utilisation of the biomethane? Key point is that biomethane is malt whisky, it should not be wasted

Efficient appliances Ceres fuel cell CHP

Compact, wall mounted unit High efficiency integrated system
Heating at highest SEDBUK A efficiency Electricity at higher efficiency than engine based CHP Can generate power all year (even outside heating season) Working with British Gas

Very high efficiency made in UK efficiency,

Efficient appliances - Baxi Ecogen pp g

Electrical power: p Thermal power: Total efficiency: Dimensions: 420d(mm) d( ) Noise: Weight: 45 dB(A) 110kg 1 kWe 3 - 24 kWth > 90% 950h x 450w x

What a great idea.take waste, make into biogas, clean-up, inject biomethane into existing gas grid, refurbish a home and install one of these you cant beat that. can t that

Efficiency - Converting Sunlight Falling On A Hectare Of Land Into Vehicle Fuel

Biomethane always wins..graph courtesy of German Energy Agency (dena) Biogas Partnership, initiative http://www.biogaspartner.de/

Efficient cars - Passat TSI EcoFuel

1.4 TSI CNG already fulfills Euro-5 operating mode: bivalent performance 110 kW / 150 PS 0 60 mph in 9.5 seconds 95 torque 220 Nm (1.500 4.000 U/min) maximum speed 210 km/h fuel consumption 5.1 kg / 100 km CO2-emissions 119 g/km Range CNG/biomethane 420 km 3-underfloor gas tanks, steel 135 Liter (22 kg) gasoline 400 km, 31 Liter 820 km total operating range Electric Vehicles have a target to aim for engine

CO2 Emissions VW Passat - Different Engine/fuel Options

190 180 170 160 150 140 130 120 70 80 90 100 110 120 130 140 150
B6 TDI 1.9 Bluemotion

C O 2 - Emissio nen [g/km] (N EFZ) (

B6 TSI 1.8 DSG7 (Prognose) 18

B6 TDI 2.0 DPF DSG6

B6 TDI 2.0 DPF

B6 TSI-CNG 1.4 DSG7)

Leistung [kW]

On biomethane = approx 25 g/KM

Efficient Cars Passat TSI EcoFuel

The Passat Ecofuel is the first d l fi t and only car on th the European market to achieve 5 stars in the ADAC-Eco-Test - better than a Toyota Prius. EVs have to aim to be as good g in CO2 and practicality terms

CBM Vehicles

Vehicle use makes sense for depot based vehicles

Biogas utilisation option, vale and CO2 savings

Distribution Renewable Heat

Organic Resources

Biogas/BioSNG Production

Clean up to Biomethane

Gas network to >80% of UK homes

Home heating and cooking @ 90%+ efficienc efficiency

Including food waste, agriculture waste & sewage

By Anaerobic Digestion or Gasification

To meet gas quality standards

Compression

Vehicle Fuel

CHP all waste heat used

CBM Vehicles Use night time electricity for compression

CBM Vehicles now available in UK

Carbon Trust Shows Best Use is Transportation

CBM is environmentally very attractive but not the best in terms of y y economics for the biogas producer

Electricity Feed In Tariff

Biogas that g g generates electricity can an electricity y y Feed In Tariff (FIT) FIT worth 9 p/kwh on top of the normal electricity price

UK makes a lot of biogas at p g present, water companies, it all g , p , goes to make electricity, limited use for waste heat....in long term, post 2020, this will not be a good idea as the UK electricity grid is being decarbonised (wind, nuclear, CCS)

Renewable Heat Incentive (RHI)

UK Govt has proposed a premium (on top of gas price) of 4 p/kWh for biomethane to grid (paid from 1 April 2011)
Consultation closed on 26 April 2010

UK industry arguing that this is not sufficient to match the FIT paid for electricity or reward biomethane to grids much higher replacement of fossil fuel (double that of CHP)
Industry proposed tariffs below

Injection into gas grid strongly supported by UK gas grid owners and British Gas (main UK gas supplier)

Renewable Transport Fuel Certificates (RTFC)

A kg of biomethane earns a RTFC which may be worth g y around more in future but has had only low value (6 p/kg) UK Govt proposing a 3.5 Million grant programme to make biomethane and support vehicle introduction Under the EU Renewable Energy Directive, biomethane should get at least 2 x RTFCs as it is made from waste Double nothing is still nothing
Unfortunately, at the present time, more value from making electricity or injecting gas into the gas grid. UK CBM is highest taxed CBM in EU in most places it is duty free UK CBM tax is more than double the tax ion Fossil CNG in Germany!

National Grid Road-map To 2050

No need to wait until 2050 there are now lots of CBM/CNG Vehicles V hi l available i th UK il bl in the

Biomethane Conclusions
Biogas should only generate electricity when all the heat can be used UK has advanced gas grid and the full support of UK gas distribution network owners and energy suppliers UK gas production is declining and we need to find new gas resources to supply domestic customers and improve security of supply Biomethane injection into gas grid is widespread in Europe, no material technical issues (it is just processing gas on a small scale) We h W have commercial vehicles made b OEM such as VW MB and i l hi l d by OEMs h VW, d Iveco new dual fuel diesel-CBM tractors very good Put all this together and we can create a thriving domestic BtG and CBM industry that is able to make a very material contribution i d t th t i bl t k t i l t ib ti towards the UKs 2020 targets

There are no material technical issues or barriers, we just need the BtG premium to be set at an appropriate level so that we can get on with it. We also need promotion of CBM as a vehicle fuel for depot based commercial vehicles (and lower CBM fuel duty please)