Biomethane Market Overview - October 2013

Biomethane Market Overview 10th October 2013

John Baldwin Managing Director CNG Services Ltd

john.baldwin@cngservices.co.uk www.cngservices.co.uk

07831 241217

Biomethane Market Overview

1. CNG Services Ltd 2. Project Review 3. Market potenKal 4. Conclusions

CNG SERVICES LTD

CNG Services Ltd • Supports projects to inject biomethane into the gas grid – Didcot, Adnams, Poundbury, Vale Green, Stockport, Doncaster, Minworth

• Bio-­‐CNG as a fuel for trucks

– Own UK’s largest CNG filling staKon – Sell Bio-­‐CNG (20% biomethane) – SupporKng Qatar’s move to CNG by 2022

We are independent from all makers of plant, vehicles, clean-­‐up, compression....we help clients get the best soluKon for their projects

Our Biomethane Projects Team

• Biomethane Projects

– Iain Ward, Lee Firth, Alison Cartwright, Terry Williamson, Rob McKeon, Greg Lee

• Pipelines and Compression Project – Ian Roughley, Bob Ingmire, Mick Beddows (LTS), Phil Winnard, Tony Pym

• Commercial (RHI, NEA etc) – Peter Rayson

• Project Support – Angela Bagshaw, Chris Toase, ChrisKne Venables, Lauren Hamer

We support Biomethane Projects

PROJECT REVIEW

Didcot – UK’s First BtG Project

Anaerobic Digesters

Propane Storage

Gas bag

Propane Injector

Telemetry Energy & quality Measurement

H2S and Siloxane filters

Biogas upgrader

Flow of biogas -­‐ 100 m3/hr First gas to grid on 3rd Oct 2010

Rainbarrow Farm -­‐ Dorset • Approximately 600 m3/hr biogas • 400 kWh CHP and gas injecKon • First injecKon 2012

Springhill (Vale Green) near Evesham • Approximately 600 m3/hr biogas • 490 kWh CHP • Live from August 2013

Future Biogas -­‐ Doncaster • • • •

Agricultural Approximately 900 m3/hr biogas to biomethane 499 kWh CHP Go live Q4 2013

BioCore -­‐ Beccles • Agricultural • Approximately 2,000 m3/hr biogas • Go live Q2 2014

Severn Trent Water -­‐ Minworth • • • •

Sewage derived biogas Approximately 1200 m3/hr biogas ExisKng 9 MWh CHP Go live Q2 2014

ReFood -­‐ Widnes • Food waste • Approximately 2,000 m3/hr biogas • Go live 2014

MARKET FORECAST AND CONCLUSIONS

Annual Biomethane to Grid and RHI for 2012-­‐2015 BtG and RHI Trend 1.000

£70,000,000

0.900

Total TW to Grid

0.700

£50,000,000

0.600

£40,000,000

0.500 0.400

£30,000,000

0.300

£20,000,000

0.200

£10,000,000

0.100 0.000 2012

2013

Total Therms to Grid per annum Total TW per annum RHI per annum

RHI

£60,000,000

0.800

2014

£0 2015

2012 305,476

2013 9,558,138

2014 26,644,951

2015 31,584,558

0.009

0.280

0.781

0.926

£632,335

£19,785,346

£55,155,049

£65,380,035

Feedstock Categories Projects were also categorised according to sectors determined by the EU Green Gas Grids Project:

1. Sewage Sludge 2. Agricultural a. b. c. d.

Animal manure (slurry) Agricultural by-­‐products and residues Crops for Energy Agricultural biomass is modelled as one sub-­‐group as projects will oien contain elements of all 3 streams

3. Industrial Food Processing waste 4. Food Waste (commercial, domesKc, local authority) 5. Biodegradable waste (e.g. from an MBT plant or garden waste collected by local authority)

Projects by biogas flow-­‐rate

scmh Biogas 0 -­‐ 400 400 -­‐ 800 800 -­‐ 1200 1200 + Total Projects

Percentage of Projects by Biogas Flow Rate

Number of Projects 15 45 6 8 74

% 20% 61% 8% 11%

0 -­‐ 400 400 -­‐ 800 800 -­‐ 1200 1200 +

Number of Projects by Biogas flow rate 50 45 40 35 30 25 20 15 10 5 0 0 -­‐ 400

400 -­‐ 800

800 -­‐ 1200

Biogas flow rate category (m3/hr)

1200 +

Propor_on of Projects in Each Feedstock Category Propor_on of Projects in each Feedstock Category

Sewage Sludge Agricultural Food Waste Industrial Food Processing Biodegradable

GGG Feedstock Category Sewage Sludge Agricultural

Number projects in Category 12 31

% 16% 42%

Food Waste

17

23%

Industrial Food Processing

7

9%

Biodegradable

7

9%

Total Projects

74

Propor_on of Projects for Each Gas Distribu_on Network (GDN) Number of Projects by GDN

NG SGN WWU NGN

LDZ

Total Number of Projects

%

East of England

22

30%

Wales and West

12

16%

Southern

16

22%

North England

8

11%

West Midlands

4

5%

North West

5

7%

Scotland

6

8%

North London

1

1%

Total Projects

74

Biomethane to Grid Conclusions • It has taken 6 years but the regime looks good: • Over 20 projects in next 18 months is possible, all technologies • Majority of biomethane from waste feedstock • Need to focus on reducing capital costs • Green Gas CerKficates • •

CNG for trucks and buses and CHP/District HeaKng for new housing REAL not for profit GGCS scheme is helping to facilitate biomethane projects

The biomethane market is set to grow, delivering significant benefits and helping meet 2020 renewable energy targets