CNG - Conversion Special

CONVERSION SPECIAL NOV 2000 ➧

THIS ISSUE...

➧

Burning Issues Good news for the environment ▲

from

➧

▲

➧

Green light for gas growth High oil prices fuel dash to gas

Fuel switch

Average fuel prices shown at www.energyhelp.co.uk 100

Sites consuming 300,000 therms per annum 80

60

40

TR

S

IC

O

IT

IL

G LP

EC

G

A EL

M

ED

IU

M

O

O

S

IL

IL

0

Y

20

John added: “No-one can say for sure what is going to happen to oil prices but commentators do not expect an early fall.”

EA VY

Hanson Aggregates call in Lattice Energy Services to help convert sites currently running on gas oil

Lattice Energy Services is converting 27 large industrial and commercial customers to gas in 2000, with significant financial savings, a number of which are described in this special ‘green’ newsletter. In addition, these projects will lead to a reduction of 65,000 tonnes per year of carbon dioxide emissions.

In addition, we have recently achieved ISO14001 accreditation which underpins our environmental performance. On our books are over 100 million therms of potential conversion projects in 2001 which will further benefit the environment as well as helping the competitiveness of UK industry.”

A

Cheers for helping us brew on gas

“Add that to the pressure from government and elsewhere for industry to clean up its environmental act and you can understand why growing numbers of companies are moving to gas.

G

brick firm

MANAGING director of Lattice Energy Services, John Baldwin said: “The figures speak for themselves.

Businesses have always been keen to make substantial John Baldwin financial savings but, increasingly, energy professionals are interested in reducing emissions as well.”

H

savings at

PENCE PER THERM

cements in

Note. Lattice Energy Services changed its name from BG Energy Services on 23 October 2000.

Lattice Energy Services’ chemical equation

Woodhey’s dyeing for £80k cost cut Lattice Energy Services’ Crewe wins Hall Project

LATTICE Energy Services carried out a complete turnkey service for Woodhey Dyeing, a Lancashire company specialising in dyeing and finishing of high quality soft furnishing fabrics.

A textile firm has made savings of more than £80,000 thanks to its switch from oil to gas.

Project development manager Neil Higginson said: “Woodhey needs large quantities of process steam and had seen energy costs spiral upwards due to the oil price increase.”

A new 1.5km main was laid and a medium pressure gas supply installed into the boiler house. A redundant coal-fired boiler was converted to gas,

and the boiler house was partially rebuilt.

LES negotiated both an interruptible and a firm gas contract for Woodhey. The new firm gas price was 16 per cent lower than the company’s existing contract.

The project was financed over two years.

Monthly payments to cover the capital costs and the gas costs represent a reduction in the existing energy bill so payback is immediate.

A 100-tonne crane was used to lift out the old steam boiler - after the boiler house roof had been removed - and then drop in the new gas/oil dual fuel burner for fitting to the converted coal-fired boiler.

Burning Issues ➧

➧

▲

➧

➧

▲

Fuel switch cements in savings at brick firm The project was finished eight weeks ahead of schedule, at the request of Hanson Brick because of the recent rise in LPG costs.

THE SWITCH from liquid petroleum gas (LPG) was carried out by Lattice Energy Services at the Hanson Brick site in Kirton, Nottinghamshire, where 2.1 million bricks are produced every week.

Until the switch, the site used more than a metric tonne of LPG an hour.

The biggest user was the kiln, which is about 100m long by 10m wide and incorporates 418 burners, keeping the kiln at a steady temperature of 1,000 degrees centigrade. Other parts of the Kirton site that were converted to natural gas include the specialist drying kiln, main dryers, shrink-wrapping machines, office block and the canteen.

LES project development manager Bob Boden said: “The project incorporated all works from the Transco connection

Bob Boden of LES with Kevin Cheetam of Hanson Brick.

point, through to the construction of a 2km approach main into a new site gas infrastructure system and then literally to the burner tip, or in this case, 418 burner tips “Our project development team within Lattice Energy Services has completed detailed work to demonstrate what a ‘one-stop shop’ approach can deliver to our customers.”

Kevin Cheetham, purchasing manager for Hanson Brick, said: “From the start, Lattice Energy Services stated that they wanted the project to be a team effort, with Hanson Brick being a key part of the project team.

“That philosophy has certainly been rewarded here with the project being completed to the agreed costs and the timescales required by Hanson Brick.

We are delighted with the level of professionalism, expressed both in the engineering and commercial elements of our relationship with Lattice Energy Services.”

Pipeline deal marks a competition milestone LEADING gas turbine manufacturer Centrax has signed a contract with Lattice Energy Services for a new high pressure gas pipeline to its plant in Devon. It is the first high pressure pipeline to be adopted by Transco under the new ‘Taking Ownership’ scheme and represents a key development for competition in the UK gas industry.

the connection agreement, the adoption process, obtaining planning agreement after environmental and archeological studies, and gaining easement and other consents for the route.

John Baldwin, director and general manager of LES, said: “Lattice Group and Centrax have a longstanding relationship and many Centrax gas turbines are used by Transco, so it is fitting that this project is the first.

This new gas supply to the Newton Abbot site will allow on-site testing of a new range of gas turbines and generator sets being developed by Centrax to meet the everchanging market requirement for bigger and more efficient machines.

“Centrax will benefit from our integrated approach without having the liability of owning and operating a high pressure pipeline.”

The deal, worth around £400k, was signed in June after a year of preparations. Earlier work included negotiations with Transco on

“These were all fully addressed through LES’ one-stop shop approach,” said John.

The contract covers designing, constructing and commissioning the new pipeline and a new system downstream of the Transco meter to the engine test houses. It also involves installing a new low pressure pipeline to the site. The existing steam boiler plant will also be converted to dual fuel capability.

John Baldwin (centre) signs the contract with Richard Barr (left) and Chris Avent.

Centrax, with about 1,000 staff, is one of the area’s biggest employers. It was founded in 1946 by Richard H H Barr who had worked with Sir Frank Whittle in the Power Jets Design Team, pioneering the use of the gas turbine for aircraft propulsion.

Richard Barr, joint managing director of Centrax, said: “The new high pressure supply will enable us to provide significant benefits to our customers by pre-testing generator sets and overhauled gas turbines prior to commissioning at customers’ sites.

It is an invaluable asset in the development of new products for the future.”

He said the main contractor approach by LES was instrumental in Centrax obtaining this facility.

➧

➧

▲

➧

Cheers for helping us brew on gas ONE of the country’s leading brewers has found a fuel with the right pedigree for its range of ales.

earlier in the year when he replaced worn out coal-fired boilers with dual-fuel boilers.

Initially, the boilers were run on gas oil.

And now Marstons, Thompson and Evershed, part of the Wolverhampton and Dudley Breweries group, is raising a glass to Lattice Energy Services for its handling of the conversion, which is expected to save £150,000 in the first full year of operation.

The brewery has opted for an interruptible gas supply and is taking full advantage of a group contract negotiated by its parent.

Another plus is the environmental benefit of a 25 per cent cut in carbon dioxide emissions from the converted plant.

LES carried out a feasibility study on constructing a natural gas pipeline to Marstons’ brewery in Burton upon Trent, which produces 11 million gallons of beer a year.

Work began in June and was finished in August, ahead of schedule with little disruption to traffic, businesses and householders.

Although the pipeline from the existing gas distribution system was only 600 metres long, it had to go across a disused railway bridge, over a bridge on the River Trent and one on the Mersey Canal and then below ground, under a brook – all this next to one of the main roads into Burton.

Project development manager Steve Kirk said: “A feasibility study identified all the potential risks associated with the construction works so we could ensure everything went well when the job began.”

The project also included building outlet pipework. As part of that, a 250mm medium density polyethylene pipe had to be run across the brewery’s cricket ground.

Marstons chief engineer David Finch was keen to capitalise on his investment

clockwise from top: Marstons Brewery set to save £150,000 in first year due to LES conversion; Charity donations; Work being carried out on Longcliffe Quarries’ new pipeline.

Steve Kirkham of Marstons said that the provision of a gas supply to the Boilerhouse was the final piece in the jigsaw of the modernisation of three Beel 22,500 lbs/hr dual-fuel boilers into the existing boilerhouse with no loss of steam supply to the site. “The successful completion of this project is a testament to the dedication and teamwork of all concerned”, he said.

LES is still working with Marstons to ensure trouble-free operation of the new plant.

➧

▲

LES quarries for customers THE final stages of a major pipeline project that will see a big reduction in the number of propane tankers driving through the Peak District National Park is nearing completion.

It all began when Lattice Energy Services was contracted to build 9.3km of medium pressure gas main to supply two sites owned

by Longcliffe Quarries in Derbyshire.

The connection into the Transco network was made at Wirksworth near Matlock, an attractive town with preservation orders on buildings and pavements which meant extreme care was required while constructing the pipeline.

To ensure that there was sufficient capacity in the gas main in case other companies nearby wanted to take the chance to switch to gas, Transco agreed to pay for the upsizing of the first 2.6km of the main to provide more capacity. Transco itself is carrying out further reinforcement, which should be finished by the end of November.

Already, another company has asked LES to connect it up to the gas main, and others are considering doing so. Grangemill Quarry produces limestone and the gas will fire four driers by the end of November.

Looking ahead, negotiations with Linston Ryder Point Processing, which will use the gas for mineral processing, are at an early stage – so the project could run and run.

Project development manager Mike Beddows said: “In appreciation of the cooperation of local people during the construction, we have donated £1,000 each to two local charities – Freelance Fundraisers and the Mid-Derbyshire Association for Mobile Physiotherapy.”

NEWS FROM ▲

➧

➧

▲

➧

Gas wins on aggregate

Petrol blockades and OPEC start a green drive

SAVINGS from switching to gas are set to add up to more than £200,000 a year for Kent aggregates firm.

THE way the UK was brought to a standstill when petrol blockades hit supplies of petrol and diesel, together with the continuing high price of OPEC oil is generating a surge of interest in natural gas vehicles.

Hanson Aggregates called in LES to help convert a number of its production sites currently running on gas oil.

The first to convert will be its Allington site at Maidstone (pictured right), which produces around 170,000 tonnes of coated roadstone each year. Work is under way - ahead of schedule.

LES project development manager Neil Gillespie said: “Hanson decided to switch to gas as a direct result of significant rises in the cost of oil which has more than doubled in price in the last six months.

“Detailed discussions held with Transco secured a connection to an intermediate pressure system and gained approval for the installation and connecting pipework.

“The project was complicated by some technical issues including a pressure reduction station installation and the negotiation of

Fowl Pay A POULTRY processing firm is beating the drum sticks for natural gas and has called on LES to manage the conversion of one of its sites from propane.

Dean Foods’ factory has two boilers using about 200,000 therms of propane a year.

The high price of propane, over 50p/therm, makes the economics of the conversion very attractive for Dean Foods.

Project development manager Mike Beddows said: “We are handling everything

➧

wayleaves within tight timescales. Having said that, that’s our job and so it was all done on time.”

Ppework is scheduled to be completed by the end of November ready for the burner conversion in the New Year.

Neil Pick, Hanson Aggregates’ Principal Electrical Engineer, has commissioned LES to work with him on converting other sites to gas.

“We recognise the benefits of converting to natural gas, though in the past it has been too expensive and complicated, he said.

“LES has been invaluable in providing professional advice and assistance on various aspects of the work. It’s good to work with a company who are customer focused and actually get things done.”

To find out how attractive conversion from oil fuels to gas can be, email neil.gillespie@energyhelp.co.uk

on the project – a new connection pipeline, all the outlet pipework, converting two boilers and tendering for the gas supply. We have developed innovative project finance to allow Dean Foods to benefit immediately from lower fuel costs.”

Environmental benefits are to be had too, with no more propane tankers needed in this part of Lincolnshire.

To learn how the ‘instantaneous payback’ works, e-mail mick.beddows@energyhelp.co.uk

Lattice Energy Services natural gas vehicle expert Ian Roughley said: “Spiralling world oil prices and the possibility of more blockades present a real threat to firms reliant on road transport. Gas can be piped straight into a company’s site to a purpose-built filling station, offering security of supply as well as cost savings.”

Switching from diesel to compressed natural gas could bring annual savings of around £250,000 for a firm operating just 10 lorries. The figures suggest payback for converting to gas could be a little over 18 months – or less than a year for larger fleets.

An extra benefit of using natural gas is less environmental damage. During combustion gas creates 0.19kg/kWh of carbon dioxide, 25 per cent less than diesel.

For the firm running 10 vehicles, that means a cut of 400 tonnes of carbon dioxide per year which is a significant contribution to the environmental balance sheet.

LES can project manage the whole process of conversion – infrastructure and vehicles – from feasibility study through to design, construction and fuel procurement.

“We are currently developing a number of NGV filling stations across the country with Sulzer Burckhardt, world leaders in the field, and we have close links with engine manufacturers, filling station providers and pipeline contractors – all part of our one-stop-shop approach. The high oil price and tax on diesel means that the economics of the haulage industry now strongly favour gas”.

It will cost you no more than an e-mail to find out how much you could save, Ian can be contacted on: ian.roughley@energyhelp.co.uk or by phone on 01204 373247

Burning Issues ➧

➧

▲

➧

➧

Lattice Energy Services’

chemical equation fuel change = cash saving + green boost A FUEL saving of £60,000 a year is in prospect for a specialist chemicals plant now Lattice Energy Services has converted it from fuel oil to natural gas.

Accrington-based Baxenden Chemicals will also be able to improve the environment by cutting sulphur and carbon dioxide emissions and by axing the delivery of oil by road tankers every four days during the winter months.

Baxenden, which makes specialist polyurethane and acrylic resins for the coatings, foam and elastomer markets, previously required a million litres of medium fuel oil every year to generate steam.

Lattice Energy Services provided a full turnkey package for the gas supply,

including the upgrading of the gas main to meet current demand and a potential future increase in load.

The project also involved laying a new water main in the same trench as the gas main, thus saving Baxenden Chemicals substantial extra costs and preventing further disruption later.

Lattice Energy Services’ Bolton-based project development manager Neil Higginson said: “This was one of the first multi-utility projects we have carried out, and it proved to be quite a challenging one.

▲

“During construction of the gas and water mains, we discovered a collection of antique bottles and had to negotiate around a number of large boulders on site. We also had to fit our work around a highway resurfacing programme which started simultaneously.

“In fact, we only had one weekend to carry out this part of the project, which involved laying more than 200m of 250 polyethylene main using directional drilling techniques.”

Based on the high cost of oil, the fuel savings mean payback for the project should be achieved within two years.

left: Neil Higginson of Lattice Energy Services with Gary Farrington of Baxenden Chemicals

Caterpillar’s on the right track with gas LATTICE Energy Services has laid a medium pressure pipeline into a Caterpillar site – using Caterpillar construction equipment, of course.

The 2km 250mm pipeline ran from the centre of Desford in Leicestershire into the Caterpillar site in Peckleton Lane.

The pipe is for a new energy centre associated with a multi-million pound facility for Caterpillar Logistics Services.

Although the pipeline was to provide heating for the new facility, it was designed to accommodate future conversions elsewhere on the site.

These could involve switching the paint plant, which uses LPG for some of its energy requirements and the centralised boilerhouse, which operates on heavy fuel oil.

LES, called in by Caterpillar Logistics construction manager Jon Evans, worked with engineering consultants WS Atkins and Caterpillar to identify immediate and future requirements and to ensure the work was dovetailed into the existing project programme.

Steve Kirk, project development manager for LES, held discussions with Severn Trent before the project began with the

aim of keeping disruption to Desford residents to a minimum during the construction of a pumping sewer nearby.

This resulted in a joint gas and water trenching operation along a narrow footpath next to a doctor ’s surgery in the village.

Also, LES sourced the best gas supply deal for Caterpillar. This included evaluating complex offers from a number of shippers, negotiating significant savings and securing a flexible gas supply contract for the first 12 months.

In addition, it provided gas safety training for people on the Caterpillar site.

NEWS FROM ➧

▲

➧

➧

▲

➧

Lattice Energy Services’ Dairy firm Crewe win Hall project wants to Former stately home in North West England has charm enhanced by Lattice Energy Services.

cream off CHP savings A LEADING cheese manufacturer is aiming to whip up some big savings from a CHP package.

Following work by Lattice Energy Services, the Dairy Crest Creamery at Haverfordwest has been awarded a grant by the Combined Heat and Power Association (CHPA) for a feasibility study for a new CHP facility.

competitive deal. LES CREWE Hall was recently Conversion to gas was purchased from the the preferred option for the were also able to offer a Crown by a private new development providing finance deal to cover the investor for conversion cleaner more efficient fuel. cost of the project. and redevelopment into a All the mainslaying work within the hotel hotel, leisure and conference centre. grounds and private farmland was carried The hall and ancillary buildings were out to a very high standard, in time and previously heated by gas oil and Liquid within budget.

Petroleum Gas which involved high running costs and unsightly tanks.

LES also arranged the installation of Conversion to natural gas was the an extremely compact governor and preferred option for the new development meter module. Consequently this providing cleaner more efficient fuel. enabled the installation of a kiosk that However the nearest mains connection is less than 25% of the size of that was nearly 2km away. Supplying gas to originally proposed by the local Public the site meant overcoming this and a Gas Transporter. few further obstacles, for example, avoiding an ornamental driveway flanked by mature trees.

Key Benefits for Crewe Hall: LES provided not only the most competitive quote for connection to the site but included an outlet distribution system to eight building entry points across the site. The route proposed by LES meant the scenic driveway could be left untouched.

• Savings of £25-30,000 pa are expected compared to using gas oil / Liquid Petroleum Gas.

Easement negotiations with two separate landowners and a tenant farmer proved difficult, but demonstrated LES’ ability to resolve such issues (other bidders for the project did not include these negotiations in their quotations and expected the customer to sort them out).

• Unsightly oil and LPG tanks can now be removed, much welcomed by English Heritage.

LES arranged the gas supply contract and, by going out to tender to a number of suppliers, were able to demonstrate that the customer had the most

• Lattice Energy Services have connected supplies across the site (not just to a boundary meter).

• Low level flue dilution systems can be used with natural gas for the new boiler plant. Being a grade 1 listed building, conventional flue systems were not allowed.

• The Head Chef at the hotel is now much happier as he can now cook with gas!

The dairy uses heavy fuel oil to provide high pressure steam for the production processes at the site. The study will include the construction of a new high pressure gas pipeline to the site, the gas infrastructure and the CHP unit itself.

LES project development manager Simon Evans said: “We are delighted that the CHPA considered the application to be worthy of a grant award. We firmly believe the Dairy Crest site is a prime example of how CHP can be effectively used.”

The Dairy Crest CHP unit is one of a number of CHP developments progressed

by LES, ranging from units of less than 1MW to those with a capacity of greater than 10MW. Simon added: “CHP is now being used widely throughout the UK, where the benefits of this technology can be best used by a wide range of industrial and commercial processes. Typically, this can include the food and drink, chemical and leisure industries.”

About Lattice Energy Services Lattice Energy Services is the wholly owned subsidiary of Lattice Group plc (formerly part of BG Group plc) that provides developers and major energy users with a complete range of gas infrastructure and consultancy services.

It offers independent advice about conversions to gas, getting connected, energy efficiency and gas purchasing, from locations throughout the UK. Produced by Lattice Energy Services, Olton Bridge, 245 Warwick Road, Solihull, West Midlands B92 7AH