Biomethane to Grid Project Overview - February 2014

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Biomethane to Grid Market Update 12th February 2014

John Baldwin Managing Director CNG Services Ltd

john.baldwin@cngservices.co.uk www.cngservices.co.uk 0121 247 8160


Biomethane Market Overview 1.  CNG Services Ltd 2.  Project Review 3.  Market forecast 4.  Green Gas CerKficates and CNG 5.  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 staKon –  Sell Bio-­‐CNG (20% biomethane)

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, 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, ChrisKne Venables, Lauren Hamer We support Biomethane Projects for a living


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


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 NaKonal 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 ExisKng 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 the Totara model. 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 ConnecKon 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 Annual RHI TWh

Forecast Biomethane to Grid TWh & RHI Awarded per Financial Year

160,000,000

£148,736,270

140,000,000 120,000,000 100,000,000 £88,005,740 80,000,000 60,000,000 40,000,000 20,000,000 £778,719 0 2012

£4,943,425 2013

2014 Financial Year End

2015


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 olen 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)


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

Number projects in Category 9 25

15% 42%

Food Waste

12

20%

Industrial Food Processing

10

17%

Biodegradable

3

5%

Unknown

0

0%

Total Projects

59

Sewage Sludge Agricultural

%


Biomethane Market Forecast

•  UK total gas demand now is around 800 TWh/annum –  Around 50% domesKc heaKng, 25% power gen and 25% industry –  Stretch maximum biomethane by 2030 is around 20 TWh

•  For heat in ciKes there are few pracKcal/economic alternaKves –  Biomass (air quality), heat pumps (do not work in very cold weather), district heaKng (too late to dig up ciKes)


GREEN GAS CERTIFICATES


REAL Green Gas Cer\ficate Scheme •  Designed to allow ‘tracking of biomethane from injecKon point to customer’ •  Integrity -­‐ no ‘double counKng’ •  Separate from the gas to provide flexibility •  Can only be used once

GGCS Launch Members •  •  •  •  •  •  •  •

GGCS is the only UK scheme associated with the recent agreement to harmonise registry Green Gas Certificate rules ( hop://www.greengasgrids.eu/info/news.html )

NaKonal Grid BriKsh Gas E.ON Thames Water (Didcot) Adnams Biogroup (Adnams) Milton Keynes City Council CNG Services Ltd hop://www.greengas.org.uk/


AD Developer Sells Certs Direct to Gas Consumer Gas can be used to fuel trucks on CNG or for CHP

Customer Sale of gas

Sale of ‘CerKficates’

Gas shipper

Purchase of biomethane energy

Organic Material

Processing via Anaerobic Digesters

AD Developer

Normal grid gas

Gas Distribu\on Network Inject gas into grid Clean-­‐up plant and grid injecKon


Sainsburys


Duchy of Cornwall


Crewe CNG Sta\on •  Official opening of our Crewe CNG filling staKon on 8th March 2013 – largest ever collecKon of CNG vehicles •  Filling dual fuel trucks for GIST/M&S, Brit European hop://www.youtube.com/watch?v=orxBtoXyjos

Largest grid supplied CNG sta\on in UK – now selling biomethane via Green Gas Cer\ficates


Brit European •  Provide transport services for JCB •  Run 36 dual fuel diesel-­‐CNG trucks •  Purchase Green Gas CerKficates to demonstrate gas sourced from UK organic feedstock


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 focus on reducing capital costs •  •  •

Grid Entry Unit costs reduced by 50% in last 5 years New processes being developed for high pressure connecKons 7 acKve biomethane equipment providers in UK – compeKKon

•  Green Gas CerKficates •  •

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

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


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