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