CNG Developments in UK - 10th April 2014

CNG Developments in UK 10th April 2014

John Baldwin Managing Director CNG Services Ltd

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

07831 241217

CNG Developments in UK 1. CNG Services Ltd 2. Biomethane 3. High pressure gas grid 4. Dedicated CNG Scania tractor 5. Green gas cerLficates 6. Conclusions

CNG SERVICES LTD

CNG Services Ltd • Supports projects to inject biomethane into the gas grid

– Didcot, Poundbury, Vale Green, Doncaster, Minworth etc.

• Bio-­‐CNG as a fuel for trucks

– Own UK’s largest CNG filling staLon – Sell Bio-­‐CNG (20% biomethane)

We are gas engineers working in the Golden Age for Gas

Crewe CNG Sta>on • Filling dual fuel trucks for GIST/M&S, Brit European, Tenens hdp://www.youtube.com/watch?v=orxBtoXyjos

Largest grid supplied CNG staLon in UK – now selling biomethane via Green Gas CerLficates

BIOMETHANE Â

Annual Biomethane to Grid and RHI for 2012-­‐2015

2 TWh of gas = 68 million therms = 136 million kg Equivalent to around 180 million litres of diesel

ReFood Widnes • Food waste feedstock • 100% gas to grid • Water-­‐wash CO₂ removal plant • 2 bar gas grid • A major CO2 win for UK plc • Is there a beder gas to grid project on Planet Earth? Probably not….

Flow of biogas – EsLmated 2,000 m3/hr First gas to grid – EsLmated Q2 2014

Severn Trent Water Minworth • Sewage feedstock • 20% gas to grid – with exisLng 7MW CHP • Water-­‐wash CO₂ removal plant • 20 bar LTS grid • Blending allowed so minimal propane

Flow of biogas – EsLmated 1,200 m3/hr First gas to grid – EsLmated Q2 2014

FOCUS FOR GAS

UK Transport Emissions • Transport accounts for 22.5% of the UK’s GHG emissions with each sector producing: o o o o

Cars – 14.1% HGVs – 4.1% MGVs – 3.0% Buses – 1.0%

Total Green House Gas Emissions by Final Consumer (mtCO2e)

900.0

CO2 from Transport 1990 to 2009

800.0 Waste Management, 59.0

700.0

Industrial Process Total, 56.9 Agriculture Total, 66.8

600.0

500.0

Residential Total, 169.8

Waste Management, 17.9 Industrial Process Total, 11.4 Agriculture Total, 51.9

400.0

Public, 31.9

Residential Total, 146.5 Public, 17.7

300.0 Business Total, 244.9

Business Total, 170.1

200.0

100.0

Transport Total, 139.1

Transport Total, 137.6

1990

2009

0.0

-100.0 Year Land Use Change

Transport Total

Business Total

Public

Residential Total

Agriculture Total

Industrial Process Total

Waste Management

28% reduc>on in CO2 emissions overall but Transport flat

Exports

HGV Sector Provides Best Opportunity for CNG

Fuel opLons in each sector

Cars are not the target for natural gas – trucks rela>vely few in number, limited other op>ons, use a lot of diesel and cause significant GHG emissions

UK HIGH PRESSURE GRID – THE £15 BILLION LEGACY FOR TRANSPORT

UK Gas System Local Transmission System

LTS is a vital na>onal asset -­‐ ideal for CNG – it would cost >£15 billion to build NTS/LTS – these assets can help reduce diesel demand and reduce CO2 from trucks

Benefits of Using LTS • Lower pressure lip o Reducing electricity used in compression o Reduces number of stages of compression from 5 to 2

• Higher flow rates o Compressors run for less Lme, lower maintenance o Very high capacity per CNG staLon

• No leakage of gas in LTS o Higher pressure grids made with Carbon Steel pipes

• Dry Gas o No gas drier needed

The 6,000 km of 20 – 35 bar LTS means that 95% of major UK distribu>on centres are within 2 km of the ideal energy source is a vital na>onal asset

Energy Used in Compression

As the grid (inlet) pressure increases the electricity used in compression decreases and higher flow rates of above 2,000m3/hr are possible which reduces the running hours of compressor and/or provides very high capacity

Es>mated CO2 savings from LTS CNG • Well-­‐to-­‐Tank savings from LTS compared to Low Pressure grid are significant – No leakage of methane to get gas to the supply point = 11.5% – 80% less electricity for compression = 6% – No drier = 1%

• Compared to diesel, the Well to Tank for LTS CNG is around 10% lower • Tank-­‐to-­‐Wheel CO2 savings are 20% CO2 o This is based on dedicated Cng o Assumes 5% reducLon in efficiency compared to diesel

• Total CO2 reducLon from Dedicated CNG trucks supplied via LTS is around 30% compared to diesel

Then there is biomethane on top

How Many Trucks can be Filled with CNG at an LTS Sta>on?

• Flow-­‐rates of 2,500 m3/hr from a single compressor • 1,900 kg/hr • CNG consumpLon – 3.3 km per kg of CNG • 1 truck doing 160,000 km per annum will use around go around 50,000 kg/Annum (50 tonnes/Annum) or around 140kg per day, 2 fills of 70 kg say • So 1 hour compression = 27 trucks per compressor • 1,296 trucks per day (assuming 4 compressors running for 50% each) • 25 CNG staLons can supply gas for around 28,000 trucks • Biomethane in 2015 = 136,000 tonnes = 2720 trucks • 10% blend = 27,000 trucks..

The LTS provides the gas capacity – each CNG sta>on costs around £1.5 -­‐ £2 million. So for £40 million on CNG sta>ons we can have 30% of UK large trucks on Bio-­‐CNG

DEDICATED CNG TRUCKS

Dedicated CNG Tractors • A 100% CNG tractor will save 25% CO2 on a ‘tank to wheels’ basis compared to diesel alone if same efficiency • Because CH4 contains less carbon than C12 diesel

• Assume 5% reducLon in efficiency, saving of 20% • Note – UK industry has 7,000 MW of spark ignited, dedicated natural gas engines • Used to be 35% efficient! Latest are 43% efficient • Dedicated gas best fuel for generaLng electricity – low co2, low emissions, highly reliable, very efficient • Gas trucks will follow same path

Dedicated CNG tractors are coming…..

Scania in 2003

In 2003 Scania UK converted diesel Series 3 to dedicated gas

Scania in 2003

In 2003…..we need 10 – 15 years said Scania …..

Scania in 2014

Dedicated CNG tractors are coming….first 5 in UK in May-­‐July 2015

GREEN GAS CERTIFICATES

REAL Green Gas Cer>ficate Scheme • Designed to allow ‘tracking of biomethane from injecLon point to customer’ • Integrity -­‐ no ‘double counLng’ • 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 ( hdp://www.greengasgrids.eu/info/news.html )

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

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

Customer Sale of gas

Sale of ‘CerLficates’

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 injecLon

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

Conclusions -­‐ CO2 savings from LTS CNG and Dedicated CNG • Compared to diesel, the Well to Tank for LTS CNG is around 10% lower • Tank-­‐to-­‐Wheel CO2 savings are 20% CO2 o This is based on dedicated CNG o Assumes 5% reducLon in efficiency compared to diesel

• Total CO2 reducLon from Dedicated CNG trucks supplied via LTS is around 30% compared to diesel • With 10% Biomethane, saving becomes 40% • And Euro 6 – great for air quality compared to diesel trucks • Dedicated CNG is leading in the US and will be major fuel for trucks in UK by 2030, with a Biomethane fracLon • If we have shale gas, this will accelerate ship to CNG • Dedicated CNG is leading in the US and will be major fuel for trucks in UK by 2030, with a Biomethane fracLon

The LTS grid is a fantas>c asset for UK plc