May 2015

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CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : MAY 2015 

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CARIBBEAN Petroleum Update A Publication of the Caribbean Energy Information System (CEIS)

May 2015 ISSUE

Waste to Energy Biomethane: a

suitable

vehicular fuel

Source: cleanenergycanada.org - Liquefied Biomethane Plant in Cacouna Quebec, Canada Utilization of green energy has progressed tremendous- fuel derived methane when it comes to both chemical ly over the last few decades. However, many renewable structure and usability. It can be produced just about and environmentally friendly sources of energy pose a everywhere. The biogas/anaerobic technology has been challenge when it comes to availability or usability, or in operation from the nineteen twenties where agriculboth. Solar energy for instance can be successfully har- tural waste was utilized for the production of biogas nessed only in regions which have a high amount of sun- mainly for cooking and heating purposes. This saw the shine, wind turbines can be used to generate electricity direct connection of the produced gas to the source only in areas with sufficient amount and power of the of use mainly a stove, lamp or heater. In this issue of wind, etc. which makes their usability largely limited to the Petroleum Update, we will highlight the producregions which have ideal geographical or/and weather tion of biogas and its potential use as a vehicular fuel. conditions. Biomethane production, on the other hand, has no such limits. On the contrary, methane which is PRODUCTION OF BIOGAS derived from organic matter and is equivalent to fossil continued on page 2/ 1-876-927-1779 (Tel) 1-876-977-1840 (Fax) To access CEIS website


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CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : MAY 2015

Waste to Energy: Biomethane A Suitable Vehicular Fuel continued from page 1/ Biogas is a mixture of methane CH4 (65-70%) and CO2 (30-35%) and small amounts of other gases. It is created by anaerobic digestion of organic wastes such as sewage, manure, food wastes, landfill, etc. This is an established technology (Figure 1.0).

Since biomethane is chemically identical to natural gas, it can be used for the same applications as natural gas. It can be used for electricity generation, water heating, space heating, cooking as well as to fuel vehicles. Biomethane offers great potential as an alternative source of energy, especially to fossil fuels. Despite the fact that its usability is known for quite some time, production of biomethane started only in the recent years as a result of the rising prices of natural gas and high electricity prices, other fossil fuels as well as the threat of global climate change.

USABILITY AS A VEHICULAR FUEL

Figure 1.0 Anaerobic digestion to produce biogas

PRODUCTION OF BIOMETHANE Biomethane is a naturally occurring gas which is produced after the removal of contaminants (CO2, H2S and water vapour) from biogas which is produced by the anaerobic digestion of organic matter such as dead animal and plant material, manure, sewage and other organic waste (Figure 2,0). Chemically, it is identical to natural gas which is stored deep in the ground and is also produced from dead animal and plant material. However, there are several important differences between biomethane and fossil fuel derived methane despite the fact that both are produced from organic matter. Biomethane production eliminates the release of a great deal of methane and other harmful gases into the atmosphere. This is due to the fact that its production eliminates exposure of the decomposing organic matter to the air which prevents methane and other gases from escaping into the atmosphere. In addition, biomethane reduces the need for fossil fuels by which it further reduces the emissions of greenhouse gases into the air. The use of organic matter for biomethane production also improves hygienic conditions and quality of life in the rural areas, and reduces the risk of water pollution.

As a primary component of natural gas and a readily combustible material, this constant supply of fuel makes methane suitable for vehicular engines. Also the complete combustion of methane is a “highly exothermic” reaction, meaning energy is released by light or heat and as such the gas produced through the combustion of methane is more than enough to power a car. The process in which biomethane is placed into vehicles is identical to that of vehicles which use compressed natural gas. When the biomethane is compressed, it can then be pumped into vehicles as fuel. This liquid is stored in composite cylinders that have a fibreglass shell and foam that absorbs impact in the event of a vehicle crash. The composite cylinders, also known as pressure cells, are connected to an integrated gas control system. The cylinders are small enough that they can be put together in a three cylinder shape, which is similar to what a typical vehicle’s tank looks like. The pressure cells are then connected to vehicles using attachment straps. This enables vehicles fuelled by biomethane to be approximately the same size as a typical combustion engine vehicle. The three main vehicle technologies that are used for these vehicles running on natural gas are: 1.Bi-fuelled vehicles – this will be the predominant technology used for cars and vans running on gas and comprises a spark ignition engine that is fitted with both a gas and a petrol fuel system. The vehicle is then capable of running on either fuel. 2.Dedicated gas vehicles – these are vehicles using a


CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : MAY 2015

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PRODUCTION OF BIOMETHANE FROM BIOGAS

spark ignition engine that runs solely on gas and has been optimized for this purpose. This is the technology frequently used in heavy-duty vehicles such as buses and replaces a conventional diesel engine.

energy which are not only renewable but are also environmentally friendly. It is not 100% greenhouse-gas-free, however, it does not contribute to global warming. On the contrary, it helps to fight it.

3.Dual-fuel vehicles – these are diesel vehicles that use Environmental Benefits of Biomethane a compression ignition diesel engine and run on a mixture of gas and diesel, typical 70% gas and 30% diesel. 1.Reduced need for fossil fuels. Biomethane is identical to fossil fuel derived methane or natural gas and can The gas fuel is stored on the vehicle in one of two ba- be used to substitute natural gas and in large extent, sic forms – compressed or liquefied. Use in the com- oil and coal as well. Burning biomethane for electricpressed form, such as compressed natural gas (CNG), ity generation, heat production or fuel emits carbon is the most common form of fuel storage on the vehi- dioxide and some other greenhouse gases as well but cle. The gas is stored at high pressure, some 200 bar, it does not increase carbon dioxide levels in the atmosin tanks. However, the amount of energy stored in phere. This is due to the fact that the same amount of compressed gas is significantly less than the energy carbon dioxide would be released into the atmosphere stored in the same volume of liquid fuel such as diesel. if organic matter (from which biomethane is produced) would simply be left to decompose naturally. Biomethane can be liquefied, creating a product known as liquefied biomethane (LBM). Biomethane 2.Lower water, soil and air pollution. The use of biomethis stored for future use, usually either as liquefied bi- ane lowers water, soil and air pollution not only because omethane or compressed biomethane (CBM) Two of it eliminates fossil fuel related pollution and the risk of the main advantages of LBM are that it can be trans- potentially devastating accidents. Biomethane also reported relatively easily and it can be dispensed to ei- duces the risk of contamination and pollution of wather LNG vehicles or CNG vehicles. Liquid biom- ter, soil and air by organic matter. Theoretically, organic ethane is transported in the same manner as LNG. matter cannot harm the environment; however, release of large quantities of slurry into a river or stream for Biomethane is more flexible in its application than instance can cause serious damage to the environment. other renewable sources of energy. Its ability to be injected directly into the existing natural gas grid al- 3.Preservation of forests. Firewood remains the leading lows for energy-efficient and cost-effective transport. source of heat in most parts of the world. The use of wood This allows gas grid operators to enable consumers to for heating is not problematic as long as it comes from make an easy transition to a renewable source of gas. sustainably managed forests but unfortunately, it often The diverse, flexible spectrum of applications in the does not. In addition, the population growth puts an inareas of electricity generation, heat provision, and creased pressure on natural resources which threatens mobility creates a broad base of potential customers. ecosystems and biodiversity, while uncontrolled logging dangerously raises carbon dioxide emissions. Since Biomethane is one of a few alternative sources of


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CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : MAY 2015

the trees absorb the harmful greenhouse gas, its con- tion, and even some other renewable sources of energy. centration in the atmosphere increases with each fallen tree. As an alternative source of both heat and electric- The utilization of biomethane as a source of energy is ity, biomethane helps preserve forests and biodiversity. a crucial step toward a sustainable energy supply. As a potential source for transportation, biomethane does 4.Reduced emission of greenhouse gases. One of the stand a feasible option. Renewable resources such as greatest environmental benefits of biomethane is its animal faeces, food waste and sewage sludge are availeffect on the Earth’s atmosphere. Unlike the conven- able in abundance to produce biomethane using antional sources of energy, the use of biomethane does aerobic digestion. These resources are also easily accesnot increase the concentration of greenhouse gases sible allowing biomethane to be produced anywhere in because carbon dioxide and other gases that cre- the world. Most importantly, biomethane is chemically ate the greenhouse effect are released into the atmos- identical to natural gas, allowing for the implementation phere anyway during the decomposition process of of biomethane into the grid and vehicles, a viable option organic matter. In other words, biomethane is one in the near future. Methane definitely has potential for of the best ways to satisfy the increased need for en- being suitable for road use if we can find effective methergy without contributing to warming of the planet ods of using methane as an alternate fuel for the future. which threatens all living species including humans. 5.Minimal impact on nature. Production of biomethane requires a digester tanks and storage facilities. Production of biomethane has no harmful effects on nature and local ecosystems. Biogas plants has minimal impact on the natural environment which the same cannot be said for coal mining, oil and natural gas extrac-


CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : MAY 2015

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Facts about VW's 'dung' Beetle The car that leaves nothing to waste... thanks to its vertible, which has been modified to run on both conventional fuel and compressed methane gas. methane gas-powered engine *Created by a team of British engineers. The vehicle named the 'Bio-Bug' is run reliably on biomethane, which is produced from human waste at sewage works across the country. Excrement flushed down the toilets of just 70 homes is enough to power the pioneering VW Beetle car for 10,000 miles - the equivalent of one average motoring year. This conversion technology has been used in the past but the Bio-Bug is Britain's first car to run on methane gas without its performance being reduced. *The converted Beetle car runs on methane gas that is a by-product of treating human waste *Mohammed Saddiq, of sustainable energy firm GENeco, which developed the prototype

*The car, which has a top speed of 114mph, is started using unleaded petrol but automatically switches to methane when the engine is ‘up to temperature’.If the methane tank runs out the Bio-Bug reverts back to petrol. *The gas is generated through anaerobic digestion where bugs which are starved of oxygen break down biodegradable material to produce methane. However, before the gas can be used to power vehicles it must undergo ‘biogas upgrading’ where carbon dioxide is removed to improve performance.

* The poo-powered car was dubbed the classic VW *The Bio-Bug does 5.3 miles per cubic metre of biogas, Beetle Bug because bugs naturally breakdown waste at which means that just one sewage works could power sewage works to start the treatment process which goes 95,400,000 miles per year saving 19,000 tonnes of CO2. on to produce the energy. *The Bio-Bug is a conventional 2 litre VW Beetle con-

Source: http://www.dailymail.co.uk/sciencetech


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CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : MAY 2015

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CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : MAY 2015 

Prices at the Pump MAY 2015

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Retail prices for Regular Unleaded Gasoline in the fourteen Caribbean countries reviewed at the end of May 2015 showed overall increases in prices for seven countries Barbados,Belize, Dominica, Grenada, Jamaica,St. Lucia and Suriname. Suriname saw the highest price increase of 10.27% while Bahamas experienced the highest decrease in prices of 11%. Prices remained stable in five countries. The average retail price remained stable when compared to the previous month.

Unleaded Gasoline: Regular : Average Retail Price January - May 2015 (US$/Litre) COUNTRIES

JAN

FEB

MAR

APR

MAY

5 Mths AVG

ANTIGUA/ BARBUDA

1.11

1.11

1.11

1.11

1.11

1.11

BAHAMAS [91 OCT]

1.15

1.36

1.38

1.39

1.23

1.30

BARBADOS

1.53

1.42

1.43

1.51

1.55

1.49

BELIZE [87 OCT]

1.12

1.06

1.15

1.15

1.16

1.13

DOMINICA

0.92

0.85

0.83

0.98

0.98

0.91

GRENADA (95 OCT)

0.97

0.90

0.95

1.03

1.10

0.99

GUYANA

1.06

0.83

0.93

0.97

0.93

0.94

JAMAICA 87 Octane[E10]

0.96

0.89

0.90

0.98

0.99

0.94

MONTSERRAT

1.04

1.04

0.95

0.95

0.95

0.98

ST. KITTS/ NEVIS

0.96

0.96

0.94

0.94

0.94

0.95

ST. LUCIA

1.21

1.04

0.98

1.03

1.05

1.06

ST. VINCENT/ GRENADINES

0.85

0.85

0.85

0.85

0.85

0.85

SURINAME [95 OCT]

0.91

1.10

1.11

1.11

1.23

1.09

TRINIDAD/ TOBAGO [92 OCT]

0.42

0.42

0.42

0.42

0.42

0.42

AVERAGE RETAIL PRICES

1.02

0.99

1.00

1.03

1.03

1.01

US$/Litre

Comparative Retail Pump Prices Regular Unleaded Gasoline May vs. 5 Mths Avg (Jan-May 2015) 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00

MAY

14 Caribbean Countries

See prices for all products at www.cippet.org

5 Mths AVG

NOTE: *US Gallon = 3.785 L *Imperial Gallon = 4.546 L *As at November 1, 2009 MTBE was phased out from all gasoline blends in Jamaica and replaced with 10% Ethanol.


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CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : MAY 2015


International OIL PRICES

CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : MAY 2015

70

Average Weekly and Monthly Crude Oil Prices (March-May 2015)

60

US$/Bbl

50

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60.01

56.14

50.38

40 30 20 Mar-15

10 0 Period WK1

WK3

WK4

May-15 MTH AVG

Average Monthly World Crude Oil Prices (2012 - 2014) 110.0

US$/BBL

Analysis of International Crude Oil Prices for the March to May 2015 period showed an average price of US$59.17/bbl . This average price was 28.3% higher than the avearge price reported in March 2015 and 11.8% higher than the price in April 2015. The highest weekly price seen in May 2015 for the commodity was US$60.01/ bbl-reflected in week three while week one accounted for the lowest price of US$57.93/ bbl. During the corresponding period in 2014, prices averaged US$101.64/bbl. This shows a 42% decrease in crude oil prices in 2015 for the same period.

WK2

Apr-15

106.6

106.6

105.8

90.0

70.0

2012

2013

2014

50.0

Period

FEATURED OFFERS: P E TS TATS   -   t h e   Ca r i b b e a n   E n e rg y   I n fo r m at i o n System (CEIS) primary report of historical annual petroleum energy statistics provided for 18 Caribbean Countries. Included are data on total energy production, consumption, and trade; overviews of petroleum, natural gas, electricity, as well as financial and environmental indicators for over twenty years.

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