NGV Transportation
VOL. 24 | OCT - DEC 2015 | USD 30
NGV
TRANSPORTATION MAGAZINE
FEATURES:
THE END OF DIESEL
ANALYSIS OF NATURAL GAS ENGINE DE-LOADING
DME -
ALTERNATIVE FUEL OF THE FUTURE? SPECIAL REPORT:
ADDING FLEXIBILITY IN A NATURAL GAS TRANSPORTATION NETWORK USING INTERRUPTIBLE TRANSPORTATION SERVICES
NOV 2016
MAR 2016
NOV 2015
2016
APR/ MAY
ORGANIZED BY:
AFRICA O&G INFRASTRUCTURE INVESTMENT FORUM 28 - 30 NOV 2016 AFRICA
3rd BIOGAS INDONESIA FORUM 2016 23 - 24 MARCH 2016 JAKARTA, INDONESIA
10th NATURAL GAS VEHICLES & INFRASTRUCTURE INDONESIA FORUM AND EXHIBITION 22 - 24 MARCH 2016 JAKARTA, INDONESIA
ASIA GASIFICATION FORUM 24 NOV 2015 CHIANGMAI, THAILAND
GAS TO POWER INDONESIA 18 - 20 NOV 2015 JAKARTA, INDONESIA
2015 - 2016 EVENT CALENDAR
IN CONJUCTION WITH:
5th BIOGAS ASIA PACIFIC FORUM 2016 25 - 27 MAY 2016 KUALA LUMPUR, MALAYSIA
JUL 2016
2016
JAN/ FEB
INFORMATION IS CORRECT AT THE TIME OF PRINT
CNG AFRICA FORUM 2016 18 – 20 JUL 2016 DAR ES SALAAM, TANZANIA
AFRICA BIOGAS 11-12 JUL 2016 KENYA, AFRICA
3rd LNG SUPPLY, TRANSPORT & STORAGE PHILIPPINES FEB 2016 MANILA, PHILIPPINES
SMART GAS GRIDS JAN 2016 JAKARTA, INDONESIA
FORUM SERIES
ICESN
For more information, please visit: www.alleventsgroup.com | www.cngngv.com | www.icesn.com | www.lng-world.com | www.naturalgasglobal.com
LNG
6th ANNUAL LNG TRANSPORT, HANDLING AND STORAGE 2016 BALI, INDONESIA APR 2016
BIOGAS AND WASTE TO ENERGY THAILAND ROUNDTABLE 2015 24 - 27 NOV 2015 CHIANGMAI, THAILAND
EDITOR’S TWO CENTS
Greetings all!
NGV
TRANSPORTATION MAGAZINE
It would seem that the end of the year is upon us once again. I hope that it has been an exciting and prosperous year for everyone. 2015 has been a year of interesting developments for the gas industry. There is much deliberation as to the immediate future of many projects as the world watches and waits to see what will happen to oil prices. The long term future of gas however, looks bright. The vast amount of infrastructure projects that have come to completion added to the number that have just begun form a robust concrete base that will support supply of gas to millions of people across the globe. If the infrastructure is available and the fuel is in abundance, it will be used one way or another eventually. The major players are present and are facilitating continued development in the industry. Euro standards are also a big supporting instrument that secures gas use in a big way. The clamping on emissions is an important step in the right direction and a wave goodbye to filthy diesel fuels. A gas era has emerged and with a spot having opening up thanks to diesels impending departure, I can’t see a horizon even looking quite some distance down the road. This issue we’ve prepared some interesting studies on some intriguing topics; natural gas engine de-loading, interruptible transportation services and transport emissions. There is also a writeup on the development of the syn-gas – Dimethyl Ether or DME. Such developments are much in line with this year’s Gastech 2015, of which we are media partners and would like to welcome all of you to. Till next year, we here at NGV Transportation wish you all the best for the remaining quarter and look forward to providing you with more technological revelations in the natural gas industry as well as insightful and captivating discussions together with the latest quarterly gas news.
Published by:
NATURAL GAS GLOBAL
Managing Director Vincent Choy vincent@naturalgaslobal.com Chief Editor Rizal Rahman
rizal.rahman@naturalgasglobal.com
Editor Ryan Pasupathy
ryan@naturalgasglobal.com
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samuel.tan@naturalgasglobal.com
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Vol.24 Oct - Dec 2015 NGV Transportation
CONTENT
03
NEWS AROUND THE WORLD EDITOR’S TWO CENTS ANALYSIS OF NATIONAL POLICIES AND ITS IMPACT ON NGV GROWTH IN GERMANY
FEATURES:
01 39
ANALYSIS OF NATURAL GAS ENGINE DE-LOADING
11
THE END OF DIESEL
28
SPECIAL REPORT: ADDRESSING TRANSPORTATION EMISSIONS IN A MULTIDIMENSIONAL WAY: THE EU POLICY APPROACH
23
18 SPECIAL REPORT: ADDING FLEXIBILITY IN A NATURAL GAS TRANSPORTATION NETWORK USING INTERRUPTIBLE TRANSPORTATION SERVICE
33
DME - ALTERNATIVE FUEL OF THE FUTURE?
NEWS AROUND THE WORLD
INDIA July 2015: Government Notifies Rules for Use of Bio-CNG in Vehicles
July 2015: Centre Plans to Double CNG Stations in NCR
The Indian government has notified norms for use of bio-CNG for vehicles running on the fuel in a bid to promote green fuel. With this notification, vehicle manufacturers can manufacture, sell and get the vehicles fuelled by bio-CNG in the country. The Ministry of Road Transport & Highways has started the initiative of promoting vehicles which are powered by clean fuels like bio-ethanol, bio-CNG, bio-Diesel and electric batteries among others. - The Economic Times
JORDAN Aug 2015: GAC Assists First FSRUs to Dock in Jordan LNG Expansion The government has plans to ensure that CNG is available along the drive down the highway from Delhi to Chandigarh, Hardiwar, Agra and Jaipur. The number of stations in NCR is also going to be doubled to more than 600. These are some of the plans that the centre is working on to clean up the smog in Delhi and adjoining areas. Oil Minister, Dharmendra Pradhan said, “We have a scheme to double the number of CNG stations in the National Capital Region as part of a scheme for a Green Energy Corridor being drawn up for implementation in the next two years.” He went on to add that, “The green corridors being planned would go along in all four directions from Delhi, to Jaipur, to Chandigarh, to Haridwar and to Agra. There will be many more CNG stations en route,”
GAC is to handle the first of many FSRUs to offload LNG cargoes at the port of Aqaba, in Jordan, as the country steps up its LNG imports. Amounting to approximately one quarter of state energy firm’s National Electric Power Company’s needs, the new sales and purchase agreement with Shell will amount to 17 million m 3 of LNG daily for five years. The news follows the completion of Aqaba’s new $73m LNG Terminal in June. - Seatrade Maritime News
- Times of India
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Vol.24 Oct - Dec 2015 NGV Transportation
NEWS AROUND THE WORLD
CROATIA July 2015: Croatia Mulls LNG Facility Croatia’s key energy project is still the LNG terminal on the Island of Krk but a floating LNG facility could serve the country just as well, said Croatian President Kolinda GrabarKitarovic. She went on to say that Croatia has much to learn from other Baltic countries. Kolinda strongly believes that a floating terminal is a realistic possibility and it should be seriously considered. - MarineLink.com
UNITED STATES July 2015: Croatia Seeks Investors to Develop Adriatic LNG Terminal Croatia’s power utility HEP and gas transmission system operator Pilnarco has invited investors to express interest in building an LNG terminal in the Northern Adriatic as part of the plan to achieve energy independence in the country. It is aimed at receiving, storing and re-gasifying LNG, with a nominal capacity of 6 billion cubic metres. The terminal is expected to entail an investment of around €600 million. - Reuters UK
July 2015: Shell To Sell Its Equity Interest In The Elba LNG Joint Venture To Kinder Morgan Kinder Morgan and Shell have announced that they have reached an agreement for Kinder Morgan to purchase 100% of Shell’s equity in interest in Elba Liquefaction Company, who are the owners of the Elba Liquefaction Plant which is proposed to be constructed and operated at the existing Elba Island LNG Terminal near Savannah, Georgia. Kinder Morgan currently owns 51% of the Joint Venture. - MarketWatch.com
FINLAND July 2015: Wärtsilä: A Huge Number of Cruise Ships Will Use LNG Bunkers
EGYPT Aug 2015: BW Gas Secures Bid for Egypt’s Floating LNG Terminal
Wärtsilä President and CEO Bjorn Rosengren predicts that a large number of cruise ships will switch to using LNG bunkers in the near future. Rosengren also praised the recent multi-billion dollar order by Carnival Corporation & plc (Carnival) for 4 “next-generation” LNG-powered cruise ships, echoing the cruise giant’s and that “the early adopters can drive forward that infrastructure”. He says, “That means that if you will have cruising ships driving round on gas that means you have to build up the infrastructure. And the infrastructure is the biggest thing holding back the development of gas as a fuel in the marine industry.” - Ship & Bunker
NGV Transportation Vol. 24 Oct - Dec 2015
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BW Gas won a bid to provide Egypt with an FLNG for five years. The vessel will receive imported LNG and convert it back to gas supplying Egypt with 750 million ft3 per day. This ship will be the second FLNG rented by Egypt. Egypt has faced a recurring energy crisis for the past few years and the government is putting a strong focus on securing LNG to supplement ever increasing demand. - Albawaba Business
NEWS AROUND THE WORLD
BANGLADESH
NIGERIA
Sep 2015: Fewer CNG-powered Autorickshaws on Dhaka Streets, Movement Affected
Dhaka residents are finding fewer vehicles on the streets on the second day of the Eid vacation. Under normal circumstances, there are already fewer public transports circling the capital during Eid. But during this Eid holiday it was much worse. Autorickshaws are the mainstay during Eid. But due to the gas supply shortage, even they are not easily available. The government stopped supply for 24 hours to CNG-refuelling stations for emergency maintenance at Bibiyana Gas Field. - BD News 24
ESTONIA July 2015: Approval for New European LNG Bunkering Terminal A new LNG terminal has been approved for development in the eastern port of Muuga Harbour, Estonia. The small scale receiving and distribution terminal which will have 4000m3 of container fleet capacity was approved by AS Tallina Sadam Council which is a state owned port operator in the country. The terminal is scheduled for completion early 2017. A partner of Tallina Sadam will cover the estimated €22 Million. Chairman of Tallina Sadam is optimistic about the development of the terminal and said, “Building the LNG terminal will considerably improve the position of Estonia in the Baltic Sea.” -Ship & Bunker
July 2015: Nigeria Tanker Ban Recalls Memories of Chaotic LNG Carrier Blockade Nigeria’s tanker ban, was a shock to owners with vessels on the ban list, but those of us with good enough memories will recall a similar action against liquefied natural gas carriers two years ago. In June 2013, the Nigerian Maritime Administration and Safety Agency (Nimasa) forced Nigeria LNG to stop exports, detaining 16 LNG carriers in Nigerian waters. Nimasa claimed Nigeria LNG — a joint venture between Nigerian National Petroleum Corp, Shell, Total LNG and Eni — owed it taxes. After much deliberation for almost a month, Nigeria LNG agreed to pay around $140m in arrears and accepted future levies; the case is still going through the courts to sort out the detail of those future levies. - Lloyd’s List
DOMINICAN REPUBLIC Aug 2015: AES Dominicana to Offer LNG Trans-Shipment, Bunker Services in 2016 AES Dominicana will be offering LNG trans-shipment and bunker services from its AES Andres LNG terminal in the Dominican Republic by third-quarter 2016. The development process for LNG bunkering infrastructure is underway. Upon completion, the reload facilities will allow loading of cargoes onto ships between 10,000 m3 and 60,000 m3 in size. - Platts
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Vol.24 Oct - Dec 2015 NGV Transportation
NEWS AROUND THE WORLD
IRAN Aug 2015: South Africa Says Interested in LNG Projects in Iran South Africa has made its interest known in importing natural gas from Iran once the sanctions against the country are lifted, adding that it is even ready to participate in projects to liquefy natural gas in the country. South Africa’s deputy energy minister, Thembisile Majola has said that Pretoria is trying to prepare the grounds for the participation of state and private enterprisers in Iranian projects to produce Liquefied Natural Gas. - Press TV
PAKISTAN
MYANMAR
July 2015: Work Begins On 700-Km Pipeline To Import LNG From China
Aug 2015: Shell and Thai Firms to Develop LNG Terminal in Myanmar’s Dawei SEZ Royal Dutch Shell plc recently entered into an agreement with Thailand-based companies to develop an LNG terminal at the Dawei special economic zone in the Tanintharyi Region in Myanmar. Shell signed a Joint Development Agreement (JDA) with Italian-Thai Development Public Company Limited and LNG Plus International Company Limited.
Pakistan has begun work on its 700 km long pipeline so they can import LNG from China. Minister of Petroleum and Natural Resources Shahid Khaqan Abbasi has said that, “Chinese funds will benefit Pakistan and allow it to complete its Iran-Pakistan Gas Pipeline project”. Abbasi also said that, “Pakistan has been trying to overcome its energy crisis by importing gas from Iran however; sanctions on Iran had hampered the work on the project.”
- Rigzone
- The Express Tribune
SOUTH KOREA Sep 2015: Second LNG Terminal Will Resolve Our Power Crisis: Shahid Khaqan
Aug 2015: Busan LNG Bunkering Terminal to be Operational by 2020
Federal Minister for Petroleum, Shahid Khaqan Abbasi Thursday said ten cargo ships of LNG have arrived while the import target for this year is 30 such ships. He said the LNG terminal was also built in record time and that the country’s electricity shortage will be overcome with the construction of this second terminal.
South Korea’s Busan Port will have a fully functional LNG bunkering terminal by 2020. The terminal, set to have four berths and two LNG tanks, will occupy a 185,700 m² area, with Polaris Shipping lined up to construct the US$500 million facility. Busan Port Authority is said to expect growth in usage of the Northern Sea route which will translate to more LNG imports from Russia.
- Geo.tv
- Ship & Bunker
NGV Transportation Vol. 24 Oct - Dec 2015
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NEWS AROUND THE WORLD
RUSSIA
OMAN
July 2015: French Tech to Ensure Safe LNG Transportation in Russia A new LNG terminal has been approved for Three Russian LNG bunkering vessels which are currently under construction are set to benefit from French technology that will ensure safe LNG transportation. The Mark III membrane containment systems will be provided by French company GTT, which signed an agreement with LNG-Goskaya LLC. Kirill Lyats, Director General of LNG-Goskaya LLC preached that, “Membrane containment systems developed by GTT engineers for LNG is the world’s best technology in existence today and that it ensures safe and environmentally friendly transportation of LNG.” -Ship & Bunker
Oct 2015: Russia’s Big Hitters Looking To Drive Gas Sales in Emerging South East Asian Markets Gazprom’s Deputy Chairman, Alexander Medvedev, and Chief Executive of Gazprom Export, Elena Burmistrova, will seek to promote the competitive value of Russian gas to the key emerging energy markets of South East Asia, when they speak at Gastech Conference being held in Singapore from 27 to 30 October 2015. The Russian state gas company heavyweights will be joined by other senior Russian executives (including Frederic Barnaud, Gazprom’s Executive Director for Oil, LNG and Shipping), who are keen to build dialogue with new markets after recent turbulence between Russia’s traditional customers in Europe has forced the gas giant to look east where demand growth is forecast to be strongest. As well as being keen to develop gas and liquefied natural gas (LNG) sales into other Asian markets, Russia’s potentially monumental new gas sales agreement with China would see two pipelines eventually deliver 68 billion cubic metres (bcm) annually to the world’s most populated country. This amounts to around 38% of the entire country’s demand for the fuel based on 2014 figures – but uncertainties about the deal remain and President Vladimir Putin and Minister of Energy, Alexander Novak, will be keen to utilise major global events to ensure Gazprom’s message to customers isn’t lost to potential rival suppliers. - Gastech
THAILAND Sep 2015: Government Maintains NGV Subsidies Oman may start importing liquefied natural gas to meet surging domestic energy demand. Oman currently exports liquefied gas under long-term contracts to Spain and several Asian countries including Japan and South Korea. It’s now studying options to import LNG as well, to help generate power and for other uses.
Aug 2015: Oman Said to Consider LNG Imports as Domestic Gas Use Surges Oman may start importing liquefied natural gas to meet surging domestic energy demand. Oman currently exports liquefied gas under long-term contracts to Spain and several Asian countries including Japan and South Korea. It’s now studying options to import LNG as well, to help generate power and for other uses. - Bloomberg
AUSTRALIA Sep 2015: Origin Launches $2.5Bn Share Offer Origin Energy has announced a $2.5 billion share offer and plans to reduce its dividend, cut capital expenditure and sell non-core assets as it moves to strengthen its position within a tough trading environment. Origin Energy has said that it plans to reduce CAPEX and OPEX requirements across this financial year and the following year as well, by $1bn and would target up to $800 million of non-core asset sales by fiscal 2017. Origin provided dividend guidance of 20 cents per share for fiscal 2016 and 2017. Chairman Gordon Cairns said in a statement to the ASX that, “These initiatives will lower debt, strengthen the balance sheet and reduce reliance on distributions from Australia Pacific LNG”. - Business Spectator
- Bloomberg
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Vol.24 Oct - Dec 2015 NGV Transportation
NEWS AROUND THE WORLD
SINGAPORE Oct 2015: Innovations and Technological Investments are the Key Success Factors for Most Oil and Gas Companies That Participate in Gastech
Leading technology firms and research centres will showcase the latest developments in gas technology at the Centres of Technical Excellence (CoTEs) seminars in Singapore during Gastech, the world’s leading natural gas & LNG conference and exhibition from 27 to 30 October 2015. The CoTEs is a free-to-attend technical programme that is open to all Gastech Exhibition visitors, and features over 80 cuttingedge seminars across 11 topics in natural gas & LNG. Presentations passed through a rigorous process that attracted a record number of technical submissions earlier this year. Air Products has announced that it will be providing its proprietary LNG technology, equipment and process license for Freeport LNG Development Train 3 gas liquefaction and export project. The global leader of liquefaction technology that is used to produce the majority of the world’s LNG is one of many industry leaders who will be sharing its expertise with more than 20,000 visitors who will visit
NGV Transportation Vol. 24 Oct - Dec 2015
the Gastech Exhibition’s Centres of Technical Excellence (CoTEs). The LNG Facilities & Infrastructure stream at the CoTEs will feature a variety of seminars that will highlight the latest innovations that promote LNG plant flexibility and overall efficiency. It will allow the global LNG gas community to hear directly from technology leaders like Air Products, Chart and Linde to industry veterans, such as the Vice President of Operations for ADGAS, to proponents of new technology concepts reach to be commercialised – such as the licensor of CryoMan-SMR™. Aside from focusing on innovations, most companies in the oil and gas industry plan to invest the same amount or more in digital technologies despite the dip in oil prices, according to a new survey by released by Accenture at this year’s Microsoft Global Energy Forum. “Given the heightened interest in ICT by the industry, we are introducing a new specialist stream at the Centres of Technical Excellence this year. Industry leaders will cover topics such as
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cybersecurity, simulation software and big data,” says Amanda Basi, CoTEs Programme Director, Gastech. Alongside a review of the latest processing technologies and applications, the Gas Processing stream will feature real-world case studies, such as engineering company PROSERNAT’s presentation, “1100 MMSCFD single train AGRU & TGTU for the giant QatarGas LNG plant: optimized design and successful operation”. Other companies presenting for the Gas Processing stream include Shell, ExxonMobil Upstream Research Company, Wood Group Mustang and BHSSonthofen Inc. The Pipeline Infrastructure stream will focus on the latest pipeline technologies and applications, featuring real-world case studies, such as engineering company Subsea 7’s presentation, “Towed Pipeline Production Systems”. Other companies presenting for the Pipeline Infrastructure stream include Black Powder Solutions, Canalta and Caterpillar. This year’s CoTEs programme also addresses: LNG & Gas Carrier Shipbuilding, LNG Bunkering, Natural Gas Vehicles, Floating LNG, Offshore Technology, SmallMid Scale LNG and LNG as a Marine Fuel. The CoTEs seminars have been a regular draw at the Gastech Exhibition since 2011. They attract over 3,000 technical gas professionals who attend these informative seminars to gain knowledge, education and awareness of technological developments and applications in the gas & LNG industry. - Gastech
NEWS AROUND THE WORLD
INDONESIA Sep 2015: An Abundance of CNG Governor of DKI Jakarta, Basuki Tjahaja Purnama or Ahok, has stated that he will only use CNG cars during operations. He said that this has been implemented because he wants to encourage the use
of CNG Vehicles in Jakarta. According to Ahok, it was done as a form of promotion, so that citizens of the city in the future will follow in his footsteps and switch to using vehicles that run on CNG. “Next year we want to
try for all governors to only use CNG, said Ahok. He wants to change the mindset of people in Jakarta who do not use CNG. The current abundant supply of fuel in Indonesia is CNG. - Merdeka.com
Oct 2015: Indonesia’s Arun LNG to Receive 20 LNG Cargoes, Reach 50% Utilization by 2016
Indonesia’s state-owned oil and gas company, Pertamina is to receive around 20 LNG cargoes to its recently commissioned Arun LNG import terminal in 2016, a senior official with Pertamina’s subsidiary PT Perta Arun Gas, said. Surkani Manan, Planning and Production Manager at PT
Perta Arun Gas has said that the cargoes will be sourced from the domestic market. The pipeline distribution network around the terminal, located in Nanggroe Aceh Darussalam province, Northern Sumatra, is expected to be completed in 2016, allowing the facility to reach utilization rates of around
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50%, up from 25% in 2015. Seven cargoes have been delivered to the terminal to date, including the Tangguh-sourced commissioning cargo delivered February 19 and a partial spot cargo from the Donggi Senoro LNG (DSLNG) plant delivered August 12. Manan has said that for this year, their target is 12 cargoes. Most imports into the terminal will continue to be sourced from the Indonesian Tangguh facility on Papua, as part of an LNG sales agreement between BP’s Indonesian unit and state-owned power company Perusahaan Listrik Negara (PLN) for the supply of up to 1.5 million mt/year all the way through to 2033. Bringing the export plant’s total nameplate capacity to 11.4 million mt/year, the LNG will initially come from Tangguh’s existing two trains and then from Train 3, which is due to be commissioned in 2019. - Merdeka.com
Vol.24 Oct - Dec 2015 NGV Transportation
NEWS AROUND THE WORLD
SWITZERLAND Sep 2015: Study Confirmed The Precise Compensation For Different Natural Gas Types
Gas quality on the world’s markets varies enormously. The composition of H and L gases differs even within the same gas families. The composition of the gases imported for use in Europe, from Russia, the North Sea and Libya, varies considerably. Sensirion’s sensor products are based on the thermal metering principle. Essentially, this form of metering depends on the type of gas, because every gas has different thermal properties. Unlike other solutions from the competition, however, Sensirion’s gas meter modules feature an innovative and highly sophisticated algorithm that recognizes the composition of different gases and compensates precisely. The GWI recently confirmed the gas quality compensation of Sensirion’s sensor products in a comprehensive study. The Institute tested the gas meter modules with various
Mass Flow Meter SGM70xx
NGV Transportation Vol. 24 Oct - Dec 2015
natural H-family gases. It tested the accuracy of standard volume measurement and compared it with conventional diaphragm gas metering. The test gases used were normal air and common natural gases like methane, North Sea gas, RWE Süd gas, LNG and Libyan gas together with prepared and conditioned biogas. These natural gases cover variability within the H gas family. The GWI study shows conclusively that Sensirion successfully compensates for differing gas compositions. Independently of the type and quality of gas used, the measurement of standard volume with Sensirion technology, therefore, is always within the required tolerances. As part of its study, the GWI also tested Sensirion’s gas meter modules for their ability to compensate for temperature and to function correctly regardless of pressure: the technology passed on both counts. The standard volume flow is always displayed correctly, independently of seasonal temperature fluctuations in winter and summer and of their location at various altitudes. The technology’s imperviousness to temperature and pressure changes removes the need for
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additional corrective sensors in the gas meter, making Sensirion technology a very low cost, space saving solution. Sensirion’s technology for smart microthermal gas meters has been carving out a place on the market for several years now. At present, over 100,000 of the modules are in use in Italy and Germany. Sensirion’s standard products are available for type G1.6, G2.5, G4 and G6 gas meters and have already proved their reliability, long term stability and resistance to both dust and dirt. The compact design, the low power consumption and digital I2C interface facilitate simple integration and handling. Recently, Sensirion started offering customers a ”Complete Design In Solution”, with the result that everything comes from a single source. Apart from its fully calibrated SGM70xx sensor product range, the company also supplies an electronic reference design that simplifies the integration of hardware and software, as well as partial certification of the gas meter module. Sensirion thus continues to consolidate its position in the smart energy market. Its gas meter modules use the patented CMOSens® Technology and measure temperature and pressure compensated volumes in gas meters. This enables real time calculation of gas consumption and creates the opportunity for greater transparency and control for both energy suppliers and end consumers. It also leads to a long term reduction in gas consumption and ensures that Sensirion’s flow sensors also meet the demands of new European legislation on the introduction of smart metering. - Sensirion
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GASTECH EXHIBITION The world’s largest gas event that connects energy professionals from the entire natural gas and LNG supply chain together.
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FEATURE ARTICLE
ANALYSIS OF NATURAL GAS ENGINE DE-LOADING ON LNG FUELLED VESSELS
Introduction With many national and internationalorganizations including the US Environmental Protection Agency enforcing more stringent emission standards for maritime vessels, several private companies and governments are choosing to build and retrofit Liquefied Natural Gas (LNG) fueled vessels. Norway, among the leading countries to make the transition to LNG fueled vessels, has three LNG dual fueled Coast Guard vessels in its fleet with capability to burn LNG and traditional marine grade oil (MGO). Since maritime LNG is still a relatively new technology, transition issues are still being explored. The study addresses unintentional gas engine deloading caused by LNG tank sloshing which was documented on
LNG fueled vessels like KV Bergen in the Norwegian Coast Guard and MF Korsfjord which is owned by Fjord 1. Gas engine de-loading is a concern for the maritime industry because it leads to reduced power production and propulsion on LNG powered vessels and may prevent companies from making the transition to single fuel designs. Methodology In order to gain insight into the interactions within the LNG system leading to natural gas engine de-loading, certain values in the LNG tank and vaporizer sub-systems on these vessels were measured to determine what led to the fall in pressure throughout the system causing the gas engines to de-load. Previous studies indicated that the fall in system
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pressure may have been caused by sloshing inside the LNG tank [1, 2]. Sloshing may be defined as the movement of liquid inside a tank due to the movement of the tank. To mitigate the fall in pressure from tank mixing, the LNG systems on vessels have a Pressure Build Up (PBU) unit which vaporizes LNG to increase pressure in the LNG tank. The measurement campaign established on KV Bergen is shown in Figure 1. A simplification of the system is shown in Figure 2. The Vaporizer, shown in Figures 1 and 2, is a helical-coil heat exchanger where the upper component is considered the Evaporator (EVAP) and the lower component is the PBU. The main objectives of the measurement campaign were
Vol.24 Oct - Dec 2015 NGV Transportation
FEATURE ARTICLE to determine: the mass flow rate through the PBU, initial liquid heel temperature (e.g. the temperature of the bulk liquid in the LNG tank), and heat / mass balance in the EVAP. From the data collection, it was possible to determine the lowest achievable LNG tank pressure from mixing, the rate at which Natural Gas (NG) vapor at the top of the tank condensed during sloshing, and ultimately how sloshing led to conductions which causes the deloading of the natural gas engines. Results and Discussion PBU Mass Flowrate In order to calculate the PBU mass flowrate, the LNG tank, PBU, and EVAP were analyzed separately using heat and mass balances. The individual subcomponents were combined and treated as a representative whole system to determine how much LNG is introduced over time to the top of the tank as vapor. The PBU is an internal loop in the LNG tank system that channels LNG from the bottom of the tank, evaporates the liquid, and injects it at the top of the tank. In the PBU, the amount of LNG circulated through this section is determined by the liquid height in the tank and the difference in density of the LNG. The balance of pressure changes within each section of the PBU was used to calculate the mass
Figure 1: Experimental Set Up on KV Bergen [1] These values included: mass flow of LNG from the LNG tank to the natural gas engines, mass flow of LNG through the Pressure Build Up (PBU) unit, mass flow of water / glycol mixture through the Vaporizer, temperature of the natural gas vapor exiting the Evaporator to the natural gas engines, temperature of LNG entering the Evaporator to the natural gas engines, temperature of natural gas vapor exiting and entering the PBU, temperature of the water / glycol mixture entering and exiting the Vaporizer, temperature of the LNG added during bunkering, temperature of heel in the LNG tank, temperature of the natural gas vapor in the LNG tank, volume of the liquid heel in the tank, volume of the bunkered LNG, pressure in the top of the LNG tank, and composition of the bunkered LNG.
flowrate through the PBU [3,4,5,6,7]. For computational simplicity, the liquid heel, top tank gas, and LNG entering the PBU and EVAP were assumed to be the same composition of the LNG provided during bunkering, which is the process of transferring LNG from one container to another. Figure 3 shows the calculated LNG mass flow rate through the PBU when the value to the PBU was opened allowing LNG to travel through the PBU .
Figure 2: Schematic of the LNG tank and Vaporizer system on KV Bergen and MF Korsfjord [2} The spike near minute 91 in Figure 3 may be attributed to the measuring devices detecting the flow of liquid in the opposite direction after the closure of the PBU value.
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Heel Temperature and Liquid Surface Temperature The temperature of the heel in the LNG tank was found by measuring liquid passed through piping used to clean cryogenic measuring equipment using two K-type thermocouples. The lowest temperature recorded using this method was -148.75°C (124.25 K). A “vapor purge method” was employed to measure liquid surface layer temperature in the LNG tank on KV Bergen and MF Korsfjord. During top tank vapor purging, the vapor pressure is brought down to a saturated state which corresponds to the liquid surface temperature. The lowest pressure achieved in the tank during purging was 471.9 kPa which corresponds to a liquid saturation temperature of -138.9°C. A separate measurement was taken to find the average temperature of LNG entering the LNG tank on the ship during bunkering. During the measurement, bunkering occurred entirely from the top
FEATURE ARTICLE of the LNG tank. An asymptotic liquid bunkering temperature of -153.6°C was recorded which indicates the liquid bunkering temperature delivered to the LNG tank. Tank Mixing Calculations To determine if it was possible to fall below the pressure which would trigger de-loading in the natural gas engines (350 kPa), mixing calculations were modeled over a range of initial liquid and vapor values inside the LNG tank. The 350 kPa tank pressure value triggering gas engine de-loading is a system specific value indicated in the engineering manual associated with the LNG system on KV Bergen. When performing the mixing calculation, it was assumed complete mixing occurs between the liquid heel and vapor over a long period of time. An initial vapor temperature of 21°C (294 K) and pressure of 500 kPa were used during calculations [7]. Since the mole fraction of the LNG in the tank changes very little during mixing it was assumed to be constant while the mole fraction of the vapor changed significantly during mixing . Furthermore, it was assumed that the tank was perfectly insulated and no heat leaked into the tank from the ambient surroundings. The governing heat and mass equations are provided in Equations 1, 2, and 3 where E is energy (kJ), ρ is density (kg/m^3), T is temperature (K), P is pressure (kPa), h is enthalpy (J/kg), m is mass (kg), and V is volume (m^3). The subscripts v and i stand for vapor and initial, respectively. Initial values were selected to model the relationship between
Figure 3: Mass Flow through the PBU over Time [3] The mole fraction of the LNG introduced during bunkering was provided by Gasnor. The heel and vapor mole fraction in the LNG tank were derived using Equations of State.
the percent liquid volume and temperature of the heel relative to the bubble point temperature to quantify changes in the final tank vapor pressure assuming the entire content of the tank is completely mixed. At 500 kPa, the liquid bubble point temperature was calculated to be -137.1°C (135.9 K) using the composition of LNG loaded during bunkering and was used as a reference temperature for how much the heel was subcooled. Other values included the total volume of the tank (V_tank) at 234 m3, initial tank vapor temperature (T_(v,i)) at 21°C (294 K), and initial tank vapor pressure (P_(v,i)) at 500 kPa. The initial composition of the vapor in the tank before mixing was determined using Raoult’s law which takes into account the saturation temperature, liquid composition, and vapor pressure [6,7]. The final pressures for all the selected combinations fell below the 350 kPa de-loading pressure as shown in Fig. 4. It may be inferred that natural
Etank,i=Vheel,i ρheel,i (Theel,i,Pheel,i) hheel,i (Theel,i,Pheel,i)+ Vv,i ρv,i (Tv,i ,Pv,i ) hv,i (Tv,i ,Pv,i) (1) mtank,i=Vheel,i ρheel,i (Theel,i,Pheel,i)+ Vv,i ρv,i (Tv,i ,Pv,i )
(2)
Vtank,i=Vheel,i + Vv,i
(3)
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gas engine de-loading can result from liquid and vapor mixing in the tank. It remains uncertain, however, how much of the liquid and vapor mix with one another under varying conditions. Vapor Condensation and Deloading time The heat transfer occurring between the vapor and liquid layer was analyzed to draw the connection between tank sloshing, vapor condensation, and decreasing tank pressure. A modified version of Fourier’s Law, provided in Equations 4 and 5, were used to calculate the heat transfer occurring in the thin surface liquid vapor region in the LNG tank [5]. Equations 4 and 5 assume that the conductive and convective heat transfer occurring in the liquid surface may be shown as a layer of effective conduction. In Equations 4 and 5, k_(eff,cond) is effective thermal conductivity (kW/(kg*K)), S is the liquid / vapor interface area (m^2), P_ (v,i) is vapor pressure (kPa), T_ sat (P_(v,i) ) is the liquid bubble point temperature (K), T_bulk is the bulk liquid temperature (K), m ̇_cond is the rate of condensation (kg/s), h_lat is the latent heat of condensation (kJ/kg), and x_(eff,cond) is the effective surface layer thickness (mm). It is further assumed
Vol.24 Oct - Dec 2015 NGV Transportation
FEATURE ARTICLE that the primary means of heat rejection in the vapor section to maintain the thickness of the surface sub-layer is the latent heat release through condensation. To simplify calculations, the sensible heat rejected by the superheated
W_(cond,eff)=
[
(keff,cond S(Tsat (Pv,i ) - Tbulk ) xeff,cond
]
Wcond,eff=mcond hlat
JOSEPH DIRENZO
Lieutenant Joseph DiRenzo is the Operations Officer on USCGC BOUTWELL in the United States Coast Guard. Prior to serving on BOUTWELL, Lieutenant DiRenzo completed his Masters of Science in Natural Gas Engineering at the Norwegian University of Science and Technology on a Fulbright Scholarship in Trondheim, Norway.
(4)
(5)
vapor is neglected. As before, the changing composition of the vapor due to condensation was approximated using Raoult’s Law. To examine different tank sloshing conditions the liquid / vapor interface, S, and effective surface layer thickness, x_(eff,cond), was varied in order to demonstrate that altering these two values may cause the rate of condensation to exceed the rate of pressure build-up from the PBU. Conclusion To gain a better understanding of the reasons behind natural gas engine de-loading onboard vessels, a measurement campaign was carried out on KV Bergen and MF Korsfjord. After calculating the mass flowrate through the PBU and determining the initial liquid
heel temperature and surface temperature, it was possible to develop a relationship governing heat transfer between the liquid and vapor section of the LNG tank contributing to vapor condensation. Different sloshing conditions were used to illustrate that it was possible for the rate of vapor condensation to exceed the increase in pressure from the PBU leading to gas engine de-loading. Additional understanding of the relationship between LNG tank sloshing and natural gas engine de-loading may be gained by conducting a study which considers the connection between external forces acting on the tank and sloshing/mixing that occurs inside the tank. Insight may be gained by building and performing tests in an
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Heel SubCooled [10K]
285 Final Pressure [kPa]
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Heel SubCooled [11K]
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Heel SubCooled [12K]
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Heel SubCooled [13K]
273 271
Heel SubCooled [14K]
269 267 10
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experimental rig where external conditions are controlled and internal responses are measured. Different abatement technologies may be tested which prevent tank pressure from falling during tank mixing and sloshing. References
[1] Moran, M., McNelis, N., Kudlac, M., Haberbusch, M., & Satornino, G. (1994). Experimental Results of Hydrogen Slosh in a 62 Cubic Foot (1750 Liter) Tank Paper presented at the 30th Joint Propulsion Conference Indianapolis, Indiana. [2] Ludwig, C., Dreyer, M. E., & Hopfinger, E. J. (2013). Pressure variations in a cryogenic liquid storage tank subjected to periodic excitations. International Journal of Heat and Mass Transfer, 66(0), 223234. doi: http://dx.doi.org/10.1016/j. ijheatmasstransfer.2013.06.072 [3] Patil, R., Shende, B. , & Ghosh, P. (1982). Designing a Helical-Coil Heat Exchanger Chemical Engineering [4] Kern, D. (1950). Process Heat Transfer. New York: McGraw-Hill. [5] Gnielinski, V. (1987). Critical Reynold’s Number of Helically Coiled Tubes Heat Exchanger Design Handbook (2nd Ed.) Hemisphere Publishing [6]DiRenzo, J., Nekså, P., Kjell, K. (2015). Analysis of Natural Gas engine de-loading on LNG fuelled vessels. Energy Procedia 64, C, 73-82. [7] DiRenzo, J. Investigation of an LNG fuel system for a Norwegian Coast Guard Ship. Master’s Thesis. Norwegian University of Science and Technology.
Percent Liquid Volume [%V]
Figure 4: Final Tank Pressure After Complete Liquid and Vapor Mixing Given Different Initial Liquid Temperatures
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NTM
By Joseph Direnzo
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SPECIAL REPORT
ADDING FLEXIBILITY IN A NATURAL GAS TRANSPORTATION NETWORK USING INTERRUPTIBLE TRANSPORTATION SERVICES
Introduction This paper discusses whether introducing interruptible transportation services in a natural gas network can increase throughput without deteriorating the security of supply. In our analysis we include both firm and interruptible transportation services, where firm services are
characterized by a guaranteed level of security of supply while interruptible services are delivered provided there is available capacity on the given day. We develop a general model framework for analysis of interruptible transportation services, and present results from a case study based on realistic
data from the Norwegian natural gas transportation system that currently covers nearly 20% of European gas consumption. We have also used a stylized representation of the booking regime at theNorwegian Continental Shelf (NCS) for our analysis. Interruptible transportation services are well known within the natural gas supply chain, as they are available in the US and in several European systems (including the Norwegian). These services allow the Transportation System Operator (TSO) to oversell the capacity by reselling capacity that is booked firm but not nominated, without relieving the obligation to the original buyer. It is usually required that all firm capacity, defined by a predefined static limit, is sold before any capacity can be resold as interruptible. The intention of the interruptible services is to improve the short term redistribution of transportation capacity to support an efficient use of the network. Our motivation for introducing interruptible transportation services is different. We focus on increasing the capacity initially made available by the TSO rather than redistribution of allocated capacity between the producers. The latter will increase the utilization of the offered capacity in the network, while the former will increase the capacity offered. A high security of supply level is important on the market side, for the shippers to be able to deliver in longterm contracts. It is also important on the production side, to ensure that the oil production on the fields with associated gas will not be impeded. In order to maintain a high level of security of supply on firm services, it is necessary for the system operator to withhold some capacity in the system at the time of booking to have flexibility to handle uncertainties in the final operation. This withheld
[1] SINTEF Energy Research, Energy Systems, Postbox 4761 Sluppen, 7465 Trondheim, Norway [2] SINTEF Technology and Society, Applied Economics, Postboks 4760 Sluppen, 7465 Trondheim, Norway [3] Norwegian University of Science and Technology, Dept. of Industrial Economics and Technology Management, Sentralbygg I, Alfred Getz veg 3, 7491 Trondheim, Norway [4] Fodstad, M., Midthun, K.T. and Tomasgard, A., “ Adding flexibility in a natural gas transportation network using interruptible transportation services�, European Journal of Operational Research, Volume 243, Issue 2, 2015, Pages 647-657
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SPECIAL REPORT flexibility can decrease the capacity utilization in the network. Security of supply can be expressed through different measures. We define the security of supply level as the expected throughput in the whole system relative to the total firm booking. Unplanned events, such as outages and technical failure, cause uncertainty in the available capacity in the transportation network. Furthermore, the system operator must take into account system effects that make it impossible to a priori determine static capacities. The short-term system flexibility in our analysis comes from the possibility to increase production levels in some fields and to reroute the gas. Linepack is not included in our single-period model. The availability of linepack would have increased the network flexibility that could reduce the value of introducing interruptible services, while in a realistic dynamic setting this effect would highly depend on the time structure of network events and the trade-off between commercial use and security of supply considerations. Case study The objective of this case study
is to evaluate the potential from introducing interruptible transportation services for the network as a whole, while recognizing that different agents in the system have different incentives. We include two decision makers in the network: the transmission system operator (TSO) and a shipper of natural gas. The TSO is responsible for the routing of gas in the network and allocates capacity to the shipper to ensure that the security of supply in the network is within given bounds. The TSO can offer two different types of transportation services: firm and interruptible. Only firm services have a security of supply measure, while the interruptible services can freely be interrupted by the TSO whenever the available capacity in the transportation network is not sufficiently large. Analysis framework Our modelling framework consists of five optimization models that are run in sequence. This approach gives a stylized representation of the decision making process at the Norwegian Continental Shelf the NCS. It is important to note that the analysis does not cover all the dynamics in the current regime, and
Figure 1: The network used for our case study. This is an aggregated representation of the network at the NCS.
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as such our results will not be directly applicable to the NCS-system, but they will indicate the potential gains from introducing interruptible contracts in general transportation networks where security of supply is important. In the first shipper problem, the producer requests booking based on possible event and market price outcomes and estimates of future interruptions, production and sales decisions. Based on the booking request the TSO allocates firm capacity seeking to maximize the correspondence with the booking request. In the second shipper problem interruptible booking decisions are taken. When all booking is decided and the events in the transportation network have become known the TSO decides how much interruptible and firm capacity he needs to interrupt. Based on the final available capacity and the realized market prices the shipper decides on the amounts to produce and sell. Production cost functions The shipper’s production cost function consists of two parts, one for production with associated oil, called `must-take’, and one for the swing field production. The reasoning behind this is that each field node in our network represents a mix of must-take and swing fields. The must-take production is closely linked to the oil production, so if the gas production is decreased, the oil production must also be decreased. Such a decrease will lead to a substantial loss for the shipper. For the swing fields, the gas production will not influence the oil production. Gas network topology The gas network in our case study is based on the infrastructure on the NCS, and is illustrated in Figure 1. Our network has a maximum delivery capacity of 351 MSm3, while the largest daily delivery from NCS in 2011 was 361 MSm3. The eight fields that we use in our case study represent approximately 50 real fields, aggregated by region.
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SPECIAL REPORT These aggregated fields cover both must-take fields and swing fields, and the swing fields imply a larger daily production capacity than transportation capacity. All fields and markets are booking nodes in the network, such that they require booking of transportation capacity corresponding to their production and sale, respectively. The booking tariffs for firm transportation capacity correspond to the real tariffs on the NCS, defined individually for each booking node. We have assumed the booking tariff for interruptible services to be half the price of firm services. The model has been tested with security of supply requirements for firm services in the range from 0.99 to 1 (where 1 indicates that all firm capacity must be delivered in all scenarios). Price assumptions We have generated price outcomes based on real spot prices from 2010 and 2011 for all market hubs directly connected to the NCS export network. The market prices are represented by 10 outcomes that are generated with a procedure matching the statistical moments and correlations in the observed prices. Testing our model framework on multiple sets of generated market price outcomes showed that 10 was a sufficient number of outcomes to achieve stable results. The unplanned events in the network are described by artificial data. We have defined 19 events with reduced capacity, each corresponding to a separate outcome. In addition, we have a default outcome where the system operates at full capacity. The probability and extent of the capacity reductions are calibrated so that the availability corresponds to the average availability figures reported by Gassco in 2010 and 2011. In total the 10 market outcomes and 20 event outcomes give 200 scenarios. Results To discuss our results and quantify the effect of introducing interruptible contracts, we have
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Figure 2: Resulting levels in the analysis.
booking
also used a benchmark which is calculated with the same model framework. In our benchmark, there are no interruptible services available. In the following we use the label `Without’ for the benchmark solution, while `With’ indicates tests where interruptible services are included. We test the two model setups for increasing security of supply requirements, and compare the effects on booking levels, total throughputs, incomes and costs. Booking levels Our first observation is that the total booking stays constant independent of the security of supply level when interruptible services are available. This can be seen in Figure 2 where the firm booking decreases, while the interruptible booking increases with the same amount. This observation comes from the fact that tariffs are below the marginal value of capacity so that it is the shipper’s view on network capacity that limits the booking. Since the shipper’s preference for transportation capacity is not reduced when booking requests are not fully fulfilled, he will seek to obtain the same total amount of capacity by increasing the interruptible booking. We have also performed a sensitivity analysis where the interruptible tariff is increased to 50% above the firm tariff. The results from this sensitivity analysis correspond to the original analysis. Our second observation is that the shipper finds the flexibility of unbalanced booking valuable. When
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Figure 3: Total throughput in the system with and without interruptible contracts.
allowed, the shipper consistently books nearly 90 MSm3 more entry capacity than exit capacity, even though it implies paying for some transportation capacity that necessarily will be interrupted. This value comes from the ability to adapt to events by substituting production with fields that are not affected by an event. Since the tariffs in the network are very small, less than 13% of the average spot price, the option cost of this flexibility is very low. Throughput in the system When the security of supply level is increased, the allocated firm capacity is decreased. This is an expected result since increasing buffers are needed to withstand the events in the network. Our third observation is that the benchmark has a falling expected throughput as the security of supply requirement increases (see illustration in Figure 3). On the other hand, according to our fourth observation, the expected throughput is insensitive to the security of supply requirement when interruptible services are available. These two last observations together confirms our hypothesis, that including interruptible services to the transportation service regime can increase the efficiency by enabling a larger expected throughput in the transportation network without reducing the security of supply. The expected throughput increases with 24% when introducing interruptible services at the lowest security of supply level
SPECIAL REPORT (0.99), and the difference increases to over 269% when the security of supply requirement is 1. Income and costs Resulting income shows a pattern similar to the total flow, with an increase of between 24% (with security of supply level of 0.99) to 267% (with security of supply level of 1) compared to the benchmark. Differences in average achieved spot prices are small, which is reasonable since both booking and interruption are allocated before spot prices become known. The ability to adapt to the varying spot prices is therefore limited. Our fifth observation on the other hand, is a dramatic increase in production cost due to decreased oil production for the benchmark as security of supply increases. When the transportation capacity is reduced, natural gas production must be reduced and therefore also the oil production is reduced. This effect is largest in the benchmark since the transportation capacity falls below the must-take production capacity in some fields when the security of supply requirements is high. Since we do not have real production cost functions available there is substantial uncertainty with respect to the true monetary cost of this decreased oil production. The profit margins of oil is however substantially larger than for gas, so the shape of the production cost functions are representative. We therefore also argue that the improved ability of stable oil production through introduction of interruptible services is valid. To test the significance of the agents’ differing incentives on the supply chain performance, we ran our case study with an alternative set of TSO models where the incentives were more in line with the shipper’s incentives. That is, the original objective functions were replaced with an objective where social surplus in the network were maximized. This corresponds to an idealized situation where the TSO
MARTE FOSTAD Marte Fodstad holds a PhD in Industrial Economics from the Norwegian University of Science and Technology. She has for more than 10 years been a research scientist at the research institute SINTEF. Her main area of research has been operations research applied within the natural gas and hydro power industries.
KJETIL TROVIK MIDTHUN Kjetil Trovik Midthun works as Research Manager at the research institute SINTEF. He holds a PhD in Business Economics from the Norwegian University of Science and Technology. His main areas of research have been economic analysis, planning and handling of uncertainty within the natural gas value chain.
ASGEIR TOMASGARD Asgeir Tomasgard is Professor in managerial economics and operations research at the Department of Industrial Economics and Technology Management at NTNU. He is also the Director of the Center for Sustainable Energy Studies (CenSES), and holds a part time position at SINTEF as a Senior Researcher.
have all price and production cost information. The sixth observation is that the profits can increase if the TSO maximizes social surplus rather than taking market signals from the booking requests only. Due to increased flow and income there is approximately a 10 % increase of profit for security of supply requirements less than 0.997 when interruptible services are available. For stricter security of supply requirements the profit increases are less regular. With interruptible services the model where the TSO maximizes social surplus avoids withholding musttake production with valuable associated oil, which causes a major profit increase of 69 % when security of supply is 1. Conclusions Based on our analysis of a test case with a network resembling the network and situation at the Norwegian Continental Shelf there seems to be a potential
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value in introducing interruptible transportation services to allow for a decreased security margin. Both total flow and income in the system is increased compared to the benchmark solution where interruptible services are not available. It should be noted that the comparison with the current situation at the NCS is simplified and based on our model representation. We have represented the formal regime to the best of our ability, but the current regime also allows for a more dynamic handling of events that are not possible to capture with the analysis framework. As such, our analysis illustrates that the type of contracts we have introduced in this paper can bring value to a general network where security of supply is important, but the numbers do not directly reflect the potential efficiency gains in the current regime at the NCS. NTM
By Marte Fostad, Kjetil Trovik Midthun, Asgeir Tomasgard
Vol.24 Oct - Dec 2015 NGV Transportation
6th ANGVA Biennial International Conference& Exhibition Natural Gas Vehicles - A Realistic Choice of Clean Transportation 4th - 6th November, 2015 Chengdu Century City New International Convention & Exhibition Center, Chengdu, China
// Hosts: China Automotive Technology & Research Center (CATARC) China Industrial Gases Industry Association (CIGIA) // Supporting Organizations: Chengdu Municipal Commission of Economy and Information Technology Transportation Committee of Chengdu Chengdu Municipal Bureau of Exposition // Organizers: Beijing CATARC Science & Technology Center AIT Events Co., Ltd // Media and Conference Partner ALL EVENTS GROUP (AEG) // Official Website of ANGVA 2015: www.angva2015.com
SPECIAL REPORT
ADDRESSING TRANSPORTATION EMISSIONS IN A MULTIDIMENSIONAL WAY: THE EU POLICY APPROACH Upward Emission Trends The sector of transportation consists of the movement of goods and people by different vehicles, consisting of subsectors, such as road transportation, railways, navigation, aviation and others . 2011 data proves that a fifth of the greenhouse gas (GHG) emissions generated in the European Union (EU) of 28 were due to transportation activity. Transport emissions not only haven’t decreased, as emissions from other sectors such as the energy industry and manufacturing, but they have been presenting a continuous increase during the period from 1990 to 2007 . A slight downward trend has been observed after 2007, reaching minus 6% in 2011, mainly assigned to the economic recession . CO2 emissions differ by means of transport, mainly depending on the type of vehicle,
Figure 1: GHG emission trends of various transport modes in EU-27, 1990 - 2009 (*) Excluding indirect emissions from electricity consumption Source: EC, 2012
[1] United States Environmental Protection Agency (EPA) website, http://www.epa.gov/climatechange/ghgemissions/ sources/transportation.html [2] European Commission website: “Reducing emissions from transport”, available at: http://ec.europa.eu/clima/ policies/transport/index_en.htm [3] European Environment Agency, http://www.eea.europa.eu/themes/transport/intro [4] EC - European Commission (2012). “EU Transport in figures, Statistical pocketbook 2012”, ISBN 978-92-79-21694-7.
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Vol.24 Oct - Dec 2015 NGV Transportation
SPECIAL REPORT as well as on the load factor. Road transport seems to be responsible for the majority of sectoral emissions, representing 19% of EU-28 emissions or 94% of transportation.
market mechanisms, to improving fuel quality and including aviation in the EU Emissions Trading System (EU ETS).
Transport’s Environmental Impact: Co2 Intensity As it is already known, GHGs include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), as well as F-gases (hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride (SF6)). The uniform unit of CO2 equivalents is used to aggregate these into GHG emissions. Transportation emissions mainly consist of CO2 that is caused by the process of fuel combustion in the vehicles’ internal combustion engines. Such fuels are petroleum-based, such as diesel, gasoline and Liquefied Petroleum Gas (LPG) that contribute to a different extent to CO2 emissions, according to their carbon content. Although the main gas product of fuel combustion is CO2, the process also results in the emission of other GHGs, such as methane (CH4), and Nitrous Oxide (N2O). Apart from fuel combustion, mobile air conditioners are responsible for hydrofluorocarbons (HFC) emitted at relatively low levels and accounted within the sector. Globally, more than 20% of CO2 emissions caused by human activity are due to transport .
Manufacturing Standards Manufacturing standards changes started in 1998, with the EU and the Figure 2: EU-28 GHG transport emissions by mode of European Automobile transport, 2011 Manufacturers agreeing Source: EC, 2013 . in an upper limit of CO2 emissions per km at the level of 140 grams CO2/km. In 2008 the EU updated by Regulation 458/2011, found that the 2012 target would covers tyre rolling resistance not be met and published another and tyre pressure monitors that regulation, 443/2009, in order to have been made mandatory on set lower limits of CO2 emissions. new vehicles, in order to achieve Regulation 333 of 2014 is the last increased fuel economy . one that is active and according to that car manufacturers are obliged Market Mechanisms to ensure that their new car fleet In parallel with the manufacturing emits less than 95 grams CO2/km standards, the EU has created by 2021, which means in terms of market mechanisms to promote fuel an average consumption of 4.1 clean and energy efficient lt/100 km for petrol and 3.6 lt/100 road transport, starting with km for diesel cars respectively. As Directive 2009/33/EC aiming far as vans are concerned, the latest at a broad market introduction regulation is 253/2014, amending of environmentally-friendly the 510/2011 and setting the target vehicles, and extending, also, as low as 147 grams CO2/km and to public procurement of all the average fuel consumption transport vehicles, according limits to 6.3 lt/100 km petrol and to the Public Procurement 5.5 lt/100 km by 2020. In May Directives (2004/17/EC and 2014 a strategy for Heavy Duty 2004/18/EC) . Technical Vehicles (HDVs) was intended to specifications for energy and be planned, with a timeframe of environmental performance, legislation proposals in 2015 . along with environmental Apart from the car fuel impacts are included as consumptions and emissions, award criteria in the purchase the EU has also set targets and procedures. Furthermore, the regulations in order to control Directive on the Promotion of emissions from F-gases, which are: Clean and Energy Efficient Road the “Mac Directive”, concerning Transport Vehicles (2009/33/ the air conditioning systems EC) defines financial impacts so of small cars, and the “F-gas as to facilitate their inclusion in Regulation”, which includes the purchasing decision. all applications where F-gases are used. Regulation 661/2009 Aviation Addressing introduced in 2009, which was Taking into account that aviation
Multidimensional Policy Response European Union has played a significant role in the global efforts to reduce GHGs in all polluting sectors. Within the EU policy measures have been planned and implemented during the last 15 years, ranging from emission mitigation options for manufacturing standards and
[5] European Commission, Eurostat (2013). “Energy, transport and environment indicators”, Eurostat Pocketbook, ISSN 1725-4566. [6] Eurostat, “Dataset details: Greenhouse gas emissions”, available at: http://ec.europa.eu/eurostat/web/products-datasets/-/tsdcc100. [7] Global Transportation Energy and Climate Roadmap (2012). “The impact of transportation policies and their potential to reduce oil consumption and greenhouse gas emissions”, The International Council on Clean Transportation (ICCT).
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SPECIAL REPORT transport constantly rises in popularity, while it is projected to present a 70% increase in emissions by 2020 compared to 2005 levels, even if fuel efficiency improves 2% per year, the EU has decided to include the aviation sector in the EU ETS . Since early 2012, all flights’ emissions from, to and within the EU-28 Member States plus Iceland, Lichtenstein and Norway are included in the EU ETS, with plans for the following years being made to include all aviation transport going to and from the EU to nonEuropean destinations.
sector by 2020. The FQD sets a target of 6% reduction of the climate harmful emissions for the fuel suppliers and their products full life cycle, by blending biofuel in petrol or diesel, of by improving fuel production processes in refineries. Member states may need an additional reduction of 4% from fuel companies, which can be achieved through energy supply for electric vehicles or through carbon credits from third countries, with implementations of clean development mechanisms. Finally, according to the European Commission’s White Paper on Transport (2011) a long term goal is set, supporting a 50% reduction in the use of “conventionally-fuelled” cars in urban transport by 2030 .
Fuel Quality Since fuel quality plays an important role in GHG emissions from transport, the EU has taken further policy action by publishing the Directive on Fuel Quality Standards (FQD) (2009/30/EC) in 2009. This directive comes along with the 2009/28/EC Directive for Renewable Energy, which includes a target of 10% renewable energy in EU transport
A Shift Towards Natural Gas Natural Gas (NG) is a clean burning fuel which primarily consists of methane (CH4). It can be used in vehicles in two forms, liquefied natural gas (LNG) and compressed natural gas (CNG), which can serve
Total NGV population (road transport only)
Country
Total NGVs
% of total vehicles in country
% of total NGVs worldwide
No. of filling stations
CNG stations
L-CNG stations
LNG stations
Iran
3,300,000
27,09%
18,61%
1,992
0
0
Pakistan
2,790,000
79,67%
15,74%
2,997
0
0
Argentina
2,244,346
17,53%
12,66%
1,916
0
0
Brazil
1,743,992
4,97%
9,84%
1,793
0
0
India
1,500,000
3,53%
8,46%
724
0
0
Italy
846,523
2,07%
4,77%
959
7
0
… USA
250,000
0,10%
1,41%
1,438
0
46
Germany
96,349
0,20%
0,54%
915
0
0
Bulgaria
61,270
1,83%
0,35%
106
0
0
2,969
34
43
22,162
441
1433
… TOTAL EU
1,098,902
0,40%
TOTAL World
17,730,433
1,64%
6,20%
Table 1: Natural Gas Vehicles (NGVs) worldwide and in main EU countries Source: ACER, 201420
in both road transport vehicles and heavy duty vehicles. The majority of natural gas vehicles (NGVs) have spark ignition engines . As energy efficiency of spark-ignited gas engines is lower than that of diesel engines, CNG have higher energy consumption compared to diesel vehicles, although it still remains lower than that of gasoline fuelled cars . From an environmental point of view, however, carbon intensity of methane is lower because of the higher hydrogen-carbon ratio of methane in contrast to diesel or gasoline. Depending on the size of engines, this low intensity mainly leads to CNG vehicles having lower tailpipe CO2 emissions than those from diesel and gasoline engines. Moreover, NG engines, using any combustion system, cause low Particulate Matter (PM) emissions, that are usually comparable to those of PM filtered diesel engines 17. The usage of NG vehicles is not spread worldwide, with almost 79% being concentrated in just 7 countries (Table 1). Iran is the world leader in the use of NG vehicles, while the only EU country in the list is Italy, with about 5% of the world’s NG fleet. Italy has a long history in CNG cars usage and many promotion incentives for the use of NG in the transportation sector being applied. The penetration of CNG in the EU transport sector is limited, with only 0,4% of cars using NG. The NGV industries in the EU have, already, invested around € 2 billion to create a gas refueling network with stations all over Europe, with Italy and Germany having the most CNG refueling stations . In the US, there have been made efforts of reducing emissions in the transport sector with legislative
[8] Communication from the Commission to the Council and the European Parliament, “Results of the review of the Community Strategy to reduce CO2 emissions from passenger cars and light-commercial vehicles”, COM (2007) 19 final, Brussels, 7.2.2007. [9] European Commission website: “Reducing CO2 emissions from passenger cars”, available at; http://ec.europa.eu/clima/policies/transport/vehicles/cars/index_en.htm [10] European Commission (2014). “Climate action: Commission sets out strategy to curb CO2 emissions from trucks, buses and coaches”, Press Release IP/14/576. [11] Official Journal of the European Union (2011), Commission Regulation No 458/2011, available at: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32011R0458. [12] EC- European Commission (2007). “Directive of the European Parliament and of The Council on the promotion of clean and energy efficient road transport vehicles”, COM(2007) 817 final.
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Vol.24 Oct - Dec 2015 NGV Transportation
SPECIAL REPORT actions and federal programs and incentives. As far as taxation is concerned, there has been a Tax Increase Prevention Act in 2014, which blocks the tax increases in the NG market and offers several bonuses to businesses that use and promote NG vehicles. Furthermore, the Federal Transit Authority (FTA) offers grants to help the funding of local and regional transit systems, in order to purchase vehicles and construct facilities that are environmentally friendly. There has been also a Voluntary Airport Low Emission (VALE) vehicle program by the Federal Aviation Administration (FAA) that funds NG vehicles and infrastructure at the US airports. Finally, the US Environmental Protection Agency (EPA) started the “Clean School Bus” program in 2003 to assist schools to replace the school buses with new, lowemission buses to improve the air quality and the health of children. The “Europe 2020” strategy introduced by the EU in 2010, the EU Transport White Paper in 2011 and the European Commissions’ 2050 Roadmap are strategies that included cost-effective ways to
reduce GHG emissions and “CO2 emissions per km” upper limits, set in order to push car manufacturers to support the use of more efficient fuel or fuel that produce less CO2 emissions, such as NG16. However, the policies that have been planned in Europe in the past years have not quite achieved the results they pursued. Apart from Italy, all the other countries have a low adoption of NGVs, as Table 1 shows. There are, however, big prospects for NG usage in the EU transport sector. According to a study of the Oxford Institute for Energy Studies, there are some issues that the EU has to face and solve in order to achieve better penetration of the NG in the transport sector. Different vehicle taxation levels play a crucial role in the fuel usage and efforts should therefore be made to be smoothened. Furthermore, the benefits of NGVs are less promoted, because of the fast improvements that are made in the hybrid, the electric and the conventional cars. In addition, there are problems that the drivers of NGVs have to face every day, which are more practical issues,
CHARIKLEIA KARAKOSTA
NTM
By Charikleia Karakosta & Phaedra Dede
PHAEDRA DEDE
is a Chemical Engineer and works as a Research Associate at the University of Piraeus Research Centre (UPRC), as well as at the Management & Decision Support Systems Laboratory of the National Technical University of Athens (NTUA). She has participated in several research and consultancy projects in the fields of energyenvironmental and climate policy, energy planning and management, technology transfer and decision support. She holds a PhD in Decision Support Systems for the Promotion of the Effective Technology Transfer within the frame of Climate Change from the School of Electrical and Computer Engineering and MSc in Energy Production and Management by NTUA. She has more than 110 scientific publications in international journals with reviewers, announcements in international conferences and chapters in books. For her work, she has received awards by the Alexander S. Onassis Public Benefit Foundation, the State Scholarship Foundation (IKY) and the NTUA. Contact: chkara@epu.ntua.gr
NGV Transportation Vol. 24 Oct - Dec 2015
as the insufficient number of refueling stations. Finally, the status-quo liquid fuels can offer a higher fuel range, with a smaller fuel volume, which means that the NG users have to compromise with bigger vehicles that are able to hold sufficient amounts of NG for their needs. Policy changes can foster solutions to the aforementioned problems. Pricing policies to maintain the difference between the NG and the other fuels’ excise duties or efforts for the expansion of the NG infrastructure grid, for both vehicle refueling and maintenance, could form steps towards the direction of NG higher adoption in the EU. Initiatives to offer grants or reduce taxation in CNG or LNG fuel stations should be supported by the Member States, in combination with awareness campaigns for the promotion of the usage of CNG as a clean fuel, the environmental benefits and the pricing differentials that NG offers.
is an Electrical and Computer Engineer and works as a Research Associate at the Management & Decision Support Systems Laboratory of the National Technical University of Athens (NTUA). She is a PhD candidate in Energy Management at the School of Electrical and Computer Engineering in NTUA and holds an MBA on Engineering- Economic Systems by NTUA. Her research interests focus on Energy Management, Climate and Energy Policy, Smart Cities and Municipal Authorities’ Decision Support, while she is involved in FP7 projects regarding climate policy implications as well as optimization of energy use in cities. Contact: pdede@epu.ntua.gr
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Conference - Exhibition - Ministers-CEOs Dialogue - ASEAN Energy Awards - B-to-B - Special Seminars
Powering ASEAN Towards A Greener Community
ANNOUNCEMENT We are pleased to announce that the international gathering of the ASEAN energy business community - the ASEAN Energy Business Forum (AEBF) 2015 will be held on October 5-7, 2015 at Grand Hyatt, Kuala Lumpur, Malaysia. The Official Host for the event is the Ministry of Energy, Green Technology & Water, Malaysia. This will be held in conjunction with the annual Ministerial meeting of the Ministers of Energy of the 10 ASEAN Member States and the associated meetings with Dialogue Partners including Australia, China, EU, India, Japan, Korea, New Zealand, Russia and the U.S. An international exhibition will complement the conference and introduce products, systems and expertise to the delegates and guests for them to be updated with new technologies and business opportunities to meet the growing demand for energy and power in the Region. We hope you will not miss this unique opportunity for high-level strategic discussions mixed with presentations of practical business opportunities.
Be a Sponsor Exhibitor or Delegate For more information, please contact AEBF 2015 Secretariat (Leverage International) Tel: (632) 818-6828 or 810-1389 Fax: (632) 810 1594 E-mail: leverage@leverageinternational.com
FEATURE ARTICLE
THE END OF DIESEL
I
magine a world without diesel. It has been the backbone of modern logistics for as long as almost anyone on this planet can remember. Most heavy duty vehicles are running on it as it provides great endurance and torque to do even the hardest labor. Take diesel out of our lives and many things we take for granted right now will just not be available anymore. Modern
NGV Transportation Vol. 24 Oct - Dec 2015
logistics would stop in its tracks, construction sites would grind to a halt and many, many homes would be without power as their generators would remain silent. Few things in our lives are so invisible and yet so incredibly important as diesel is and yet diesel will vanish from this planet mainly because it’s slowly killing us and it makes us mad. Let’s get specific. On September 1st, 2015 -
28
the EURO 6 standard becomes mandatory for all newly registered vehicles in the European Union. The EURO 6 rule sets new lows for the emission of toxic Nitrogen Oxides (NOx) and Particulate Matter (PM). The new, allowable emissions limits are so low in fact that there is a lot of talk about “clean diesel engines” as it is mainly diesels that produce and emit those nasty substances in great bulk. But there is no rule that can be taken serious without a proper verification regime. In order to check, if the limits are not only hollow promise that will in the end be no benefit to the environment and hence the people, the European Union has also instituted a rolling verification regime that will be able to stop driving vehicles and test their compliance with
FEATURE ARTICLE emission limits from September 1st 2017 right on the road. Those rolling tests are perceived as a mortal threat to the vehicle building industry as those engine builders know fully well that the limits of Euro 6 cannot possibly be met by using existing technology whenever Diesel is used as a fuel. So far, the industry thought they would be able to swindle their way through the limits by setting up carefully prepared tests in ultra-controlled conditions allowing them to comply with the new rules at least on paper and theoretically. But rolling vehicles are not nearly as efficient in terms of emissions output as those test engines in the protected workshops and laboratories of the vehicle makers. The subterfuge would not hold. Moreover, the new emissions limits have not been introduced in order to be met in fake conditions but in order to improve the daily lives of ordinary people that have to breathe those exhaust gases every day. And that’s clearly not the case. Industry representatives already concede that diesel exhaust gases cannot possibly be cleaned up to the standards required by modern emissions legislation. This is so because diesel is an extremely filthy bunch of different hydrocarbons and a very nasty polluter in the first place. In preceding articles I have likened the diesel engine to a rolling trash incinerator as diesel is petroleum trash in the first place. Diesel is the lowest distillate from the refining column. Below it only rank the filthy residual fuels that ships still use today in order to scorch the oceans skies. Those fuels have rightfully been banned in most countries as they turn life in the vicinity of the polluter into a nightmare.
In North Western Europe, Residual Fuels are also getting more or less banned as the first Environmental Control Area strict enough kicks in in 2016. Diesel is just marginally better. The real sweet cut from oil refining are the light fractions of the barrel namely gasoline and naphtha. Better still are the gases from Butane up to the super clean Methane. But we will get there. This means that if Residual Fuels are getting banned on land and on sea in most of the developed world, diesel will be the stuff at the bottom and becomes the focal point for environmentalists. Not an enviable position. If diesel is such nasty stuff, why has it been able to become the backbone of our logistics economy in the first place? Easy answer. First, there is lots of it and second, the diesel engine produces great torque which is good if you want to haul heavy loads from one end of the country to the other or if you want to provide boost to heavy construction or earth moving equipment. The engine can be built a bit smaller than corresponding gasoline or even gas engines and hence fuel consumption goes down. Diesel has falsely been the darling of environmentalists for a long time as those less thirsty engines promised less fuel per kilometer and hence less emissions. The calculation was made with the devil providing the templates as one liter of diesel produces much more of the real nasty stuff than its corresponding lighter fuel.
29
We have fought against the big, visible particles when in fact it’s the very small, Nanoparticles that are far more toxic and much more dangerous. Nano Particulate Matter cannot be compared to the soot we see from diesel engines as it goes straight into our bloodstreams, our brains, our cells and it even alters our DNA. Nature has not equipped us with any defenses against those new pathogens as they are entirely man made. For clarity – we have been living with fine particulates since giant lizards roamed the planet and way before that. Fine desert dust, pollen and much other natural stuff has been around since the dawn of time. But those particles are mountains compared to the real small diesel engine emissions. Paradoxically, so called clean diesel engines make the problem worse as higher temperatures and higher pressures produce much more of the ultra-fine stuff and much less of the bigger particles.
Vol.24 Oct - Dec 2015 NGV Transportation
FEATURE ARTICLE This is a wanted effect as the bigger particles are outlawed by environmental protection legislation and the Nano-Matter is not yet. This will change as green activists the world over start to find out that they have fallen onto the dirty side of the deal and are up in arms. How long until further reductions and new, even tighter rules come in? Really cleaning up diesel exhaust would require technologies that are not really available today and if they were, they would make the diesel engine incredibly expensive. Besides, the engine would also become even more of a technology hog which would make it prone to frequent breakdowns which in turn fleet vehicle owners and operators dread like the devil dreads holy water. If diesel cannot really be made clean but regulation requires us to go this clean, what are the solutions then? And if further, even stricter legislation pokes holes into this already virtually impossible arrangement, then everything goes off the rails real quick. We are gas people in the end and methane does not produce
the above described nasty stuff in the first place – I am talking about those very toxic particles. Other emissions are so drastically reduced that cleaning the tiny rest down to EURO 6 standards and even cleaner is easy and cheap. The shale gas revolution has bestowed a real rush for LNG and CNG as a fuel in North America on us. It fuels a technology revolution which makes the gas
RUDOLF HUBER
Rudolf is an entrepreneur and consultant active in the “methane based fuels and energy” industry. He is the founder of countless initiatives all with the aim to promote a methane based economy and affordable environmental protection. He is a professional business developer and negotiator who is involved in all aspects of the LNG business. He is also very actively promoting green technologies that work well with methane based technologies. Rudolf has helped secure first Regasification capacity for his former employer EconGas at the GATE terminal in 2007 and holds a Masters degree in Commercial and Taxation law from the Jean Monnet faculty in Paris. He also runs a number of blogs, among them www.lng.guru and www.lng.jetzt.
engine cheaper, better and more reliable than diesel ever was. New environmental standards have killed the premium paid for gas vehicles as they come in ever greater numbers bringing their prices down and diesel gets ever more expensive because of all the tech that goes onto the tail end. The curves will meet this year in theory and in 2017 at the very latest and that will be the end of it. One line in the movie Cinderella went like this: don’t see the world for what it is but for what it could be. The difference between Cinderella and the fuels world is that Cinderella is a fairytale and magic was needed for the prince and the girl to live happily ever after. In the real fuels world there is no magic necessary as all the ingredients for weaning us off diesel are already there. One must only step back and see the entire picture. Kiss your old diesel goodbye. You better board the LNG and CNG bandwagon - if you wanna live. NTM
NGV Transportation Vol. 24 Oct - Dec 2015
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By Rudolf Huber
COMING
SOON
BIOGAS AND ENERGY CROPS THAILAND ROUNDTABLE 2015 Capitalising on the Next Phase of Biogas Development in Thailand: Energy Crops and Biomethane
25 - 27 NOVEMBER 2015 | CHIANGMAI, THAILAND Thailand is entering a critical new phase of development for biogas with fundamental changes in the way the industry will have to adapt in order to continue to grow. Critical challenges in coordination with key energy industry players including the management of the grid, government incentives, agricultural zoning, and pricing of fuel will determine the future direction of Thailand’s biogas program. In partnership with the Energy Research and Development Institute (ERDI), from Chiangmai University, ICESN is proud to present the BIOGAS AND ENERGY CROPS THAILAND ROUNDTABLE (25 – 27 November 2015, Chiangmai, Thailand). It is a beautiful time of the year to visit Chiangmai and chart the future of biogas growth in Thailand.
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Organized by:
ICESN
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DME
ALTERNATIVE FUEL OF THE FUTURE?
W
hilst dimethyl ether (DME) might sound like an exotic chemical, it is in fact the simplest ether compound, with a chemical formula of C2H6O. DME is a clean, colourless gas at ambient temperatures, but can be liquefied under a moderate
pressure. This makes DME quite similar to propane and LPG for handling purposes. DME has been used for decades in the personal care industry (mainly as an environmentally-benign propellant in aerosols) as DME is non-toxic and is easily degraded in the troposphere. China was the first country to
Properties
DME
Diesel
Net calorific value (kcal/kg)
6 900
10 000
Net calorific value (kcal/l)
4 620
8 400
Saturated vapor pressure (atm., at 25 °C)
6.1
-
Ignition point (°C)
235
250
Explosion limit (%)
3.4 – 17
0.6 – 6.5
Cetane value
55 – 60
40 – 55
Viscosity (kg/ms at 25 °C)
0.12 – 0.15
2–4
Liquid density (kg/m3 at 25 °C)
0.67
0.84
Boiling point (°C)
-25
180 - 370
use DME as a fuel on a mass scale. Its environmentally friendly characteristics helped accelerate usage at the turn of the century. China is now the largest producer of DME in the world at over 4 million tonnes per annum. Some 50% of all methanol produced in China goes into DME and some 90% of all DME produced
THE ADVANTAGES OF DME: • Readily liquefies at 6 bar or -25°C • Transportability as a bulk commodity enhances trade • Burns with a visible flame • Degrades readily in the atmosphere • Light odour: smells faintly like ether • Highly soluble in water and hydrocarbons • Extremely low toxicity, zero environmental hazards • Soot free clean combustion / exhaust gas • Renewable fuel: syngas can be made from biomass
33
Vol.24 Oct - Dec 2015 NGV Transportation
Unitel has been instrumental in utilzing the concept of reactive distillation for the indirect process of converting methanol into DME. Shown here are the KOGAS plant (left) and the demonstration plant in the USA (right)
goes into LPG blending, where DME is permitted in up to 20% of the blend, on a weight basis. There are more than 60 DME manufacturing plants in operation across China today, which convert coal into syngas and then into methanol before dehydration into DME. Other plants have been built in the USA, Sweden, Korea and Japan and a new plant is currently being built in the Caribbean amongst other projects in the development pipeline. Unitel Technologies, a technology leader in the field, has been involved in developing DME production processes for the last 15 years. The first effort was directed at developing a technology for a one-step direct DME process. This approach was initially developed in Japan where a syngas using a H2/CO ratio of approximately 1 was converted into DME directly in a single step reactor. KOGAS optimized this process and set up a 10 tons/day demonstration facility in Incheon. Unitel was involved in conducting the Front End Engineering & Design (FEED) for this project, a photo of which is shown below. Whilst China’s focus on DME
NGV Transportation Vol. 24 Oct - Dec 2015
originated from its desire to create value from its vast coal resources, Aum Energy, a Singapore-based company, believes that it is natural gas that will become the predominant feedstock as DME technology starts to be utilised in other markets. The abundance of natural gas across the world serves as both a clean fuel in its own right, but also as a competitive feedstock for conversion into other clean fuels, such as DME. Beyond LPG blending, DME can also be used a clean diesel replacement given its combustion properties as well as its lack of carbon-carbon bonds, which eliminates the production of particulate emissions. Aum Energy, in collaboration with Unitel, has a basic market offer that is scaled at 200 tonnes/day of DME (11 mmscf/day of gas feed) for the LPG blending market and thereafter increasing in scale for the diesel replacement market, up to 1,000 tonnes/day for a world-scale unit. The design basis includes the option to produce methanol and smaller unit sizes can be relocated in the event of depletion in the underlying gas resource. A gas-DME unit can be built in just over two years following on from financial closure, with all of the component
34
parts being proven. With over 65 million tonnes/annum of methanol being produced globally, technology is well established and available offthe-shelf. Aum Energy’s work has attracted interest from the upstream community as well as the World Bank’s Global Gas Flaring Reduction Partnership given the potential to optimise gas usage in areas where traditional routes to monetize gas are not attractive or where gas is flared. This is a common problem across the globe and by providing a small-scale solution for the industry, flaring, which accounts for 2% of all GHG emissions, can be reduced. In markets such as Indonesia and West Africa, where there is a shortage of LPG, DME can be readily absorbed into the local market with adherence to international guidelines on blending and usage as established by the ISO and ASTM organizations. Another advantage of using DME technology being promoted by Aum Energy is that the process can readily absorb natural gas or biogas that is rich in CO2 as part of the conversion process, which is a key advantage for companies that struggle to place CO2effectively, according to its Managing Director, Rohit Vedhara. Ultimately, a simpler type of technology, such as DME will lead to lower operational and
“We have achieved a market-leading level of cost efficiency for our DME technology through the inherent simplicity of the methanol synthesis, added to Aum Energy’s engineering, procurement and constructing contracting strategy, which uses Asian skills and pricing,” Rohit Vedhara, founder and principal of Singapore-based Aum Energy, told NGV Transportation.
maintenance costs, alongside a more proficient operational performance. Separately, in Europe, North America and Asia several companies have developed considerable interest in DME as a clean diesel alternative, especially those in the automotive industry, including Volvo, Mack, Ford, and Isuzu. Elsewhere, Ford and the German Government are leading a 3-year programme to understand the advantages of using DME as a fuel for passenger cars. Based on trials using the Ford Mondeo, the group seeks to ascertain the full manufacturing and supply costs of DME; the fuel efficiency as well as the benefits from an emissions perspective. When it comes to the demand side of the equation, the recent statement from Olof Persson, the CEO of the Volvo Group sums up Volvo’s continued belief in DME “….when it comes to other segments, particularly longer hauls, we continue to believe DME shows tremendous promise,” he noted. “Converting natural gas to DME is an innovative way to address many of the distribution, storage and fueling challenges otherwise presented by natural gas – particularly LNG – as a heavy truck fuel.” Persson further added that “Volvo will continue to work with this technology and if the industry were able to get the critical mass of production volume needed, DME could really be a game-changer”. The emissions-related benefits
of DME as shown by Volvo certainly point to zero particulates, lower NOX, zero SOX and 10% lower CO2 emissions but with equivalent fuel efficiency against a diesel engine. Isuzu has been working on DME since 2001 and has focused on city buses and short-haul trucks in tandem with a programme to develop better diesel engines. It states that DME for Euro VI can be achieved with a simpler configuration than with a diesel engine: • Simpler Exhaust After-treatment system (EAS) and also simple Exhaust Gas Recirculation (EGR) system, both of which have a cost benefit • Fuel system modified to suit DME Isuzu feels that DME is especially recommended in countries with Euro III standards where the equivalent diesel engine leads to higher emissions, with EAS not being feasible for such high sulphur fuels. A DME engine with an EGR fitted has similar characteristics to a CNG vehicle from a CO2 perspective, with higher thermal efficiency. It has a 4x better distance and time-tofill ratio that CNG and even better than diesel. From a markets perspective, Isuzu has been working with MLIT (Ministry of Land, Infrastructure, Transport and Tourism) in Japan in relation to the legislation of technical standards for DME vehicles. In 2015, notification was received for the modified
Cycles
NOx (g/kWh)
PM (g/kWh)
HC (g/kWh)
CO (g/kWh)
Euro EEV limits (ETC)
2.00
0.02
0.4
3
PEMS 20 ton
1.66
0
0.25
2.34
PEMS 60 ton
1.72
0
0.31
1.82
In use emission test results - European trucks after 115k miles Volvo’s European test results:
35
application, importantly noting that for DME, the measurement of particulate matter (PM) is no longer necessary. Isuzu is now expecting to enhance its DME test fleet in service of garnering further support for the fuel. According to International DME Association Executive Director Christopher Kidder (www. aboutdme.org), interest in DME as an “alternative” to other alternative fuels in use or being introduced in North America, already high following Volvo and Mack Trucks’ announcement that they plan to produce heavy-duty trucks running on DME in the region, continues to strengthen following steady progress on numerous fronts. DME’s qualification for alternative fuel vehicle financial incentives in July by the State of Washington was the first known legislation in the United States that includes DME in its definition of those alternative fuels qualifying for financial incentives or special treatment, and an important acknowledgement of DME’s relevance to businesses and governments eager to increase the use of clean alternative fuel vehicles. The State of California’s legalization earlier in the year of DME for use as vehicle fuel is the latest milestone for the growing DME industry. In August 2014, DME became the first biogas-based fuel to receive approval from the U.S. Environmental Protection Agency (EPA) for inclusion under the Renewable Fuel Standard, making it eligible for valuable Renewable Identification Numbers (RINs) credits based on EPA findings that the fuel achieves a 68 percent reduction in greenhouse gases. Other significant milestones include the U.S. Department of Energy’s confirmation of DME’s status as an “alternative fuel” as set forth in the Energy Policy Act of 1992, the publication of specifications for DME fuel by both the International Organization for Standardization (ISO) and the ASTM.
Vol.24 Oct - Dec 2015 NGV Transportation
EU Well-to-Wheels Study Provides Comparative Assessment of DME and Other Fuels The most recent version of the comprehensive European well-towheels analysis of automotive fuels and powertrains published last year – Well-to-Wheels Analysis of Future Automotive Fuels and Powertrains in the European Context – includes comparisons of well-to-wheel energy use and greenhouse gas emissions for synthetic diesel and DME pathways from GTL, CTL, and BTL production processes, with a broad range of differentiation within the pathways (e.g. pipeline or remotely sourced natural gas; farmed or waste wood; production with or without CCS; etc…). Of DME, the report says that it “can be produced from natural gas or biomass with lower energy use and GHG emissions results than other GTL or BTL fuels. DME being the sole product, the yield of fuel for use for diesel engines is high”. The analysis goes on to estimate that “the most likely feedstock in the short term is natural gas but coal or wood can also be envisaged. Should DME become a major fuel, future plants would be most likely to be similar to GTL plants i.e. large and located near a major gas field. CCUS could be conveniently applied in this case, particularly because CO2 has to be separated in the synthesis process and is, therefore, already “captured” anyway. However, because DME synthesis is simpler
than Fischer Tropsch technology, smaller plants located in Europe and fed with imported gas can also be envisaged.” With interest gathering across the world on clean fuels, the market is seeing court cases backed by public advocacy groups, such as in the United Kingdom and the Netherlands, as well as increasing interest from governments in how we can move away from our current diesel reliance. Where project scales are economic and gas prices competitive, it is expected that DME can be introduced as a fuel at a discount to current diesel prices. With a relatively straightforward
ROHIT VEDHARA
Rohit Vedhara runs Singapore-based Aum Energy (www.aumenergy.com), a technology development and marketing company focused on the coal, oil and gas sectors. Aum Energy seeks to bring commercial and strategic focus to emerging technologies that reduce GHG emissions and which give assets owners a new and viable clean alternative in line with changing market needs. Prior to forming Aum Energy, Rohit worked for BP for 21 years in a variety of roles in both Europe and Asia, specialising in trading, supply and refining.
NGV Transportation Vol. 24 Oct - Dec 2015
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manufacturing process and low operational costs, DME is the type of fuel that has can be introduced in the market in a hub-spoke system with cornerstone projects being built in key locations (such as California, Texas and around the Bakken and Marcellus Shale formations in the USA) and then gradually being interlinked. Vedhara believes that by creating the right regulatory and legislative framework for the adoption and usage of DME, governments can support the collective ambitions of upstream companies that wish to see a route to market-priced gas sales as well as to improve air quality. “Gas-rich countries can easily act as large producers of DME, with added opportunities to export to adjacent markets, which require either LPG feedstock or an alternative to diesel. Similar to LPG but with some small modifications required, the logistical costs will not be expensive and DME can be transported both by land and sea,” he said.
NTM
By Rohit Vedhara
HOW PREPARED ARE YOU IN THIS HIGH-RISK CLIMATE? CONFERENCE DETAILS: TUESDAY, 27TH OCTOBER 2015 9AM TO 6.30PM LEVEL 4, PEONY ROOM 4411, SANDS EXPO AND CONVENTION CENTRE, MARINA BAY SANDS With the constant rising threats to civil and homeland security, the need for cooperation between various stakeholders has never been more urgent. Gain meaningful insights on how to safeguard the welfare and assets of your organization in an increasingly unpredictable and volatile environment. Also, learn how to control and mitigate your organization's losses in times of crisis.
APHS Conference: Urban Resilience Facing Major Threats and Hazards PART I - HOW TO APPROACH RESILIENCE Making Critical Infrastructures More Resilient: Lessons from Mega-Cities and Small Countries Dr. Stefan Brem Head of Risk Analysis & Research Coordination, Federal Office for Civil Protection, Switzerland
PART II - LESSONS LEARNT ON PAST “CASES” Introduction
Dr. Jonatan Lassa Research Fellow, Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies, Nanyang Technological University
The Great East Japan Earthquake and The Role of the Private Sector
USA: Implementing Resilience
Professor John W. van de Lindt Professor of Infrastructure, Department of Civil and Environmental Engineering, Colorado State University; Co-Director, Community Resilience Centre of Excellence, USA
Mr. Takahiro Ono Visiting Researcher, Asian Disaster Reduction Centre, Kobe, Japan; Risk Consulting Manager, Mitsubishi Corporation Insurance Co. Ltd.
PART III - HOW TO IMPLEMENT RESILIENCE “PRACTICAL CASE” FOR FUTURE EVENTS
Introduction
Associate Professor Kumar Ramakrishna Head of Policy Studies, S. Rajaratnam School of International Studies, Nanyang Technological University
Why Resilience Is a Competitive Advantage Mr. Nathaniel Forbes Director of Forbes Calamity Prevention Pte Ltd
The “Paris Flooding Case” and Some International Comparisons
Mr. Charles Baubion Risk Policy Analyst, Organisation for Economic Co-operation and Development (OECD)
Security and Resilience Planning for EURO 2016 Football Games in Paris, France
The Islamic Caliphate’s Influence in Southeast Asia Professor Rohan Gunaratna Director of International Centre for Political Violence and Terrorism Research, S. Rajaratnam School of International Studies, Nanyang Technological University
Mr. Ziad Khoury Head of Safety and Security, EURO 2016
An Industry View on Resilience
Mr. Sebastien Sabatier Product Line Manager, Citizen Security, Thales Corporation
Disclaimer: Do take note that list of speakers is non-exhaustive. Information is current as of September 2015, correct at time of printing and is subject to changes. For the latest information please refer to www.aphs15.com/
Other APHS Events Exhibition Theme: Disaster Management and Civil Security Scan QR code now to register, or go to: www.bls-onlinereg.com/APHS/ Main/Welcome.aspx
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ANALYSIS OF NATIONAL POLICIES AND ITS IMPACTS ON
I
n our regular analysis of global NGV policies and their impacts, we normally look at how policies have done right by the industry and in turn facilitated superior growth. This time however, we look at how NGV policies failed to result in widespread growth and the possible reasons for this ‘market failure’. The German vehicle market is the largest vehicle market in Europe with a whopping 3 million vehicles sold annually in the country. It was thought that such a prevalent mature market would be perfectly suited to adopt NGVs and integrate them seamlessly across the country. NGVs were first introduced in Germany in 1992 with a significant amount of public funding. Initially, adoption seemed promising; however as of 2005, growth rates began to fall. This is also reflected in NGV sales figures which peaked in 2008, with 11896 NGVs being sold and have come down to just 8923 in 2013. Bear in mind that these numbers are only a miniscule fraction of the 3 million vehicles being sold in the country each year. These numbers can be compared to the hybrid vehicle sales which have risen from 5000 in 2006 to 26348 in 2013 and electric vehicle sales which have risen from 19 in 2006 to 6051 in 2013. Looking at these figures, it is odd that the NGV market did not grow in tandem with the other alternative fuel vehicle (AFV) markets. Looking at Figure 1, we can
NGV GROWTH IN GERMANY see that there was a period of decent growth from 2006 to 2010 but the market appears to have teetered off into a period of stagnation since then. As a result, in more than 20 years since the introduction of NGVs in the country, CNG only accounts for 0.3% of total fuel consumption for transportation. Tax Reduction & Payback Period Let us take a closer look into the policies that were established by the government to facilitate the growth of NGVs in Germany to try to understand why exactly the NGV market failed to take off. A key feature of turning any market into a successful one is through appropriate policies that act as an incentive for people to invest or become a consumer of the products. Most efficient policy makers will tackle the issue with some form of a dual pronged approach, enticing both investors and consumers to
jump start the industry. This is normally done, firstly, through taxes on regular fuels or tax reduction/ allowances on CNG. The German government’s fuel tax on CNG is 80% lower than its tax on gasoline. In 2012 this tax reduction amounted to some €120 million. This tax reduction coupled with the savings factor that can be made from the reduced fuel costs of running a vehicle on CNG results in an almost 50% in savings when using an NGV compared to a regular vehicle. It’s been calculated in some studies that the payback period of investment in an NGV is only 2 years. Unfortunately based on the market numbers above, we can see that having a decent price differential and implied savings is not enough to sway the public to make the switch to NGVs. Infrastructure Price differentials are only one side of the story. Facilitative infrastructure
Figure 1: NGV-population of passenger cars and market share in Germany, 2006–2013. Source: Kraftfahrtbundesamt (2014).
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Vol.24 Oct - Dec 2015 NGV Transportation
is extremely important for sustained growth of an NGV industry. If people are unable to fuel their cars at convenient locations, there is almost no hope in trying to persuade the everyday consumer to make this switch to an NGV. A method of evaluation of supporting infrastructure is by calculating the Vehicle-To-Refilling-Station Index (VRI). This is done by taking the number of NGVs in thousands and dividing it by the number of CNG refilling stations. Looking at Figure 2, we can see that mature proliferating markets such as Argentina, Brazil and Italy have a VRI close to 1 whereas the United States and Germany are far oversupplied with CNG stations compared to the number of vehicles that they have. This means that the supporting infrastructure is present but uptake still lags behind considerably. NGV infrastructure can be developed in two different ways during early market development; through a concentrated approach or a widespread approach. Germany employed a widespread nationwide distribution of refilling stations which resulted in low coverage in most of the country. This dispersion of stations meant that majority of consumers are further inconvenienced by having to drive significant distances just to refuel. This unfavourable distribution of stations saw only 2 of more than 385 refilling stations directly located at motorways. Conversion According to a study by the University of Regensburg and the German Energy Agency, the differences in VRI across countries is attributed to the differences in national markets for NGVs and the strategies chosen for introduction of complimentary infrastructure. Brazil and Argentina have a thriving market for vehicle conversion. NGV conversion costs in Germany are significantly higher than those in Brazil and Argentina, not to mention that vehicle OEM’s have abandoned their offers for
NGV Transportation Vol. 24 Oct - Dec 2015
Figure 2: VRI for selected countries in 2012. Source: Rosenstiel et al. (2015)
conversion preaching quality risks and limited warranty which is hardly encouraging to consumers. This has made the vehicle conversion market in Germany close to non-existent. The absence of a vehicle conversion market and the lack of coordination between NGV manufacturers and infrastructure providers has effectively stymied NGV demand in the country. A Sceptical and Uninformed Public Some countries such as Iran, have made it part of their plan to educate the public on the benefits of NGVs. This has proven especially useful in spreading the idea that NGVs are a better choice compared to petroleum fuelled vehicles. In Germany however, there is a lack of proper NGV education. Information provided by the government is also slightly confusing because the price display of CNG at filling stations is in per/kg compared to per/litre for gasoline and diesel. The fact that 1.0 kg of CNG contains the same amount of energy as 1.5L of gasoline distorts a direct comparison of fuel costs. As such, most consumers do not fully recognize the price advantage of CNG over conventional fuels. It then puts the difficult task of education on the shoulders of vehicle manufacturers. The government has also made sudden changes to policies which have quashed the trust of both consumers and suppliers of the effectiveness of NGV campaigns. An example of this
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can be seen when the government reduced the granted period of a tax break on CNG, which in 2006 was cut by two years from 2020 to 2018. Given the financial commitment of a car purchase, such changes in policies pose a risk for consumers as they influence the operating costs and the resale value of a vehicle. Conclusion Several factors have resulted in the NGV industry in Germany to fail to take off. It is a quite a disappointing shortcoming for a country with so much potential. The policies implemented are in favour of the industry and it shows that the government had a keen interest to develop the NGVs there but they did not identify possible problems with their implementation strategy. Concentrated infrastructure development and a proper line of communication between manufacturers, consumers and government needed to be developed. The public also should have been made more aware of the benefits that NGVs could bring them in terms of fuel cost savings. Even though Germany had the right mindset and had favourable expectations, these seemingly small errors have resulted in a failure for the market to develop. Perhaps in the future, these issues can be rectified and the largest vehicle market in the world can also be one of the largest NGV markets in the world. NTM
By Ryan Pasupathy
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