biomethane to grid project overview - april 2014

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Biomethane to Grid Market Update 12 th April 2014 John Baldwin Managing Director CNG Services Ltd [email protected] www.cngservices.co.uk 0121 247 8160

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Page 1: Biomethane to Grid Project Overview - April 2014

Biomethane  to  Grid    Market  Update    

12th  April  2014  

John  Baldwin  Managing  Director  CNG  Services  Ltd  

 [email protected]  

www.cngservices.co.uk  0121  247  8160

Page 2: Biomethane to Grid Project Overview - April 2014

Biomethane  Market  Overview  

1.  CNG  Services  Ltd  2.  Biomethane  Benefits  3.  Project  Review  4.  Conclusions  

Page 3: Biomethane to Grid Project Overview - April 2014

CNG  Services  Ltd  

•  Supports  projects  to  inject  biomethane  into  the  gas  grid  –  Didcot,  Poundbury,  Vale  Green,  

Doncaster,  Minworth  etc.    

•  Bio-­‐CNG  as  a  fuel  for  trucks  –  Own  UK’s  largest  CNG  filling  

staVon  –  Sell  Bio-­‐CNG  (20%  biomethane)    

We  are  gas  engineers  

Page 4: Biomethane to Grid Project Overview - April 2014

Crewe  CNG  Sta=on  

•  Filling  dual  fuel  trucks  for  GIST/M&S,  Brit  European,  Tenens  

hbp://www.youtube.com/watch?v=orxBtoXyjos  

Largest  grid  supplied  CNG  staVon  in  UK  –  now  selling  biomethane  via  Green  Gas  CerVficates  

Page 5: Biomethane to Grid Project Overview - April 2014

Our  Biomethane  Projects  Team  

•  Biomethane  Projects  –  Iain  Ward,  Lee  Firth,  Alison  Cartwright,  Terry  Williamson,  Robert  

McKeon,  Greg  Lee,  Phil  Winnard,  Michael  Foulds,  Jackie  Harrison  •  Pipelines  and  Compression  Projects  

–  Ian  Roughley,  Bob  Ingmire,  Mick  Beddows  (LTS),  Tony  Pym,  Mihaly  Papp,  Neil  Morbey  

•  Commercial  (RHI,  NEA  etc.)  –  Peter  Rayson  

•  Project  Support  –  Angela  Bagshaw,  Chris  Toase,  ChrisVne  Venables,  Lauren  Hamer  

 

We  support  Biomethane  Projects  for  a  living  

Page 6: Biomethane to Grid Project Overview - April 2014

What  I  said  in  May  2013  Annual  Biomethane  to  Grid  and  RHI  for  2012-­‐2015  

 

£0  

£10,000,000  

£20,000,000  

£30,000,000  

£40,000,000  

£50,000,000  

£60,000,000  

£70,000,000  

0.000  0.100  0.200  0.300  0.400  0.500  0.600  0.700  0.800  0.900  1.000  

2012   2013   2014   2015  

RHI  

Total  TW  to

 Grid

 BtG  and  RHI  Trend  

 Year   2012   2013   2014   2015  

Total  Therms  to  Grid  per  annum   305,476   9,558,138   26,644,951   31,584,558  

Total  TW  per  annum   0.009   0.280   0.781   0.926  

RHI  per  annum   £632,335   £19,785,346   £55,155,049   £65,380,035  

Page 7: Biomethane to Grid Project Overview - April 2014

Annual  Biomethane  to  Grid  and  RHI  for  2012-­‐2015  

£778,719  

£4,943,425  

£88,005,740  

£148,736,270  

£0  

£20,000,000  

£40,000,000  

£60,000,000  

£80,000,000  

£100,000,000  

£120,000,000  

£140,000,000  

£160,000,000  

0.00  

0.50  

1.00  

1.50  

2.00  

2.50  

2012   2013   2014   2015  

RHI/Annum  TWh/Annum   Forecast  Biomethane  to  Grid  &  RHI  Awarded  per  Financial  Year  

Biomethane  to  grid  likely  to  be  largest  RHI  technology  

Page 8: Biomethane to Grid Project Overview - April 2014

Benefits  -­‐  CO2  Impact  

•  Forecast  1.8  TWh  injected  into  gas  grid  in  2015  •  130,000  tonnes  of  gas  •  130  x  (44/16)  =  360,000  tonnes  of  CO2  saved  at  the  

burner  Vp  •  Marginal  gas  to  UK  is  Qatar  LNG  •  The  130,000  tonnes  of  biomethane  displaces  130,000  

tonnes  of  LNG  –  15%  higher  CO2  than  UKCS  gas  on  a  “Well  to  Tank”  basis  –  7-­‐9%  CO2  vented  in  Qatar  –  So  around  50,000  tonnes  on  top  

•  So,  around  400,000  tonnes/annum  benefit    •  Material  contribuVon  towards  2020  renewable  energy  

targets    

Page 9: Biomethane to Grid Project Overview - April 2014

Benefits  –  Reduc=on  in  Sale  of  Ferraris  

•  130,000  tonnes  of  avoided  LNG  imports  

•  Just  over  2  LNG  tankers  full  •  Around  £40  million  saved  •  This  would  allow  Qatar  to  purchase  

around  250  Ferraris  

•  Or  we  can  fund  refurbishment  of  around  4,000  homes  per  year  which  give  around  50%  gas  demand  reducVon  

 

Page 10: Biomethane to Grid Project Overview - April 2014

Benefits  –  Investment  and  Jobs  

•  20  projects  being  built  in  2014  •  EsVmated  capex  of  £150  million  •  EsVmated  70  -­‐  80%  UK  content  

–  Civils  –  UVliVes  –  InstallaVon  –  Pipelines/Grid  InjecVon  Plant/Propane  

•  We  need  to  quanVfy  the  %  UK  content  •  Jobs  –  well  CNG  Services  has  18  staff  compared  to  3  

before  biomethane  •  Companies  in  this  room  –  DECC  funding  has  established  a  

compeVVve  supply  chain  

Page 11: Biomethane to Grid Project Overview - April 2014

Benefits  –  Using  the  Gas  Grid  

•  UK  has  great  gas  grid  –  85%  of  domesVc  market  connected  to  

grid  –  95%  of  industry  –  Power  generaVon  back  up  to  wind  

•  To  build  gas  grid  and  central  heaVng  etc  would  cost  around  £100  billion  

•  It’s  a  vital  UK  asset  •  We  can’t  afford  not  to  use  it  •  All  our  Grid  Owners  are  very  

supporVve  and  have  ceated  an  abracVve  regime  to  allow  projects  to  go  ahead  at  lower  cost/quicker  

–  See  NG  and  SGN  PresentaVons  today  

Page 12: Biomethane to Grid Project Overview - April 2014

Benefits  –  Promo=ng  Low  Carbon  U=lisa=on  

•  Green  Gas  CerVficates  are  a    great  way  to  promote  low  Carbon  and  efficient  gas  uVlisaVon  opVons  –  Sainsbury’s  –  CHP  –  Duchy  of  Cornwall  –  new  housing  –  Brit  European  –  CNG  trucks  –  Eon  –  new  housing  with  district  heaVng  

Page 13: Biomethane to Grid Project Overview - April 2014

Rainbarrow  Farm  at  Poundbury  

•  UK’s  first  commercial  project  •  Membrane  CO₂  removal  plant  •  Gas  injected  into  2  bar  grid  •  500  kwh  CHP  •  The  development  is  a  joint  venture  

between  Duchy  of  Cornwall  and  some  of  its  tenants  

•  Achieving  >  95%  availability  

Flow  of  biogas  -­‐  500  m3/hr    First  gas  to  grid  –  October  2012  

Page 14: Biomethane to Grid Project Overview - April 2014

Vale  Green  

•  Membrane  and  cryogenic  CO₂  separaVon  plant  

•  Separated  CO₂  used  to  grow  more  tomatoes  

•  75%  gas  to  grid  with  a  490kWh  CHP  •  7  bar  gas  grid  

Flow  of  biogas  -­‐  600  m3/hr    First  gas  to  grid  –  August  2013  

Page 15: Biomethane to Grid Project Overview - April 2014

Future  Biogas  Doncaster  

•  Agricultural  feedstock  •  80%  gas  to  grid  –  with  499kWh  CHP  •  Membrane  CO₂  removal  plant  •  7  bar  gas  grid  

Flow  of  biogas  –  900  m3/hr    First  gas  to  grid  –  October  2013  

Page 16: Biomethane to Grid Project Overview - April 2014

ReFood  Widnes  

•  Food  waste  feedstock  •  100%  gas  to  grid  •  Water-­‐wash  CO₂  

removal  plant  •  2  bar  gas  grid  •  A  major  CO2  win  for  UK  

plc  

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

•  Is  there  a  beber  gas  to  grid  project  on  Planet  Earth?  Probably  not….  

Page 17: Biomethane to Grid Project Overview - April 2014

Severn  Trent  Water  Minworth  

•  Sewage  feedstock  •  20%  gas  to  grid  –  with  exisVng  

7MW  CHP  •  Water-­‐wash  CO₂  removal  plant  •  20  bar  LTS  grid  •  Blending  allowed  so  minimal  

propane    

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

Page 18: Biomethane to Grid Project Overview - April 2014

Other  Projects  in  2014    

•  Crouchlands  Farm  •  Northumbrian  Water  Howdon  •  Wessex  Water  Avonmouth  •  Euston  Estates  •  Chibering  •  Greener  for  Life  Fraddon  •  Wyke  Farms  •  Apsley  farms  •  Coupar  Angus       In  total  21  projects  being  completed  in  2014  and  around  17  more  in  2015  

Page 19: Biomethane to Grid Project Overview - April 2014

Biomethane  to  Grid  Conclusions  

•  It  has  taken  6  years  but  the  regime  looks  good:    •  20  projects  to  be  built  in  2014  

•  Majority  of  biomethane  from  waste  feedstock  •  Significant  benefits  

•  Lower  CO2  •  Lower  imports  of  high  CO2  and  expensive  LNG  •  Capex  with  high  UK  content  •  Jobs  •  Use  of  gas  assets    

•  We  have  created  a  very  good  industry  in  a  short  Vme    

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