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Gasday 2016

Nancy Mahieu

Director General Energy at FPS Economy

The Belgian Energy Policy & the Role of Gas

1. Challenges of the Belgian Energy Sector

2. Policy actions to overcome these challenges

3. The role of gas

Overview

1. CHALLENGES OF THE BELGIAN ENERGY SECTOR

Security of supply in the electricity sector under pressure;

Inadequate market signals to attract the necessary investments in energy infrastructure (production, transport, distribution, storage, …);

Constant vigilance on the evolution of energy prices and the impact on the competitiveness of our industry and affordability for households

Guaranteeing the safety of energy infrastructure and products;

Preparing the transition towards a low-carbon energy system;

Defining a holistic, long-term interfederal energy vision

Challenges of the Belgian energy sector

2. POLICY ACTIONS TO OVERCOME THESE CHALLENGES

http://economie.fgov.be

Security of supply

Adaptation of nuclear calendar

Introduction of strategic reserve

Analysis of generation adequacy and flexibility needs and socio-economic optimal importation level

Operational risk preparedness policy

Active exchange of information and coordination with neighbouring countries

Market design

Continued efforts to improve market integration (Flow-

based Market Coupling, BeLux)

Electricity package:

Improvements to the energy-only markets and strategic reserve

Unlock the full flexibility potential

Steps towards the intruduction of a CRM

Affordability

Revision of offshore support system;

Foreseen introduction of an Energy Norm;

Anchor the Consumer Agreement in legislation;

Analysis of Social Tariff for electricity and gas;

Safety

Restructuring and updating of “RGIE” through quick-wins

Revision of legislation on safety of transport through

pipelines and distribution of natural gas

Enhanced screening of pure biofuels and continuation of

E10-campagn

Start safety screenings of critical infrastructure

Sustainability

Publication national plan on alternative transport fuels;

Drafting national integrated energy and climate plan

Finalizing national energy efficiency plan

Implementation new framework regulation energy labelling

Creation and operationalizing energy transition fund

Towards a holistic energy pact

Development of an energy vision on regional and federal level;

Federal reflections based on: Generation adequacy and flexibility study (Elia)

Welfare study and analysis socio-economic optimal importation level

Objective to come to an interfederal energy pact in 2017;

3. THE ROLE OF GAS

http://economie.fgov.be

World energy outlook 2016

Gas consumption increases almost everywhere

More flexible global market More competitive and flexible arrangement (including greater reliance on prices set by gas to gas competition)

increasing availability of footloose US LNG cargos

Arrival of new exporters in the 2020s

Floating storage and regasifaction units unlock new and smaller LNG markets

Uncertainty on the direction commercial transition could delay decisions new upstream and transportation projects

Primary energy consumption (Mtoe)

http://economie.fgov.be

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Other energy

Renewableenergy and wasteNuclear energy

Solid fossil fuels

Natural gas

Oil and oilproducts

Future opportunities for natural gas

Belgium as a gas roundabout for North-West Europe;

Flexible back-up fuel for renewable energy sources;

Natural gas in transport;

Market integration

Solid and modern internal gas infrastructure (network, LNG, storage) and participation in strategic projects abroad

BeLux market integration:

Increased liquidity and security of supply;

Efforts ongoing on compliance programme;

Looking beyond?

L-gas conversion

Conversion programme:

Proposal on indicative planning;

Discussion on roles, responsibilities and financing;

Elaboration of a communication strategy;

Need to replace the Dutch volumes

Illustration of some partnership domains between DG Energy and ARGB/KVBG

Product safety : selected laboratory (via procurement) compliant with ISO 17025 – Make tests on gas appliances in the context of product safety campaign initiated by DG Energy (i.e. control of products to see if they complies with the applicable regulations)

Product efficiency (or performance evaluation) : idem but in the context of the Energy Labeling Regulation

Gas Quality Harmonization : designated by DG Energy to conduct the related BE task force

Conclusion : very constructive collaboration between the experts with complementary know-how

Arno Büx

Chief Commercial Officer at Fluxys

FLOWS AND

RESERVES

Arno Büx | Chief Commercial Officer Fluxys

NATURAL GAS IMPORTS IN EUROPE

2016 12 13 24

Africa

Russia

Middle East

Norway

Pipe gas 87%

LNG 13%

Breakdown of imports (72% of consumption)

Russia 41,0%

Norway 34,7%

Algeria 10,4%

Qatar 8,6%

Nigeria 2,3%

Others 3,0%

[BP Statistical Review of World Energy June 2016]

BELGIUM: EXCEPTIONAL GAS SUPPLY DIVERSIFICATION

• Connected to all sources available to Europe

• Highly interconnected with all neighbouring grids and systems

• Bidirectional flows with all neighbouring markets

2016 12 13 25

KEY ROLE OF THE ZEEBRUGGE AREA

2016 12 13 26

INTERCONNECTOR 1998

To Zeebrugge: 20 bcm/y

To UK: 25 bcm/y

LNG TERMINAL 1987

9 bcm/y

ZEEPIPE TERMINAL

1993

15 bcm/y

Zeebrugge area:

throughput capacity

of ~ 57 bcm/y

= over 10%

of border

capacity needed

to supply Europe

DUNKIRK LNG TERMINAL

through Alveringem-Maldegem pipeline

2017

8 bcm/y

INCREASING THE OPTIONS UPSTREAM

2016 12 13 27

Additional supply route for Russian gas since 2012: 20 bcm/y

• New LNG entry point to be commissioned shortly: 13 bcm/y

• New pipeline connecting Dunkirk to Zeebrugge area: 8 bcm/y

Supply from Azerbaijan and potentially other sources from 2020: 10 bcm/y (expandable to 20 bcm/y)

… AND DOWNSTREAM

2016 12 13 28

LNG truck loading at Zeebrugge LNG terminal

Remote industry, LNG-filling stations and bunkering of LNG- fuelled ships

Investment in second loading bay

2nd jetty at Zeebrugge LNG terminal

Reception of LNG carriers with capacity from 2 000 m3 LNG up to 217 000 m3 LNG

Load LNG bunkering ships

Fluxys partner in LNG bunkering ship with home port Zeebrugge

0

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1000

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2000

2010 2011 2012 2013 2014 2015 2016

Number of truck loadings

BELGIAN GAS TRADING PLACES OFFER

AN ARRAY OF OPTIONS FOR SHIPPERS AND TRADERS

2016 12 13 29

0

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1.000

1.500

2.000

2.500

3.000

1/jan 1/feb 1/mrt 1/apr 1/mei 1/jun 1/jul 1/aug 1/sep 1/okt 1/nov 1/dec

ZTP 2015 ZTP 2016 ZeeBeach 2016GW

h

THE CASE FOR GAS IN CLIMATE ACTION

• Key message COP21-22: climate change does not wait and requires immediate action

• Gas & gas technology available today to deliver instant results:

Partners of renewable energy in power generation

Heat & heating

Mobility

• Policy and standards need to keep the options open: ideology does not help the planet or its citizens

2016 12 13 30

2.3

Investment

plan

2015-24

3.7

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80

88

53

43

27

45

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Gasconsumption

RAB gastransmission

Powerconsumption

(incl. decentralproduction of

18 TWh)

RAB powertransmission

Households & SMEs Industry Power generation

Consumption in

TWh (2015)

10

8

6

4

2

0

RAB in

bn €

3.9

2.3

CHALLENGE: KEEPING THE

OVERALL ENERGY SYSTEM

COST AFFORDABLE

Energy transmission in Belgium: gas system is far more cost efficient than power

system

2015: 10 times cheaper

2024: 20 times cheaper

+ 244 export

+ 3 export

31 2016 12 13

WRAP-UP

• Belgium exceptional gas supply diversification

• Climate action: gas & gas technology deliver immediate carbon reduction while keeping overall energy system cost affordable

• For gas & gas technology to deliver: policy and standards need to keep options open

2016 12 13 32

Daan Curvers

COGEN Vlaanderen

Voor kwaliteitsvolle Warmte-krachtkoppeling

COGENERATION in industry

a general overview

Outline

About COGEN

General introduction

What is CHP?

Increased efficiency

A short history

Technologies

Current climate

Opportunities

Outline

About COGEN

General introduction

What is CHP?

Increased efficiency

A short history

Technologies

Current climate

Opportunities

About COGEN

Non-profit, member organisation (± 170)

CHP users

CHP constructors

Energy suppliers

Engineering firms / consultancy

Universities and research

Grid operators

‘Sister’-organisations

About COGEN

Committed towards supporting the development of high efficiency CHP

Primary energy savings are key

Independent and objective point of view

Reduction of consumption, reuse … first

Outline

About COGEN

General introduction

What is CHP?

Increased efficiency

A short history

Technologies

Current climate

Opportunities

General introduction

Niveau 1

Primary and secondary energy

Niveau 3

Energy for end use

Niveau 4

Products and services

Niveau 2

Transformation

CHP

General introduction

Trias energetica

Don’t waste energy 1

If you do need energy, try to use as much

renewables as possible 2

If you do need fossile energy, use it as efficiently

as possible

3

General introduction

Energy ≠ energy

First law of Thermodynamics:

“Conservation of energy”

There is actually no “energy”-problem!

Second law of Thermodynamics:

Irreversibility, quality loss, Limits on transformation

Amount of ‘transformable’ energy (available work, EXERGY) is limited

1 kWh electricity 1 kWh heat

1 kWh electricity 1 kWh heat

??

General introduction

Exergy content electricity: 100%

Exergy content fuel / gas: ≈100%

Exergy content heat: function(T)

h

lhF

T

TTQ

)( CTl 0

General introduction

Efficiency electricity generation from fuel:

Energy: 55%

Exergy: 55%

Efficiency low-temp heat generation (30°C) from fuel:

Energy: ≈ 100%

Exergy: 10%

Outline

About COGEN

General introduction

What is CHP?

Increased efficiency

A short history

Technologies

Current climate

Opportunities

What is CHP?

Combined Heat and Power

Combined generation of Heat and Power (or work) in one process

Heat at high temperature is converted into work/power, remaining energy at lower temperature is used for heating purposes

Increased efficiency

CHP delivers substantial primary energy savings

Typically up to 30%

Less emissions

Decentralised production of electricity: less distribution losses

PE savings example:

Warmte: 50 Elektriciteit: 40

Increased efficiency

Heat: 50

Electricity: 40

10 40 50

100

Heat: 50

Electricity: 40

50 5

55

40 40

80 135

PE Savings: 35/135 = 26 %

Conventional: power plant & boiler CHP

50% 90% 40% 50%

Outline

About COGEN

General introduction

What is CHP?

Increased efficiency

A short history

Technologies

Current climate

Opportunities

A short history

Pearl street station (1882)

A short history

Industries early 1900’s

E.g. sugar industry in ‘campaign’: large need for both power and heat

Ghent: “centrale Ham”

District heating in 1958

A short history

More recently:

Flanders

A short history

Early 90’s

Steam turbines

- Direct drive and electricity

- Large (petrochemical) industry

A short history

Second half 90’s

Growth of gas turbines in industry

Gas turbine

CCGT

Most installations by incumbent operator

A short history

Early 2000

Cool down

Market liberalisation

A short history

2005 onwards

Growth

Support mechanism

Large growth of ICE in greenhouses

Gas replacing coal and HFO

A short history

Fuels (Fl - 2014)

A short history

More recently:

Wallonia

CHP in Belgium

Bilan énergetique de la Wallonie 2014

Wallonia:

Outline

About COGEN

General introduction

What is CHP?

Increased efficiency

A short history

Technologies

Current climate

Opportunities

Technologies

Main technologies:

Turbine technologies (industrial)

Gas turbine (500 MW FL)

Steam turbine (360 MW FL)

CCGT (800 MW FL)

Combustion engine

Green houses (400+ MW FL)

Tertiary sector (hospitals, senior housing …)

Industry

Technologies

New technologies:

Stirling engine

Residential – renovation market

No market uptake – too late?

Fuel cell

Promising technology

Very high efficiency (measurement campaign)

Cost reduction necessary (a.o. European projects ene.field & PACE)

63

1 kW 10 kW 100 kW

1 MW

10 MW

Micro-CHP Small scale CHP Conv. CHP

50 kW

Residential

Appartment buildings

Offices

Sport infrastructure

Industry

District heating

Green houses

Hospitals

Swimming pools

Technologies

Outline

About COGEN

General introduction

What is CHP?

Increased efficiency

A short history

Technologies

Current climate

Opportunities

Current climate

Support:

EU:

CHP Directive (2004/8/EC)

Energy efficiency directive (2012/27/EU)

Federal:

Increased tax reduction for investment

Tax exemption natural gas for CHP (‘accijnsvrijstelling’)

Regional

Certificate mechanisms, based on PES:

CHP certificates in Flanders

Green certificates in Brussels and Wallonia

Current climate

Need for clear(er) business proposition:

Implementation Network Codes

Impact?

Connection with flexible access (DG)

Impact?

Capacity tariffs (DG)

Impact?

Need for better ‘image’ for clean gas solutions as a transition measure

Outline

About COGEN

General introduction

What is CHP?

Increased efficiency

A short history

Technologies

Current climate

Opportunities

Opportunities

Large need for clean, sustainable and dispatchable power generation

Opportunities

Large need for clean, sustainable and dispatchable power generation

Opportunities

Large need for clean, sustainable and dispatchable power generation

District heating

Opportunities

Large need for clean, sustainable and dispatchable power generation

District heating

New technologies

Fuel cell

Very high efficiencies demonstrated

Theoretically reversible

Combination with power to heat

Industrial solutions possible

Sources

Inventaris warmte-krachtkoppeling Vlaanderen 2014 (2015); Wouter Wetzels, Kristien Aernouts, Kaat Jespers

Bilan provisoire 2014 de production électrique et de transformation, de la cogénération et des renouvelables (2016); ICEDD

Cogeneration's 20-year history in Flanders (2013); Erwin Cornelis & Kaat Jespers

The power of transformation (2014); IEA

Jean Blondeau

Blondeau Industrial Heating

GAS APPLICATIONS

in the industry

Process Heating

Gas applications in the industry

Gas applications in the industry

Gas applications in the industry

Burners for all industries : Metal industry (all heat treatments, annealing, galvanizing, ..) – glass industry – all kind of industrial drying (paper, textile, gypsum, printing, painting, ...) – food – automotive – finishing – incineration – petrochemical – ceramics – plastics - …

Process Heating

Gas applications in the industry

All installations in conformity with EC 746-2 (gas) and EC 60204-1 (electrical)

Gas applications in the industry

Drying applications :

Duct burners

Burners from 100 kW till …

Low emissions

Modular constructions

Large Control range

Fresh air or recirculating

79

Gas applications in the industry

Drying applications :

Gun burners

Low emissions

Large Control range

80

Gas applications in the industry

Furnaces:

High or medium velocity burners

Direct or indirect heating (tubes)

Uniform temperatures

Possibilityr for oxydising or reducing atmosphere

81

Gas applications in the industry

Volume Heating

Gas applications in the industry

Air Heating

Gas applications in the industry

Gas fired condensing unit heaters =

Modulating burners between 30 and 100% of capacity

Efficienty of 98% full stage - 108% in low stage

Low Nox burners – EU class 5 : 70 mg/kWh

All heaters are EC approved and in cornformity with the new ERP rules being introduced in 2017.

84

Gas applications in the industry

Unit Heating

Unit heaters Condensing unit heaters

Gas applications in the industry

Radiant Heating

Gas applications in the industry

Radiant heating =

Heating without air- & dust movements

All heaters EC approved and in conformity with the new ERP rules being introduced in 2017

Heating without stratification or heat losses to unused places

Possibility for local heating

Fuel savings between 30 and 60% - sometimes more !

87

Gas applications in the industry

Tube heater Radiant strip Tube heater in network

Infra Red heater

Gas applications in the industry

Caterpillar Gosselies

40 make up air systems

106 tube heaters

12 unit heaters

Gas applications in the industry

Caterpillar

Gas applications in the industry

Caterpillar

Gas applications in the industry

Gas applications in the industry

Stork Antwerpen

155 x gasfired tube heaters of 47 kW

10 x heaters of 20,5 kW

Total investment 2012 : € 625.000

Fuel saving / year : € 300.000

Winter 2012 – 2013 : External t°C :-12°C – inside confort temperature +17°C

Stork

Gas applications in the industry

Gas applications in the industry

Stork

Stork

Gas applications in the industry

https://youtu.be/Cht9kTSuONI

http://www.aardgas.be/nl/ondernemingen/home

Stork

Gas applications in the industry

Natural is actual - and will remain for years - the most flexible and economical fuel for industrial heating !

Juan Vazquez

General Manager KVBG - ARGB

Waarom het hebben over nieuwe toepassingen?

100

Totaal elektriciteitsverbruik

BE 80 TWh1

Gas- en olieverbruik voor verwarming

BE 130 TWh1

Totaal elektriciteitsverbruik

BE 120 TWh

traje

ct naar 1

00 %

hern

ieuw

baar

traje

ct naar 1

00 %

hern

ieuw

baar

met enkel el. WP en SPF van 3,5

Hoogefficiënte gastoepassingen voor verwarming (+ elek.)

101

Vergelijking van kost-efficiëntie van verschillende gastoepassingen

€/kWh aardgas € 0,0428

€/kWh elektriciteit € 0,2355

SPF 20.000 kWh/jaar €/jaarLevensduur kost

15 jaar

Elektrische Warmtepomp

(Lucht-Water)3 6.666 € 1.569,84 € 42.748

Aardgas Warmtepomp 1,35 14.815 € 634,07 € 27.136

Aardgas condensatieketel 0,93 21.505 € 920,43 € 20.256

Hybride condensatieketel -

Warmtepomp0,93 - 3 12.895 € 1.297,36 € 31.260

*Aankoop, installatie, Verbruik en onderhoud

Patrick O

General Manager Viessmann

ATTB

Lower carbon with condensing – Patrick O

1. Energy-slaves: energy is much too cheap

2. CO2 problem

3. Challenge 2020-2030-2050 (regulation)

4. Inventory of the heating market + quick wins

5. Technical solutions according to Efficiency

6. Closing

1. Energy is (too) cheap. We do not use it in a sustainable way

What is watt?

Cyclist Fabian Cancelara and Tom Boonen produce up to 750 Watt when they are climbing

880 kWh

2. CO2 problem

2. CO2 problem

2. CO2 problem

Low or zero carbon economy

CO2 problem

1,5-2-3 °C

2. CO2 is a problem

3. Regulation: COP 21 – Paris // COP 22 – Marakesh // COP 23 Bonn

188 Countries

Fixed calendar (Europe)

2020 - 30 %

2030 – 40 %

2050 – 80 %

Big budgets for sustainable energy solutions

109

4. The number of boilers has more than doubled in 25 years: from 93.700 to 250.000 units

0

50000

100000

150000

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250000

3000001

98

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Number of boilers in Belgium (Source: Gasgemeenschap/ Cedicol)

4. The market increased with the introduction of a new technology, condensation,

0

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Condensing boilers vs. non-condensing boilers (Source: Gasgemeenschap/Cedicol)

Niet cond. Cond.

4. The number of oil boilers was reduced to 50% compared to 1989 The market share of oil is around 10% since 2012

0

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100000

150000

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3000001

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15

Split oil-gas boilers (Source: Gasgemeenschap/Cedicol)

GAS OLIE

5. Large potential for energy savings in family homes

Trias Energetica

Existing buildings offer the largest potential, not new construction

1,5 mio condensing boilers / 3,7 mio housing units

21%

53%

16-30%

58 %

2,2 mio LT boilers should be replaced.

The potential for energy savings is important

Energy prices do not support a change towards a more efficient and renewable heating

Legislation for automobiles is much stricter than for boilers

5. Potential

5. Potential

1. Replace low temperatur boilers with condensing boilers From 1989 => 60 % are LT boilers or 2,9 mio (27 years)

2,2 mio LT Boilers

Min savings 16 % but > 25-30 %

5. Potential

2, Gas heat pumps = zeolith (adsorption) Extra 25-30 % (in combination with geothermal probe or solar thermal)

5. Potential

3, Fuel cells = saving of 39 % in primary energy use versus condensation

Reformer

Brandstofcel eenheid

Omvormer

Aardgas waterstof,

CO2 & warmte

Waterstof & zuurstof VDC, warmte &

water

VDC/VAC + Netbewaking.

Gas (2 kW*)

Warmte (1 kW*)

Stroom (0,75 kW*)

* Berekend op Hi

5. Potential – Brandstofcel – Vitovalor-P Opbouw en Componenten

Werkingsprincipe Brandstofcel:

0,75 kWh EL. (netto)

1 kWh TH

Max 21,5h / dag

Opstartfase = 1h

Verbruikt 500 Wh

Maximale opbrengst:

16,4 kWh EL/dag

5970 kWh EL / jaar.

PACE: 2500 FC

5. Potential – Brandstofcel – Vitovalor-P Rendement

5. Potential

4, Biogas - Biomethane

5. Potential

121

Green heat

District heating

Warmte@vlaanderen

6. Conclusions

2,2 mio LT boilers can be modernised

Change is needed

Cheap fossile energy prices are no motor for change

A new generation of heating solutions is ready

Important increase in demand for electricity – large investments

Decentral electricity production through CHP/ fuel cells

Natural gas can play an important role in the transition toward green energy

District heating of the 4th or 5th generation in combination with deep geothermal solutions and Biogas/ methane are ready to be deployed

Jos Dehaeseleer

Secretary General Marcogaz

Who is Marcogaz?

MAR-16-56 (D506)

Missions and Objectives of MARCOGAZ – Vision 2025

Members’ expertise and knowledge

Sust

ain

abili

ty

Technical support to the EU Institutions

Knowledge transfer

Uti

lisat

ion

Infr

astr

uct

ure

“MARCOGAZ is the competent and credible technical voice for natural and renewable gases in the field of infrastructure, utilisation and sustainability.

The EU sees MARCOGAZ as a trusted partner for a safe and reliable role of gas in the future energy mix.

MARCOGAZ supports strong cooperation between all gas organizations in Europe aiming to speak as one industry.”

126

Why the need for New Technologies in Residential Gas

Utilisations?

The share of gas in the global demand

Coal 29%

Oil 31% Gas

21%

Nuclear 5%

Renewables 14%

2040 (15 197 Mtoe)

450 Scenario

2013 (13 579 Mtoe)

Source: IEA - WEO 2015

Coal 16%

Oil 22%

Gas 22%

Nuclear 11%

Renewables 29%

MAR-16-56 (D506)

Change in natural gas demand by region (bcm)

-100

-50

0

50

100

150

China Middle East United States India EU Korea and Japan

bcm

2009-15 2015-21

Source: IEA - MTGMR 2016

EU 28 Gross Inland Consumption

%

Source: PRIMES –EU Reference Scenario 2016 – energy, transport and GHG emissions trends to 2050

Final energy demand in the residental sector

Source: PRIMES – EU Reference Scenario 2016 – energy, transport and GHG emissions trends to 2050

COP 21 – GHG emissions Energy policies Investments Free circulation Smartness

Challenges for the use of Natural Gas

Natural gas seen as a fossil fuel. However: Gas is the cleanest one Gas can contribute to enable a cost-effective decarbonization of the heating and cooling sector

Efficiency – e.g. replacing Europe’s traditional gas boilers with gas-condensing boilers could reduce GHGs by 7% in one year alone.

Gas can facilitate the entry of renewable energy sources in the system

Biomethane, H2 mixture (P2G), Syngas…

Hybrid systems

CCS

COP 21 - GHG emissions Target of limiting global warming to below 2°C

The Commission proposes a binding EU-wide target of 30% for energy efficiency by 2030

Energy Efficiency Directive (EED) Improving energy efficiency

Energy Performance of Buildings Directive (EPBD) Improving energy efficiency in buildings

EcoDesign Directive Improving the energy performance of products

Energy Labelling Directive Informing consumers

Renewable Energy Directive (RED)

Policies – Legislation (Winter Package)

Investments, research, developments… in the gas industry in Europe are at a low level

a lack of future perspective

Multinationals are moving their investments looking for a stable investment climate and regulated investments

to new gas markets other energies

Gas industry should react

Foster the image of gas Building confidence in gas as a valid partner in the future energy mix in Europe

Investements

Gas Quality EN 16726:2015 ‘Gas infrastructure – Gas Quality Group H’ No agreement yet on Wobbe Index range and Wobbe Index variation

Injection of renewable gases:

Biomethane H2

Syngas LNG

Free circulation of appliances

Free circulation in Europe

Consumers are the drivers of the energy transition Focus on the end-customer Empowering and informing consumers

Smart Appliances Hybrid Dual fuel CHP Sensors

sensors seem to offer solutions to a number of challenges that gas quality variation will bring gas quality sensing and control into individual appliances, especially boilers and waters heaters is an ambition that has so far only been realized in very small numbers http://www.marcogaz.be/index.php/news-documents

Smartness

Promotion of new gas technologies for heating

Mat

uri

ty

Aff

ord

abili

ty

Pu

blic

A

cce

pta

nce

Effi

cie

ncy

Mar

ket

Off

er

Hybrid technologies

Gas heat pumps

Micro CHP engine based

Fuel cells

Boilers combined with renewable technologies heat pump, thermal solar …

They are becoming competitive on the market

Hybrid boilers

Heat pump technology in a chemical process driven by thermal energy

Energy sources can be gas, solar thermal energy or waste heat

This technology can achieve a primary energy efficiency of 125-140%

Also cooling and hot tap water options

Perfectly suitable for larger buildings

Gas Absorption Heat Pumps (GAHP)

A combined heat and power unit Stirling engine Provides synergy that improves efficiency Also available on a small scale for residential and commercial usage Electricity from CHP can be produced when it is mostly needed

e.g. during cold and dark winter days and nights – a good match with intermittent RES

Micro CHP engine based

A combined heat and power unit Combining hydrogen (from CH4) and oxygen from the air to produce dc power, water, and heat Ene.field project

http://enefield.eu/

Micro FC-CHP

Stephen Harkin

Delta Energy & Environment

Delta Energy & Environment Ltd

Registered in Scotland: No SC259964

Registered Office: Floor F, Argyle House, 3 Lady Lawson Street, Edinburgh, EH3 9DR, UK

Evolution of gas demand in the domestic

sector in Belgium to 2030

Delta Energy & Environment Ltd

Registered in Scotland: No SC259964

Registered Office:

Highlights from a Delta-ee study for ARGB

Gasday 2016, Brussels

Contact:

[email protected], +44 131 625 1005

144

Experts in heat and distributed energy

Agenda

About Delta-ee

Scope of the study for ARGB

What will drive a change in heating appliance uptake?

Forecasted sales of heating appliances in Belgium

What does this mean for gas demand? What could influence this?

Conclusions

145

Experts in heat and distributed energy

Agenda

About Delta-ee

Scope of the study for ARGB

What will drive a change in heating appliance uptake?

Forecasted sales of heating appliances in Belgium

What does this mean for gas demand? What could influence this?

Conclusions

146

Experts in heat and distributed energy

Helping clients navigate the transformation of the energy system

Delta-ee helps utilities, product manufacturers and policy makers across Europe navigate the transformation to a more

distributed, customer centric, service-orientated energy future.

www.delta-ee.com

Delta-ee brings:

Customer insight

Technology & service expertise (customer side of the meter)

Policy & regulation

Detailed market insights & forecasts

Business model innovation

Selected clients:

KVBG | ARGB

147

Experts in heat and distributed energy

What Delta-ee offers to clients

Digital & Services Innovation

Connected Home Service

Customer Data Analytics

Energy Services Innovation

Distributed Generation & Demand Side Flexibility

Energy Storage Service

Distributed Power Service

Demand Response

Heat

Microgen Insight Service

Heat Pump Research Service

Roadmap Service and Pathways® Tool

Micro-CHP Service

Research Services And Studies Market analysis and forecasts

Strategy

Propositions and customer research

Technology and product

Policy & regulation

Demand forecasts and profiles

Consultancy

European ‘Connected Homes and Energy’

Energy Services

Micro-CHP

Heat Pumps & Utilities

Summits

148

Experts in heat and distributed energy

Agenda

About Delta-ee

Scope of the study for ARGB

What will drive a change in heating appliance uptake?

Forecasted sales of heating appliances in Belgium

What does this mean for gas demand? What could influence this?

Conclusions

149

Experts in heat and distributed energy

Project scope

A more granular & evidence-based forecast for gas demand evolution in Belgium

Provide a detailed investigation of the drivers of future gas demand in terms of technology, regulations &

policies.

Develop scenarios and quantify how overall gas demand (volume), peak gas demand & the number of gas

connections will change in Belgium under the different scenarios.

Understand the sensitivities and tipping points between these scenarios

A regionalised approach – considering Brussels, Wallonia & Flanders separately

BRUSSELS

(0.45 million

dwellings) FLANDERS

(2.85 million

dwellings)

WALLONIA

(1.6 million

dwellings)

150

Experts in heat and distributed energy

Agenda

About Delta-ee

Scope of the study for ARGB

What will drive a change in heating appliance uptake?

Forecasted sales of heating appliances in Belgium

What does this mean for gas demand? What could influence this?

Conclusions

151

Experts in heat and distributed energy

What will drive a change in heating appliance uptake?

More options for customers…

Technology costs

Policy & regulations Manufacturer push

Installer attitudes

Housing stock

…….

Technology performance Energy prices

152

Experts in heat and distributed energy

The residential heating market is changing…

More efficient gas appliances

Condensing gas boilers

Gas driven heat pumps

Micro-CHP / fuel cell

‘Boiler plus’ options

Better controls

Electrification of heat

Heat pumps (air source & ground source)

Hybrid gas boiler with electric heat pump

Energy efficiency

Insulation

New build regulations

153

Experts in heat and distributed energy

Current Residential Gas HPs – Low Availability, High Costs (1/2)

Source: Delta-ee Heat Pump Research Service

Adsorption Heat Pump

Can use solar thermal or ground

as heat source

Seasonal efficiency (on gas):

110-125%*

Adsorption Heat Pump

Can only use solar thermal as

heat source

Seasonal efficiency (on gas):

110-125%*

*Delta-ee’s view

Absorption Heat Pump

Can use air or ground as

heat source

Availability in 2015/2016

Expected seasonal

efficiency (on gas): 130-

145%*

154

Experts in heat and distributed energy

Current Residential Gas HPs (2/2)

Source: Delta-ee Heat Pump Research Service

Field-test successfully

finished

Being commercialised

Expected seasonal

efficiency (on gas): 130-

145%*

Field-test in 2015-2016

Commercialisation in

2017?

Expected seasonal

efficiency (on gas): >150-

160%*

Field-test expected in

2016-2017

Expected seasonal

efficiency (on gas):

>150-160%*

*Delta-ee’s view

155

Experts in heat and distributed energy

Hybrid heat pump availability

Source: Delta-ee Heat Pump Research Service

Integrated /

monobloc

Integrated / split

Un-integrated /

monobloc

Un-integrated / split

Hydraulic unit

156

Experts in heat and distributed energy

Fully installed costs of residential heating technologies

0

5.000

10.000

15.000

20.000

25.000

Fully

insta

lled p

rice (

€)

Typical fully installed prices (€) for heating appliances in Belgium in 2015

Alternatives to

gas boilers are

currently >€5,000

more expensive.

+ €5k

+ €15k

Technology costs…. will strongly influence customer decision making

157

Experts in heat and distributed energy

Gas boiler dominates today…

Lower carbon appliances account for a few % to ~35% of appliance sales in different European countries

0

500.000

1.000.000

1.500.000

2.000.000

Belgium Germany UK France Netherlands Italy

Other

Electric heating

Oil boiler

Gas boiler

Belgium – a

relatively small

market, dominated

by gas.

Hea

tin

g a

pp

lia

nce

sa

les

Current heating market structure varies across Europe

158

Experts in heat and distributed energy

Housing stock varies significantly across the 3 Belgian regions

FLANDERS

0% 20% 40% 60% 80% 100%

Natural Gas Fuel Oil CoalLPG Electricity Wood

0

2

Pre-1970 1970-1990 1991-2006 2006-2014

million

75%

25%

Multi family

homes: 0.7 million

dwellings

Single family homes:

2.2 million dwellings

61%

Mainly single family homes

60% on gas

More modern dwellings

Dwellings by main fuel type

Dwellings by age

BRUSSELS

0% 20% 40% 60% 80% 100%

Natural Gas Fuel Oil CoalLPG Electricity Wood

0

0,2

0,4

Pre-1970 1970-1990 1991-2006 2006-2014

million

33%

67% Multi family

homes: 0.3 million

dwellings

Single family homes:

0.2 million dwellings

77%

Two thirds flats

Three quarters on gas

>70% very old

Dwellings by main fuel type

Dwellings by age

159

Experts in heat and distributed energy

Agenda

About Delta-ee

Scope of the study for ARGB

What will drive a change in heating appliance uptake?

Forecasted sales of heating appliances in Belgium

What does this mean for gas demand? What could influence this?

Conclusions

160

Experts in heat and distributed energy

Step 3: Techno – economic modelling in

different housing segments.

Step 2: Segmentation of the Belgian

housing stock.

Forecasting heating appliance uptake in Belgium

Summary of forecasting approach:

Step 1: Scenario development &

assumptions.

Step 4: Customer ‘soft’ factor analysis

to generate uptake %s

Step 5:

Apply uptake %s for each

appliance to the addressable

market in each housing segment

% u

pta

ke

Economics Physical fit Soft factors

1

2

3

Annual replacements in one segment

Customer familiarity/trust

Government commitment

Market Push

Installer attitude

Customer awareness

Customer

appeal

161

Experts in heat and distributed energy

Forecast for annual sales of heating appliances: FLANDERS

-

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

180.000

200.000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Annual sale

s o

f heating a

pplia

nces

Annual sales of heating appliances by appliance type in Flanders

Other

Electric

Oil boilers

Lower carbon gas appliances

Gas boilers

Gas boilers

‘Lower carbon’ gas appliances

Installed base of boilers today:

~30% non-condensing

~70% condensing

162

Experts in heat and distributed energy

Forecast for annual sales of heating appliances: FLANDERS

-

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

180.000

200.000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

An

nu

al sa

les

Annual sales of heating appliances in Flanders

Biomass

GSHP

ASHP

Electric storage heater

Hybrid heat pump oil boiler

Oil boiler plus solar

Oil boiler standard efficiency

Oil boiler high efficiency

Fuel cell

Micro-CHP engine

Gas heat pump

Hybrid heat pump gas boiler

Gas boiler plus solar

Gas boiler standard efficiency

Gas boiler high efficiency

163

Experts in heat and distributed energy

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

3.500.000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Insta

lled b

ase o

f heating a

pplia

nces

Evolution of the installed base of heating appliances in Flanders

Biomass

GSHP

ASHP

Electric storage heater

Hybrid heat pump oil boiler

Oil boiler plus solar

Oil boiler standard efficiency

Oil boiler high efficiency

Fuel cell

Micro-CHP engine

Gas heat pump

Hybrid heat pump gas boiler

Gas boiler plus solar

Gas boiler standard efficiency

Gas boiler high efficiency

Forecast for installed base of heating appliances: FLANDERS

The installed base of

gas appliances grows

to ~2 million by 2030

164

Experts in heat and distributed energy

Forecast for annual sales of heating appliances: WALLONIA

-

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Annual sale

s o

f heating a

pplia

nces

Annual sales of heating appliances by appliance type in Wallonia

Other

Electric

Oil boilers

Lower carbon gas appliances

Gas boilers

Gas boilers

‘Lower carbon’ gas appliances

ASHPs

Installed base of boilers today:

~50% non-condensing

~50% condensing

165

Experts in heat and distributed energy

Forecast for annual sales of heating appliances: BRUSSELS

-

5.000

10.000

15.000

20.000

25.000

30.000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Annual sale

s o

f heating a

pplia

nces

Annual sales of heating appliances by appliance type in Brussels

Other

Electric

Oil boilers

Lower carbon gas appliances

Gas boilersGas boilers

‘Lower carbon’ gas appliances

Installed base of boilers today:

~55% non-condensing

~45% condensing

166

Experts in heat and distributed energy

Similar trend across Europe… a big shift towards low carbon

-

2.500.000

5.000.000

2013 2015 2020 2025

An

nu

al sa

les a

cro

ss f

ive

m

ark

ets

Gas boiler Oil boiler Electric heating Other

Gas boiler only 22%,

Oil boiler 44%

Electric 36%

Lower carbon

solutions 290%

One of our scenarios for the heating market across 5 markets

167

Experts in heat and distributed energy

Agenda

About Delta-ee

Scope of the study for ARGB

What will drive a change in heating appliance uptake?

Forecasted sales of heating appliances in Belgium

What does this mean for gas demand? What could influence this?

Conclusions

168

Experts in heat and distributed energy

Annual gas demand evolution to 2030

-

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000

50.000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

An

nu

al g

as d

em

an

d (

GW

h)

Evolution of annual gas demand in the residential sector in Belgium

Brussels

Wallonia

Flanders

Region Annual gas demand – today Annual gas demand – 2030 % reduction in gas volume by 2030

Flanders 30,640 GWh 27,780 GWh 9 – 10%

Wallonia 11,660 GWh 10,180 GWh 12 – 13%

Brussels 5,100 GWh 4,440 GWh 13%

Annual gas

demand falls by

10.5% in Belgium

by 2030.

169

Experts in heat and distributed energy

Key levers affecting gas demand: FLANDERS

Key ‘lever’ Changes considered in the sensitivity analysis Overall impact of ‘lever’

on gas demand

Insulation of existing dwellings 1. No insulation of existing buildings occurs.

2. Acceleration in the insulation rate of existing dwellings occurs.

WEAK

WEAK

Energy prices 3. Electricity price increases more quickly post 2025.

4. Gas price increases more quickly from 2016.

5. Heat pump electricity tariff has been removed.

WEAK

MODEST

WEAK

Electric heat pump uptake

(‘Electrification of heat’)

6. Fully installed price of ASHPs & hybrids falls more quickly.

7. Heat pump electricity tariff becomes more attractive from 2017.

8. Both of the above occurs.

STRONG

MODEST

STRONG

Lower carbon gas appliance

uptake

9. Fully installed price of the lower carbon gas technologies falls more quickly. WEAK

Building regulations 10. Building regulations for new build dwellings are also applied to existing stock from

2020.

VERY STRONG

Economic outlook 11. A weakening of the economic outlook means customers are less willing to invest in

lower carbon appliances.

WEAK

FL

AN

DE

RS

170

Experts in heat and distributed energy

Impact of key ‘levers’ on future gas demand

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000

50.000

2013Annual

gasdemand

Referenceforecast

Noinsulation

No HP*tariff

Low costlower

carbongas

Higherelectricity

price

Economicoutlook

weakens

Increasedinsulation

CheaperHP* tariff

Highergas price

Low costHPs*

Low costHPs* &cheaperHP* tariff

Buildingregs onexisitingdwellings

Annual gas demand in 2030

An

nu

al g

as d

em

an

d (

GW

h)

Variations in our annual gas demand forecast in Belgium under different sensitivities

Lower gas

demand

Higher gas

demand

Some levers will slow the rate of

reduction in gas demand to 2030

Some levers, if

influenced strongly,

could see gas demand

falling by 30% by 2030

171

Experts in heat and distributed energy

Agenda

About Delta-ee

Scope of the study for ARGB

What will drive a change in heating appliance uptake?

Forecasted sales of heating appliances in Belgium

What does this mean for gas demand? What could influence this?

Conclusions

Gas boilers dominate the heating market today

Many new options are becoming available to

customers – electric heat pumps, gas heat pumps,

hybrids, micro CHP, …

Policy is developing that supports these newer &

more efficient appliances.

Annual gas demand in Belgium could fall by 10%

by 2030… with variations happening across the 3

Belgian regions.

Annual gas demand could fall further if certain

policy ‘levers’ are pulled.

Matthias Maedge

NGVA Europe

Lowering transport emissions – the role of gas in the EU mix

Gasday, Brussels 13 december 2016

Matthias Maedge Secretary General

174

NGVA Europe Board of Directors

N G V A E u r o p e

Strategy on low emission mobility

175

Strategy on low emission mobility (20 July): “The widest range of options is currently available for passenger cars and buses, (…). Natural Gas is expected to be increasingly used as an alternative for marine fuels in shipping and for diesel in lorries and coaches. Its potential can be increased significantly with the use of bio-methane and synthetic methane (power-to-gas technologies). “

Need for fair pricing (kg, litre, kwH)

Source:https://ec.europa.eu/transparency/regdoc/rep/1/2016/EN/1-2016-501-EN-F1-1.PDF

N G V A E u r o p e

Why gas in transport?

176

CNG

LNG

• Reduced GHG emissions (up to 100% when blended with renewable gas) • Up to 95% less particulates and up to 70% Nox vs EUR VI/Euro 6 limits • 50% less noise exposure vs conventional technologies • CNG and LNG offer a solution for all vehicles and transport modes (vehicles and ships)

immediate solution to air quality problem, mitigate climate change & diversify energy supply

…but only 0,5 % EU market share

N G V A E u r o p e

177

Best practice examples

N G V A E u r o p e

- 920 CNG stations - 100,000 NGVs

- Strongest NGV growth - Czech Post runs CNG

- LNG leader in Europe - Garbage trucks 100% on CNG in Madrid

- Biomethane champion - 20% market for CNG buses

- Biggest HDV fleet in Europe, over 4,000 trucks and buses

- 75% of EU NGV market - 3,000 NGV stations by 2025

Fact check electricity, H2 and CNG

Tesla Model S 70D (BEV) Range**: 280 km Fuel costs*: €7,25/100 km CO2 emissions*: 135g CO2/km Price*: €88,200 * based on German energy mix and prices (2016) * * real driving tests

Toyota Mirai (H2) Range: 500 km Fuel costs: €9,50/100 km CO2 emissions: 365g CO2/km Price: €78,600

Mercedes Benz 200c (CNG) Range: 700 km Fuel costs: €5,50/100 km CO2 emissions***: 92g CO2/km Price*: €32,900 * * * incl. 20% biomethahne in CNG mix

179

Synthetic Natural Gas (SNG)

Source: Audi

N G V A E u r o p e

Emissions from Natural Gas in Transport: Analysis 180 Brussels, 12 December

2016

Continuous improvement of CNG engines TT

W C

O2

eq

uiv

alen

t

Time

100

123

1st gen Naturally aspirated

bifuel engines

2nd gen Turbocharged bifuel engines

3rd gen TC DI dedicated

CNG engines

- 15%

- 30%

2000 Current > 2020

CNG

GASOLINE

Real Driving Emissions (RDE)

181 181

European Parliament confirms RDE tests:

• First step, NOx “conformity factor” of 2.1 (110%) for new models by

September 2017 and for new vehicles by 2019.

• Second step, down to a factor of 1.5 (50%), by 2020 for all new

models and by 2021 for all new cars.

• SCR systems on new diesel models will lead to higher costs, several mass market models will not be offered as diesel versions. CNG will play strong

role to bring down

CO2 emissions

N G V A E u r o p e

182

Source: AFGNV, own pictures

N G V A E u r o p e

Operational Planned

UK

32

Spain 20 5

Netherlands 17 9

Sweden 7

Portugal 4 3

Italy 3 4

Poland 2

Belgium 2 1

France 3 4

Norway 1

Germany 2 5

Finland 0 1

Lithuania 0 1

Europe 85 32

LNG Blue Corridor

NGVA Europe 183

Source: LNG Blue Corridor

29,6 liter 26,9 kg

Diesel

735 g CO2/km

22,9 kg 15% less CO2

LNG

623 g CO2/km N G V A E u r o p e

Real live trial (NinaTrans, BE)

Emissions from Natural Gas in Transport: Analysis 184 Brussels, 12 December

2016

CNG-LNG vs diesel trucks

λ = 1 Lean burn HPDI

Euro VI / EPA‘10 o o o

Efficiency - - o

CO2 + +/++ ++

Engine complexity + ++ -

ATS complexity ++ + o

Power/torque + o o

Technological risk o o -

Overall assessment

++ significantly better than Diesel

+ better than Diesel

o similar to Diesel

- worse than Diesel

Conclusion: CNG-LNG always superior vs diesel (most cost-effective solution to reduce emissions)

HDGas

“AFI” Directive 94/2014/EU

185

Member States present National Policy Frameworks 18 November 2016

LCNG station, M1, UK

CNG bus station, Ljubljana, Slovenia

Source: European Commission, NGVA Europe

S e p t e m b e r 2 0 1 6

3,500 NGV filling stations in Europe vs 130,000 petrol and diesel stations

186

Source: AFGNV, own pictures

Clean Fuel station Grenoble (electricity, CNG, H2)

Fleet champion – 2,700 buses and 1,400 trucks

N G V A E u r o p e

Public NGV infrastructure France

Country

Austria

Belgium

Croatia

Czech Republic

Denmark

Sweden

Finland

France

Germany

187

Country

Greece

Hungary

Ireland

Italy

Portugal

Netherlands

Poland

Spain

United Kingdom

Source: NGVA Europe

N G V A E u r o p e

National Policy Frameworks (indicative ambition)

188

Price differential for CNG/ LNG vs petrol & diesel

55%

65%

57%

22%

62%

33%

54%

43%

35%

48%

62%

31%

56%

35%

40%

61%

57%

49%

60%

56%

46% 47%

16%

46%

57%

31%

50% 48%

13%

55%

9%

47%

25%

13%

28%

46%

22%

41%

18% 21%

48%

34% 37%

43%

48%

29% 29%

0%

31%

38%

CNG/LNG price differential vs petrol (%) CNG/LNG price differential vs diesel (%)

N G V A E u r o p e

189

CNG trend Czech Republic CNG trend Belgium

Source: ngva.be, cng4you.cz, Blue Fuel news

S e p t e m b e r 2 0 1 6

NGV forerunners Belgium & Czech Rep.

NGVA Europe 190

Source: NGVA Europe

S e p t e m b e r 2 0 1 6

NGV Roadmap 2030

191

0

2.000.000

4.000.000

6.000.000

8.000.000

10.000.000

12.000.000

14.000.000

16.000.000Total number of vehicles

0

2.000.000

4.000.000

6.000.000

8.000.000

10.000.000

12.000.000

14.000.000

16.000.000

Total number of vehicles

Source: NGVA Europe

N G V A E u r o p e

20% of new sales NGV

Maarten Van Houdenhove

Communication & PR Manager at

DATS 24 - Colruyt Group

Our deliberate choice for CNG (and EV’s and FCEV)

Why CNG? ‘Alternatives’ in our corporate

fleet What’s next?

Why CNG?

CNG

'Together, we create sustainable added value

through value-driven craftsmanship

in retail.'

towards zero emission !

H2 next 10 to 15 years

transition

‘Alternatives’ in our corporate fleet

39 8 1 6 952

65

+/- 25% of our corporate fleet is an ‘alternative’

320 pk

H2

1

1

Audi A3 and Seat Leon:

2018/2020

400 pk 1/2

+/- 25% of our corporate fleet is an ‘alternative’

Economic gains

Additional cost NGV: -500€ > +2.000€

-525 € -581 €

Passenger car 15.000 km/y

Company car 25.000 km/y

Van 35.000 km/y

-335 €

detailed calculation on request

What’s next?

today

2017

2018

Spring 2017: green hydrogen integrated next to CNG, diesel and gasoline

do drive along http://dats24.be

Raphaël De Winter

Deputy Director at Fluxys

Fluxys SA

Raphaël De Winter

Head of Corporate Commercial & Innovation

Gasday – 13 December 2016 211

Future Trends

Forecasting the future… a difficult exercise…

“Television won't be able to hold on to any market it captures after the first six months. People will soon get tired of staring at a plywood box every night.”

1946, Darryl F. Zanuck (Twentieth Century-Fox)

Gasday – 13 December 2016 212

Environment & Innovation

KNOWN

KNOWNS

• The energy mix is transforming

• Technology becomes evermore available

• Change is now a global trend driven by innovation and politics

• Digital is a key element

European commitment regarding GHG emissions

• decarbonisation 2030: 40% of 1990

• Renewable energy 2030: 27% of the energy mix in 2030

• Energy efficiency 2030: - 27% from 1990

• New heating and cooling regulation

• Import dependency concerns

Gasday – 13 December 2016

214

Share of renewables in gross final energy consumption

Fig. GTM research 2015

KNOWN

KNOWNS

Increasing share of Renewable Energy

Sources

Renewable technology cost decreases with

innovation and economy of scale

Electric vehicles batteries at 20% cost of 2010

Tesla « Giga-factory » will produce more than the current production volume

214

Power generation:

Existing centralised power is the obvious first step!

Gasday – 13 December 2016 215 Fig. Aurora Energy Research

ACTUALS 2015 utilisation of existing

CCGT fleet is only 36%

Base load utilisation (84%

load factor) could reduce

power emissions by 30%

KNOWN

KNOWNS

216 3 November 2016 For information purpose only

LNG as a fuel: high energy density per kg and per liter KNOWN

KNOWNS

217

GLE + Fluxys

0.2 MTPA LNG is delivered to

industry via trucks

0.5 MTPA LNG is delivered to industry

via small LNG carriers

and trucks

0.8 MTPA is delivered via LNG

trucks to remote gas

grids, which supply

industry, power plants

and households

LNG as a fuel for industry in 2015:

1.5 MTPA

Gasday – 13 December 2016

KNOWN

UNKNOWNS

Small Scale LNG for ships: a rising market

Gasday – 13 December 2016 218

KNOWN

UNKNOWNS

Small Scale LNG: World-wide regulation favours LNG

Gasday – 13 December 2016 219

KNOWN

UNKNOWNS

SECA: Sulphur Emission Control Areas

Small Scale LNG for trucks: a developing market

Gasday – 13 December 2016 220

KNOWN

UNKNOWNS

Gasday – 13 December 2016 221

KNOWN

UNKNOWNS

Heavy Fuel Oil 53 mtpa

LPG 27 mtpa

Gasoline 80 mtpa

Chem feed -naphta 49 mtpa

other 50 mtpa

Refinery losses 29 mtpa

Jet-kerosene 54 mtpa

Diesel ≈ gasoil 270 mtpa

Trucks, vans,

cars 200 mtpa

Ships 7 mtpa

Heating oil

Cars

Industry

Ships

Petrochemical

Air-

planes

Small Scale LNG : A niche market today, BUT WE ARE

FISHING IN A SEA WITH LARGE POTENTIAL

[Fuels Europe.eu]

430 mtpa market

Small-scale LNG: 1.7 mtpa

• Industry: 1.5 mtpa

• Ships: 0.2 mtpa

• Trucks: 0.02 mtpa

Innovation:

Application of new technologies to drive future gas demand

KNOWN

UNKNOWNS

Analyzing the

potential of

large storage

in the energy

system: linking

power, gas and

heat

Higher

efficiency

Improve

technology,

economics and

environmental

impact

Market entry of

gas heat

pumps

Commercial

production and

feed-in of bio

methane

Lift the

potential of gas

mobility

Fig. EOn

Innovation : new business models

Gasday – 13 December 2016 223

KNOWN

UNKNOWNS

II. Energy-as-a-Service: The Next Big As-a-Service Play

I. Digitalisation of the domestic heating installation market

Control in the hands of the energy user.

• How energy is generated and the environmental impact of that generation

• Who owns those energy generation assets (the user or the supplier or a 3rd

party)

• The degree of redundancy and resiliency built into their energy capabilities

• The pricing and payment mechanisms

Internet of things

Gasday – 13 December 2016 224

KNOWN

UNKNOWNS

Conclusion : future energy system is highly complex and will

have implications through all businesses

Gasday – 13 December 2016 225

KNOWN

UNKNOWNS

Fig. EOn

Jan-Jaap Aué

Entrance

EnTranCe: Centre of Expertise Energy

“Why innovation Eco-Systems are important”

Dr. Ir. Jan-jaap Aué, Dean Centre of Expertise Energy

Hanze University of Applied Sciences

Hanze University of Applied Sciences, Groningen

• Established in 1798

• Policy plan 2012-2016 rated “Excellent” by ministery:

extra governmental funding.

• Professionally oriented higher education

• 50+ Bachelor programmes, 20 Master programmes;

• 18 Schools with each their own atmosphere;

• 3 focal areas: Energy, Healthy Ageing, Entrepeneurship

• Partner in the Energy Academy Europe

• 28,500 students choose our university;

10% international, 72 nationalities

Background

Hanze University of Applied Sciences Groningen

Innovation paradox of the Gas Industry

• WorldWide the gas industry has a comfortable seat.

– Gas sells itself and it will always do

– New Fields, so shortage is not to be expected in our lifetime

– New gas products and gas markets will always emerge

– The Gas Industry is convinced that they have a superior product

“The problem is customers do not always understand”

• Times they are a changin’ , No need to innovate ?

If we want things to stay as they are, things will have to change

Speeding up innovations

• Inter-disciplinary • Multi-Level • Co-ownership • Young People • ‘Just do it’ • Show options and

their impact • Stakeholders

Dialogue

Challenges: • Ecosystem

• Open Innovation Chains • Co-Creation • Methods

Starts with

• People in Power

• Bottom up

• More than one dimension

• growing need for innovation, changing circumstances

And means

• Paradigm shift

• Innovation: sharing knowledge

• Education

• balancing of energy-sources

Energy transition @EnTranCe

How? Educational Programs

Facilities Partners

Applied research

Example: Hybrid Energy System

Example: The (possible) role of natural gas in energy transition second life (2030-2050)

Characteristics Gas 2.0

• Sustainable value chains

• Succesfull Innovation Eco System is key

• Sharing knowledge is crucial

• Heading for open innovation

EnTranCe is being developed to facilitate, do you

want to join ?

Thank you for your attention

Gas.be