Renewable Gas Forum Ireland

Meeting Ireland’s targets under the 2020 Climate & Energy Package An Opportunity for Ireland. PJ McCarthy – Chair 27th February 2018

Renewable Gas Forum Ireland

Industry Forum – represents full supply chain of biogas industry

Objectives – influence policy and legislation

Strategy – Create suitable market conditions for Renewable Gas

Advocacy – large end use consumers in manufacturing, processing and transport.

Markets – 1) Heat

2) Renewable Electricity – CCGT

3) Transport

4) Export market

Competition – 28,000 industrial and 680,000 domestic consumers

Distribution of Renewable Gas

• Gas Networks Ireland owns, operates,

develops and maintains the natural gas

network in Ireland.

• World-class, modern gas network

• Over 13,954km:

• 2,427km Transmission Network

• 11,527km Distribution Network

• More than 680,000 gas consumers

• Over 160 population centres

• 20 counties

Route to Market – Integrating Renewable Gas

GHG Emissions Inventory

The Challenge & Resource

• Agriculture • Many sustainable resources for biogas

• Manufacturing & Industry

• Dominated by Agri Food & Beverage

• Source of waste resources

• >85% energy used is Heat

• Key customer base

• Decarbonising Heat

• Corporate & Social Responsibility

• Transport

• Another key customer base;

• Decarbonising Transport

Electricity Gen’

48% Emissions

& source for 95% of biogas

Renewable Gas Markets

• HEAT – 40% of Irelands Energy Demand

• Manufacturing Industry

• Agri-Food, Beverage, Pharma’, Medical Devices, etc.

• Process & CHP

• Commercial / Hospitality / Public Sector

• Space heating & CHP

• Residential Heat – Urban

• On demand, reliable, highly efficient, and clean

• Group schemes (District Heating)

• TRANSPORT – 40% of Irelands Energy Demand

• Commercial Haulage / Logistics

• Heavy and Medium Goods Vehicles

• Public Transport – Buses

• Carbon Neutral & Clean – no PM emissions

• ELECTRICITY – 20% of Irelands Energy Demand • Central Gen’ – gas is highest efficiency “combustion” fuel

Analysis of Grass & Manure Resources

Additional Grass in excess of projected fodder demand post CAP 2020

Source: UCC ERI, MaREI, Teagasc. Funded by SFI & GNI Researchers: Richard O’Shea, Prof’ Jerry Murphy

Cattle Manure

Teagasc study by McEniry et al., 2011

examined Ireland’s potential to grow

additional grass in excess of livestock

fodder requirements.

R. O’Shea et al. 2017 combined the

Teagasc methodology with CSO data to

identify areas with the largest potential

to grow additional grass for biogas

Significant potential for additional grass

in addition to requirements for

increased milk and beef production

3 – Gas Processing and Transport Fundamental Priority: QUALITY & SAFETY

GNI & RGFI promote best practice guidelines

• Gas industry expertise and competency

• Opportunity for competent vendors / service providers

• Biogas processing co-located with AD

• Processed biogas = Renewable Natural Gas

• >97.8% Methane

• 2 technologies currently approved by GNI

• Membrane • Amine

• Gas compressed on-site into Gas Transportation Trailers (CBG Trailers)

• ADR licensed driver and tractor unit required

• Produces useful heat for AD (parasitic load)

• By-product gas – Green CO2

• Additional revenue stream high value industrial gas

Central Electricity Generation – Solid V Gaseous Fuel

• < 50% delivered as useful energy.

• > 50% transformation and own use losses.

• Solid Fuel ~35% Efficient

• Gaseous Fuel CCGT 55%- 60% Efficient

• More from Less • Less land use • Less taxpayer and

energy consumer cost

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Renewable Gas supply – delivers more energy efficiency

Industrial, Commercial & Public Sector CHP

• 90% efficient – 40% Elec & 50% Thermal

Industrial, Commercial & Residential Boilers

• Condensing Boilers up to 97% on-demand efficiency

• 1/3 cost of electrifying heat

Commercial & Public Transport

• 2% to 30% Cost saving from diesel • 100% CO2 reduction • 70% NOX reduction • 80% SOX reduction • 99% Particulate Matter reduction

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CHP – Combined Heat & Power

Renewable Gas is 100% Indigenous

Level of subsidy needed for Renewable Natural Gas

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• Scale and coordinated strategy required to achieve efficiencies

• Scale also needed to support core economic industry demand decarbonisation

• Secure & expand key export industries

• Strategy proposed

• 1- Ring fence NG Carbon Tax, &

• 2- Apply Fuel Obligation

NG Carbon Tax funding & Fuel Obligation

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• Natural Gas Carbon Tax

• €120 Million per annum

• Capacity to fund 4TWh / 7% RNG Supply

• Establish Industry

• Transition to Fuel Obligation from 2025

• Increasing annual obligation increments

• Transition to Industry - drive competition, efficiency, & reduce costs

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

RNG Forecast - GWh/Yr

RNG Subsidised GWh/yr Additional RNG Obligation GWh/yr

Renewable Gas Market(s) – 680,000 Customers

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• HEAT – 40% of Irelands Energy Demand

• Manufacturing Industry

• Agri-Food, Beverage, Pharma’, Medical Devices, etc.

• Process & CHP

• Commercial / Hospitality / Public Sector

• Space heating, CHP & CHPC

• Residential Heat – Urban

• On demand, reliable, highly efficient, and clean

• Group schemes (District Heating)

• TRANSPORT – 40% of Irelands Energy Demand

• Commercial Haulage / Logistics

• Heavy and Medium Goods Vehicles

• Public Transport – Buses

• Carbon Neutral & Clean – no PM emissions

• ELECTRICITY – 20% of Irelands Energy Demand

• Central Gen’ CCGT – gas is highest efficiency “combustion” fuel

• Opportunity for large scale CCS in Cork – Carbon Negative

The future home – Renewable Gas and Solar PV 1/3 cost of electrified heat; Reliable, efficient, carbon neutral

Renewable Gas Growth Forecast

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• Ireland has the highest potential for biogas production per capita within the EU by 2030.

• European Commission Report: “Optimal use of biogas from waste streams, An assessment of the potential of biogas from digestion in the EU beyond 2020”

• https://ec.europa.eu/energy/sites/ener/files/documents/ce_delft_3g84_biogas_beyond_2020_final_report.pdf

• Economic Assessment of Biogas and Biomethane in Ireland

• 28% Renewable Gas within direct access of Gas Grid

• https://ee.ricardo.com/downloads/energy/assessment-of-cost-and-benefits-of-biogas-and-biom

Renewable Gas across Europe

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• Ireland is absent ?

• Despite the inherent capacity and

demand !

Gas Entry Hub – supporting catchments of Farm AD’s

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Sustainable Agricultural Resources

1 On-farm and off-farm Anaerobic Digestion (AD) 2

Gas Entry Hub Renewable Gas Injection

4

Renewable Gas available for Industry, Residential, and Transport Markets 5

Renewable Gas

Gas processing and transport 3

Biogas Produced

Biogas Produced

Biogas Produced

1 – Sustainable Agricultural Resources • Pig Slurry, and Cattle Slurry (beef finishing, dairy, etc.)

• Typically 33% to 50% of AD feedstock

• Crop Residues.

• Break Crops: Tillage farmers need to use break crops, such as beet, to improve soil structure as well as for pest and disease control

• Catch Crops: Tillage farmers are now being encouraged to grow “catch crops” to protect soil from erosion during winter and nutrient depletion and run off from exposed soils

• Additional Grass Silage – Ref: Teagasc Grange guidelines for improving below average grassland with current yields <6 tonne DMT / ha

• Cultivated Marine Algae: Utilisation of marine algae (seaweed farming) as a measure to protect against environmental damage from fish farming

• Abattoir Wastes: Subject to strict guidelines from DAFM – Type 1 AD only

• Agri and Marine Food (& beverage) Industry waste streams – Type 1 AD only

Renewable Gas available for markets: Green Gas Certification Scheme for Ireland

Reference: dena BiogasRegister.de

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Renewable

Gas

Continuous Improvement

Good management Practices

Water Quality

Air Quality

Biodiversity

Soil Quality

Standard for Quality Management

(ISO 9001)

RNG towards local prosperity

No Competition with established local RNG

Application

Protection of Land - High biodiversity value

Protection of Land-High Carbon Stock

Sustainable Management Practices

GHG Mitigation Thresholds

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Demonstration: Exemplary calculation GHG Tool

GHG Accounting Tool

• Compliance with the renewable energy directive will require to include additional criteria (besides GHG mitigation) in the GGCS certification scheme.

• The definition of the GGCS certification criteria set should include the minimum sustainability criteria from the EU RED. Additional criteria could be included based on the specific values and intentions of the stakeholders.

• The sustainability criteria included can overlap with existing national or European legislation. In this case links between the respective frameworks need to be established. This will help to decrease the effort during the auditing process.

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Sustainability Criteria for Certification

E

No effects on biodiversity

Maintenance or improvement of soil

quality

Maintenance or improvement of water

quality

Maintenance or improvement of air

quality

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GGCS Sustainability Criteria

© DBFZ own figures

E

Protection of land with high biodiversity value

Protection of land with high carbon stocks

Sustainable management practices

GHG mitigation thresholds

E

no competition with established

local biomass application

biomass production towards local prosperity

Link to established standards for quality

management (ISO 9001)

EU RED criteria (minimum requirements)

Additional criteria for consideration

E

Good management practices and continuous

improvement

• Compliance with EU RED minimum requirements can be demonstrated using existing national legislation

• Consideration of protected areas: use of existing tools such as GRAS, etc. to check reference date for land conversion (01.01.2008)

• Use of farmer self declarations or other proof of compliance with national and EU requirements regarding good agricultural practices (e.g. cross compliance, etc.)

• GGCS calculation tool, default values

23

Compliance with EU RED criteria

E

Protection of land with high biodiversity value

Protection of land with high carbon stocks

Sustainable management practices

GHG mitigation thresholds

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Process Scheme

Clean Transportation: in California, charging an EV produces 38.9 gCO2e per

megajoule while operating on BioCNG produces 8.6 to -25.5!

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• Circular economy integration • Farming clusters (feedstock supply)

• Farmer & Community owned AD’s

• High capacity Gas Entry Hub

• Large catchment area

• Integrated with Agri-Food Manufacturing

• Establishment Phase, partners include: • Ballyhoura Development

• 14+ Farmers (Dairy, Pig, & Arable)

• Renewable Gas Forum (RGFI)

• GNI

Hub & AD Catchment Showcase Project

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• Circular economy integration • Farming clusters (feedstock supply) • Farmer or Community owned AD’s • High capacity Gas Entry Hub

• Large catchment area

• Integrated with Agri-Food Manufacturing

• Establishment Phase: • Collaboration partners include;

• Ballyhoura Development • Renewable Gas Forum (RGFI) • GNI

• Seeking • Farmer Developers

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Agri-Gas-Grid Showcase Project

27

• Phased Deployment - illustrative

• Rapid growth in Renewable Gas Volumes

• Gas Entry Hub enables development and growth by catchment area

• Target: 20% Renewable Gas by 2030

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Gas Entry Hubs Wider Deployment

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TCBB Resource

Renewable Gas Forum Ireland (RGFI)

RGFI Board

Producer Sector Delivery Sector Customer Sector

Renewable Gas Producer

Renewable Gas Transporter Heat & Power

Shipper/Supplier Transport

Academic & Technology Centres

• Match Demand with Supply - Demand driven (pull, not push)

• Technical Committees:

Developing Guidelines & Best Practices

Facilitate adoption of common standards and controls 29

• Renewable Gas Forum Ireland (RGFI)

‒ http://www.renewablegasforum.com/

‒ Monthly meetings and clinics, Portlaoise

‒ Full supply chain – farmer to customer

‒ Technical support, guidelines & standardisation

Best practice dissemination, Workshops, Integrated w’ leading EU competent authorities

‒ Collaboration initiatives

Networking, Matching clients – supply, demand, circular economy, on & off grid

Demonstrator & case study projects

• Renewable Heat Incentive (RHI) for Biomethane Grid Injection

‒ Pending

‒ Key enabler for market establishment

Supporting & Connecting Renewable Gas

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Agri-Gas-Grid Summary of benefits

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• Opportunity for small scale farmers – grass, rotation & catch crops

• Higher income and larger market than solid fuel biomass

• On-farm and off-farm AD development opportunities

• Diversify income

• Decarbonise agriculture feedstock and supply chain

• Displace imported fertilizers

• Improve soil, water and air quality

• Gas processing and transport

• High quality and safety standards

• Elimination of dangerous and environmentally damaging gases

• High efficiency and less vehicle movements

• Direct priority access to existing gas infrastructure and market

• Renewable Gas Entry Hubs

• Large catchment areas

• Enable on-farm and off-farm AD Nationwide

• Energy Consumer

• Lowest cost of decarbonising Heat and Commercial/Public Transport

• National GHG reduction in Heat, Transport, Electricity, & Agriculture

Concluding on the Benefits

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• Opportunity for small scale Farmers – feedstock supplier

• Higher income, larger & more secure market

• Opportunity for Farm based AD developments

• Diversify income

• Displace imported fertilizers

• Improve soil, water and air quality

• Opportunity for the Energy Consumer – Domestic to Industrial

• Lowest cost for decarbonising Heat, CHP, Public & Commercial Transport

• Competitive & efficient fuel for Combustion Power Gen

• On demand / dispatchable energy, clean & secure

• Environment / National

• Security of supply - resilience

SECURE & SUSTAINABLE

• Environmentally

• Economically

• Competitively