(Bio-)LNG bunkering for inland navigation

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1 A. NOBEL & ZN (Bio-)LNG bunkering for inland navigation Input to LESAS project 29 March 2011

2 Partners and plan A. Nobel & Zn. Bunkerservice, Zwijndrecht Holland Innovation Team Chive Fuels And suppliers Support: Province of Zuid-Holland Stroomversneller Phasing: 1: quick scan for location (completed) 2: licensing procedure (ongoing) 3: application for government grant before 1st of July 4: direct bunkering of bio-lng from road trailer at own quay (Sept. 11) 5: permanent bunkering facility at same location (end of 2012) Status today: QRA ongoing, ready April

3 Why Zwijndrecht? Bunkering terminal on routes Amsterdam - Antwerp, Rotterdam - Basel No time delay compared to other locations (far) inside port area (economy of scale) Own property (not rent) with several hundred meters of dedicated quay available Space for multiple (bio-)lng storage tanks in 500 m3 range available On quay is safer than floating storage Minimum safety contours applicable (according to strict Scandinavian and US rules) Accessible for Pioneer Knudsen-size supply tankers Brand new service centre for inland navigation on the spot Industrial area with experience of storage of liquid gasses Zwijndrecht: home of and priority in inland navigation

4 What LNG to use? Ships engines especially dual fuel require constant quality, high purity, high methane number LNG for safe and economic operation For constant power to provide manoeuverability Without engine knock (damage, efficiency loss) While all other transport fuels are subject to strict specifications, LNG in the Netherlands is not. There is a need for LNG fuel standardization like in the USA (fuel grade) Think of EN standards for petrol, diesel, biodiesel,... and EU Fuel Quality Directive. And what about manufacturer s warranties??

5 LNG differs in composition LNG, liquid natural gas, consists for the largest part of methane (~ -162 Celsius) LNG is made from natural gas. All CO2, H2S, water and mercury have to be removed. Depending on the source, the composition of LNG still varies. Methane content is between 88% and 99.9%. Essentially there are two types of LNG: Rich/heavy LNG contains a relative large quantity of heavy hydrocarbons Lean LNG contains few (or no) heavy hydrocarbons.

6 Indication LNG qualities according to Gasunie (2011) Figures indicate frequent low methane number and high share of heavier hydrocarbons

7 Differences between lean and rich LNG impact on engine performance natural boil-off gas which is taken off the top of the LNG tanks above the liquid will have a high methane content and some nitrogen and thus have a high knocking resistance. Analysis show values typically around MN 100 and LCV between 33 35MJ/nm3. LNG extracted from down in the tanks is evaporated separately. This gas will contain a mixture of all hydrocarbons in the liquid and its resistance to knocking may differ from origin to origin and even from load to load, with the MN typically in the range between 70 and 80. CIMAC WORKING GROUP GAS ENGINES, INFORMATION ABOUT THE USE OF LNG AS ENGINE FUEL, DECEMBER

8 Methane number is important Jacob Klimstra, VIV congress 28 Oct

9 Impact of storage on LNG quality (weathering) The potential exists for heavy gases to build up in the fuel within a storage container over time, reducing the methane content of the fuel. This fuel can cause reduced engine performance and even engine failure when used on a vehicle. Resource Guide for Heavy-Duty LNG Vehicles, Infrastructure, and Support Operations (U.S.A. 2002) LNG weathering in storage tanks refers to a gradually change in the LNG composition over time. The reason for the composition change is that the most volatile components will boil off faster than the heavier components, leaving a continuously richer LNG in the tank. This affects the quality of the gas, specially the methane content, heating value and Wobbe-index. If the LNG is too rich the properties of the fuel will change, which may create problems in gas engines and gas burners. Sintef (Norway 2000) Chive Fuels experience: ethane has bad impact on engines, especially dual fuel

10 We want fuel grade LNG or bio-lng Fuel Grade LNG is: methane 97.0 mole % ethane 1.0 mole % total inert gases 2.0 mole % (US industry standard) Experience in countries like USA, Australia, China, Japan, UK, Norway etc. shows that fuel grade LNG can be provided by individual peak shavers and smallscale LNG liquefaction plants from stranded gas, dedicated gas fields or pipeline gas. Also: bio-lng made from biogas: highest purity, always > 99% CH4, no other hydrocarbons We hope that GATE can provide fuel grade LNG? Chive Fuels takes truckloads from Zeebrugge for industrial use only

11 What is bio-lng (LBG, LBM)? Bio-LNG is produced from biogas. Biogas is produced by anaerobic digestion. All organic waste can rot and can produce biogas, the bacteria do the work. Therefore biogas is the cheapest biofuel without competition with food or land use. Bio-LNG (LBM, LBG) = liquid bio-methane. Quality is >99% of methane. Bio-LNG is the first biofuel that is of better quality than its fossil counterpart, LNG. Bio-LNG can be produced in the Netherlands / Europe and increases independence from LNG from Arab states. Bio-LNG has a far better carbon footprint than fossil LNG and is (much) better for modern gas engines. It can reduce greenhouse gasses by >100% (Science 2010) 11

12 GATE Old peak shaver: Can a truck loading station provide >97% methane here? Is C2/C3 removed to meet fuel grade spec? Option is to upgrade by blending with >99 % methane bio-lng Large LNG terminal: Rich LNG loads will be unsuited for transportation applications Special loads might be suited for blending with bio-lng to reach fuel grade LNG spec Or: upgrade LNG from the terminal to fuel grade by removing C2/C3 (useful for petrochemical industry) At the same time solving H-gas net customers concerns over gas quality affecting their burners, gas engines, etc.

13 So, what small-scale LNG supply chain? Initial supply by road tankers. With increasing demand: Bunkering terminals accessed by smallscale LNG tankers in each seaport and at river nodes Supplied from fuel grade LNG suppliers, e.g. Norway, UK, or Netherlands small gas fields If available, fuel grade LNG from GATE And from bio-lng plants located in ports Blending options, e.g. Russian bio-lng to Nynashamn Seaports operate ~2,000 m3 LNG bunker ships, eventually some may be larger Loading inland river/estuary LNG tankers for further distribution into mainland/along coast Loading road tankers for distribution to truck/bus fuelling stations A chain inspired by Norwegian KYSTGASS supply chain. 13

14 Dutch project: design & building of (bio-)lng inland navigation distribution vessels Builder of Pioneer Knudsen SANDFIRDEN T E C H N I C S LNG Rivers Shipping Goal: to establish an international industry for smallscale (bio) LNG carriers for inland navigation, estuary ships and short sea vessels: open for orders 14

15 An infrastructure of LNG fuelling stations since over ten years Also 11 depot-based stations and supply to industrial clients Now coming to the Netherlands Anglo Dutch Bio-LNG

16 Concluding statements Breakbulk approach is supply driven, but shipping fuel supply chain should be customer demand driven (quality first) (Bio-)LNG bunkering station in Zwijndrecht is on schedule GATE should provide fuel grade LNG by investing in an upgrading facility, or have a dedicated storage for lean LNG, or provide blending facility with highest purity bio-lng (at the same time improving the carbon footprint of LNG, and preparing for a possible future biofuels obligation like in road transport) There is a need for setting a European/world fuel grade LNG standard Thank you.