Renewable Energy Gas Solutions: Towards a Cleaner Tomorrow Energy Gases in Finland

Transcription

1 Renewable Energy Gas Solutions: Towards a Cleaner Tomorrow Energy Gases in Finland The GasHighWay route to Final Seminar of the European Project GasHighWay

2 2 FOR CLEANER WELLBEING AND ENVIRONMENT Gasum is a responsible Finnish company established in 1994, which focuses on import and transmission of natural gas and renewable domestic biogas in the future. We master more sustainable solutions based on energy gases and act as a forerunner in the field. We supply natural gas and biogas efficiently and safely and develop the natural gas energy market in Finland.

3 3 ADDED VALUE TO FINLAND 2011 Home-market Net Sales 1,300.0 million Operating profit 95.6 million Number of employees 245 Gasum supplied natural gas 39.1 TWh, covering 10% of Finland s total demand for energy. Gasum invested nearly 40 million to transmission networks, a new natural gas liquefaction plant and new natural gas vehicle filling stations. Gasum paid salaries and commissions 15.6 million. GASUM IS OWNED BY: Fortum 31% OAO Gazprom 25% Finnish State 24% E.ON Ruhrgas International GmbH 20% Our business areas

4 GASUM S GAS NETWORK REACHES HALF OF THE POPULATION IN FINLAND 4 Natural gas imported from Russia Length of transmission pipeline: 1,190 km Pipelines 512 km Volume of transmission pipeline: 261,000 m 3 Finland

5 5 THE FINNISH NATURAL GAS MARKET DIFFERS STRUCTURALLY FROM THE REST OF EUROPE Consumption of natural gas in the EU Consumption of natural gas in Finland % 24 % 36 % 33 % Kiinteistöt Property Teollisuus Industry Sähkön Electricity tuotanto Muu Other generation Source: Finnish Gas Association The key market segment elsewhere in Europe is the small-consumer use for purposes such as residential heating In Finland natural gas consumption is strongly focused on large-scale sites

6 6 ROAD TRANSPORT FUEL - BUSINESS ENVIRONMENT (FINLAND) Extensive refueling network for liquid fuels ~1000 service stations ~1000 stand-alone stations ( automatic/unmanned ) ~800 HDV refueling stations NesteOil oil refineries refining the future Strategy: Renewable diesel NExBTL ST1 Oy energy company Strategy: Sustainable BioEthanol ReFuel from industrial waste and biowaste Valmet Automotive Inc. Service provider for automotive industry Strategy: Electric and hybrid vehicles No special interests from energy, automotive or gas equipment supplier industries towards natural or biogas Finland has made a commitment to reach EU s renewable transport fuels target of 10% by 2020 Finland has raised national target to 20% role of biogas!?

7 7 LARGE YIELDS OF BIOGAS AVAILABLE IN THE AREA COVERED BY THE NATURAL GAS NETWORK The techno-economic energy potential available from biomass fractions exceeds 9 TWh/a. The highest production potential can be found in energy crops. The estimate is based on sustainable use of field areas and fractions outside the food chain (i.e. grass silage). Almost half of the total can be found near the natural gas network (Uusimaa, Southwestern Finland, Häme, Pirkanmaa, Southeastern Finland). In Southern Finland the amount of community waste is the largest and the harvest yields are also the highest. University of Jyväskylä, H Tähti & J Rintala, 2010

8 SYNTHETIC BIOGAS (BIO-SNG) OFFERS CONSIDERABLE OPPORTUNITIES FOR GASUM IN THE FUTURE 8 Synthetic biogas is produced using methods incl. wood gasification. The future scenario for synthetic biogas can be regarded to include at least three large bio-sng facilities that could produce around 5 TWh of energy [Vision Hunters 5/2010]. If facilities are also constructed outside the natural gas network, the total potential may be up to 8 TWh. 09/2011: Letter of intent signed between Botnia, Helsingin Energia and Gasum. Joutseno gasification plants capacity 1,6 TWh Biomass Gasification Gas purification Methanisation, gas dehydration and CO 2 capture THE GAS NETWORK Bio-SNG Heat Electricity

9 9 GASUM AIMS TO BECOME THE LEADING PRODUCER OF BIO-BASED GASES IN FINLAND The existing natural gas network is second to none as an efficient and environmentally friendly energy transmission system and also provides the foundation for the large-scale use of renewable indigenous gases. The natural gas network allows the transmission of bioenergy to densely populated areas of Southern Finland without the adverse effects caused by traffic. Bio-based gases injected into the natural gas network have properties that correspond to those of natural gas and can be used in all the same sites as natural gas. Bio-based gases are particularly suitable for distribution for use as a transport fuel via the natural gas filling station network.

10 10 CURRENT SITUATION, WASTE-BASED AND ENERGY CROP -BASED BIOGAS IN GASUM Gasum s strategic objective is to develop into a leading supplier of renewable domestic biogas Gasum wants to inject significant amounts of upgraded biogas into its grid in order to make a significant effect on the current product offering The Finnish biogas industry is still at the growth (or even at the introduction) stage of the industry life cycle The biogas industry in Finland consists of small-scale actors with prolonged investment paces In order to fulfill the strategic objective, Gasum wants to consider all the different means in obtaining biogas to our grid connected customers This means that Gasum has to consider taking part in backward integration by participating in the initial stages of the biogas value chain Gasum will take a bigger role in the Finnish biogas industry by consolidating the emerging biogas markets, by investing into e.g. biogas digesters

11 11 BIOENERGY TAKES YOU THE FURTHEST AS BIOGAS When a hectare of field is used for biofuel production, biogas takes you the furthest. When municipal biowaste is used to produce biofuels, the largest amount of energy (MWh/a) can be produced with biogas. The Amount of Energy Produced (MWh/a) Biogas Process Bioethanol Process Combined Process: Bioethanol and Biogas Processes Calculated with 33,000 t of waste Source: Fachagentur Nachwachsende Rohstoffe, Biokfrafstoffe: Pflanzen, Rohstoffe, Produkte, Source: Lappeenranta University of Technology, Biogas, bioethanol and combined process energy and carbon dioxide balance comparison, Noora Niinimäki, 2010

12 12 FOR A CLEANER TOMORROW Transport THE GAS NETWORK LNG (or LBG) Electricity Heat CHP Industry Residential and commercial property

13 SHARED USES OF BIOGAS AND NATURAL GAS Bio-SNG (wood gasification) Industrial sludge Communal biowaste BIOGAS Traffic use Agricultural biowaste and Energy crops 13 CHP NATURAL GAS Industrial customers Residential and commercial properties

14 14 BIOGAS versus NATURAL GAS Biogas can be upgraded into a product almost equaling natural gas. Component Raw biogas (digestion) Methane 45-75% Carbon dioxide 25-50% Nitrogen 0-20% Oxygen 0-10% Hydrogen sulphide Siloxanes Moisture Halogenated hydrocarbons mg/m mg/m3 Yes 0-1,600 mg/m3 Heavier hydrocarbons - Upgraded biogas 95-98% 0-3% 0-2% 0-1% Traces Traces Traces Traces - Natural gas In Finland 98.1% 0.04% 0.8% 0.01% Calorific value MJ/m3 36 MJ/m %

15 15 GASUM'S BIOGAS PROJECTS Gasum has a 20% share hold in Biovakka Suomi Ltd, a company that operates two biogas production facilities outside the gas network: Vehmaa since 2004, capacity 25 GWh/a Turku since 2009, capacity 25 GWh/a In Kouvola, from 10/2011 onwards, a biogas plant started its operations at the Mäkikylä waste water treatment facility. Gasum injects upgraded biogas into the natural gas network, capacity 14 GWh/a. In Espoo, Gasum will start to upgrade and inject biomethane into the grid from the Suomenoja waste water treatment facility, capacity 20 GWh/a. Plant operational 11/2012 Gasum is designing a biogas digestion plant in Nastola, capacity 50 GWh/a, waste flow 120,000 t/a. Plant operational 1/2014 Letter of intent regarding the design of a energy crop biogas plant for Kouvola with KSS Energia, capacity 100 GWh/a. Gasum is also planning several other biogas facilities

16 16 KOUVOLAN BIOGAS FACILITY Digester and upgrading unit is owned and operated by KSS Energia (local energy company) and biomethane is injected to the natural gas grid by Gasum The facility started to inject biomethane to the grid on October 2011 Digester: Two-stage thermophilic wet fermentation process, upgrading: Greenlane water scrubber Total capacity: 15 GWh/a, biomethane injected to grid: 7 GWh/a Feedstock: Municipal biowaste, sewage sludge and grass silage from the Kymeenlaakso and neighboring areas In 11/2012, a similar concept in the Espoo Suomenoja waste water treatment facility will be in operation, capacity 20 GWh/a. Gasum upgrades and injects the biomethane to the natural gas grid.

17 17 NATURAL AND BIOGAS AS A ROAD TRANSPORT FUEL Status Finland 1/2012 Gasum is developing its own filling station network (and other energy companies have also began to start up stations) Number of public filling stations: 17 In Jyväskylä biogas filling facilities, pilot projects in other locations too Home and vehicle refueling appliances also on the market All Gasum stations has offered biogas since

18 18 MARKETING ACTIVITIES - EXAMPLES

19 19 MARKETING ACTIVITIES - EXAMPLES

20 20 MARKETING ACTIVITIES - EXAMPLES

21 21 THE FINNISH GOVERNMENT IS COMMITTED TO PROMOTE THE USE OF NATURAL AND BIOGAS Extracts of Jyrki Katainen s Government Program ( ) The share of renewable energy sources will be increased systematically and costeffectively, in accordance with the EU target set previously. Biorefinery projects based on the utilization of domestic forest raw material will be supported. The position of energy efficient co-generation of electricity and heat (district heating and cooling) will be safeguarded. The use of biogas in vehicles will be promoted. The impact of the energy tax reform will be monitored by assessing how it affects overall tax accrual, the pressure on the environment, household purchasing power and income distribution, and the framework conditions for industry.

22 22 GASUM DONATED A POLICE CAR TO THE POLICE DEPARTMENT IN

23 THANK YOU! Jani Arala Product Manager. Biogas / Sustainable energy solutions for a cleaner wellbeing