Options for decarbonising supplied gas

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1 Options for decarbonising supplied gas Accommodation of H 2 and bio-ch 4 in the natural gas network The future of the UK Gas Network!, London 5th & 6th March 2013 Onno Florisson

2 Characteristics of the natural gas network Huge capacity Possibility to buffer/store gas (= energy) for a short or longer period without/with minor losses Ability to accommodate non-natural gases, provided that.. Existing widely spread asset, built up in decennia with huge investments Cost-effective, energy-efficient, environmentally friendly Excellent safety record 2

3 Focus of this presentation Hydrogen - Where does the hydrogen come from? - Storage of electricity, a new role for the gas network - The ability of the natural gas network to accommodate hydrogen - Some European developments on Power2Gas Biomethane - The challenges of Bio CH 4 accommodation in the gas grid - The future of Bio CH 4 accommodation in the gas grid - Some European developments on Bio CH 4 Conclusions 3

4 Where does the hydrogen come from? High temperature gasification processes of hydrocarbon materials (biomass, car tires,..) Byproduct of many chemical processes Conversion of electricity Attention: Hydrogen can be converted with CO 2 into methane, which simplifies the accommodation in the natural gas system 4

5 01 Oct 2012 Wind farm operators 'paid millions more than previously thought' by Grid to turn off turbines. Operators of wind farms were paid 34 million to switch off turbines during gales - millions more than previously thought - it was reported. 5 The wind farms are paid to stop by the National Grid, which cannot cope with the extra energy produced by the high winds. Energy Gas Markets Network and Strategy Association, (GMS) London, DNV KEMA, Onno Florisson,

6 Power2Gas: Interchangeability of gas and electricity In case E-production > demand or transmission capacity Switch off production Store/convert Increase demand (DSM) Electrolysis into H 2 Large scale storage: batteries, pumped hydro etc. H 2 appliances (fuel cells, H 2 vehicles, etc.) Injection into natural gas pipelines Methanation and injection into natural gas pipelines Use as a chemical feedstock Energy Network Association, London, DNV KEMA, Onno Florisson,

7 New role for the natural gas network A method to support the match between electricity production and demand: the accommodation of H 2 /methane produced from electricity in the natural gas grid acts like a storage of electricity or a flexible electricity end user Additional transmission capacity for the E-grid: potential reduction of the need or of the urgency for extending the E-transmission capacity, and offering relieve to the E-grid at peak loads Importance of P2G for gas TSO s and DSO s: Promotion of the role of the natural gas system (gas + infrastructure + end use): - Greening the gas - Reducing its CO2 emission when combusted - As flexible facilitator of renewable energy and the energy transition Consolidation/extension of the role of the natural gas system Energy Network Association, London, DNV KEMA, Onno Florisson,

8 P2G options National, transmission, high pressure/voltage level Regional medium pressure/voltage level District low pressure/voltage level Domestic level Energy Network Association, London, DNV KEMA, Onno Florisson,

9 How much H 2 can the natural gas network accept? The basic issue: The natural network has been designed for natural gas, and the chemical and physical properties of hydrogen differ significantly from those of natural gas. These differences might have an impact on: Durability of materials Criticality of defects in pipelines Combustion properties Safety associated with transmission, distribution and use.. 9

10 How much H 2 can the natural gas network accept? NATURALHY project, focus on the potential show stoppers: - Materials - System integrity - Safety - End user appliances 39 European partners, including National Grid, Universities of Loughborough, Leeds and Oxford, UK HSE, SHELL, Leeds University, BP Gas Marketing Limited, Computational Mechanics International, General Electric PII Ltd, X/Open Company Limited Integrated Project within EC s FP6, budget 17.3 M, EC-grant 11 M Duration: 1 st May st October

11 Example of the work on safety (1) Explosions in buildings 80:20 50:50

12 Example of the work on safety (2) Explosions in industrial situation 80:20 50:50

13 Summary of the results of NATURALHY The maximum percentage of H 2 added to natural gas is limited by (in order of increasing stringency, and not taking into account the UK legislation on this aspect): % H2 1. Pipeline materials (at least 50%) 2. Safety (30%) 3. End user appliances (0-20%) 13

14 European attention R&D on large scale gasification of biomass is in progress, particularly in Sweden and in the Netherlands At this moment, Power2Gas has a lot of attention in the European Union as the storage of electricity is a key element of the implementation of sustainable generated electricity R&D projects on Power2Gas on - a system level in Germany, the Netherlands, Denmark,.. - component level, particularly on electrolysers and parts of the natural gas network Main challenges on Power2Gas concern: The economics The regulatory framework 14

15 Current P2G demonstration projects Foulum (DK) Electrochaea Rostock (DE) - WTI Grapzow (DE) WIND Project Gruppe Prenzlau (DE) Enetrag AG Berlin (DE) Falkenhagen (DE) E.ON AG Hamburg (DE) Vattenfall Werlte (DE) Audi AG Herten (DE) Stadt Herten Leverkusen (DE) 250 kw 3 kw 1 MW 500 kw 6 kw 2 MW 2.5 MW 6 MW 165 kw 100 kw Largest = 6 MW (Audi AG) Karlsruhe (DE) DVGW & KIT 200 kw Stuttgart (DE) - SolarFuel 25 kw Freiburg (DE) Fraunhofer ISE Graben (DE) Gasunie GmbH & Greenpeace Energy (DE) Groningen (NL) DNV KEMA 40 kw 1 MW unknown 20 kw 15

16 Biomethane Biomethane = upgraded biogas that meets the specifications for injection in the natural gas network Digestion processes of biological materials mature technology Hydrogen and CO2 in a reactor mature technology, in scaling up phase High temperature gasification of hydrocarbon materials + further processing of the gas large scale facilities are in the development phase 16

17 maturity Development of biogas utilisation options decentralised power generation decentralised upgrading + injection (stand alone) centralised upgrading + injection (biogas hub) (de)centralised upgrading & liquefaction CHP injection biogas hubs LBG time 17

18 Challenges of the accommodation in the gas grid of biomethane from digestion processes Costly, due to the biomass costs, biogas production, upgrading, gas quality control, measurements for custody transfer, compression, odorization, pipeline for connection to the grid,.. in combination with relative small volumes DSO s and TSO s are facing a lot of relatively small-scale injections: control issue Issues related to differences between the caloric value of biomethane and of natural gas Capacity issues: additional cost for compression toward a higher level/other measures These challenges seriously limit the future of the accommodation of biomethane in the natural gas network. However, we see an interesting future for Liquefied Biomethane for transportation purposes: 18

19 LBG: a potential alternative for the accommodation in the gas grid of biomethane from digestion processes The emission of LBG when combusted is cleaner than the emissions from all other liquid fuels Very good engine performance because of high methane number The margin of LBG production is larger than of biomethane for injection 19

20 CEN PC408: Gas quality issues of biomethane Biomethane specifications Specifications for injection in the natural gas grid Limited by Wobbe, CV, oxygen, carbon dioxide, sulphur, ammonia, fluorid, carbon monoxide, BTX, siloxanes, hydrogen. etc. etc. Specification for use in dedicated transportation fleets More or less pure methane Optimised for transport applications: high methane number 20

21 Conclusions The natural gas network has unique attributes, which crucially support the integration of sustainable energy, gas as well as electricity. The ability of the natural gas system to accommodate hydrogen is particularly limited by regulations and end-user equipment. R&D actions to fill gaps in knowledge are in progress. The possibility to accommodate electricity in the natural gas network (Power2Gas) by means of methane or hydrogen, is a potential new role for the gas network. This could importantly support the implementation of sustainable generated electricity. The accommodation of biomethane from digestion processes remains a challenge in terms of /MJ, capacity/demand and gas quality control. Perhaps LBG for transport purposes is more cost effective way that also avoids a lot of control issues. 21

22 Thank you for your attention! Any questions? Onno Florisson Tel:

23 Capacity Consequences of intermittent production: need for flexibility Capacity utilization rate (0% to 100%) Energy Network Association, London, DNV KEMA, Onno Florisson,

24 LBG supply chain and cost effectiveness Due to the increasing price of conventional fuels, the margin between retail and production increases for LBG Feedstock costs have the highest impact on the production costs determine business case of LBG Bioticket prices in the UK are in average 6 /GJ in 2011 (if double counting applicable: 12 /GJ) bridging the unprofitable top (RHI subsidy for biomethane injection 20 /GJ) Biomass 5 20 /GJ Digestion 6-8 /GJ Upgrading + liquefaction 8-10 /GJ Transport 2-5 /GJ Retail price 27 /GJ

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26 Developments in biogas decentralised power generation PRO s decentralised upgrading + injection (stand alone) centralised upgrading + injection (biogas hub) CON s (de)centralised upgrading & liquefaction Efficient energy conversion process (limited heat waste) Flexible energy carrier (heating, electricity production, transport fuel) Limited transportation costs of biomass Expensive upgrading and injection Limited by grid capacity/demand of DSO grids Many injection points 26

27 Developments in biogas decentralised power generation PRO s decentralized upgrading + injection (stand alone) centralised upgrading + injection (biogas hub) CON s (de)centralised upgrading & liquefaction Less expensive upgrading and injection (economy of scale) Fewer injection points Injection at higher pressures less capacity limitations Many stakeholders many interests Complex contracting Complex process monitoring Operator for raw biogas pipelines required 27

28 Developments in biogas decentralised power generation decentralised upgrading + injection (stand alone) centralized upgrading + injection (biogas hub) (de)centralised upgrading & liquefaction PRO s Combined liquefaction and gas treatment Interesting new market, that takes advantage of the specific characteristics of LBG An alternative for regions where CHP s nor injection in the natural gas network is an option CON s Dedicated fleets necessary New filling infrastructure needed Around 13 % energy losses during upgrading and liquefaction processes Safety issues 28