PROMOTION OF THE USE OF ALTERNATIVE FUELS. DAR RAPID TRANSIT AGENCY Karimjee Hall - Dar es Salaam, Tanzania 15 th April 2009

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1 PROMOTION OF THE USE OF ALTERNATIVE FUELS DAR RAPID TRANSIT AGENCY Karimjee Hall - Dar es Salaam, Tanzania 15 th April 2009 By: Eng. Jyce Kisam

2 OUTLINE Available Energy Surces Wrldwide What is Natural Gas? Why Natural Gas? Energy Resurces in Tanzania Natural Gas Reserves Update Natural Gas Develpment Prjects (Electricity, Industrial uses, CNG, Institutins/Husehlds) Cntributin t the Ecnmy Summary

3 Wrldwide Cmmn Energy Surces There are s many different energy surces wrldwide. The mst cmmn are: Fssil fuels (cal, il and natural gas) Nuclear Hydr Slar Wind Gethermal Bimass Tidal and waves.

4 Fssil Fuels Cnsist f cal, il and natural gas frmed frm fssilized remains f prehistric plants and animals. Prvide arund 66% f the wrld s electrical pwer and 95% f the Wrld s ttal energy demand (i.e. heating, transprt, dmestic, electricity and ther uses). Unfrtunately this energy surce is nt renewable.

5 Nuclear Energy Frmed in a reactr using uranium rds as fuel and the heat is generated by nuclear fissin (energy generated frm splitting uranium atms) Heat used fr electric generatin Nuclear pwer prduces arund 11% f Wrld s pwer energy needs The grwth f nuclear energy is limited by its safety. Nuclear waste is very dangerus because f its radiactivity cntent Nuclear energy is nt renewable.

6 Hydr Hydr electric pwer is generated frm falling water. Water is allwed t flw thrugh tunnels in the dam t turn turbines which are cupled t electric generatrs. Cheap surce f energy in that water ccurs naturally and is nn-pllusive, hwever dams cnstructin are s expensive and there is envirnmental cncerns regarding cnstructin sites etc. Hydr electric pwer is renewable.

7 Slar Slar energy uses the sun s energy t generate pwer by using slar panels Useful pwer surce in remte areas Wind Slar energy is renewable Wind energy uses wind pwer t generate electricity The wind blws the prpeller n a tall twer which turns the generatr t prduce electricity. Wind pwer is renewable

8 Gethermal Energy frm heat inside the earth. Ht rcks that exists undergrund heat undergrund water t prduce steam. When in such area (mstly in vlcanic areas) a hle is drilled int the ht regin. Steam cmes ut which can be used t drive turbines fr electricity generatin r ther heating requirements. Gethermal energy is renewable.

9 Bimass Energy cmes frm rganic materials like rubbish, animal manure, wd chips, sea weeds etc. The gaseus utcmes can be used as energy fr heating r pwer generatin. Als sugar leftver pulp baggase can be burnt t generate electricity. Bimass energy is renewable. This type f energy is crrectly called Bimass Residue Energy t distinguish frm wd and charcal.

10 Tidal & waves Energy cmes frm sea tides r sea waves which is used t generate pwer. This type f energy is difficult t harness. The energy is renewable.

11 What is Natural Gas Is a mixture f light hydrcarbn and small quantities f nn-hydrcarbns that exists either in gaseus phase r is in slutin in crude il in natural undergrund reservirs, and which is gaseus at atmspheric cnditins f pressure and temperature. Cmpsed primarily f methane (CH4), with minr paraffin hydrcarbn family, ethane (C2H6), prpane (C3H8) and butane (C4H10). Nn-hydrcarbn include nitrgen, hydrgen sulphide, carbn dixide, helium and water vapur. Althugh natural gas ccurs as gas under pressure in prus rcks beneath the earth s surface, ften it is in slutin with crude il r cndensate.

12 What is Natural Gas? A mixture f light hydrcarbns, the majr ne being Methane CH 4 ; A typical cmpsitin f natural gas: Methane - CH % Ethane C 2 H % Prpane C 3 H % Butane - C 4 H % Carbn Dixide CO 2 0 9% Oxygen - O % Nitrgen - N 2 0 5% Hydrgen Sulphide H 2 S 0 5% Rare gases He, Ne, Xe Traces

13 Why Natural Gas/Attractiveness Is the cleanest f all fssil fuels with lwer emissins clse t zer NOx/SOx and lwer carbn emissins. Cmparisn f air pllutin frm the cmbustin f fssil fuels (Punds per Billin Btu f energy cnsumed). Pllutant Natural Gas Oil Cal Carbn dixide 117, , ,000 Carbn mnxide Nitrgen xides Sulphur dixide 1 1,122 2,591 Particulates ,744 Mercury

14 Uses f Natural Gas Wrldwide There are s many different and diverse applicatins fr this fssil fuel. Wrld wide, Natural Gas is used bth as a fuel and raw material in the manufacturing f chemicals. The fllwing are sme knwn uses f Natural Gas. Residential Natural Gas is ne f the mst ppular fuels fr residential cnsumers. Applicatin includes heating/cling and cking in sme f the fllwing appliances: -Hme Furnaces -Clthes Dryers -Barbecues -Stves/Ranges -Pl & Spa Heaters -Outdr Lights -Water Heaters -Fireplace Lgs

15 Uses f Natural Gas Wrldwide Cmmercial Uses These include public and private enterprises, like ffice buildings, schls, churches, htels, restaurants and gvernment buildings. The main uses include: space heating, water heating, cling and cking. Industrial uses as prcess heat t replace heavy fuel il These include heating, cling, and cking.

16 Uses f Natural Gas Wrldwide Transprtatin as Cmpressed Natural Gas (CNG) Wrld wide, Natural gas has lng been cnsidered as an alternative fuel fr the transprtatin sectr. Mst natural gas vehicles (NGV) perate using cmpressed natural gas (CNG). This cmpressed gas is stred in similar fashin t a car's gasline tank, attached t the rear, tp, r undercarriage f the vehicle in a tube shaped strage tank. A CNG tank can be filled in a similar manner t a gasline tank. This natural gas fuels a cmbustin engine similar t engines fueled by ther surces. Hwever, in a NGV, several cmpnents require mdificatin t allw the engine t run efficiently n natural gas.

17 Uses f Natural Gas Wrldwide Electric/Pwer Generatin All ver the wrld, Natural Gas has becme a very ppular fuel fr the generatin f electricity. There are many reasns fr this increased reliance n natural gas t generate electricity. While there is n dubt that cal is the cheapest fssil fuel fr generating electricity, it is als the dirtiest, releasing the highest levels f pllutants int the air. The lead time t generate pwer is shrtest fr gas as against hydr r cal.

18 Uses f Natural Gas Wrldwide Petrchemical manufacturing Natural Gas can be used in the prductin f Methanl, Ammnia and Ethane. Ammnia is used: As the main surce f Nitrgen in Fertilizers In the preparatin f Nitric Acid Ethane is used in the prductin f Ethylene, which is used in the manufacturing f: Plastics Synthetic materials Manufacture f fertilisers (urea and ammnia) In gas t liquid (GTL) cnversin as feedstck.

19 ENERGY SOURCES IN TANZANIA TOTAL ENERGY COMMERCIAL ENERGY BIOMASS 92% PETROLEUM 89% COAL & OTHERS 2% PETROLEUM 7% COAL AND OTHERS 1% ELECTRICITY 9%

20 ENERGY CONSUMPTION IN TANZANIA TRANSPORT 39% INDUSTRY 25% HOUSEHOLD, 19% COMMERCE, 3% AGRICULTURE, 8% OTHERS, 6%

21 Is there Enugh Gas t Assure Markets? FIELDS Mkuranga 2007 Nyuni 2008 Sng Sng 1974 MnaziBay 1982 RESERVES - GIP Sng Sng TCF Mnazi Bay TCF Mkuranga -? Nyuni -?

22 ELECTRICITY GENERATION Ubung turbines Wartsila units Ttal Generating Capacity frm SS Gas ~ 191 MW ~ 100 MW ~ 291 MW Mnazi Bay Pwer Base Prject Ttal Generating capacity frm Gas ~ 12 MW ~ 303 MW

23 INDUSTRIAL USES 25 Industries are using Natural Gas Abut 10 Ptential Industrial Custmers are waiting Cnsumptin is abut 6 mmscfd in nrmal hurs, 10 mmscfd during peak hurs

24 Natural Gas Custmers Current Pwer custmers 1. Ubung Turbines (UGT 1-6) 2. Watrsilla Industrial custmers 1. Waz Hill Cement 2. Tanzania Brew. Ltd 3. Ki Ltd 4. Alaf Grup 5. Bra Tanzania Ltd 6. Karibu Textiles 7. Chinese Textiles 8. Nida Textiles 9. Lakhani Textiles 10. Mukwan Industries 11. TCC 12. Murzha Murzha Murzha METL 16. Nampack 17. Yuasa Batteries 18. Serengeti 19. Namera 20. Simba Plastic 21. Simba Steel 22. Ok Plast 23. Pepsi 24. VOT 25. Azam Bakery

25 NG fr Husehlds, Institutins & Vehicles Cmpressed Natural Gas (CNG) and Piped Natural Gas (PNG) fr Husehlds, Institutins and Vehicles in DSM; Feasibility Study - August 2006 t July 2007; The prject is viable; Implementatin cst f abut US$ 35 millin; Infrastructure t cver 30,000 husehlds/institutins and 8,000 vehicles in the Dar es Salaam city.

26 PROPOSED NATURAL GAS NETWORK IN DSM SAM NUJOMA RD ALI HASSAN MWINYI RD MANDELA RD MOROGORO RD NYERERE RD

27

28 Pilt NG fr Vehicles, Husehlds/Institutins Natural Gas Cmpressin Statin - Ubung Capacity ~ 1100 m 3 per hur Vehicles Refueling Statin (duble hrse) ~ 30 Kg per min. Daughter statin Mikcheni Vehicles Refueling Statin (duble hrse) ~ 30 Kg per min. Strage fr Husehlds custmers CNG Hub City Centre Big htels Cmmercial & nn cmmercial institutins

29 PROPOSED NGV PROJECT Design a safe, sustainable and reliable vehicle cnversin prgram with high lcal technical manpwer cntent n Private Public Partnership (PPP) Prvide knw-hw transfer t training institutins as well t the business cmmunity Develpment f a cnversin and refueling infrastructure cmpatible with the internatinal standards (ISO)

30 NGV TECHNOLOGY Cnversin Optins Petrl Engines Dedicated CNG Bi-Fueling Diesel Engines Dedicated Dual Fuels

31 CENTRE 1 PPP CONVERSION SHOPS BICO UDSM TRIANGLE TANZANIA LTD CENTRE 2 DIT ECHO MOTORS LTD

32 FUTURE PLANS Mre Electricity Generatin Prjects: Tegeta Wartisila 45 MW IPTL Plant Cnversin 100 MW Kinyerezi 200 MW Generatin f Electricity t the Natinal Grid and Exprt (300 MW) bcf frm Mnazi Bay Prductin f fertilizer bcf Prductin f Cement 62 bcf Cmpressed Natural Gas t Mmbasa -225 bcf fr 150 MW Cmpressed Natural Gas and Piped Natural Gas t Mtwara and nearby regins Mapping natural gas usage in the whle f Tanzania and EAC

33 BENEFITS OF USING NATURAL GAS Incme t the Gvernment - July 2004 t Jan US$ millin Savings t the Ecnmy - July 2004 t Jan US$ 1.71 billin Freign exchange savings - July 2004 t Jan US$ 1.31 billin Build lcal skills capacity / jb creatin Stimulate ecnmic activity and related industry Imprve vehicle and machinery efficiency Lwer energy cst (transprtatin, cking), thus Pverty reductin Reliable/Stable energy supply Immediate imprvements t air quality

34 Emissins Reductin frm Onging Prjects Reductin in CO2 Emissins: 1.12 millin Tnes Reductin in CO2 Emissins: 0.45 millin Tnes CO2 Emissins: 3.4 millin Tnes CO2 Emissins: 4.52 millin Tnes CO2 Emissins: 0.65 millin Tnes CO2 Emissins: 1.1 millin Tnes Currently: Natural Gas Befre: Jet-A1 Currently: Natural Gas Befre: HFO Pwer Generatin July 2004 Jan 2009 Industrial Use July 2004 Jan 2009

35 Estimated NGV CO 2 Emissins Reductin Reductin in CO 2 Emissins: 24.6% Reductin in CO 2 Emissins: 27.7% CO 2 Emissins: PER I M KG CO 2 Emissins: PER 1.1 LITRE 2.56 KG CO 2 Emissins: PER IM KG CO 2 Emissins: PER 1 LITRE 2.67 KG After Cnversin t Natural Gas Currently: PETROL After Cnversin t Natural Gas Currently: DIESEL PETROL VEHICLES 1.1 LITRE PETROL ~ 1 M 3 NATURAL GAS (Energy Cntent) DIESEL VEHICLES 1 LITRE PETROL ~ 1 M 3 NATURAL GAS (Energy Cntent)

36 Safety Natural gas is lighter than air Cylinders are f special material duble prtected and seamless Prperties Natural Gas Gasline Diesel LPG Cmpsitin CH 4 & Traces f C 2 H 6 -C 4 H 10 Aliphatic hyd. frm C 5 H 12 t C 12 H 26 Sat. 75% & Ar. 25% Hyd. C 10 H 20 -C 15 H 28 Prpane (60%) and Butane (40%) Flammability limits (Vlume % in air) Aut Ignitin Temperature ( F) 842 (650 C) 572 (300 C) 446 (315 C) 855 (550 C) Specific Gravity AIR SPECIFIC GRAVITY IS 0.597

37 Need fr Plicy, Incentives and Financial Supprt Plicy t mtivatin il/charcal/wd users t cnvert t natural gas; Ecnmic incentives fr Gas usage; Ecnmic Incentives fr Cnversins; Favrable Tax and Fiscal Envirnment; Pre-Financed Vehicle Cnversins.

38 Recmmendatins Mst cuntries have been successful in prmting natural gas usage fr husehlds and vehicles due t firm plicy and apprpriate incentives. Cuntry examples include: Pakistan, India, Malaysia, America, Australia, Thailand, Argentina, Brazil, Suth Krea, Ireland, Egypt, Clmbia and China.

39 SUMMARY & CONCLUDING REMARKS There is great ptential fr natural gas usage in Tanzania; Market Research and usage Mapping is needed; Develpment f Natural Gas Markets attract mre explratin;

40 SUMMARY & CONCLUDING REMARKS Use f cheaper and indigenus energy surce like natural gas will stimulate ecnmy grwth; There is need fr gvernment t frmulate clear develpment and fiscal plicies with apprpriate legal framewrks; Crdinatin amng different sectrs in Tanzania will lead t efficient use f the depleatable natural gas resurces.

41 Benefits f the Prject t Cnsumer Financial: 200 vehicles Diesel 100 litres per day Diesel Price 2,000 Tshs per litre Cst per year Tshs. 9,490,000,000 Gas cst 45% discunt Cst per year Tshs. 5,219,500,000 Savings per year Tshs. 4,270,500,000

42 There is enugh gas; There is deliverability t Dar es Salaam; The technlgy is there; There are attractive financial, envirnmental and scial benefits; SUMMARY & CONCLUDING REMARKS Therefre lets mve frward with the Dar es Salaam Rapid Bus n CNG.

43 SUMMARY & CONCLUDING REMARKS Discvery and develpment f mre gas and il resurces in Tanzania shall prvide alternative and efficient surce f energy t the sciety. Gas applicatin technlgy exists. Natural Gas is abundant. Lat us prmte its USE!!

44 Thank Yu fr Yur Attentin

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