and NGV fueling infrastructure, for example hinge on multi-billiondollar

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1 the Energy to Lead solutions END USE JULY 2012 X VOLUME 7, NUMBER 1 DIRECTOR S PERSPECTIVE The Natural Gas Gold Rush With end users consuming about 22.3 trillion cubic feet (Tcf) last year, we saw an all-time record for natural gas demand in the U.S. Now, a strong rebound in industrial demand, power generation expansion, and high growth rates in natural gas vehicles (NGVs) has led to projections by the U.S. Department of Energy s Energy Information Administration of demand at 24 Tcf by That may prove to be too conservative. New resources could be channeled along many demand vectors traditional and untraditional, large and small. Only time will tell how the market will evolve. Some new natural gas demand opportunities new industrial and power generation plants In This Issue Natural Gas Demand page 2 Growth in Power and Heat Generation Introducing Renewable page 5 Gas into Pipelines Driving Deployment of page 6 Emerging Technologies NGVs and the page 8 Transportation Industry PERC and GTI page 10 Influencing Green page 11 Building Standards UTD Member Spotlight: page 12 Enbridge and NGV fueling infrastructure, for example hinge on multi-billiondollar investments. Clearly, there are many pathways for new natural gas supplies to provide a compelling value proposition especially in the residential, commercial, industrial, power generation, and transportation sectors. Reaping rewards in residential and commercial heating. Take a core application like residential water heating, for example. When you do the math, using natural gas in place of electric water heating or fuel oil, represents compelling energyand cost-saving opportunities. For each 5 million consumers, efficient natural gas water heating saves about $1.4 billion annually over electric water heating and $1.6 billion over fuel oil. Tapping transportation s potential. In the vehicle market, heavy-duty fleet vehicles can use 10,000 to 20,000 gallons of diesel fuel per year. With current price differentials of $1.50/gallon between compressed natural gas and diesel, annual truck or bus fuel savings can range from $15,000 to $30,000. One Tcf of natural gas used for NGVs could displace nearly 8 billion gallons of diesel fuel and save fleet operators over $12 billion per year in fuel costs. In addition, at least two major energy companies (Sasol and Shell) are looking at possible gasto-liquids (GTL) plant investments in the U.S. Gulf Coast region. GTL plants can produce substitute liquid fuels such as diesel from natural gas. Facilities on the order of 90,000 to 100,000 barrels per day with a capital cost of $10 billion are being considered. These could use 0.25 to 0.35 Tcf per year for each plant. An impending industrial renaissance? While natural gas is expected to be a game changer in the industrial arena, its value is less about energy cost savings per se, and more about growth in manufacturing output and gross domestic product. Examples include facilities that displace foreign-produced goods. Various studies refer to a phenomenon called onshoring a trend that is expected to increase valueadded U.S. manufacturing over the coming decade. When it comes to chemicals and petrochemicals, expansion is expected to occur mostly in methane-dependent segments continued on page 2

2 GAS POWER: The Growth of Natural Gas Demand in Power and Heat Generation When U.S. Capacity it comes to power generation, natural gas continues to get top billing. In fact, according to the U.S. Energy Information Administration (EIA), natural gas-fired generation capacity represented nearly 81% of all generation capacity added in the U.S. over the last decade with much of that capacity in the form of combined-cycle and simple-cycle gas turbine plants. This growth in capacity is being driven by the lowest costs for natural gas in a decade as well as the fact that natural gas is GW Natural Gas Hydro 1940 Nuclear Other Petroleum Wind Coal Gold Rush continued from front page such as ammonia, hydrogen, methanol, and ethylene (from expanding natural gas liquids supplies). Methane as a chemical precursor is also key to Nucor s new direct reduced iron (DRI) plant in Louisiana that will use natural gas as a reducing agent in iron ore conversion. This could reverse a trend that saw contraction of nearly 2 Tcf in industrial natural gas use from the mid-1990s. Low U.S. natural gas prices are providing a competitive advantage for chemical products in global markets. In addition, high corn prices are driving ammonia demand (and increasing prices), making domestic ammonia production with natural gas more profitable while also positively impacting trade balance. Generating new value in power generation. Because coal provides great value from an energy cost perspective, this is a more challenging proposition. Yet, natural gas use for power generation has seen a remarkable expansion over the past 15 years, growing 85% and adding 3.5 Tcf in new demand largely as a result of the low capital cost and high efficiency of combined cycle power plants and the efficiency of combined heat and power (CHP) facilities. Operating flexibility or the ability to start-stop and ramp up and down quickly is also enhancing the value of natural gas, especially as the electric grid continues to be populated with more and more intermittent generating sources like solar and wind. We re only just beginning to realize the implications of the sea change created by the transformation of domestic natural gas supplies over the past five years. With a market that is now demonstrating surpluses and demand at an all-time high even with a warm winter behind us it s no wonder that industry stakeholders everywhere are scrambling to find new ways to capitalize on new natural gas supplies. In addition to the value that benefits industry, the growing demand for natural gas also has a positive impact on America s workforce by providing employment opportunities. Millions of Americans today hold steady jobs as a result of the investments by U.S. natural gas companies jobs created directly in the industry, those created indirectly by industry suppliers and other jobs caused by the ripple effect that wouldn t exist without the industry s investments. A study released by Wood Mackenzie shows that with responsible development of America s own vast domestic resources, the natural gas and oil industry can create an additional one million jobs in the next seven years and by 2030, that number could reach 1.4 million. The study also reported that new development would create an additional $800 billion in government revenue by While we all look at the issue from different perspectives, one thing is clear: The gold rush is on! x z William E. Liss Managing Director GTI End Use Solutions Sector 2

3 cleaner than coal, producing 45% lower carbon emissions. Another factor driving this growth is the fact that natural gas complements renewable energy sources. So, it stands to reason that natural gas will be playing an important role in the U.S. power generation mix both as a primary fuel and as supplemental (or backup) generation resource for renewables. Texas and California, for example, already have significant renewable power capacity installed. With plans to increase that capacity substantially, they will need flexible generation sources. Meeting Stringent California Emissions Standards GTI researchers are working to deploy technologies designed to advance the implementation of natural gas-fired power generation. One challenge they re working to meet in providing CHP system options for industrial and commercial facilities is the need to meet stringent emissions standards such as those in California, which require the incorporation of additional control systems. FlexCHP. GTI researchers in collaboration with the California Energy Commission (CEC) and other partners have developed an innovative, ultra-low NO x supplemental burner for conventional turbines and microturbine-based CHP applications. They have integrated the burner into a cost-effective CHP package designed to deliver power and steam while holding emissions below California Air Resource Board (CARB) standard targets for microturbines. Our goal was to develop an integrated package, a key need for the distributed generation market, says Dave Cygan, industrial R&D manager and program manager at GTI. The idea was to integrate the components into a single package. The FlexCHP-65 system developed by the team is expected to yield significant energy, economic, and environmental benefits. According to Cygan, the microturbine is 28% efficient and the boiler is typically 80% efficient. But, because we re using all the waste heat coming out of the microturbine, we re able to have a total system efficiency of greater than 84%. The next step is to deliver the integrated system for field testing at Inland Empire Foods, a legume processor in Riverside, California. Our system is attractive to them because they re in expansion mode they re adding production lines, so they need more steam. The use of supplemental firing provides flexibility in steam production. By using a highly efficient boiler and recovering all the waste heat from the microturbine, they can create process steam and provide electricity for other general operations at the plant. Natural gas engines. Southern California is known for having some of the world s strictest emission standards. Emissions regulations passed by the South Coast Air Quality Management District (SCAQMD) in February 2008 require new natural gas engines used in distributed generation to meet 2 3 parts per million (ppm) of nitrogen oxides (NO x ), 8 ppm of carbon monoxide (CO), and 7 ppm of volatile organic compounds (VOC). It is challenging for stationary gas engines to maintain long-term compliance with limits this low without operator assistance. The CEC s Public Interest Energy Research (PIER) program, Southern California Gas Co. (SoCalGas), and other organizations set out to address this issue. A new sensing and emissions control system for reciprocating engines developed by Continental Controls Corp. (CCC), with technical assistance from GTI and others, is now available to companies seeking an automated control system that can help them maintain continuous compliance and simplify operations. The system leverages fast-responding hardware and software to provide excellent control and mixing of fuel and air for optimum combustion and use of advanced air emissions sensors for engine feedback control. Following laboratory testing using a 5.7L GM engine with a DCL Inc. catalytic converter to determine whether the control system would be able to meet SCAQMD distributed generation emission limits over the long term, a successful sixmonth demonstration project was completed at Fontana Wholesale Lumber in Fontana, California. The continued on page 4

4 Power and Heat Generation continued from page 3 company produces nearly 100% of its electricity on site and uses waste heat from a CHP natural gas engine to operate the kilns that are used to treat lumber. The research and testing that was conducted in the laboratory and in the field proves that it is possible to modify an existing natural gas engine to meet new ultra low emission standards, says John Pratapas, senior engineer and GTI project manager. The product that CCC will offer can now be used to help other California distributed generation sites reach these ultra low emission levels. CHP for High-Temperature Industrial Processes Calcined coke is vital to the aluminum industry, where it is used to produce carbon anodes for aluminum production. It is also widely used as recarburizer in the iron and steel industry. The global calcined coke market is estimated at approximately 10 million tons and growing by up to 1 million tons of end product every year. The conventional process for developing coke calcination employs rotary kilns to produce the extremely high temperatures required to remove volatile material and purify the coke for further processing. A new energy-efficient petroleum coke calcination process in a fluidized bed is in development that promises to yield significant energy, environmental, and economic benefits. The process leverages an advanced CHP system developed by GTI researchers that uses process off-gases and waste heat from the calcined coke as opportunity fuels. The total amount of recycled heat from the new coke calcination process has sufficient heat for the CHP system to produce process steam and generate most of the electricity used by the electrothermal fluidized bed (EFB). Growth in Demand for Distributed Natural Gas Power Generation Equipment In the past twenty years, worldwide demand for distributed natural gas power generation equipment has grown significantly. As this graph demonstrates, there has been significant growth in worldwide demand for distributed natural gas power generation equipment in the 1 5 MW segment. In recent years, Caterpillar, Cummins, GE, and other manufacturers and have introduced a number of new, high-power-density natural gas reciprocating engines that feature high efficiency (40%), low emissions, advanced controls, and other product improvements. This equipment is seeing increasing popularity for onsite power generation and combined heat and power systems for large commercial, industrial, and other distributed utility needs. Annual Unit Sales Natural Gas Prime Movers (1 5 MW) Source: Diesel & Gas Turbine Worldwide The goal of this project is to reduce the energy and carbon intensity of the calcined coke production process, says Yaroslav Chudnovsky, principal investigator on the GTI team. Following successful demonstrations of the technology, the GTI team will collaborate with Superior Graphite Co., a leader in high-temperature EFB process technology, and select equipment manufacturers, including Alstom Power Energy Recovery (former American Schack Co.), to deploy and market the technology to producers of calcined coke and related industries. Monitoring Biogas for CHP and Distributed Generation Global growth in energy demand, volatility in supply and pricing of 4 Gas Engines Gas Turbines fossil fuels, and calls for reductions in carbon emissions are all driving demand for increased use of opportunity fuels including syngas, landfill gas, coke oven gas, refiner gas, and coalbed methane for power generation. Reliable and efficient use of these fuels in engines and turbines requires the maintenance of combustion stability, emission levels, output, and efficiency making the ability to monitor these fuel properties in real time a high priority. For CHP and distributed generation systems, in particular, biogas composition needs to be monitored. To date, the most common method for measuring fuel composition has been gas chromatography. However, because this method requires several minutes

5 to analyze a gas sample, it does not provide real-time information about fuel properties. Now, a GTI team of researchers has developed the Gas Quality Sensor (GQS), a new apparatus for characterization of hydrocarbon fuel mixtures that uses near infrared absorption spectroscopy to provide real-time monitoring of the composition and heating value of landfill gas, natural gas, and other hydrocarbon fuel gases. We have developed and tested a laboratory version of the GQS in both laboratory and field settings, says Pratapas. There appears to be significant interest in the sensor and we are working to execute a joint development and licensing agreement with a commercialization partner. Distributed Generation and CHP in Homes Electric power reliability is a key market driver in the residential market. In the U.S., homeowner interest in standby and emergency generators is high, with new products achieving very competitive price points for wholehouse standby power units most of which are fueled by either natural gas or propane. This includes sophisticated engine-powered generator systems with automatic start capability and transfer switches that can quickly restore home power. According to a recent report from Pike Research, there could be a growing market for residential combined heat and power, or micro-chp (mchp) systems. A recent Pike report estimated an installed worldwide mchp market of 13.5 million units in single-family and multi-unit dwellings is feasible by Global growth is seen in countries such as Germany, Japan, South Korea, with interest gaining among policy makers, utilities, and homeowners for the potential of mchp technology. mchp technology is an energy-efficient technology that simultaneously provides heat and electricity to households and businesses and holds great promise for utilities and consumers alike. GTI is exploring the opportunity in the U.S., focused on bringing mchp first costs down and introducing low cost distributed generation to consumers. Energy efficiency advocates have strong interest, and utilities are looking at it as a load-growth opportunity, says Tim Kingston, senior engineer at GTI. Yet, mchp s biggest challenge is its high first cost, which will continue to be a challenge until sales reach substantial volume. That s what we ll be looking into, Kingston continues, to get a good handle on the economics and to gain a better understanding of how and where they are best deployed in order to improve their market impacts. x z Guidance Document for Introducing Renewable Gas from Landfills into Pipelines An initiative launched by GTI is establishing parameters for evaluating the suitability of biomethane products derived from dairy waste and landfills for safe and proper introduction into existing natural gas pipelines and to assure compatibility with existing supplies. A newly-released GTI report titled Guidance Document for the Introduction of Landfill-Derived Renewable Gas into Natural Gas Pipelines provides analytical and other key information to pipeline companies and natural gas local distribution companies (LDCs) so that parameters specific to clean biomethane can be identified to support a productive discussion between these parties and the suppliers for contract development. The document includes a list of constituents and methodology for testing, as well as statistical analysis of the acquired data. It provides information about specific instrumentation for identifying and monitoring trace constituents, and cleanup technologies for removing them. Previously, GTI scientists developed the first national biogas guidance document for introducing methane from dairy waste into existing pipelines. Both reports can be found on GTI s website under Research Areas > Infrastructure > Environmental Matters, Enabling Renewable Gas, and Gas Quality. x z 5

6 New GTI Initiatives Driving Deployment of Emerging Technologies With the help of significant input and guidance from industry stakeholders, GTI has announced the development of the Emerging Technology Program (ETP), a new North American industry collaborative dedicated to drive the deployment of energyefficient emerging technologies and solutions for natural gas customers. Our intention is to fill a gap and explore technologies and program solutions that show the most promise for gas utilities and energy-conscious consumers, says Ryan Kerr, manager of emerging technologies at GTI, who will head up the new program. According to Kerr, the ETP is designed to help companies identify and evaluate the most promising products and integrated solutions and assess their suitability for future use in the marketplace. The collaborative will leverage the collective intelligence, expertise, and funding of members from the natural gas industry to help deploy new technologies. In the past, many technology solutions did not have the market impact that stakeholders felt that they could. We saw a lot of good R&D happening, Kerr adds, but less of a concerted effort to take that technology into the marketplace. With the collaborative approach, we ll be able to approach national manufacturers and big-box retailers with a larger voice representing utilities across the U.S. and Canada. Southern California Gas (SoCalGas), a natural gas utility that has its own statewide emerging technology program, was one of the early supporters of the new North American collaborative. Early on, we identified a need for a broad effort to foster large demonstrations to develop program data, to drive costs down, and to demonstrate to manufacturers and consumers that a particular technology works, says Abdulla Ahmed, emerging technologies program manager at SoCalGas. We look forward to working closely with GTI and other natural gas utilities in moving promising emerging technologies into the marketplace. ETP projects will assess energy use, costs and benefits, marketing opportunities and barriers, and energy savings potential for various products and processes. Plans are to conduct field demonstrations to validate the performance, efficiency, and cost-effectiveness of new technologies and program strategies. We need larger demonstrations to collect and understand market data, while developing market infrastructure to support widespread technology deployments, Kerr says. A key part of developing the market will be building consumer awareness about a given technology within a region and building contractor capacity so that we can establish consumer confidence. Upcoming project opportunities include combination space/water heater systems for the residential and small commercial sectors, high-efficiency gas heating rooftop packages for the commercial sector, and a boiler retrofit technology that promotes significant energy and water savings for the commercial and industrial sectors. We have a strong foundational base of support from the industry, Kerr says. It s a great opportunity to join together and accelerate market acceptance of emerging technology. The larger the group, the more powerful presence we have, so we aspire to add more members and continue to build on the program. For more information about becoming a member of the ETP, contact Kerr at ryan.kerr@gastechnology.org. 6

7 GTI to Lead ETP at Nicor Gas Nicor Gas, an AGL Resources Company, is the largest natural gas distributor in northern Illinois, serving more than 2.2 million customers. The company recently named GTI to lead its emerging technology program, which was developed to help bring energy-efficient technologies to market that will benefit Nicor Gas customers. The $4 million contract was awarded by Nicor Gas to cover ETP initiatives through the summer of The Nicor Gas ETP effort will be managed by Ryan Kerr, GTI emerging technologies manager, and Doug Kosar, GTI institute engineer, who will man age the program on both an internal and an external track. Internally, the GTI team will work with other Nicor Gas Energy Efficiency Program implementers to identify new technologies and processes or process enhancements that have the potential to provide cost and energy savings. On the external track, the GTI team will work with local, regional, and national stake holders to identify newly commer cialized products and technologies that could be rolled into existing or future energy efficiency programs. As program implementer, GTI will lead the emerging technology process, which will encompass everything from product or concept identification to project implementation to dissemination and transfer to existing and new energy efficiency programs. We ll be developing an open screening and scoring process for new products and technologies, says Kerr. We ll pull ideas and technologies from a number of channels and use scoring criteria that include manufacturer support and potential energy savings in order to determine whether they become ETP projects. The technologies that score the highest will be added to the program and we ll develop individual plans for each, depending on what market barriers and information gaps exist. An integral component of the process will be training contractors to enable them to educate their customers about the benefits of the new technologies and to encourage those customers to deploy them. We ll then capture information associated with those installations, Kosar says. At the end of the project, we ll understand what the installed costs were, energy savings, operability and develop a comprehensive design strategy to hand our technology implementation plan to other Nicor Gas Energy Efficiency Program implementers. x z 7

8 Natural Gas and the Transportation Industry: NGVs Driving Demand History-making low natural gas prices in the U.S. continue to drive consumer interest in natural gas vehicles (NGVs). According to a recent report from Pike Research, the U.S. market will show a 25.4% compound annual growth rate (CAGR) between 2010 and To help meet this growing demand, GTI is working on several fronts to help lower the costs of NGV adoption. According to Tony Lindsay, GTI R&D director, technology R&D is critical to improving the overall lifecycle economics of NGV ownership and operation and to maintaining the environmental leadership position natural gas has among transportation fuels. Specifically, GTI teams are working to fill the need for more natural gas engines and, recently, GTI and engine manufacturer Cummins Westport Inc., announced a major new product for NGVs. The Cummins ISX12G, a critical next-generation NGV engine, a new heavy-duty natural gas engine designed for regional trucking and heavy vocational truck applications, is in field trials with full production expected to begin in early This important new engine was on prominent display in various heavy-duty truck platforms at the 2012 Mid America Truck Show (see photos at right). This engine fills an important market gap, says Lindsay. Currently, there is no similar option available for long-distance class 8 trucking. GTI played a key role in securing the $4 million in government and industry funding for development of the engine. With the demand for transportation fuel in California on the rise, the California Energy Commission (CEC) continues to encourage development of alternative fuel vehicles for use in the state s commercial goods movement, transit, and other sectors. To that end, the CEC recently awarded more than $4.3 million to GTI for pre-commercial demonstrations of advanced medium- and heavy-duty vehicle technologies. About $2.7 million Kenworth T660 Peterbuilt 365 will fund the Navistar Natural Gas MaxxForce 13L engine project, and about $1.6 million will go to a plug-in LNG hybrid heavy-duty truck project. Exploring Alternative Fueling Infrastructures Currently, the core markets for NGVs are in the medium- and heavy-duty vehicle segments, driven by the substantial fuel price difference between natural gas and Volvo VNL Freightliner Cascadia 8

9 gasoline/diesel fuels. Yet, because there continues to be a need for low-cost, widely deployable fueling technologies for home and mobile fueling, the use of natural gas in light-duty vehicles is a longer-term prospect. One of the biggest challenges to increasing NGV adoption is the need to build out fueling and maintenance infrastructure. Currently, there are about 1,100 CNG stations in the U.S. In work funded by UTD and SoCal Gas and following a worldwide search, GTI has begun testing and evaluating a select set of home refueling appliances (HRAs) that resulted from that search. The goal is to work with several compressor companies on product development, modeling, assessment, and testing in order to advance select products to field demonstrations and, ultimately, to market, says Lindsay. In the mobile fueling arena, GTI is working with Ultimate CNG a provider of mobile fueling services on the development of its FuelMule system. This selfcontained mobile CNG station is designed to deliver CNG to fleets GTI Offers CNG Dispenser Certification for Retail Sales The Illinois Department of Agriculture monitors the accurate measuring of motor fuel products sold within the state. Retail dispensers that allow the sale of compressed natural gas to the general public need to be certified, and GTI now offers this dispenser weights and measure testing service. Currently, three CNG dispensers are certified for retail sales in Illinois, with one located at GTI s headquarters near O Hare Airport. on-site, in-tank, at a significantly lower cost-per-gallon than diesel fuel. The FuelMule uses GTIdesigned CNG fueling technology, offering total delivery capacity of 650 diesel gallon equivalent (DGE), with the ability to fuel 15 to 40 vehicles per day at 8 DGE per minute. The FuelMule system can be replenished off peak, enhancing central station daily demand. It is expected to have a wide range of applications, including starter station, temporary use, and remote vehicle fueling. x z 9

10 PERC and GTI: A Powerful Partnership Over the years, GTI has forged a strong and valued relationship with the Propane Education and Research Council (PERC), partnering with them on a wide range of projects from building energy efficiency technologies to agricultural development and metering and biopropane investigations. PERC, a 21-member board appointed by the National Propane Gas Association and the Gas Processors Association, carries out programs, projects, and activities related to safety, training, and research and development. PERC partners with government agencies, state associations, universities, and private industry to obtain or provide grant funding for projects that advance the development, safety, environmental performance, and commercialization of propane-fueled products and applications. We view the propane industry as a valued customer and partner, says Neil Leslie, GTI R&D director for building energy efficiency. Largely because their goals are similar to natural gas, we try to leverage the natural gas and propane research and development activities wherever we can. One way that GTI works with PERC is in conducting research designed to assist the U.S. propane industry in enhancing its supply and cement its legacy as an alternative fuel. In 2009, PERC contracted GTI to analyze synthetic LPG and bio-lpg and recommend a strategy for full-scale commercial production. GTI conducted research that resulted in three nearterm technologies for the production of synthetic LPG and a handful of long-term process concepts to produce synthetic bio-lpg were identified for further evaluation. Micro-combined heat and power (micro-chp) is another area in which GTI and PERC have many active projects. The two organizations are currently working with Yanmar, a manufacturer that has successfully produced micro-chp systems that are popular in Japan and emerging in European markets, to adapt Japanese models to meet U.S. performance standards. GTI and PERC are also actively involved in projects for the agriculture sector. One key project is focused on the development of a soil sanitizer technology that uses steam rather than chemicals. Because the strawberry market is a very high-value crop, the alpha machine developed by GTI, UC Davis, Reiter (Driscoll s), and Valley Fabrication Inc. has been tested on five strawberry fields, with highly encouraging comparative yield data. x z Now Available: GTI 2011 Annual Report There are tremendous opportunities to realize the economic and environmental benefits of natural gas, and GTI is playing a prominent role in driving positive outcomes on both the supply and demand sides of the energy equation. This report, which can be found online at features high-impact solutions to some of the world s most important energy and environmental challenges. 10

11 SOURCE CODE: GTI and CMIC Influence Green Building Standards The Carbon Management Information Center (CMIC) is a GTI collaborative program that includes 17 natural gas industry members and the Propane Education and Research Council (PERC). The program is dedicated to serving the natural gas and propane industries and their customers by, among other things, publishing technical information that clearly and fairly evaluates and communicates opportunities for direct use of natural gas and propane systems that improve source energy efficiency, reduce greenhouse gas (GHG) emissions, and lower energy costs for consumers. In recent months, CMIC funders have supported GTI s involvement in several critical regulatory initiatives to provide technical input and comments. One of the most pivotal contributions has been to the energy chapter of the newly published 2012 International Green Construction Code (IgCC) that incorporates both source energy efficiency and GHG emission compliance requirements. GTI was provided the opportunity to participate in the process, says Neil Leslie, R&D director for building energy efficiency, GTI End Use Solutions. We worked closely with the natural gas and propane industries and led interactions with the development committee and hearing committees. Our goal was to provide key technical information to the IgCC Committee on the topic of source energy, greenhouse gas emissions, and consumer energy costs. Thanks to CMIC funding and persistent involvement in voluntary and regulatory initiatives, the industry is making significant progress in the implementation of source energy and GHG emissions methodology. We are beginning to see evidence of substantive changes in voluntary and regulatory initiatives that are treating natural gas and propane more equitably based on demonstrated source energy efficiency and environmental benefits, Leslie says. The societal benefits of source energy are also being recognized by regulators, and incentives to switch fuel sources have been implemented by utilities in their energy efficiency programs in several states. For example, utilities may offer consumers a first-cost rebate to purchase more efficient natural gas equipment that replaces electric resistance heating or water heating systems that have lower source-tosite fuel efficiency. The work continues. Through our CMIC funders, we ve had persistent involvement that over time has provided the potential for durable positive impact, Leslie says. Interactions with key stakeholders including ASHRAE, DOE, EPA, U.S. Green Building Council, and RESNET will continue in 2012 with the goal of equitable treatment of natural gas and propane direct use technologies based on their merits. x z 11

12 UTD Member Spotlight: Enbridge Enbridge Gas Distribution, a member of Utilization Technology Development (UTD), is Canada s largest gas distribution utility and one of the fastest growing in North America. Enbridge and its affiliates serve about two million customers in central and eastern Ontario, southwestern Quebec, and parts of northern New York. Delivering energy for more than 160 years, Enbridge added more than 40,000 new customers in Bill Castellan, senior program manager, DSM technology business development and customer Bill Castellan UTD Technical Project Committee (TPC) Member strategy, has been with Enbridge for more than 30 years, carrying out responsibilities in operations, planning, engineering, technology and development, and most recently in business development. Currently, Castellan and his team are working to develop energy efficiency programs that help Enbridge customers maximize value from their total spend on energy, including strategic emerging technology platforms that ensure adequate response to the changing business environment. My primary responsibility is to develop new programs for space and water hearing technologies that feed into our overall Demand Side Management (DSM) plan, says Castellan. Right now, our business development group is also keying in on new business opportunities for the utility, including renewable future energy efficiency programs. One of the biggest challenges that Enbridge faces is gaining regulatory and market acceptance of new energy technology that could complement the utility DSM and Gas Distribution business models. For example, our DSM stakeholder process involves regular interaction and formal approval of all new programs by key interveners, Castellan continues. Programs are presented on the virtues of available evidence that verify the performance of new emerging technology. This data is sometimes not well documented, so it is incumbent on the utility to provide credibility by conducting pilots or technical evaluations. Emerging codes and standards continue to raise the energy efficiency bar and adding cost constraints, so it also has become increasingly challenging to maintain new program continuity. According to Castellan, UTD membership has proven to be a cost-effective way for the utility to stay abreast of new end use technologies by providing access to technical expertise and R&D projects that would have, pursued independently, required significant budgets. We re most interested in new technologies that will complement our existing suite of energy efficiency programs, he says. We tend to have more focus in our UTD activity with mass market (residential/commercial) applications and technologies. Niche technologies in every specific categories such as foodservice are also a key aspect of our UTD involvement. As a Canadian utility, Enbridge often works with counterparts across the country. We recently established a joint research initiative that is investigating the opportunity to pursue certain projects through UTD, Castellan adds. x z Need More Information? For more information or questions on any of the End Use Solutions articles, please contact: William Liss Managing Director, End Use Solutions Sector bill.liss@gastechnology.org Gas Technology Institute 1700 S. Mount Prospect Road Des Plaines, IL Follow GTI on Twitter, LinkedIn, and Facebook: GTI-12/ edoc Gas Technology Institute. All rights reserved. SGS-COC