Gas Networks Innovation & Policy Developments in Energy & Transport. James Browne (B.E. Ph.D) Innovation Engineer 21 st of March 2017

Transcription

1 Gas Networks Innovation & Policy Developments in Energy & Transport James Browne (B.E. Ph.D) Innovation Engineer 21 st of March 2017

2 Who we are what we do State owned commercial utility Own and operate the natural gas network Operate and maintain 13,710 km of network, connecting 670,000 businesses and homes Safe and efficient transport of natural gas for our customers Committed to future developments and innovation in the gas network including natural gas in transport, domestic connections and renewable gas in grid for all applications Ensuring that the environmental benefits of gas are delivered in the Low Carbon economy

3 EU and Irish Policy Development Renewable Gas

4 Policy framework for renewable gas Ireland s renewable energy generation target is 16% RES by 2020 Heat sector accounts for about 40% of the energy used in Ireland Large demand from Industrial & Commercial Heat & CHP Customers Transport Sector accounts about 40% of the energy used in Ireland. The transport sector one of the most difficult to decarbonise

5 Upcoming EU Legislation On 30 th November 2016, the EC presented a package of measures to keep the EU competitive as the clean energy transition changes global energy markets. Renewables will play a major role in the transition to a clean energy system and Europe has set itself a target to collectively reach a share of at least 27% renewables in the final energy consumption by Revised RED strengthens the existing EU criteria for bioenergy sustainability and extends them to cover also biomass and biogas for heat and power.

6 European & National Policy - Alternative Fuels Directive Oct 2014 By end of 2020 By end of 2025 CNG in urban/suburban and other densely populated areas Appropriate number of points CNG along the TEN-T core network Appropriate number of points Aims to promote the use of alternative fuels in transport Places binding objectives on Member States to develop necessary infrastructure including publication of a National Policy Framework (imminent) Renewable Energy Directive 2009/28/EC 10% renewable energy share in final transport energy demand by 2020 White Paper 2015 supports alternative fuel vehicles including natural gas European Core TEN-T network

7 Natural & Renewable Gas a key part of the solution Cleaner The chemical properties of CNG compared to diesel contain significantly less polluting and harmful substances as outlined below: 22% / 100% less CO² 70% less nitrogen oxide 80% less sulphur dioxide 99% less particulate matter Cheaper The fuel cost savings of CNG compared to other fuels range from 17% to 35% making it an extremely attractive alternative fuel source. Government confirmed that a set excise duty will be applied to CNG for the next 8 years. Proven CNG is a proven technology that has been in existence for decades. Worldwide there are 19 million vehicles in use with strong growth in Europe. Technical performance equivalent to diesel

8 Renewable Gas Development Innovation

9 Renewable Gas Production

10 Overview of the Renewable Gas Market Green Gas Certification Customer Sector Biomethane Producer / Injection Plant Operator Gas Purchase Agreement [Renewable Heat Incentive] Gas Shipper / Supplier Code of Operations Entry Connection Agreement Connected Systems Agreement Gas Networks Ireland (Transporter)

11 Green Gas Certification - GHG Accounting

12 Proposed Renewable Gas Connection Policy and Process 1. Initial Enquiry with preliminary Network Assessment 2. Detailed Analysis Study 3. Customer Application to Connect 4. Economic Test (if applicable) 5. Impact Assessment 6. Final Technical Assessment & Design 7. Connection Agreement with up-front payment 8. Connected Systems Agreement 9. Build & Installation 10. Sign-up/Register with Shipper(s) 11. Testing & Commission 12. Project close out & Business as usual

13 The Causeway Project

14 The Causeway Project This study aims to examine the impact of increased levels of CNG fast refill stations and renewable gas injection on the operation of the gas network in Ireland. Activities will encompass developing understanding of the operation and planning of the network, CNG equipment and user demand patterns and behaviours, and the injection of renewable gas into the gas network. The key milestones of the action are: 14 Fast Fill CNG stations installed; Vehicle fund established to support vehicle acquisition; Renewable gas injection facility; and System operation & behaviour data analysis. Part funded by the European Commission through the Connecting Europe Facility

15 Stakeholders MEPs European Commission National Parliament Government Depts Interest Groups ACER National Regulator Health and Safety Authority National Standards Authority of Ireland General Public Revenue Commissioners Political Regulatory / Safety / Technical Compliance Supply Chain Customers Manufacturers System Integrators Vehicle Manufacturers Renewable Gas Producers Gas System Operators Shippers Forecourt Operators Fleet Managers Vehicle Operators End users of transport services General Public

16 Our vision for CNG in Ireland CNG is targeting the bus and truck fleets Over 1,000 HGVs (Truck) Over 1,000 Large PSV (Bus) Vans also Refuelling Network Fast Fill CNG 2024 Causeway Project 2023 GNI delivering 14 High Capacity Fast Fill 2022 Stations and 1 Renewable Gas injection 2021 point in RoI by 2019 The Causeway Project is co-financed by 2020 the European Union's TEN-T programme 2019 National Network of 70 CNG stations by Public Access Stations CNG Stations Renewable Gas injection points Total Stations

17 Biogas to Grid Process Flow Diagram Biogas Production ~60% CH4 ~40% CO2 <1% Trace components Biogas Pre-treatment: Biogas washer Gas Chilling Activated Carbon Desiccant Biogas Quality Control Unit: CH4 > 50% CO2 < 50% H2S < 3 ppm O2 < 50 mg/m3 H2O Dew Point < -10C No Meets Biogas Quality Requirements? Yes Biomethane Flare (50-98% CH4) Biogas Pipeline 6.2 km 200mm OD PE 100 P < 2 bar Qmax =1800 m3/hr T= 10 0 C Biogas Upgrading Unit (Pentair) Membrane Technology Phase 1 Q = 500 m3/hr biogas P = 7 bar Biomethane Network Entry Facility: Flow meter Temperature sensor Pressure sensor Gas Chromatograph Propane Infuser Pressure regulation Odourisation Unit Telemetry Unit Remotely Operable Valve No Meets Natural Gas Quality Specification? Yes Biomethane Flows to Natural Gas Distribution Network (MOP 4 bar)

18 Biogas to Grid Project Preliminary design Feedstock Soup Biogas Production & Purification ~ 5 km low pressure biogas pipeline Biogas Upgrading Biomethane Network Entry Facility

19 CNG Deployment Model Gas Networks Ireland responsibility ends at isolation valve at base of dispenser Forecourt operator leases the footprint for the enclosure for the CNG equipment Gas Networks Ireland - Operation and Maintenance charge to forecourt operator Forecourt Operator owns and operates the dispenser Bills the customer etc.

20 First public station Topaz Dublin Port First Public Station in Ireland Capacity for up to 70 trucks daily Integrated with payment system Station construction commenced Commissioning planned May License application in process

21 Threats and Opportunities for the Forecourt Operator Threats Costs involved in the establishment of industry Licensing, permitting etc. Cost of CNG Refuelling equipment equivalent to Capital Cost of whole service station Different safety systems and competencies for CNG Opportunities Margin to be earned on CNG more than diesel Environmental benefits Makes the forecourt relevant in the Low Carbon Transport future

22 Summary of Causeway Project The Causeway Study will do the following Install 14 CNG Fast Fill stations Complete a renewable gas to grid injection project Support up to 35 dedicated gas HGVs Establish the structures and arrangements required for market participants licensing, Safety Frameworks, Standards, permitting, network connection, technical competencies, metrology and Shipping. Validate environmental and financial benefits Investigate the use of CNG storage as an Emergency Network pressure enhancement