UK Biomethane Day 21 May 2013

Transcription

1 UK Biomethane Day 21 May 2013

2 Introduction Future Biogas History Aims Build and operate biogas plants Work closely with local farmers and landowners Provide long-term, transparent, local supply opportunities st plant near Norwich (1.4MW) operational nd plant near Norwich (1.5MW) - operational Doncaster (4MW th Gas to Grid) operational Q North Norfolk (2MW) operational Q3 2013/14 Two more plants due for construction Create the conditions for a vibrant AD market Encourage best practice in supply and operations Engage government, NGO s and stakeholders to promote sustainable industry

3 Operational Sites Spring Farm, Taverham Operational 2011 Power for over 3,000 homes Spring Farm and Reepham Road: Annual carbon saving of 13,000 t CO 2 Working closely with 20+ local farmers Technology choice and biogas operations/support Crop opportunity for poor land Break for vegetable production HLS grass and Norwich Airport lawn! Reepham Road, Taverham Operational 2012 Heat to adjacent Abattoir Perennials, biogas wildflowers and high energy grasses on trial Working on biofumigation, digestate starter fertiliser for OSR and nitrification inhibitors

4 Vulcan Way, Doncaster Access A614 Vulcan Way Existing planting to Vulcan Way / A614 Proposed planting Bed A Proposed planting Bed B Site Office Weighbridge Existing Gas sub-station Silage Clamps Gas Holder / Liquid Digestate Storage Tank Attenuation pond Gas Holder / Liquid Digestate Storage Tank Transformer Control Building Fermentation Tank Feed Hopper CHP unit Flare Gas-to-grid processing unit Proposed planting Bed D to north edge of willow coppice Proposed planting Bed C Willow Biomass Coppice 20/05/2013

5 Almost finished.

6 Biomethane Stats Key Numbers: 350m 3 Gas + 500KW Elec 35,000t agricultural feedstock 15 local farmers 2 full time staff Vulcan Way Plant Renewable Gas for: 3,500 local homes in Winter 60,000+ homes in Summer!! 28,000 tonnes of organic fertiliser

7 Technology Biogas - Agraferm AG Turnkey provider with 80+ plants worldwide 4 operating plants in UK and 5+ in build Upgrade Air Liquide Membrane unit Over 100,000m 3 /hr installed and 10 years operating experience Gas Chain Elster Grid Entry Unit Flogas Propane addition NG Remotely Operated Valve Remote Telemetry Unit FUS UIP contractor

8 Investment Risk Uncapped biomethane installation capacity No cap on max plant size risks uncontrolled expansion Also risks installation of oversized AD projects with extended logistics No preliminary accreditation Significantly reduces investor confidence Essential for all AD projects as build likely to be 12 months plus in any event For >7bar connection projects with 18+ month lead-time it is even more crucial Degression looming before all technical & regulatory issues resolved Introduction of tariff degression based on technology and whole budget capacity trigger Degression could be from 5% up to 20% of existing tariffs Speed of degression not linked to project delivery timeline (see pre-accreditation!)

9 Challenges Initial Stages of Grid Entry Detailed Analysis Study (DAS) Blending Initial indication very positive Then totally withdrawn?! Now working on flexible time-limited approach GEU and ROV/RTU ownership and positioning GEU privately owned ROV/RTU National Grid owned Other Issues Propane injection supply limited choice Oxygen Exemption Gas Transport License Sustainability

10 Challenges pt.2 Uncertainty over oxygen allowance Current GSMR limit is too low (0.2%) lowest in Europe 1% O2 exemptions achievable in the UK Cross-GDN exemption still not available.but watch this space Propane Addition for CV Addition of costly and CO 2 intensive propane to reach grid CV Seems sensible to allow blending of biomethane with Natural Gas No clear guidance on this from GDNs Lead-time and Licenses Beware >7bar connection could take up to 18 months NG working on speed All GDNs will have biomethane plant soon they are trying hard but this is novel Wrinkles need ironing out - Gas Transport License / ROV/RTU ownership etc. Work with your GDN to resolve these!

11 kgco2/mwh Sustainability DECC Sustainability for Biomethane GHG saving of 60% compared to EU heat much tougher than for electricity Fugitive methane critical for all producers over 1% unacceptable Biomass AD will need to audit crop production/fertiliser use/transport and conversion with ILUC just over the horizon DECC/Ofgem Calculator crucial tool DECC Biomass electricity target (60%) DECC biomethane target (60%) 0 EU elec emissions UK elec emissions AD for electricity only AD for CHP AD for biomethane

12 Sustainability Biomethane GHG Lifecycle Accounting Diesel NPK Fertiliser Other farming inputs Other consumables Diesel Other consumables Diesel Other consumables Diesel - mat. handling Electricity onsite Heat onsite Other consumables Electricity Heat (depends) Water (depends) Other consumables Feedstock Transport Storage AD Process Biomethane GHG emissions (CO 2, N 2 O for example) Diesel CO 2 Diesel CO 2 GHG emissions (electricity from grid, CH 4 slip, diesel CO 2 ) CH4 slip, electricity from grid

13 Thank you Philipp Lukas