Bio-LNG applications in shipping Peter van der Gaag Holland Innovation Team

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1 Bio-LNG applications in shipping Peter van der Gaag Holland Innovation Team 'Bio-LNG applications in shipping' London, 10 December

2 Bio-LNG applications in shipping, What do we want to tell you? 1. What is LNG, what is bio-lng? 2. Differences in engine performance 3. LNG in shipping developments 4. Setting the standard, bio-lng is premium 5. New projects in the Netherlands: 6. Inland navigation with bio-lng 7. Cold ironing with bio-lng 8. Conclusions, recommendations 'Bio-LNG applications in shipping' London, 10 December

3 LNG differs in composition LNG, liquid natural gas, consists for the largest part of methane, which is liquid at a temperature of minus 162 degrees Celsius. LNG is made from natural gas all over the world. All CO2, H2S, particles, mercury have to be removed. Water freezes out. Depending on the source, the composition of LNG still varies. Methane content is between 88% and 99.9%. Essentially we consider two types of LNG: Rich LNG contains a relative large quantity of heavy hydrocarbons Lean LNG contains few (no) heavy hydrocarbons. WTC-Rotterdam, 15 December 2010

4 Compositions of LNG from large liquefaction plants Of 17 large LNG liquefaction plants in 2003 only one (Alaska) produced lean LNG and the others produced rich LNG (methane 89-91%, ethane/propane 9-11%). WTC-Rotterdam, 15 december 2010

5 Boil-off during transportation by LNG carriers changes the composition and quality of the LNG LNG carriers sail on boil-off. During 20 days of transport boil-off can be over 2%. As boil-off is evaporated methane, increase of heavy hydrocarbons concentration means that the calorific value per cubic meter LNG can increase by Mega joule and decrease the same amount per kilo. WTC-Rotterdam, 15 december 2010

6 POSITION PAPER BY CIMAC WORKING GROUP GAS ENGINES, INFORMATION ABOUT THE USE OF LNG AS ENGINE FUEL, DECEMBER 2008 natural boil-off gas which is taken off the top of the LNG tanks above the liquid will have a high methane content and some nitrogen and thus have a high knocking resistance. Analysis show values typically around MN 100 and LCV between 33 35MJ/nm3. (Initial gas extraction after up-loading may have reduced calorific value because of the high nitrogen content at the top of the tanks). This is a somewhat special application typical for fuelling of LNG tanker propulsion plants. forced boil-off gas i.e. LNG extracted from down in the tanks and evaporated separately. This gas will contain a mixture of all hydrocarbons in the liquid and its resistance to knocking may differ from origin to origin and even from load to load, with the MN typically in the range between 70 and 80. The calorific value will be higher than natural boil-off gas and quite stable at around MJ/nm3. WTC-Rotterdam, 15 december

7 Methane number for LNG is comparable with octane number for gasoline. Jacob Klimstra, VIV congres WTC-Rotterdam, 15 december

8 LNG looks good for shipping: Ten-fold rise in LNG-powered ships likely in 5 years The number of ships powered by liquefied natural gas (LNG) may shoot up by tenfold within five years as anti-pollution rules force owners to switch to the cleanerburning fuel, the industry s biggest engine maker said. "LNG is the future for shipping," Mr Jaakko Eskola, head of ship power at Helsinki-based Waertsilae Oyj, said. Between 800 and 1,000 vessels may use the fuel by 2015, up from about 100 today, he elaborated. Vessels must cut sulphur oxide emissions in some regions to 0.1 per cent from January 2015, down from one per cent today, as stipulated by the International Maritime Organisation (IMO). LNG produces almost none of the pollutant and also has the advantage of lowering carbon emissions by 25 per cent, Mr Eskola said. The shipping industry burns between 200 million and 250 million tonnes a year of heavy fuel oil, according to an estimate by the International Bunker Industry Association in Southampton. Source : Exim News Service - London, Nov. 24, 2010 'Bio-LNG applications in shipping' London, 10 December

9 The Yangtze may soon flow with LNGpowered vessels London, Nov. 24 Yangtze River LNG Fuelling Stations Receives Approval to Proceed Press: April 9, 2010 China, Xi'an 'Bio-LNG applications in shipping' London, 10 December

10 Standardization first and necessary step! Practice shows that for economic, environmental and safety reasons, there is a need for standardization of fuel grade LNG. Fuel Grade LNG: is of consistent composition, similar to diesel or gasoline, that provides consistent engine performance. Is of consistent composition for commercial transactions. Public LNG dispensers can be checked by the local Weights and Measures authority. Fuel Grade LNG is: Methane 97.0 Mole % Ethane 1.0 Mole % Total Inert gases 2.0 Mole % Source: CHI ENGINEERING SERVICES, INC. Others use: vehicle grade LNG, transportation grade LNG, but in each case: >97% methane WTC-Rotterdam, 15 december

11 Fuel grade LNG can be delivered immediately Experience in countries like USA, Australia, China, Japan etc. shows that fuel grade LNG can be provided by: peak shavers small scale LNG liquefaction plants from stranded gas, dedicated gas fields pipeline gas But it still will be fossil fuel, that is why we promote renewable bio-lng from our own waste with a low carbon footprint. WTC-Rotterdam, 15 december 2010

12 What is bio-lng (LBG, LBM)? Bio-LNG is produced from biogas. Biogas is produced by anaerobic digestion. All organic waste can rot and can produce biogas, the bacteria do the work. Therefore biogas is the cheapest and cleanest biofuel without competition with food or land use. Bio-LNG (LBM, LBG) = liquid biomethane. Quality is always better than quality of fossil LNG, so no problems with >99% of methane. WTC-Rotterdam, 15 december

13 How to produce Bio-LNG? The process from natural gas to LNG costs more process energy and investment than the upgrading and liquefaction of biogas to bio-lng. The carbon footprint of bio-lng from waste from your own country is of course much better than the footprint of fossil LNG from far across the Oceans. WTC-Rotterdam, 15 december 2010

14 Bio-LNG: the new diesel, available now! Bio-LNG gives the highest CO2 reduction of all fuels and no dust or NOx. We can deliver bio-lng today from the UK, in 2012 Dutch bio-lng will be available. Costs of bio-lng will not be higher than fossil diesel, so you save the climate and your money. 2012: BIO-LNG Production Delfzijl takes over WTC-Rotterdam, 15 December 2010

15 While preparing for production, we are working to create our own market with bio-lng shipping projects: WTC-Rotterdam, 15 December 2010

16 Dutch project: design & building of (bio-)lng inland navigation distribution vessels Builder of Pioneer Knudsen SANDFIRDEN T E C H N I C S LNG Rivers Shipping Goal: to establish an INTERNATIONAL industry for small-scale (bio) LNG carriers for inland navigation, estuary ships and short sea vessels: open for orders 'Bio-LNG applications in shipping' London, 10 December

17 Dutch project: cold ironing with bio-lng A cheaper and more sustainable concept than power from polluting coal plants at lower costs. Partners: HIT, Chive Fuels, Cryonorm Projects, GE Jenbacher, tests First demonstrated in California. Excellent for cruise ships at terminals. Flexible e.g. in case of flooding. Set-up: genset, vaporizer capable of vaporizing 2 tons bio-lng/hour 20-ton semitrailer, capable of producing 5 MW electricity for 10 hrs. 'Bio-LNG applications in shipping' London, 10 December

18 Dutch project: bio-lng bunkering First LNG inland navigation vessel on stream in May 2011 Operator: Deen Shipping Engine: dual fuel Pon Power/Caterpillar 50m3 LNG storage tank by Cryonorm Projects An existing bunkering facility in Zwijndrecht (A. Nobel & Zn) is interested to start bio-lng bunkering The above partners will start delivery of bio-lng by bunkering from semitrailers (Chive Fuels) to supply to the first ships Project goal: preparing a quay to practice LNG fuelling from trucks, small fuelling stations, large bunkering stations and bio-lng distribution vessels (see foregoing) together with local authorities 'Bio-LNG applications in shipping' London, 10 December

19 Conclusions More and more ships will sail on clean fuel like bio-lng. Bio-LNG can be produced locally with very good carbon footprint. Bio-LNG is by far the cleanest and cheapest biofuel, even fossil LNG is already better than biodiesel. 'Bio-LNG applications in shipping' London, 10 December

20 Recommendations Set a worldwide standard for LNG as a transportation fuel, like was done for all other transportation fuels. Start with small scale LNG plants for bunkering facilities Start to develop ships for inland distribution of LNG Avoid methane losses in the entire chain. Shift to bio-lng asap, it fulfils the fuel grade standard already and has a better carbon footprint Any region can have its own independent bio-lng chain from waste, any ferry can sail on its own bio-lng, even by bio-lng from waste produced by tourists. Note that bio-lng is produced from rotting biomass. Using feedstock which produces methane in nature, we avoid greenhouse gas emissions by controlled anaerobic digestion and liquefaction to bio-lng. WTC-Rotterdam, 15 december

21 WE CAN START TODAY FOR A SUSTAINABLE SHIPPING WORLD BEYOND FOSSIL FUELS See or contact: Holland Innovation Team WTC-Rotterdam, 15 december