Bio-LNG: Improving eco-performance and quality of fossil LNG Peter van der Gaag

Transcription

1 Bio-LNG: Improving eco-performance and quality of fossil LNG Peter van der Gaag 1

2 Content of the presentation Introduction : LNG and bio-lng Advantages of bio-lng Bio-LNG can be used to combat methane slip and improve methane number of fossil LNG by blending Standard and premium quality Comparing bio-lng with other fuels: eco-performance How much bio-lng is there (can there be)? Obligatory blending of bio-lng to fulfil RED? What would be the price? Holland Innovation Team and Chive Fuels are building the bio-lng chain: Anglo Dutch Liquid Methane and current projects Conclusions and recommendations 2

3 LNG accepted worldwide 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 80% 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. 3

4 The lesser known Bio-LNG: what is it? 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) = liquid bio-methane. For the first time there is a biofuel which has always a better quality than its fossil counterpart LNG, so: besides fossil LNG there is the premium Bio-LNG. 4

5 Advantages of bio-lng Bio-LNG is of better quality than fossil LNG. This is the first time that a biofuel is better than its fossil counterpart. While bio-lng can be used without blending, it can also be used to improve the quality of fossil LNG. Bio-LNG can replace 20% of our fossil transportation fuels by 2020 in inland navigation, heavy duty trucks and cold ironing in ports. Bio-LNG can be used to produce bio-cng for private cars with minor additional costs (this also combats boil-off at the fuelling stations). Bio-LNG emits negligible NOx or PM when burnt. Bio-LNG has a much lower carbon footprint than other fossil fuels or biofuels: Bio-LNG can even be carbon negative. Bio-LNG is cheapest biofuel per energy unit. 5

6 About LNG quality Holland Innovation Team wrote a position paper about LNG quality after consultation of experts and gas engine manufacturers, see There are engines which can run on almost anything but this will temper the achievements (especially of next generation high performing gas engines). Heavy LNG qualities will not always be good enough for direct use in engines, so should be improved at the terminal site. Prominent institutions like NGVA and Euromot want standardization of LNG quality. Bio-LNG will always fulfil minimum demands and will improve LNG quality, so future bio-lng producers are happy with worldwide LNG standardization activities. 6

7 Methane slip in engines When gas is burnt in gas engines some of the methane is emitted unburnt. Research shows that methane slip is higher for dual fuel engines than for lean burning gas engines, especially for retrofit (refurbishing). Modern four stroke gas engines can emit 4-8 gram of CH4 per kwh or %. (Tanker shipping and trade April/May 2012) Methane slip might be an argument by environmentalists to decrease the benefits of use of LNG. But what about bio-lng made from waste and landfills? Basically: Bio-LNG is made from methane slip 7

8 Premium fuels Only recently the CEO of Shell Netherlands BV (Mr Dick Benschop) told the press: GTL is a premium fuel according to our standards. Therefore GTL can cost more than normal diesel because it is cleaner and it cost more money to produce. Similarly we argue: why not pay more for cleaner bio-lng from European soil than for fossil LNG from far away with lower eco-performance and fuel quality? 8

9 Bio-LNG should be blended into fossil LNG At least for transportation bio-lng should be used for blending fossil LNG: 5% now, 10% in Holland Innovation Team advised at the Bio-energy Conference of the EU in Brussels (5 June 2012) to support bio-lng and to apply the same obligation to LNG as for diesel and gasoline (in accordance with the Renewable Energy Directive). We recommend the obligation to blend LNG with bio-lng in the same way as biodiesel in diesel and bioethanol in gasoline. This is highly appropriate because: Bio-LNG improves quality of LNG, does not compete with food, has the best CO 2 reduction, no NOx/PM and avoids methane slip. 9

10 Well-to-wheel CO2 emissions (source: Air-LNG) 10

11 Emissions of LNG and biodiesel (ref. fossil diesel) 11

12 How much bio-lng can be made? Enough Source: Dutch government agency forecasts that 3 billion cbm/year of so-called green gas can be produced from anaerobic digestion and gasification of biomass, i.e. equivalent to >1 Mta of bio-lng in NL alone. 12

13 The bio-lng production process Biogas is produced by anaerobic fermentation. The aim is to produce constant flow of biogas with consistently high methane content. The biogas must be upgraded: removal of H 2 S, CO 2 and trace elements. The bio-methane must be purified (maximum 50ppm CO 2, no water) to prepare for liquefaction. The cold box liquefies pure bio-methane to bio-lng. 13

14 An optimized bio-lng production process Pre-treatment: with pre-treatment like steam explosion it is possible to digest celluloses and therefore use various cheap feedstocks. Digestion: using good mixes and elevated temperatures, you can decrease retention time and reduce cost of the biogas installation. Upgrading: using modern techniques, you can reduce methane losses and methane slip and reduce energy use. Advanced upgrading: use modules with minor energy use or use new methods (HIT is developing a new method). Liquefaction: if you use small scale liquefaction you should minimize energy consumption and use container-sized modules. 14

15 Bio-LNG refinery, 100 tons/day Production of bio-gas, upgrading and liquefaction to LNG Cambi fermentation unit, Cirmac upgrading, Cryonorm liquefaction) LP/MP steam LP/MP steam 99% CO 2, Bio-mass 90% s Water recycle & treatment Electric energy Fermentation of Bio-mass NH3 removal Liquefaction Bio-gas treatment, H2S removal + CO2-removal LP steam Digestate drying Groen-gas (90% CH4) LNG-gas (> 98% CH4) Digestate, 10% moist. Aqua ammonia Bio LNG (99% CH4) Production price 80 ct/kg with current biomass prices in Europe. 15

16 Landfills are a waste of land, use them for bio-lng There are approximately 150,000 landfills in Europe with app billion cubic meters of waste (Haskoning 2011). All landfills emit landfill gas; the contribution of methane emissions from landfills is estimated to be between 30 and 70 million tons each year. Landfills will contribute an estimated 460 to 650 billion cubic feet of methane per year (in 2000) in the USA. You can flare landfill gas. You can make electricity with landfill gas But you also can produce the cleanest And cheapest liquid biofuel: Bio-LNG. The gas is for free so it will cost less than natural gas to LNG. 16

17 The world-wide LNG prices ct per kilo Bio-LNG (from landfill gas) = $/mmbtu. 17

18 A great future for bio-lng What do these prices mean: Bio-LNG prices at a level of 45 ct per kilo is competitive with fossil LNG. Bio-LNG produced at a level of ct/kg, with incentives from the EU (subsidies, biotickets), will be at par or cheaper than fossil LNG. Low biomass prices and high LNG prices in Asia mean that Asia can produce bio-lng for prices that can compete with fossil LNG prices, and in certain cases bio-lng will definitely will be cheaper than fossil LNG prices. 18

19 A great future for bio-lng Only using waste and no food, We can use small scale bio LNG carriers to bring bio-lng to the large terminals to upgrade heavy LNG into necessary specs We can use bio-lng for implementation of the EU directive for biofuels (5% now 10% in 2020) We can market bio-lng as a premium fuel, which means positive publicity for companies that produce bio-lng from their own waste and drive on bio- LNG. That is why Holland Innovation Team and Chive Fuels found Anglo Dutch Liquid Methane. Some of our projects are the following: 19

20 (Bio) LNG bunker terminal A. Nobel & Zn Bunkerservice Initial bunkering from tank trucks See movie of test bunkering at youtube: Then starting with 500 m3 LNG storage tank, later expanded to 2,000 m3 (modular layout) The bunkering station is already heated and cooled by water of Oude Maas river (heat exchanger) Boil-off of bio-lng will generate electricity, creating the first bunkering terminal of the post-fossil fuels era Location: Zwijndrecht on Oude Maas river 20 km from Rotterdam on main route to Germany 20

21 Development of bunkering and distribution vessels Sponsored by EU (EFRO Zuid-Holland) Partners: VEKA, Cryonorm Projects, LNG Rivers Shipping There will be a new market for (bio) LNG bunkering vessels and carriers to transport fossil LNG from small scale plants and for transport of biolng to bunkering stations and large terminals for improving LNG ecoperformance and quality for bio-lng to 4000 cbm and for small scale LNG up to (?). 21

22 Truck fuelling stations First (bio)lng fuelling station of Anglo Dutch Liquid Methane to be placed in Heerenveen, more to follow, using Chive Fuels proven design and logistics 22

23 Building the chain: (bio-)lng production Feasibility study for conversion of Dutch biogas plants (now struggling as power plants) to supply bio-lng for use as fuel in agriculture and construction industry Partner: Prima Energy / SHV Energy (a leading propane supplier in 25 countries) Regional bio-lng production is also the goal in the aforementioned Fryslan project. Partner: waste disposal company Omrin 23

24 A new LNG-electric container vessel A grant for development of this first inland navigation container vessel on LNG awarded to Stevas Shipping and VEKA by Port of Rotterdam fund (Sept. 2012). To be operational in Q

25 Use bio-lng for cold ironing Because a large number of power stations are coalfired, running ships on shore electricity when alongside could result in greater levels of atmospheric pollution than the traditional practice of using ship fuel. Furthermore, installing the necessary aggregate and, berthside connection points in EU ports could cost EUR 675 million and EUR 50 million a year to maintain. Week_46.aspx Holland Innovation Team and partners are developing a mobile shore power generation service using bio-lng. Investment costs are considerably lower than permanent grid connections moreover, bio-lng is renewable

26 Conclusions and recommendations (1) Although some engines can cope with almost any quality, LNG with high methane number has more energy per ton and better efficiency in modern gas engines than heavy LNG. Like oil and gas companies who are keen on superior quality of fuel, we aim to sell premium quality bio-lng. Bio-LNG is the best example of a premium fuel as it is renewable and made from our own waste. Bio-LNG can be used to upgrade quality and eco-performance of fossil LNG in Europe. Holland Innovation Team advises to make blending of Bio-LNG in LNG in Europe obligatory (in accordance with Renewable Energy Directive). With bio-lng the 10% biofuels target can be fulfilled without competition with food / land use. 26

27 Conclusions and recommendations (2) Bio-LNG is by far the cheapest biofuel without competition with food and land use. A large bio-lng facility in the Netherlands can produce bio-lng for less than 80 cents per kilo which is much less than biodiesel /bio-ethanol equivalent. Landfills could produce bio-lng in Europe for less than ct per kg. In Asia bio-lng production is cheaper than imported LNG. 27

28 So keep thinking out of the box! And we see a great future for biobio-lng Thank you for your attention Peter van der Gaag Remco Hoogma Holland Innovation Team