Bio-LNG production in Asia

Transcription

1 Bio-LNG production in Asia Bio-LNG the first bio fuel of better quality than fossil LNG and even cheaper Huge opportunies for agriculture and the energy industry in Asia Peter van der Gaag 1

2 Content of the presentation What is bio-lng? What are the differences with fossil LNG The LNG and the bio-lng production process Comparing bio-lng with other fuels: eco-performance About the costs in Asia LNG versus bio-lng New developments in technologies Biomass (uses) in Asia: biogas-to-bio-lng scores best Two concepts of bio-lng production 1) Landfill and 2) agricultural (organic) waste Some possible projects-what can we offer : feasibility studies tests business plans The LNG and bio-lng chain: blending, bio-lng carries Latest news: what we can do for you Conclusions and recommendations 2

3 Bio-LNG: what is it? Bio-LNG is produced from biogas. Biogas is produced by anaerobic digestion. All organic waste can rot and 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: Bio-LNG is a premium fuel in comparison with fossil LNG 3

4 Bio-LNG less complicated than LNG Two types of LNG: rich/heavy LNG contains a relative large quantity of heavy hydrocarbons lean LNG contains few (or no) heavy hydrocarbons. Only one type of Bio-LNG: no dust (clay particles) no mercury, no pentane, no hexane no radioactive gasses no ethane, propane, butane 4

5 Fuel quality Advantages of bio-lng (over fossil LNG) Bio-LNG is of better quality than fossil LNG. The bacteria do not produce ethane, propane and butane, therefore: Bio-LNG has a higher methane number than fossil LNG: excellent for transportation. Bio-LNG is of constant high quality (fossil LNG is not) This is the first time that a bio fuel is better than its fossil counterpart. Applications Bio-LNG is suited as fuel for heavy duty applications including mobile machinery Bio-LNG can also be used to produce bio-cng for private cars with minor additional costs (this also combats boil-off at the fuelling stations) While bio-lng can be used without blending, it can also be used to improve the quality of fossil LNG Environmental Bio-LNG has a much lower carbon footprint than fossil LNG Bio-LNG can even be carbon negative (when produced from biomethane emissons). For Asia: Bio-LNG comes from local agricultural waste Bio-LNG only needs short distance logistics (fossil LNG does not) Bio-LNG delivers much more local employment than fossil LNG 5

6 The (ideal) bio-lng production process Select the right feedstock,from which biogas is produced by anaerobic fermentation. The aim is to produce a 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 50 ppm CO 2, no water) to prepare for liquefaction. The cold box liquefies pure bio-methane to bio-lng ( bar) 6

7 Environment: Well-to-wheel CO 2 (source: Air-LNG) 7

8 Environment: diesel biodiesel - LNG LNG scores better than diesel and biodiesel, so does bio-lng with the advantage that it is renewable and made of waste 8

9 Costs: which reference we will use, fossil LNG? 1 ton LNG is approx. 50 mm BTU i.e. 650$ off CHINA terminal 9

10 Costs:what would be the reference, fossil LNG? $ mmbtu means 1 ton LNG is 875 $ in CHINA off large terminal 10

11 Reference for bio-lng will be small scale LNG Expected October $ mm BTU, means 1 ton LNG is 750 $ in CHINA off large terminal How much we are willing to pay 500 km from the LNG terminal for LNG? To give an idea about costs of the small scale LNG chain, look at studies of DNV, Lloyds, GL, add 30%? Considering that bio-lng has higher methane number in Sweden Fordon Gas and Volvo state that you drive 10% further with bio-lng and that in dual fuel vehicles you can drive on 80% bio-lng versus with fossil LNG only 50% or less. So the reference for bio-lng will be small scale LNG plus the surplus, clients are willing to pay more for the environment or governments are willing to support with grants. 11

12 Bring Bio-lng costs down: developments Retention time and sort of biomass are important for biogas production. Thermophilic anaerobic digestion decreases retention time Vacuum pre-treatment, steam explosion, hydrogenesis are new pretreatment technologies which can break down lignocelloluses Good management of the biogas installation (educated bacteria colonies) and elevated temperatures as well as pre treatment make it possible to use cheap lignocelluloses as feedstock for biogas production with decreasing retention time Biomass with high content of lignocelluloses is abundant and cheap : 12

13 Use lignocelluloses and not food Especially those biomass which have large percentage of ligno- Cellulose are cheap and suitable for anaerobic digestion 13

14 Bring the costs down: developments Biogas upgrading technologies (separation CO2 from CH4 are developing rapidly) separation by membranes, chemical absorption, cryogenic technologies Energy use and investment is going down Methane slip (and methane losses) is limited Liquefaction technologies are improving for micro and small scale (specialized companies for micro and small scale installations compete with large companies from the oil and gas industry) Containerized, skid mounted, mobile installations are developing 14

15 An optimized bio-lng production process 1. Pre-treatment: with pre-treatment like steam explosion it is possible to digest celluloses and therefore use various cheap feedstock's. 2. Digestion: using good mixes and elevated temperatures, you can decrease retention time and reduce cost of the biogas installation. 3. Upgrading: using modern techniques, you can reduce methane losses and methane slip and reduce energy use. 4. Advanced upgrading: use modules with minor energy use or use new methods (alternatives for molecular sieves). 5. Liquefaction: if you use small scale liquefaction you should minimize energy consumption and use container-sized modules. Use the best configuration of the five modules! 15

16 Case 1: Landfills are a waste of land, use them for bio-lng All landfills emit landfill gas. Landfills will contribute an estimated 460 to 650 billion cubic feet of methane emissions 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 bio fuel: Bio-LNG. The gas is for free turning it into bio-lng will cost less than natural gas to LNG in Asia. In this case bio-lng is made from NEGATIVE methane slip 16

17 . Module 1 pretreatment Hydraulic fracturing increases landfill gas yield and economy of scale for bio-lng The method consist of a set of drillings from which at certain dept the landfill is hydraulically broken. This means a set of circular horizontal fractures are created from the well at preferred depths. Sand or other materials are injected into the fractures. Gas gathers from below in the created interlayers and flows into the drilled well. In this way a guiding circuit for landfill gas is created. With a 3-5 fold quantity of gas, economy of scale for bio-lng production will be reached rapidly. Considering the multitude of landfills worldwide this hydraulic fracturing method in combination with containerized upgrading and liquefaction units offers huge potential. The method is cost effective, especially at virgin landfills, but also at landfills with decreasing amounts of landfill gas. 17

18 LP steam Case 2: 100 tons/day Bio-LNG refinery in Europe 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 Fermentation of Bio-mass Bio-gas treatment, H2S removal + CO2-removal Groen-gas (90% CH4) LNG-gas (> 98% CH4) Water recycle & treatment Digestate drying Digestate, 10% moist. Electric energy NH3 removal Liquefaction Aqua ammonia Bio LNG (99% CH4)

19 Bio-LNG production in Asia will profit from high LNG and low biomass prices Price differences between biomass Europe and Asia 60 $ -100 $ ton Depending on biomass: for one ton of bio-lng, you need approximately three tons of biomass (depending on pretreatment) Price differences between LNG in Europe and Asia are still 250$ /ton Which means that price advantages for bio-lng in Asia versus Europe can be in the reach of dollars a ton The 100 ton per day bio-lng plant would produce a ton of bio-lng for 1070 dollars a ton based upon imported Asian biomass! 19

20 Production costs of bio-lng in Asia Dependent on feedstock, scale and co-siting advantages, we estimate: For landfills: for million liter per annum production, the costs of bio- LNG will be <$ 0.30 per liter or < $ 0.70 per kilogram. Due to negative carbon footprint grants are most likely For 100 tons/day plant, prices will be lower than $ 700 dollar per ton This means that in certain areas, bio-lng can be cheaper than LNG from the large import terminals /LNG price expected October $750 per ton Which means that local bio-lng can be much cheaper than small scale LNG which is transported from large scale terminals to clients at some distances (especially islands and mountainous areas) 20

21 Why bio-lng will conquer the market? Biogas can be used to make electricity Advantage: direct use of electricity Disadvantages: biogas (H2S) damages gas engines, air pollution, Biogas can also be used to be fed into the gas grid Advantage: existing gas grids can be used Disadvantages: often no gas grid present Biogas can be used in cars Advantage : need less investment in cars Disadvantage : must be used nearby, needs extra energy to compress, cannot be used in heavy duty trucks and ships Bio-LNG can be used for all purposes, LCNG refuelling stations are even cheaper than CNG Bio-LNG can use all the benefits of the small scale LNG chain 21

22 Add value to your biogas and landfills Malaysia Korea Vietnam 7 June 2012 London, UK based waste-tobiofuel specialist, Gazasia is to begin development of a vehicle fuel made from organic waste products from landfill in the Philippines. London, UK based waste-to-biofuel specialist, Gazasia has signed an agreement with Philippine power, financial services and food group, Aboitiz Equity Ventures (PSE: AEV) that secures $150 million of investment to fund the development of plants 22

23 Development of bio-lng distribution vessels? Project Sponsored by EU, EVRO Province of ZH 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 bio-lng to bunkering stations and large terminals for blending. for bio-lng to 4000 cbm and for small scale LNG up to (?). 23

24 Small scale LNG carriers, micro size for bunkering, inland navigation and BIO-LNG transportation According to DNV the market for small scale vessels will be 65 ships in 2020, With bio-lng, the market will be much larger according to HIT, Prefered size 2000 m3 and 4000m3 and smaller, design ready, waiting for orders 24

25 How much bio-lng can be produced in Asia? We estimate that several tens of millions of tons of Bio-LNG can be produced from Bamboo, bagasse, rice husks, maize silage, wheat straw, empty fruit bunches and landfills in Malaysia, China, Vietnam, Indonesia, Thailand, Philippines and other Asian countries. 25

26 Holland Innovation Team offers consultancy We can carry out full feasibility studies We can do test and give you the yield of your feedstock We can provide you with business plans based upon : best configuration of the five modules for your feedstock also depending upon local situation (cositing advantages) We can provide you with cost estimation of your investment (including IRR) We are independent, use the following expertise network 26

27 Our innovation network for (bio)-lng BER BV (HIT major shareholder) Integrated bio-refinery for bio-lng using advanced pre-treatment LNG supply UK since 1997, nationwide fuelling station network Hydraulic fracturing, in-situ remediation Canada/USA (bio) LNG supply and stations for mainland Europe Enhanced landfill gas extraction for bio-lng production LNG and CNG conference Petneházy Club Hotel Budapest March

28 Conclusions Bio-LNG production in Asia will be profitable because of high LNG prices at the import terminals It is possible to select biomass feedstock and produce bio-lng at lower cost than fossil LNG at the terminal If prices of LNG go down, bio-lng still locally can be produced at much lower cost than small scale LNG coming over long distance from the large LNG import terminal Constant better quality of bio-lng can be used for selling at as a premium fuel or to upgrade fossil LNG Small scale carriers will be used for transport of bio-lng to large LNG terminals for blending and straight to clients, which need small amounts of LNG 28

29 Recommendations Let us start bio-lng production in Asia as soon as possible. The potential is huge, this new market is a billion dollar business, we can help you 29

30 Upcoming field trip and seminar Holland Innovation Team held a Bio-LNG investment webinar on July 28 th at the request of International Energy Investment. Investors from 19 countries showed interest For these international investors and companies which are interested in small scale and bio-lng, IEI and HIT will organize a two days field trip to bio-lng and LNG production in Norway and technical workshops about bio-lng on 24 and 25 October Special visit will be at the small scale LNG chain and bio-lng plant in Oslo The field trip and seminar will be open for up to 20 participants. See soon 30

31 We help you thinking out of the box! And see a great future for bio-lng in Asia Thank you for your attention Peter van der Gaag Holland Innovation Team 31