Natural Gas Pathways: Towards a Clean and Renewable Energy Future for California External Affairs & Environmental Strategy Southern California Gas Company 2015
California s Dual Emissions Challenge Federal Clean Air Act and California Climate Change Initiative FEDERAL CLEAN AIR ACT Reduce SMOG by 75-80% before the next 20 years CA CLIMATE GOALS (AB32) GOVERNOR S EO: By 2050, reduce GHG emissions to 80% of 1990 Measures to Reduce Smog and GHG Emissions Drive Today s Energy and Environmental Agenda Natural Gas will Play an Increasing Role as a Solution
And, we have a CLEAR FOCUS THE TRANSPORTATION SECTOR Major Ozone (NOx) Emissions Sources in South Coast Air Basin 80% of the region s SMOG 40% of its GHG emissions
Start with the BIGGEST POLLUTERS Top NOx Source Categories SCAQMD NOx Heavy & Medium Duty Trucks Off Road Equipment Cars Light Duty Trucks Light-Heavy Duty Trucks Source: CARB Staff Report for 8-Hour Ozone State Implementation Plan Emission Inventory Submittal 0 50 100 150 200 TONS PER DAY
NGV Game Changer New Near-Zero Truck Engine to be Ready for Prime Time SoCalGas working with agencies and engine manufacturers to deliver truck engine 90% lower emissions for 2018! Tailpipe emissions the same as emissions from generating electricity to run similar truck on electricity, years before heavyduty EV trucks ready for the market Near Zero Emission Natural Gas Engine <0.02 g NOx 5
Technology Transfer and Transportation Pathways SoCalGas Transportation Pathway focuses on natural gas vehicles in heavy duty sectors, which represent the largest share of both ozone/greenhouse gas problem. Technology transferrable to other sectors: Current Focus Expanding Focus Transit/Fleet Vehicles Heavy Duty Trucks Short/Long Haul Cargo Handling Equipment Locomotives Short/Long Haul Marine Vessels CNG LNG
Remaining Emissions Relative to 2010 Current State GHG Pathway -- Focused on Electrification Will Misses Ozone Deadlines 100% 90% 80% 70% 60% 50% 40% 30% South Coast Air Quality Management District 2050 CARB Statewide GHG Target Reductions need to be achieved Faster & Sooner than current statewide GHG reduction goals 20% 10% 75 ppb ozone standard 80 ppb ozone standard 0% 2010 2020 2030 2040 2050 CA Statewide CO 2 South Coast Target NO x Reduction necessary to meet Federal Ozone Standards 7 Use of Natural Gas in Transportation Sector can help achieve ozone standard sooner
California Climate Change Policy Make Room for Near-Zero End Uses and Low Carbon Gas California focused on electrifying end uses and de-carbonizing electricity Electrify transportation Electrify energy end uses De-carbonize generation SoCalGas focused on near-zero end use technology and de-carbonizing the pipeline Near-zero NGV s Near-zero gas technology Decarbonize gas supply Hydrogen blending Renewable methane feedstocks It s NOT Either/Or. It IS Both/And!
The Natural Gas Pathway for Homes and Businesses: Source Efficiency
De-Carbonizing Electricity: Natural Gas Stationary Use Pathways The move toward nearzero emission technology focuses on: Distributed Generation Small-scale Generation Matched with Renewables Power Generation with Carbon Capture Not just Solar and Wind Fuel Cells Micro-turbines Combined Heat & Power
De-Carbonizing the Pipeline: Waste or Biomass To Hydrogen or Biomethane
De-Carbonizing the Pipeline: Electrolysis of Excess Renewable Electricity (Power-to-Gas)
Power-to-Gas Projects: Provides green hydrogen pathway and grid storage 2MW Power-to-Gas Demonstration Plant (Falkenhagen, Germany) First power-to-gas plant to inject hydrogen into the natural gas grid (August 2013) 30 projects launched in Europe to date Hydrogenics Plant (Stuttgart, Germany) Uses a PEM electrolyzer to produce H2 from water. Uses CO2 from biogas plant. Injects CH4 in pipeline system
SoCalGas Facilitating Cleaner Energy Options for Our Customers RD&D of cleaner, more efficient natural gas technologies, inc. P2G at UC Irvine. New State Natural Gas Utilization Policy Offering Compression Services to facilitate development of NGV market Offering Biogas Conditioning Services to facilitate development of renewable natural gas market Proposing Distributed Energy Services tariff to facilitate more efficient use of heat and power In the future, considering LNG and Hydrogen Production Services as energy economy moves to cleaner fuels
Complying with AB 32 What Can Cities Do? AB 32 Programs: Energy Efficiency RPS LCFS Public Buildings/Facilities Solar, Wind, Geothermal, BioGas City Fleets Cap and Trade AHSC Program
Cap and Trade» Over $2.2 billion in cumulative revenue to state as of May 2015» Potential state revenues of $12-45 billion through 2020 as estimated by Legislative Analyst s Office» All auction revenues are deposited in Greenhouse Gas Reduction Fund (GGRF) and used to reduce GHG emissions 16
Use of Cap and Trade Revenues» Three-year investment plan developed by Dept of Finance and administered by state agencies in accordance with guidelines developed by ARB» Three main areas: 1) Sustainable Communities and Clean Transportation (~75%) 2) Energy Efficiency and Clean Energy (~15%) 3) Natural Resources and Waste Diversion (~10%)» Allocate at least 25% to benefit disadvantaged communities 17
Affordable Housing and Sustainable Communities (AHSC) Program» $130 million administered by Strategic Growth Council in FY 2014-15, potentially increasing to $400 million in FY 2015-16» Fund integrated land use and transportation projects supporting low-carbon transportation options» SCAG cities and counties applied for $52 million (20.8% of total submitted projects), $27.5 million awarded (22.5%)» $15 million per city cap 18
Background Slides (Methane Emissions) 19
Methane emissions from natural gas systems PART OF CALIFORNIA S GHG EMISSIONS 0.5% Natural Gas Systems TOTAL GHG EMISSIONS IN CA - 100 YEAR v 80% Carbon Dioxide 6% Black Carbon 7.5% Other Methane Sources 4% F-Gases 3% Nitrous Oxide Source: CARB s 2014 Inventory. Reducing Short Lived Climate Pollutants in California.
NEW STUDIES SHOW LOWER LEAK RATES primarily due to system modernization and better leak detection 0.60% Leak Rate Comparison 2013 0.50% 0.40% 0.52% Measured using 20+ year old GRI/EPA emission factors 0.30% 0.31% 2013 samples that generated new emission factors 0.20% 0.10% 0.12% 0.00% All U.S. Distribution SoCalGas Territory as Reported to ARB EDF LDC Study SoCalGas Engineering Analysis
. California s Methane Inventory: AGRICULTURE & WASTE CONTRIBUTE 87% OF THE STATE S METHANE EMISSIONS CALIFORNIA 2012 METHANE EMISSION INVENTORY Source: CARB s 2014 Inventory. Reducing Short Lived Climate Pollutants in California.
RENEWABLE Natural Gas Can Eliminate Methane Emissions from the Leading Sources WHAT S POSSIBLE GENERATE 2.5 quadrillion Btu annually enough to meet the natural gas needs Convert waste from dairies, farms and landfills into biogas using anaerobic digestion of 50% of all US homes CH 4 Condition the methane REPLACE 75% of all diesel used by CA vehicles put in the pipeline for future use SOURCE: Bioenergy Association of California and CARB May 2014 Look-Up Table 30 SUPPLY biogas as a transportation fuel from food and green waste with a NEGATIVE carbon intensity MARCH 2015 SOUTHERN CALIFORNIA GAS COMPANY 23
Background Slides (Power to Gas) 24
Power-to-Gas Definition Wikipedia Power-to-gas (often abbreviated P2G) is a technology that converts electrical power to a gas fuel use electricity to split water into hydrogen and oxygen by means of electrolysis the resulting hydrogen is injected into the natural gas grid or is used in transport or industry combine the hydrogen with carbon dioxide and convert the two gases to methane (see natural gas) using a methanation reaction such as the Sabatier reaction the methane may then be fed into the natural gas grid Efficiency The power-to-gas methane method is to combine hydrogen from an electrolyzer with carbon dioxide and convert the two gases to methane 25
Existing Infrastructure Can Serve Multiple Low Carbon Gas Pathways Renewable H2 Methanation Reformation Transportation Hydrogen Blending Gas Grid Separation Renewable NG Pipeline Compress or Liquefy Natural Gas Timeframe Storage Generation / End Use 0 20% 40% 60% 80% 100%
Gaseous Fuels Provide Unique Storage Functionality 27
Methane as a Storage Medium SoCalGas storage fields are the largest energy storage resource in the region Goleta Aliso Canyon Playa Del Rey Honor Rancho 28
Fully Built Delivery System 29
Hydrogen Specs 30