Renewable Gas Forum Ireland Meeting Ireland s targets under the 2020 Climate & Energy Package An Opportunity for Ireland. PJ McCarthy Chair 27th February 2018
Renewable Gas Forum Ireland Industry Forum represents full supply chain of biogas industry Objectives influence policy and legislation Strategy Create suitable market conditions for Renewable Gas Advocacy large end use consumers in manufacturing, processing and transport. Markets 1) Heat 2) Renewable Electricity CCGT 3) Transport 4) Export market Competition 28,000 industrial and 680,000 domestic consumers
Distribution of Renewable Gas Gas Networks Ireland owns, operates, develops and maintains the natural gas network in Ireland. World-class, modern gas network Over 13,954km: 2,427km Transmission Network 11,527km Distribution Network More than 680,000 gas consumers Over 160 population centres 20 counties
Route to Market Integrating Renewable Gas
GHG Emissions Inventory 48% Emissions & source for 95% of biogas Electricity Gen The Challenge & Resource Agriculture Many sustainable resources for biogas Manufacturing & Industry Dominated by Agri Food & Beverage Source of waste resources >85% energy used is Heat Key customer base Decarbonising Heat Transport Corporate & Social Responsibility Another key customer base; Decarbonising Transport
Renewable Gas Markets HEAT 40% of Irelands Energy Demand Manufacturing Industry Agri-Food, Beverage, Pharma, Medical Devices, etc. Process & CHP Commercial / Hospitality / Public Sector Space heating & CHP Residential Heat Urban On demand, reliable, highly efficient, and clean Group schemes (District Heating) TRANSPORT 40% of Irelands Energy Demand Commercial Haulage / Logistics Heavy and Medium Goods Vehicles Public Transport Buses Carbon Neutral & Clean no PM emissions ELECTRICITY 20% of Irelands Energy Demand Central Gen gas is highest efficiency combustion fuel
Analysis of Grass & Manure Resources Teagasc study by McEniry et al., 2011 examined Ireland s potential to grow additional grass in excess of livestock fodder requirements. R. O Shea et al. 2017 combined the Teagasc methodology with CSO data to identify areas with the largest potential to grow additional grass for biogas Significant potential for additional grass in addition to requirements for increased milk and beef production Cattle Manure Additional Grass in excess of projected fodder demand post CAP 2020 Source: UCC ERI, MaREI, Teagasc. Funded by SFI & GNI Researchers: Richard O Shea, Prof Jerry Murphy
3 Gas Processing and Transport Fundamental Priority: QUALITY & SAFETY GNI & RGFI promote best practice guidelines Gas industry expertise and competency Opportunity for competent vendors / service providers Biogas processing co-located with AD Processed biogas = Renewable Natural Gas >97.8% Methane 2 technologies currently approved by GNI Membrane Amine Gas compressed on-site into Gas Transportation Trailers (CBG Trailers) ADR licensed driver and tractor unit required Produces useful heat for AD (parasitic load) By-product gas Green CO2 Additional revenue stream high value industrial gas
Central Electricity Generation Solid V Gaseous Fuel < 50% delivered as useful energy. > 50% transformation and own use losses. Solid Fuel ~35% Efficient Gaseous Fuel CCGT 55%- 60% Efficient More from Less Less land use Less taxpayer and energy consumer cost 9
Renewable Gas supply delivers more energy efficiency CHP Combined Heat & Power Industrial, Commercial & Public Sector CHP 90% efficient 40% Elec & 50% Thermal Industrial, Commercial & Residential Boilers Condensing Boilers up to 97% on-demand efficiency 1/3 cost of electrifying heat Commercial & Public Transport 2% to 30% Cost saving from diesel 100% CO 2 reduction 70% NOX reduction 80% SOX reduction 99% Particulate Matter reduction Renewable Gas is 100% Indigenous 10
Level of subsidy needed for Renewable Natural Gas Scale and coordinated strategy required to achieve efficiencies Scale also needed to support core economic industry demand decarbonisation Secure & expand key export industries Strategy proposed 1- Ring fence NG Carbon Tax, & 2- Apply Fuel Obligation 11
NG Carbon Tax funding & Fuel Obligation Natural Gas Carbon Tax 120 Million per annum Capacity to fund 4TWh / 7% RNG Supply Establish Industry Transition to Fuel Obligation from 2025 Increasing annual obligation increments Transition to Industry - drive competition, efficiency, & reduce costs 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - RNG Forecast - GWh/Yr 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 RNG Subsidised GWh/yr Additional RNG Obligation GWh/yr 12
Renewable Gas Market(s) 680,000 Customers HEAT 40% of Irelands Energy Demand Manufacturing Industry Agri-Food, Beverage, Pharma, Medical Devices, etc. Process & CHP Commercial / Hospitality / Public Sector Space heating, CHP & CHPC Residential Heat Urban On demand, reliable, highly efficient, and clean Group schemes (District Heating) The future home Renewable Gas and Solar PV 1/3 cost of electrified heat; Reliable, efficient, carbon neutral TRANSPORT 40% of Irelands Energy Demand Commercial Haulage / Logistics Heavy and Medium Goods Vehicles Public Transport Buses Carbon Neutral & Clean no PM emissions ELECTRICITY 20% of Irelands Energy Demand Central Gen CCGT gas is highest efficiency combustion fuel Opportunity for large scale CCS in Cork Carbon Negative 13
Renewable Gas Growth Forecast Ireland has the highest potential for biogas production per capita within the EU by 2030. European Commission Report: Optimal use of biogas from waste streams, An assessment of the potential of biogas from digestion in the EU beyond 2020 https://ec.europa.eu/energy/sites/ener/files/documents/ce_ delft_3g84_biogas_beyond_2020_final_report.pdf Economic Assessment of Biogas and Biomethane in Ireland 28% Renewable Gas within direct access of Gas Grid https://ee.ricardo.com/downloads/energy/assessment-of-cost-andbenefits-of-biogas-and-biom 14
Renewable Gas across Europe Ireland is absent? Despite the inherent capacity and demand! 15
1 Gas Entry Hub supporting catchments of Farm AD s Sustainable Agricultural Resources 2 On-farm and off-farm Anaerobic Digestion (AD) Biogas Produced Biogas Produced 3 Gas processing and transport Renewable Gas Biogas Produced 4 Gas Entry Hub Renewable Gas Injection 5 Renewable Gas available for Industry, Residential, and Transport Markets 16
1 Sustainable Agricultural Resources Pig Slurry, and Cattle Slurry (beef finishing, dairy, etc.) Typically 33% to 50% of AD feedstock Crop Residues. Break Crops: Tillage farmers need to use break crops, such as beet, to improve soil structure as well as for pest and disease control Catch Crops: Tillage farmers are now being encouraged to grow catch crops to protect soil from erosion during winter and nutrient depletion and run off from exposed soils Additional Grass Silage Ref: Teagasc Grange guidelines for improving below average grassland with current yields <6 tonne DMT / ha Cultivated Marine Algae: Utilisation of marine algae (seaweed farming) as a measure to protect against environmental damage from fish farming Abattoir Wastes: Subject to strict guidelines from DAFM Type 1 AD only Agri and Marine Food (& beverage) Industry waste streams Type 1 AD only
Renewable Gas available for markets: Green Gas Certification Scheme for Ireland Reference: dena BiogasRegister.de 18
Good management Practices Protection of Land - High biodiversity value Water Quality Air Quality Continuous Improvement No Competition with established local RNG Application Sustainable Management Practices Renewable Gas Protection of Land-High Carbon Stock Biodiversity Soil Quality RNG towards local prosperity GHG Mitigation Thresholds Standard for Quality Management (ISO 9001)
GHG Accounting Tool Demonstration: Exemplary calculation GHG Tool 20
Sustainability Criteria for Certification Compliance with the renewable energy directive will require to include additional criteria (besides GHG mitigation) in the GGCS certification scheme. The definition of the GGCS certification criteria set should include the minimum sustainability criteria from the EU RED. Additional criteria could be included based on the specific values and intentions of the stakeholders. The sustainability criteria included can overlap with existing national or European legislation. In this case links between the respective frameworks need to be established. This will help to decrease the effort during the auditing process. 21
GGCS Sustainability Criteria EU RED criteria (minimum requirements) Additional criteria for consideration Good management practices and continuous improvement no competition with established local biomass application biomass production towards local prosperity E Protection of land with high biodiversity value E Sustainable management practices E Protection of land with high carbon stocks GHG mitigation thresholds Maintenance or improvement of water quality E Maintenance or improvement of air quality No effects on biodiversity Link to established standards for quality management (ISO 9001) Maintenance or improvement of soil quality DBFZ own figures 22
Compliance with EU RED criteria Protection of land with high biodiversity value E Sustainable management practices Protection of land with high carbon stocks GHG mitigation thresholds Compliance with EU RED minimum requirements can be demonstrated using existing national legislation Consideration of protected areas: use of existing tools such as GRAS, etc. to check reference date for land conversion (01.01.2008) Use of farmer self declarations or other proof of compliance with national and EU requirements regarding good agricultural practices (e.g. cross compliance, etc.) GGCS calculation tool, default values 23
Process Scheme 24
Clean Transportation: in California, charging an EV produces 38.9 gco2e per megajoule while operating on BioCNG produces 8.6 to -25.5! 25
Hub & AD Catchment Showcase Project Circular economy integration Farming clusters (feedstock supply) Farmer & Community owned AD s High capacity Gas Entry Hub Large catchment area Integrated with Agri-Food Manufacturing Establishment Phase, partners include: Ballyhoura Development 14+ Farmers (Dairy, Pig, & Arable) Renewable Gas Forum (RGFI) GNI 26
Agri-Gas-Grid Showcase Project Circular economy integration Farming clusters (feedstock supply) Farmer or Community owned AD s High capacity Gas Entry Hub Large catchment area Integrated with Agri-Food Manufacturing Establishment Phase: Collaboration partners include; Ballyhoura Development Renewable Gas Forum (RGFI) GNI Seeking Farmer Developers 27 27
Gas Entry Hubs Wider Deployment Phased Deployment - illustrative Rapid growth in Renewable Gas Volumes Gas Entry Hub enables development and growth by catchment area Target: 20% Renewable Gas by 2030 28 28
Renewable Gas Forum Ireland (RGFI) RGFI Board Producer Sector Delivery Sector Customer Sector Renewable Gas Producer Renewable Gas Transporter Heat & Power Shipper/Supplier Transport Academic & Technology Centres TCBB Resource Match Demand with Supply - Demand driven (pull, not push) Technical Committees: Developing Guidelines & Best Practices Facilitate adoption of common standards and controls 29
Supporting & Connecting Renewable Gas Renewable Gas Forum Ireland (RGFI) http://www.renewablegasforum.com/ Monthly meetings and clinics, Portlaoise Full supply chain farmer to customer Technical support, guidelines & standardisation Best practice dissemination, Workshops, Integrated w leading EU competent authorities Collaboration initiatives Networking, Matching clients supply, demand, circular economy, on & off grid Demonstrator & case study projects Renewable Heat Incentive (RHI) for Biomethane Grid Injection Pending Key enabler for market establishment 30
Agri-Gas-Grid Summary of benefits Opportunity for small scale farmers grass, rotation & catch crops Higher income and larger market than solid fuel biomass On-farm and off-farm AD development opportunities Diversify income Decarbonise agriculture feedstock and supply chain Displace imported fertilizers Improve soil, water and air quality Gas processing and transport High quality and safety standards Elimination of dangerous and environmentally damaging gases High efficiency and less vehicle movements Direct priority access to existing gas infrastructure and market Renewable Gas Entry Hubs Large catchment areas Enable on-farm and off-farm AD Nationwide Energy Consumer Lowest cost of decarbonising Heat and Commercial/Public Transport National GHG reduction in Heat, Transport, Electricity, & Agriculture 31
Concluding on the Benefits Opportunity for small scale Farmers feedstock supplier Higher income, larger & more secure market Opportunity for Farm based AD developments Diversify income Displace imported fertilizers Improve soil, water and air quality Opportunity for the Energy Consumer Domestic to Industrial Lowest cost for decarbonising Heat, CHP, Public & Commercial Transport Competitive & efficient fuel for Combustion Power Gen On demand / dispatchable energy, clean & secure SECURE & SUSTAINABLE Environmentally Economically Competitively Environment / National Security of supply - resilience 32