2012 Mar Natural Gas Facts Figures
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Transcript of 2012 Mar Natural Gas Facts Figures
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Natural GasFacts & Figures
March 2012
International Gas Union
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Navigation-tool for the Natural Gas Facts & Figures slide-pack
1. Markets for Gas Power Generation Industry Chemical Feedstock
2. Natural Gas Resources, Supply & Transport Reserves: Conventional & Unconventional Gas Transport LNG
3. Environmental Impact Power generation from gas with / without Carbon Capture & Storage
(CCS) Efficient Partner for Wind (and other intermittent energy sources)
4. Prospects for Developments of Further Technological Options
Commercial Sector Residential Sector Transportation Sector
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Goals and Objectives
Highlight the value of natural gas to ensure
its fullest economic and environmental
contribution in low carbon energy systems
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Note:
The cost estimates in this package have been based on reliable, verifiable data.
However they may not concur with cost estimates in other publications.
This may be due to a variety of factors and assumptions, e.g.:
Prices of fossil fuels
CO2 prices
Location factors
Size of plants
Costs of steel
EPC costs
Discount factors
Lifetime of plants
All cost comparisons in this package should therefore be considered as indicative.
While capital costs of different options may vary considerably in absolute terms, in relative termsthere is very little variance
(For reasons of consistency all cost data used in this package have been taken from the June 2010, Mott MacDonald(MMD) report for the UK DECC)
Cost estimates
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Markets for GasCost effective, Convenient and Efficient
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Growing Global Demand for Gas
Source: IEA, The Golden Age of Gas, 2011(GAS scenario)
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Power Generation
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Embryonic Expansion Maturity Decline
Nuclear
Hydro
Wind
Solar
Electricity demand
fluctuates from hour to hour
over a year
Jan Dec
Same demand ranked in descending orderillustrated by a
load duration curve
and corresponding supply
MID-LOADSUPPLY
BASE-LOAD SUPPLY
PEAK-LOADSUPPLY
Source: IGU/ Clingendael International Energy Programme (CIEP)
Meeting Electricity DemandEXPLANATORY NOTES
PEAK-LOAD, MID-LOAD and BASE-LOAD SUPPLY
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Gas-fired Power GenerationCCGT (Combined Cycle Gas Turbine)
Modern combined cycle 1000 MW powerplant (CCGT)
Diagram CCGT, a combination of a gasturbine and a steam turbine. Efficiency ~59 %.
Very efficient generation technology
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High efficiency (relative to other options)
Less thermal waste & less cooling needed
Compact equipment
Lower investment and operating costs than oil or coal plant
Shorter construction time and easier permitting process
Few environmental problems (relatively clean)
Less CO2
emission rights needed than for oil or coal
Suitable for meeting base-loadandmid-loaddemand
Very efficient generation technology
Gas-fired Power GenerationCCGT (Combined Cycle Gas Turbine)
Source: based on MMD, June 2010
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Source: MMD, June 2010
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5
1
4
3
Capital costs of options may vary considerably in absolute terms,
but very little in relative termsIndicative, cost levelsmillion $/MW
Gas-fired power generationLowest capital costs per MW installed
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Prices (at plant inlet)
Gas : 8 $/MMBtu
Coal: 80 $/t
Source: MMD, June 2010 Capital costs of options may vary considerably in absolute terms, but very little in relative terms
$/MWh
Based on: 7000 hrs operation for gas and coal per year
2500 hrs for onshore wind per year
3600 hrs for offshore wind per year
7800 hrs for nuclear per year
Competitive for meeting Base-load Demand
Gas: A competitive option for new generationLow All-in Unit Costs per kwh produced
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Prices (at plant inlet)Gas : 8 $/MMBtuCoal: 80 $/t
Source: MMD, June 2010
Capital costs of options may vary considerably in absolute terms, but very little in relative terms
$/MWh
Based on: 4300 hrs operation for gas and coal per year
Flexible and Competitive for meeting Mid-load Demand
* Costs do not take account of effect of interruptibility on the plant efficiency
Gas: A competitive option for new generationLow All-in Unit Costs per kwh produced
G fi d P Effi i t
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Gas-fired Power: EfficientSmaller plant size reduces risk of overcapacity
Gas CCGT Coal
supercritical
Nuclear
450
600 -1000
1000 -1600
Source: MMD, June 2010
Minimum size to capture economies of scale (in MW)
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Gas-fired power: Efficient
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1
2
3
4
5
6
7
8
CCGT Coal Nuclear
Plus shortest time for permitting etc
years
Source: Energy Technology Perspectives, IEA 2010
Short construction time reduces risks of demand uncertainty.
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CHP: A very energy-efficient option
CHP: Combined Heat & Power.Also: "cogeneration
Proven technology
To reduce thermal waste from
power production and use theheat.
Higher efficiency than separategeneration
Saves energy and emissions
Total efficiency ~80 %.
Can take biogas
Source: Energy Delta Institute
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Industry
Gas: Convenient & Efficient Source of Energy
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Gas: Convenient & Efficient Source of EnergyEconomic and Clean
Easy handling, lower installation and maintenance cost
Good controllability of processes and high efficiency
Direct heating or drying of products or materials
Clean and environment-friendly
Less CO2 emission rights needed (where applicable)
G C i t d Effi i t S f E
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Gas: Convenient and Efficient Source of Energy(examples)
Steam drums for paper manufacturingCeramic foam infrared heater (1150 oC)
Gas: The Efficient Source of Energy
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Gas: The Efficient Source of Energy(examples)
Infrared (IR) paint drying
Batch grain dryer
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Chemical Feedstock
Industry chemical feedstock
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Ammonia converts: some 135 bcm/year
for production of fertilizer, fibers, etc
Methanol converts: 30 bcm/year
Gas conversion industry uses gas as an efficient and valuable source for
chemical conversion into other products which are sold worldwide
Industry chemical feedstockMore than 165 bcm/year
Source: IGU/ Clingendael Institute (CIEP)
Chemical feedstock
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From Natural Gas Source: Dutch State Mines (DSM)
Chemical feedstockMany high quality and high value applications
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Commercial Sector
Gas: The Efficient Source of Energy Commercials
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Gas: The Efficient Source of Energy Commercials
Offices, schools, hospitals, leisure centers and hotels
Shops, restaurants, caf's,
Small businesses, workshops, garages
Easy handling once infrastructure is present
Lower investment cost compared to other fuels
High efficiency heating equipment available (incl. condensation)
Gas: The Efficient Source of Energy
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Gas: The Efficient Source of Energy(examples)
Green houses use
Boiler house in green house.Gas use temperature dependent.
Assimilation illumination
+ Use of CO2 from exhaust gases
as fertiliser
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Residential Sector
Effi i t d i t ll f i dl f l fResidential
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Efficient and environmentally friendly fuel forheating, hot water and cooking
High efficiency heatingsystem (hot water boiler)with storage vessel
High efficiencyheating system
Clean and easy handling once infrastructure is present
Low installation cost vs. other fuels
High efficiency heating equipment available
High comfort factor
Individual heating systems in apartment blocks
Micro CHP:
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Micro CHP:
Heat and power fromone apparatus
High efficiency systemwith generator
Your own home powerplant
Commercial applications in various countries
Residential Cogeneration System
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Residential Cogeneration System
GEPEFC
PowerUnit
Grid Power
City Gas
BuckupHot Water Floor Heating
Bath
Air Conditioning Lighting
TVShower
Heating
Heat
Recovery
Unit
Source: Courtesy Osaka Gas
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Transportation Sector
Automotive Fuels: CNG and LNG
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Automotive Fuels: CNG and LNG
CNG : Compressed Natural Gas
Gas stored in vehicle at high pressure (200 bar)
LNG : Liquefied Natural Gas
Gas stored in liquefied form at atmospheric pressure(requires cryogenic tank and regasification equipment )
Best in heavy vehicles and ships
Alternatives :
Gasoline, diesel, LPG
Position gas :
Clean, low on emissions
Feasibility depends on fiscal regimeBest in vehicles with limited travel radiusand many stop-starts
Reduces dependence on/import of oil
LNG as automotive fuel for heavy vehicles
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LNG as automotive fuel for heavy vehicles
LNG is used in increasingly many places for road transport fleets: Buses, Dust Carts, ChilledContainer Transporters it gives good engine performance and a vehicle range comparable withother fuels
LNG is suitable to fuel high-consumption transport where space for the LNG storage isreadily available: e.g. trains and sea ferries
LNG is less-suitable for small privately-owned vehicles because of more complex proceduresand more expensive fuelling stations with special requirements regarding their location.
Heavy vehicles do not lend themselves to be run on electric power.
CNG and LNG as automotive fuel
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US builds Interstate Clean Transportation Corridor
North Americas fuelling infrastructure has been built
over the past 100 years, giving oil-based fuels anadvantage over newer alternatives, like natural gas or
hydrogen. Now, there is project to develop a newnetwork of alternative fuel filling stations for long-haultrucking fleets in western United States.
The Interstate Clean Transportation Corridor (ICTC) proposesa network of LNG and CNG facilities connecting heavilytrafficked interstate trucking routes between Utah, California,
and Nevada. The aim is to promote the conversion of heavy-duty fleets from diesel to natural gas in order to cut downemissions, reduce oil dependence and save fuel costs.
for heavy vehicles (example)
Source: Interstate Clean Transportation Corridor
LNG as fuel for ships
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LNG propelled ferry, Norway
LNG as fuel for ships
Application of LNG as bunker fuel is rising rapidly
CNG based road transport
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Examples
New VW Passat Estate TSI EcoFuel
model powered with turbocharged CNG
engine
1.4-liter TSI 110 kW (148 hp) emitting119 124 g CO2 / 100 km
With average consumption of 4.4 5.2
kg / 100 km and 21 kg reservoir
possible range with one filling is around
450 km
Turbocharged CNG engines
a growing business (examples)
CNG based road transporti b i
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Source : NGV Journal 07/2011
a growing business (examples)
CNG based road transport
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p
Natural gas for road transport
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Source: Gasunie Natural gas, part of an efficient sutainable energy future, The Dutch case, Feb 2010
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Natural GasResources, Supply & Transport
Natural Gas reserves:plenty & more to come
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plenty & more to come
Proven conventional reserves are growing
In addition:
Unconventional gas hascome within technological &economic reach
Volume
Conventional
Unconventional
The total long-term recoverable conventional gas resource base is more than 400 tcm,another 400 tcm is estimated for unconventionals: only 66 tcm has already beenproduced. - IEA-Golden Age of Gas 2011-
Shale gas
Coal bedmethane
Tight gas
Conventional Reserves:plenty and more to come
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plenty and more to come
Global proven gas reserves have more than doubled since 1980,reaching 190 trillion cubic metres at the beginning of 2010
0
40
80
120
160
200
1980 1990 2000 2010
tcm
Europe
Latin America
North America
Africa
Asia-Pacific
E. Europe/Eurasia
Middle East
Source: IEA World Energy Outlook 2011
Growing proven reserves
Types of Unconventional Gas
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Tight Gas Shale Gas Coalbed Methane
4
Occurs in tight
sandstone
Low porosity = Little pore
space between the rock
grains
Low permeability = gasdoes not move easily
through the rock
Natural gas trapped
between layers of shale
Low porosity & ultra-low
permeability
Production via triggered
fractures
Natural gas in coal
(organic material
converted to methane)
Permeability low
Production via natural
fractures (cleats) incoal
Recovery rates low
Source: Shell
y
Growth of unconventional gas productionImpact on US supply
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Source: James Baker Institute, Rice, 2010
Developments of shale production in the United States
have a major effect on the US market and will impact rest of the world
US shale production grows to about 45 % of total production by 2030
Impact on US supply
World gas resources by major region (tcm)significant unconventional prospects world wide
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significant unconventional prospects world-wide
4
Source: IEA Golden Age of Gas, 2011
Inventorization of unconventional gas is still at an early stage
The prospects of unconventionals
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Unconventional gas offers potential for more domesticproduction in many countries
Particularly for countries like China and Poland this could
help to reduce dependence on coal
First exports of unconventional gas under developmentAustralia: First LNG export project based on Coalbed Methane (8.5 mt/acommitted with potential to expand)
US: Various LNG export projects in planning stage due to successfuldevelopment of shale gas
The prospects of shale gas
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Shale gas is so far only produced in North America. Its true potential is
still a matter of uncertainty.
Environmental concerns revolve around ground water contamination
resulting from hydraulic fracturing. Governments, together with industry,
are addressing new regulation for shale extraction to protect public
health and environment.
Energy used for production and its CO2 emission is higher than for
conventional gas (see next slides).
Well-to-burner greenhouse emissionsshale gas vs conventional gas
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shale gas vs conventional gas
Source: IEA Golden Age of Gas, 2011
Mt CO2-eq per bcmIncremental for shale gas:
Flaring & venting
Production
All types of gas:
Production, flaring,venting & transport
Combustion
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Gas Transport
Energy Transportationdaily equivalents
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Basis: equivalent of 50 million m3/day of natural gas
(1 large pipeline 48 or 56)
(diesel)
Source: Energy Delta Institute
y q
Natural Gas and Electricity Transmission
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Lower losses and lower costs of large volume and/or long distance energy
transmission
More energy transportation capacity for different customers in different
segments of the energy consumption
Lower visual impact
Better and more economic storage options
Gas pipelines offer:
Source: Clingendael International Energy Programme (CIEP), 2012
Natural Gas and Electricity Transmission
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Gas pipelines offer more energy transportation capacityLower visual impact from transport of gas vs overhead electricity lines
For high volume energy transportation:
8 power transmission masts of 3 GW each are equal to 1 gas pipeline (48 inch)
Source: Gasunie
Natural Gas and Electricity Transmission
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Lower costs of energy transmission
Source: Clingendael International Energy Programme (CIEP), 2012
A specific advantage of gas transmission compared to electricity transmission is that
for gas in growth markets much larger economies of scale can be realised than for
power transmission and thus much lower costs per kwh. For electricity, a maximum
scale of 2-3 GW is technically achievable, after which multiple (parallel) lines are
required*. However, gas pipelines have a capacity between 10 and 25 GW.
Gas transportation for electricity generation can be combined with gas for other
consumers in other market segments, leading to substantial economic advantages.
* for very long distances (over 800 km) UHVDC lines can offer scale advantages up to 6-7 GW
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Natural Gas and Electricity Transmission
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Overhead power transmission
Capital costs:
at least 2-3 x more expensive per unit of energy than gas pipelines sized for high
volume transmission
only in the case a gas pipeline is laid only to transmit gas for power generation, as
may be the case in an emerging market, the capital costs are of the same order of
magnitude
Underground power transmission
Capital costs: at least 10-15 x more expensive per unit of energy than gas pipelinesizedfor high volume transmission
Lower costs of energy transmission with economies of scale
Source: Clingendael International Energy Programme (CIEP), 2012
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Natural Gas and Electricity Transmission
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Losses pipelines: 0.2-0.4% per 100 km
Losses (AC): 2-4% per 100 km
Losses (DC): 0.2-0.4% per 100 km plus 1% one-off conversion loss
Lower losses from energy transmission
Source: Clingendael International Energy Programme (CIEP), 2012
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Natural Gas and Electricity Transmission
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Overhead electricity transmission(and underground gas pipeline)
Underground electricity transmission(and underground gas pipeline)
Example of large scale, long distance transmission
Indicative transmission costs of gas and electricity (ct/kWh for 200 km)(24 GW or48 pipeline over 200 km)
Source: Clingendael International Energy Programme (CIEP), 2012
Load Factor = 5500 hrs
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Natural Gas and Electricity TransmissionEXPLANATORY NOTES
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Input parameters for calculation of indicative costs of gas vs electricity transmissionDiscount factor: 10%
Load factor of electricity/gas transport: 5500
Lifetime: 25 years
Energy losses AC transmission: 3% per 100 km
Energy losses DC transmission: 0,3% per 100 km + 1% loss during AC-DC-AC conversion
Energy losses gastransport: 0,3% per 100 km.
Capex gas pipeline 24 GW: 0,2 mln/MW per 100 km
Investment costs of AC overhead transmission, AC underground cable and DC underground cable are
based on Parsons Brinckerhoff "Electricity Transmission Costing Study (Jan 2012) for the case Lo (3
GW) for75 km.
Investment costs of DC overhead line based on ABB "The ABCs of HVDC Transmission Technology",Case 500kv
Investment costs of large scale gas pipeline (24 GW) is based on the average of building costs of
existing pipelines (BBL, Blue stream, Green stream, Europiple II, Franpipe, Langeled, North stream)
Source: Clingendael International Energy Programme (CIEP), 2012
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The LNG market:
Connecting regions
LNG Production Growingin all Global Regions
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Source: IGU World LNG Report, June 2011 (PFC)
Growing Liquidity in the LNG MarketFlexible LNG
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The LNG industry has a total of around 1 660 bcm of LNG available for salefrom existing production over the period 2009-2025
IEA WEO 2009
Flexible LNG makes the LNG industry very responsive to changingdemands of the global market
LNG adds to the diversification of the supply sources
The LNG market: Very accessible
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Source: IEA Golden Age of Gas, 2011
Considerable growth of LNG import capacity in all regions matches theflexibility of the LNG industry to supply
(production vs capacity of receiving terminals)
LNG: More flexibility through new technology
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On-board regasification offers low cost and convenientoption to supply gas to new and existing markets
LNG:More flexibility through new technology
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Source: Skaugen
Gassource
Small scale LNGoffers opportunities to produce otherwise stranded gas and reduce gas flaring
Overland transport of LNG:By road trucks and railcars
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LNG is transported by road truck in many countries
Trucked LNG has many small-scale uses:
Domestic and commercial piped gas supply from
satellite re-gasification terminals located in places
remote from pipelines
Small industrial users (electric power, engine tests,
glass, paper)
Commercial users (trains, buses, ferries, institutions)
Supply to peak-shaving plants
Supply to pipeline network during repairs or
maintenance
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Costs of Production and Supply
Indicative Cost Curve
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Source: IEA WEO 2009
Long-term gas production cost curve
Note: 5 $/MMBtu compares to less than 30 $/bbl
per
$
1$
Indicative supply cost
* Delivered
*
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Environmental Impact(examples are focussed on power generation)
Natural Gas with or w/o CCS:Cleanest fossil fuel for power generation
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1
0,75
0,5
0,25
0
GHG Emissions
Metric Tons CO2 per MWH
Wind (0)Nuclear
Solar Clean
Natural Gas*(0.04)
CleanCoal*
(0.09)
Oil (0.80) Coal(0.85)
Natural Gas(0.35)
* With CCS
Source: IGU based on CERA
Natural Gas fired generation:Smallest ecological footprint for power generation
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NaturalGas
Wind
Solar
10
10,000
40,000
Land use in acres to have 1,000 MW of capacity
Source: based on data from Union Gas Ltd.
Acres
Gas: Cleanest Fossil FuelLowest emission of CO2
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Source: US Department of Energy (DOE), US Energy Information Administration (EIA)
350(100%)
850(230%)
1,200(340%)Lignite-fired power
Hard coal-fired power
Gas-fired CCGT
Emission of CO2(in kg CO2/MWh)
Gas: The Cleanest Fossil FuelAlso lower on SOX and NOX
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Global warming effect of NOX is considerably higher than that of CO2(up to 300 times for 100 years (source ICBE))
Kg/MWh
Source: US Department of Energy (DOE): National Energy Technology Laboratory (NETL) 2010
00
0,05
0,1
0,15
0,2
0,25
0,3
0,35
Gas CCGT CoalSupercritical
SOx NOx
Mercury emission from coal: 4.3 10 kg/MWh-6
Particulate emissions from heating systems
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554
306
6,1
0,11
Hard coal**
Lignite*
Heating oil
Natural gas
mg/kWh
* Emissions based on use of briquettes and lignite from the Rhineland-area in Germany
** Emissions based on use of briquettes
LUWB Landesanstalt fr Umwelt, Messungen und Naturschutz Baden-Wrttemberg; Average emission factors for small and
medium combustion installations without exhaust gas after treatment. Status: 2006, BGW; Source: www.asue.de
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Replacing coal with gas for electricity generationCheapest & fastest way to meet CO2 reduction targets
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Over 40% of global CO2 emissions comes from Power Generation
Over 70% comes from coal-fired Generation
Karstad IGU
A near-term initiative to displace coal generation with additional generation from existing natural gascombined cycle capacity could result in reductions in power sector CO2 emissions on the order of 10%.
MIT, 2010, on the US market
The next decade is critical. If emissions do not peak by around 2020 and decline steadily thereafter,achieving the needed 50% reduction by 2050 will become much more costly. In fact, the opportunitymay be lost completely.
Attempting to regain a 50% reduction path at a later point in time would require much greater CO2reductions, entailing much more drastic action on a shorter time scale and significantly higher coststhan may be politically acceptable.
IEA, ETP 2010
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Power generation:CCS for gas and coal
CCSEXPANATORY NOTES
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CCS = Carbon Capture and StorageProcess of carbon sequestration from fossil fuels, based on existingtechnology.
CCS currently regarded as economic at CO2-emission tax levelswell above 50 $/tonne.
This section discusses only so-called post combustion carbon-sequestration.
For the analysis a distinction is made between the CO2 capture andtransportation / storage of CO2.
To date no commercial application of CCS exists, neither for coal-nor for gas-fired generation
Lower CO2 emission after CCS
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Source: MMD, June 2010
Residual CO2 emission in kg CO2/MWh
35
85Hard coal-fired power
Gas-fired CCGT
Estimate: 90 % capture of CO2emission
Gas: CCS EfficientLow Cost of Carbon Capture
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Low Incremental CapitalCosts ($/kw)
and Low Incremental Unit
Costs per kwh($/MWh)
Source: MMD, June 2010
CCS for Gas vs CoalLess CO2 to be captured, transported and stored
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Compared with CCS for Coal:
Per kwh of electricity produced
45% less CO2 to be transported
45% less CO2 to be stored
CO2
captured in kg per Mwh of electricity produced(based on 90% CO2 removal)
Resulting in
Lower costs of CO2 transportationLower call on (scarce) CO2 storage capacity
Source: MMD, June 2010
Gas with CCS: Low all-in unit costsBaseload: 7000 hrs of operation CO2 tax: 80$/t
$/MWh
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Prices (at plant inlet)Gas : 8 $/MMBtuCoal: 80$/t
Capital costs may vary considerably in absolute terms, but very little in relative terms
$/MWh
Note: CCS reduces plant efficiency
Source: MMD, June 2010
Gas with CCS: Low all-in unit costsMidload: 4300 hrs of operation CO2 tax: 80$/t
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Prices (at plant inlet)Gas : 8$/MMBtu
Coal: 80$/t
Capital costs may vary considerably in absolute terms, but very little in relative terms
$/MWh
Note: CCS reduces plant efficiency
* Costs do not take account of effect of interruptibility on plant efficiency
Source: MMD, June 2010
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Power generation:Gas and Wind
Meeting Electricity Demand Merit order basedEXPLANATORY NOTES
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DEMAND FOR ELECTRICITY CAN BE MET FROM A VARIETY OF SOURCES WHICH
WILL CONTRIBUTE BASED ON A SO-CALLED MERIT ORDER:
1. Renewable energy
Hydro
Wind
Solar
Biomass*
2. Nuclear power plants
3. Coal-fired power
4. Gas-fired power
For installed power plants the order in which these sources called upon to meet thedemand is based on variable cost of production, leading generally to the followingranking preferences.
* Not necessarily the lowest variable cost option but often favoured for its low CO2 contribution
When You Need Electricity You Cant Flicka Switch and Turn on the Sun and Wind
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Variability creates complex grid balancing and
supply security issues
Gas-fired generation can play a key role in
maintaining grid stability and supply security
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Meeting Electricity Demand Wind PowerEXPLANATORY NOTES
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Wind power is a growing part of the generation mix. It is attractive because it is
renewable and does not emit CO2.
However, the contribution of wind power can vary significantly.
Example: Poyry 2011 estimates over a 4 months period
solaronshoreoffshore
This overview deals with the consequences of extended absences of windpower (more than 4 hours) for which combined cycle gas-fired power generationis a suitable partner
Source: CIEP/ Poyry 2011 estimates
The Impact of Variability can be Significant
EXAMPLE OF CONTRIBUTION OF VARIABLE WIND POWER TO ACTUAL
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Source: National Review Online: Bryce, August 2011
conventional sources (gas) are needed to supply (with extra flexibility)
DEMAND (LOAD) DURING HIGH PRESSURE WEATHER IN TEXASDemand (=Load) vs actual Wind Output
DEMAND
WIND SUPPLY
Installed wind power displaces fossil sources of power
Meeting Electricity Demand Wind PowerEXPLANATORY NOTES
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The main purpose of wind power is to reduce power supply from fossil fuel and thus
reduce CO2 emission
An effective CO2 reduction will be achieved if coal-based electricity is displaced by
wind power
However, in energy systems with both gas- and coal-based generation, more gas-based electricity is generally displaced than coal, as long as the variable costs of gas-
fired generation are higher than those of coal (see also example Spanish Market).
This significantly reduces the effectiveness of CO2 reduction from wind:1 MWh of wind power replacing gas-fired power leads to a reduction of 350 kg CO21 MWh of wind power replacing coal-fired power leads to a reduction of 850 kg CO2
Once CO2 emissions are priced/taxed or other performance measures are introduced
this order could be reversed
Installed wind power displaces fossil sources of powersupply, but will it be gas or coal?
Source: Clingendael International Energy Programme (CIEP), 2012
Natural Gas complementing electricitysupply from Wind
EXAMPLE OF IMPACT OF VARIABLE WIND POWER ON SUPPLY FROM
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EXAMPLE OF IMPACT OF VARIABLE WIND POWER ON SUPPLY FROMGAS- AND COAL-FIRED GENERATION
(Spanish electricity market)
Source: REE, Heren, 2010
In MWh
Meeting Electricity DemandThe Wind and Gas-fired Power Partnership
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Installed wind power capacity needs backup from other power supply sources to
maintain the required level of security of supply at times of reduced wind supplyHigh and low pressure zones can extend over vast geographical areas so that generally therecan be little compensation from wind power elsewhere in a region. Dependent on regions,interconnections and availability of renewable alternatives , in most areas between 80 and95% back-up from conventional sources will be required.
Other CO2-free back-up options are not generally available on a sufficient scale to
complement a growing share of variable wind energy
Wind power capacity always needs backup from other sources
Gas-fired generation is a flexible and reliable partner for wind at the lowestincremental CO2 emission (and at the lowest incremental costs)
Source: Clingendael International Energy Programme (CIEP), 2012
Meeting Electricity DemandEXPLANATORY NOTES
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Power supply is often expressed in running hours, as a fraction of total
design capacity.
In following examples onshore wind supply accounts for 2,500 hrs in any
year.
In the same examples average market demand is approx. 5,500 hrs.
Residual demand, to be supplied from gas-fired capacity thus becomes
3,000 hrs.
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Source: Clingendael International Energy Programme (CIEP), 2012
Based on 2,500 hrs of onshore wind and3 000 h f l t l f l
Gas: A suitable option for complementing windLow emission per kwh produced from wind and gas combined
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Source: Clingendael International Energy Programme (CIEP) based on MMD
3,000 hrs of complementary supply from gas or coal
CO2 Emissions in kg/Mwh
without CCS with CCS
The example illustrates that wind combined with gas reduces CO2 emission.Wind combined with coal back-up produces more CO2 than a gas plant on its own
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All costs are based on 5 500 hrs of power supply*
Gas: A suitable option for complementing windAlso lower all-in Unit Costs per kwh produced
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Prices (at plant inlet)
Gas : 8 $/MMBtuCoal: 80 $/t
Source: MMD, June 2010
Capital costs of options may vary considerably in absolute terms, but very little in relative terms
$/MWh
The combination of wind and gas or coal
represents 2,500 hrs of onshore wind and3,000 hrs of complementary supply from gas and coal
All costs are based on 5,500 hrs of power supply
* Costs do not take account of effect of interruptibility on the plant efficiency
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4
Prospects for Developments of
Further Technological Options
Potential for future developmentsInnovative steps for more climate protection
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Market readiness Innovation
Condensing boilertechnology & Solar
Fuel cells
Future technology
Micro-CHP
Green gas
Gas heat pump
More efficiency and
climate protection
Source: based on E.ON Ruhrgas
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Green Gas
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Source: Senternovem
Fuel cells
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1. Produce H2 using electricity from solar cells or other renewables or fromnatural gas in a reformer
2. Fuel cell :2 H2 + O2 2 H2O + electricity
+ heat
Fuel cells Some characteristics
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Silent, low maintenance
High electrical efficiency ; total efficiency 80 to 90 %
No CO2 emissions
(with likely exception for production of H2 from natural gas)
Fuel cells have stationary applications (buildings, plants, telecommuni-cations) and transportation uses (cars, buses, trucks and machinery)
Today still high cost per installed kW
Terminology (1)
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AC
bblbcm
BTU
CBM
CCGT
CCS
CHP
CNG
Coal supercritical
CO2
DC
EPC
GHG
LF
LNG
Flexible LNG
Load duration curve
Alternating Current
Barrel
Billion (109) cubic meter
British Thermal Unit
Coal Bed Methane
Combined Cycle Gas Turbine, the current efficient type of gas-fired power
generation
Carbon Capture and Storage
Combined Heat & Power
Compressed Natural Gas
Most efficient process of coal fired power generation
Carbon dioxide
Direct Current
Engineering, Procurement and Construction
Green House Gas
Load Factor
Liquefied Natural Gas
LNG supply potential, not committed to a single market under a long term contract
A demand load curve but the demand data is ordered in descending order of
magnitude, rather than chronologically
Terminology (2)
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Liquefied Petroleum Gas
Mega Watt hourNitrogen Oxide
Overhead transmission
Processes of dealing efficiently with peak demand of electricity or gas
Generally a broad indication of the potential availability of gas reserves
Volume of oil or gas that has been discovered and for which there is a
90% probability that it can be extracted profitably on the basis of
prevailing assumptions about cost, geology, technology, marketability
and future prices*
Proven reserves plus volumes that are thought to exist in accumulations
that have been discovered and have a 50% probability that they can be
produced profitably*
Sulphur Oxide
Trillion (1012) cubic meterTera Watt hour
Ultra High Voltage Direct Current
* IEA WEO 2010
LPG
MWhNOX
OHT
Peak shaving
Natural Gas Resources
Reserves, proven
Reserves, proven & probable
SOX
tcmTWh
UHVDC