Biomethane to Grid & UK Market Update

19th June 2014

Robert MckeonProject ManagerCNG Services Ltd

robert.mckeon@cngservices.co.ukwww.cngservices.co.uk

0121 707 8581

Biomethane Market Overview

1. CNG Services Ltd

2. Food Waste in AD, CO2 Removal Technologies & CV increase

3. Project Review

4. UK Market forecast and Biomethane Conclusions

5. Green Gas Certificates

6. CNG & Biomethane for vehicles in UK

7. GGC and CNG Conclusions

CNG SERVICES LTD

CNG Services Ltd

• Supports projects to inject biomethane into the gas grid– Didcot, Poundbury, Vale Green,

Stockport, Doncaster, Minworth etc.

• Bio-CNG as a fuel for trucks– Own UK’s largest CNG filling

station– Sell Bio-CNG (20% biomethane)

We are independent from all makers of plant, vehicles, clean-up, compression....we help clients get the best solution for their projects

Our Biomethane Projects Team

• Biomethane Projects– Iain Ward, Lee Firth, Alison Cartwright, Terry Williamson, Robert

McKeon, Greg Lee, Phil Winnard, Jacquie Harrison

• Pipelines and Compression Projects– Ian Roughley, Bob Ingmire, Mick Beddows (LTS), Tony Pym, Mihaly

Papp, Neil Morbey

• Commercial (RHI, NEA etc.)– Peter Rayson

• Project Support– Angela Bagshaw, Chris Toase, Christine Venables, Lauren Hamer

We support Biomethane Projects for a living

FOOD WASTE & BIOMETHANE

Biomethane Project

CHP/ Boiler

Compressor

Propane

AD

F

L

A

R

E

Gas Grid

Options• Pasteurisation can be done using NG maximising gas to grid• CNG – either before propane or from high pressure grid

Reject Gas

CNG

Heat

GEUIncl. ROV & RTU

BLENDER

Upgrade PlantTypically 2-7 bar

LTS 12-42bar

GDN

ROV

M

Pasteurisation

Proportion of Projects in Each Feedstock Category

GGG Feedstock Category Number projects in Category %

Sewage Sludge 6 10%

Agricultural 29 49%

Food Waste 13 22%

Industrial Food Processing 9 15%

Biodegradable 2 3%

Unknown 0 0%

Total Projects 59

Sewage Sludge Agricultural

Food Waste Food Processing

Biodegradable

Food Waste & Biomethane

• Good feedstock– Produces good quality biogas – around 60% CH4

– Reduces waste to landfill & harmful emissions

• High Contaminants– H2S levels

– VOCs – Limonenes mask odour

– Will damage upgrade plant

– Not acceptable in grid

– Spoons and Plastic Bags

• Higher contaminant removal cost– More pre-treatment steps incl. pasteurisation

– Activated carbon for H2S and VOC removal

– Can use other low cost options

More upfront equipment and engineering

Parameter Biomethane quality

Temperature 1- 38 °C

Pressure Dependent on grid (2, 7, 19 or 38barg)

Odour No uncharacteristic or masking of odour

Hydrogen sulphide <= 5mg/Sm3

Hydrogen < 0.1 % vol

Carbon Dioxide ≤ 2.5% vol

Oxygen ≤ 1.0% vol

Nitrogen balance

Hydrocarbon dew temperature ≤ - 2°C at up to 85 barg

Water dew temperature ≤ - 10 °C at up to 10 barg

Incomplete combustion factor (ICF) ≤ 0.48

Sooting index (SI) ≤ 0.6

Wobbe Number (WN) 47.2 – 51.41 MJ/Sm3

Gross CV 36.9 – 42.3 MJ/Sm3

GSMR Contaminants No significant solids or liquids

Total sulphur ≤ 30 mg/Sm3

Organo Halides ≤ 1.5 mg/Sm3

Hydrogen chloride ≤ 1.5 mg/Sm3

Hydrogen fluoride ≤ 5 mg/Sm3

Ammonia ≤ 20 mg/Sm3

Xylenes (all isomers) <=100 mg/Sm3

Arsenic ≤ 0.1 mg/Sm3

Radioactivity ≤ 5 Bq/g

Siloxanes <= 5 mg Si/Sm3 ** expected

GS(M)R Gas Specification

CO2 REMOVAL TECHNOLOGY

Water Wash

• 99% of biomethane goes into grid

• <1% methane slip

• 14 - 16m high towers

• Plant also removes H2S and Siloxanes

• 2 suppliers active in UK

• Proven and low risk

Water Wash

Advantages

• Simple, proven technology with many plants in operation

• No pre-treatment for H2S

• 2 suppliers with many UK & international projects

Disadvantages

• CH4 emissions to air– Higher than Chemical Wash

and membrane

– <1% methane slip

• Tall towers for CO2 removal– 12-18 metres

• Water supply and disposal

• 3 variants now in UK

• Two stage with CO2 liquefaction (Pentair Haffmans , Springhill Nurseries)

• Two stage with RTO device to burn off 2% CH4 in off-gas (Air Liquide, Future Biogas, Doncaster) – now Air Liquid offer 4 stage with no RTO

• Three stage with <0.5% CH4 vented (DMT, Methapower, Envitec, MT-Energie))

• Well suited to plants with <1500 m3/hr biogas flow rate

Membrane Separation

Membrane Separation

Advantages

• Compact – No need for large towers

• Food grade liquid CO2

produced (Haffmans plant)

• Low methane slip– <0.5% Evonik & Air Liquide

– 0% Pentair Haffmans

• Simple plant - modular

• Good turndown

• 6 suppliers can compete– 3 different types system

Disadvantages

• Higher electricity costs

• Biomethane quality– CO2 removal

– May have up to 1% CH4 in off-gas

• Higher H2S & contaminant removal costs– All done upfront

• Membrane life 5-10 years– Expensive item, though prices

should come down

Chemical Absorption

• 99.8% of biomethane to grid, <0.2% methane vented

• Needs significant heat to raise steam to recover chemicals and hence good fit if excess heat available from biogas CHP

• Less electricity required

• Requires less propane as less CO2 remains

• 2 suppliers in UK though only 1 active (Purac, Crouchlands Farm)

Chemical Absorption

Advantages

• Good quality Biomethane

• Low Methane slip – 0.2% lost

• Low electricity consumption

• Lower propane needed

• Good turndown

Disadvantages

• Heat energy needed to regenerate chemicals

• Tall towers for CO2 removal– 12-18 metres

• Amine supply and disposal

• Low Oxygen concentration needed

Pressure Swing Adsorption

• Key issue is off-gas

• New multi stage system reduces methane slip

• 1 supplier in UK

• N2 and VOC removal possible

Pressure Swing Adsorption

Advantages

• Compact – No need for large towers

• Lower operating pressure and therefore electricity demand

• Good turndown

• Can remove contaminants and N2

– Separate beds

Disadvantages

• Methane Slip– New system will reduce this

• Biomethane quality– CO2 removal – May have up

to 1% CH4 in off-gas

• Batch process– High wear on valves and seals

– Buffer vessel needed

UK Suppliers

• Water Wash

– Malmberg

– Chesterfield Biogas

• PSA

– Schmack Carbotech

• Chemical Wash

– Purac Puregas

– Cirmac

• Membrane

– Air Liquide

– DMT

– Envitec

– MethaPower

– MT Energie

– Pentair Haffmans

INCREASE IN CALORIFIC VALUE

Propane Enrichment

Propane mixing unit

Propane storage tanks

• The Gross Calorific Value (GCV) in the GB gas grid is 38.8 – 39.5 MJ/m3

• The typical biomethane GCV is 37 MJ/m3 (98% CH4 with 2% CO2/N2/O2)

• Propane likely to be highest operating cost for biomethane project

• LTS and IP can offer blending in some areas

UK PROJECT REVIEW

Didcot – UK’s First BtG Project

Biogas upgrader

Propane StorageGas bag

Energy & quality Measurement

Propane Injector

Telemetry

H2S and

Siloxane filters

Flow of biogas - 100 m3/hr

First gas to grid on 3rd Oct 2010

Anaerobic

Digesters

Poundbury

• UK’s first commercial project

• Membrane CO2 removal plant

• Gas injected into 2 bar grid

• 500kWe CHP

• Development is a JV between Duchy of Cornwall and some of its tenants

• Achieving 98% availability

Prince Charles opened the project in Nov 12Flow of biogas – 500 m3/hr

First gas to grid – October 2012

Vale Green 1

• UK’s first minimum connection project• Hybrid Membrane and Cryogenic CO₂

separation plant• Separated CO₂ used to grow more

tomatoes• 75% gas to grid with a 490kWh CHP• 7 bar gas grid

Flow of biogas – 600 m3/hr

First gas to grid – August 2013

Future Biogas - Doncaster

• Agricultural feedstock

• 80% gas to grid

• 499 kWh CHP

• Membrane CO2 removal plant

• 7bar gas grid

• First project in National Grid area

Flow of biogas – 900 m3/hr

First gas to grid – October 2013

ReFood Widnes

• Food waste feedstock

• 100% gas to grid

• Water-wash CO₂ removal plant

• 1bar MP gas grid

Flow of biogas – Estimated 2,000 m3/hr

First gas to grid – Estimated Q2 2014

Severn Trent Water Minworth

• Sewage feedstock

• 20% gas to grid – with existing 7MW CHP

• Water-wash CO₂ removal plant

• 20 bar LTS grid – first high pressure project

• Blending allowed so minimal propane

Flow of biogas – Estimated 1,200 m3/hr

First gas to grid – Estimated Q2 2014

Biocore Beccles

• Utilising locally produced break crops

• 80% gas to grid – with small CHP

• Water-wash CO₂ removal plant

• 7 bar gas grid

Flow of biogas – Estimated 2,000 m3/hr

First gas to grid – Estimated Q3 2014

Other Projects in 2014

• Fraddon

– Greener for Life Food waste plant

– 1,500Nm3/hr biogas – DMT membrane plant

• NWL Howdon

– Northumbrian Water’s STW near Newcastle

– 2,000Nm3/hr biogas – Malmberg WW

• Euston Estates

– High Pressure LTS Connection project in Cambridgeshire

– IP main with remote compressors and ROV – 1st project to use this model

– 1,000Nm3/hr biogas – Pentair Haffmans plant

• Coupar Angus

– MP project in Scotland

– 1,200Nm3/hr biogas (once fully operational) – Chesterfield Biogas plant

In total 20 projects will go ahead in 2014 and around 20 more in 2015helping meet 2020 renewable energy targets

MARKET FORECAST AND CONCLUSIONS

Biomethane projects per year 2010-2015

Could have over 60 projects before 2016

19

1 12

4

25

43

0

5

10

15

20

25

30

35

40

45

50

2010 2011 2012 2013 2014 2015

ProjectsProjects per Year Speculative Cumulative

Annual Biomethane to Grid and RHI for 2012-2015

Biomethane to grid likely to be largest RHI technology

£778,719£4,510,803

£60,717,023

£156,412,959

£0

£20,000,000

£40,000,000

£60,000,000

£80,000,000

£100,000,000

£120,000,000

£140,000,000

£160,000,000

£180,000,000

0

1

1

2

2

3

2012 2013 2014 2015

TWh/annum Annual RHI

Total TWh per annum RHI per annum

Biomethane Market Forecast

• UK total gas demand now is around 800 TWh/annum– Around 50% domestic heating, 25% power gen and 25% industry

– Stretch maximum biomethane by 2030 is around 20TWh

• For heat in cities there are few practical/economic alternatives– Biomass (air quality), heat pumps (do not work in very cold weather), district heating (too

late to dig up cities)

GREEN GAS CERTIFICATES

REAL Green Gas Certificate Scheme

• Designed to allow ‘tracking of biomethane from injection point to customer’

• Integrity - no ‘double counting’

• Separate from the gas to provide flexibility

• Can only be used once

• National Grid

• British Gas

• E.ON

• Thames Water (Didcot)

• Adnams Biogroup (Adnams)

• Milton Keynes City Council

• CNG Services Ltd

• http://www.greengas.org.uk/

GGCS Launch Members

GGCS is the only UK scheme associated with the recent agreement

to harmonise registry Green Gas Certificate rules (http://www.greengasgrids.eu/info/news.html )

Green Gas Certificates

Enter Name of Consumer

Date Certificate created

Unique Reference

Date Biomethane Injected

Feedstock source

Amount injected in kWh

Name of Gas Consumer

Gas Supplier

Biomethane Producer

Gas shipper

AD DeveloperOrganicMaterial

Gas Distribution

Network

Sale of

‘Certificates’ Normal grid gas

Purchase of biomethane

energy

Inject gas into grid

Processing via Anaerobic Digesters

AD Developer Sells Certs Direct to Gas Consumer

Clean-up plant and grid injection

Gas can be used to fuel

trucks on CNG or for CHP

Sale of gas

Customer

Sainsburys

Duchy of Cornwall

Brit European

• Provide transport services for JCB

• Run 36 dual fuel diesel-CNG trucks

• Purchase Green Gas Certificates to demonstrate gas sourced from UK organic feedstock

• Using mother-daughter concept

Crewe CNG Station

• Official opening of our Crewe CNG filling station on 8th March 2013 – largest ever collection of CNG vehicles

• Filling dual fuel trucks for GIST/M&S, Brit European

http://www.youtube.com/watch?v=orxBtoXyjos

Largest grid supplied CNG station in UK – now selling biomethane via Green Gas Certificates

Biomethane to Grid Conclusions

• It has taken 6 years but the regime looks good:

• Over 60 projects in next 3 years is possible, all technologies

• Majority of biomethane in future from waste feedstock

• Around 2 TWh in 2015

• UK total gas demand 700 TWh

• Focus on reducing capital costs

• Grid Entry Unit costs reduced by 50% in last 5 years

• New processes being developed for high pressure connections

• High pressure PE pipes

• 3rd Party connections

• 10 active biomethane equipment providers in UK – competition

UK biomethane market growing fast, delivering significant benefits and helping meet 2020 renewable energy targets