Biomethane  to  Grid    Market  Update    

12th  February  2014  

John  Baldwin  Managing  Director  CNG  Services  Ltd  

 john.baldwin@cngservices.co.uk  

www.cngservices.co.uk  0121  247  8160

Biomethane  Market  Overview  

1.  CNG  Services  Ltd  2.  Project  Review  3. Market  forecast  4.  Green  Gas  CerKficates  and  CNG  5.  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  

staKon  –  Sell  Bio-­‐CNG  (20%  biomethane)    

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

Our  Biomethane  Projects  Team  

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

McKeon,  Greg  Lee,  Phil  Winnard  •  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,  ChrisKne  Venables,  Lauren  Hamer  

 

We  support  Biomethane  Projects  for  a  living  

PROJECT  REVIEW  

Didcot  –  UK’s  First  BtG  Project  

Biogas  upgrader  

Propane  Storage  Gas  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  scale  biomethane  to  

grid  project  •  500  m3/hr.  into  grid  (around  1  million  

therms)  •  Membrane  CO2  removal  plant  •  SGN  providing  biogas  to  biomethane  

conversion  service  •  Development  is  a  JV  between  Duchy  of  

Cornwall  and  some  of  its  tenants  

Prince  Charles  opened  the  project  in  Nov  12  

Springhill  (Vale  Green)  near  Evesham  •  Approximately  600  m3/hr  biogas  •  490  kWh  CHP  •  Go  live  –  August  2013  •  CO2  separated  via  membrane  and  cryogenic  system  –  used  to  grow  more  tomatoes  

Future  Biogas  -­‐  Doncaster  

•  Agricultural  feedstock  •  Approximately  900  m3/hr  biogas  to  biomethane  •  499  kWh  CHP  •  Went  live  in  Oct  2013  •  First  project  in  NaKonal  Grid  area  

BioCore  -­‐  Beccles  

•  Agricultural    •  Approximately  2,000  m3/hr  biogas  •  490  kWh  CHP  •  Go  live  Q2  2014  

Severn  Trent  Water  -­‐  Minworth  

•  Sewage  derived  biogas  •  Approximately  1,200  m3/hr  biogas  •  ExisKng  9  MWh  CHP  •  Go  live  Q2  2014  

ReFood  -­‐  Widnes  

•  Food  waste  •  Approximately  2,000  m3/hr  biogas  •  Go  live  2014  

Project  in  Scotland  

•  Waste    •  2  water  wash  plants,  each  capable  

of  2,500  m3/hr  biogas  

Chesterfield Biogas selected to build UK’s largest biomethane-to-grid project.COM Chesterfield BioGas (CBG) has announced a new order for its biogas upgraders which will be central to a ground-breaking UK renewable energy project. The company, which is based in Sheffield, UK, is to supply gas-scrubbing water-wash upgraders and ancillary equipment to a site in UK. When commissioned in late 2014, not only will it be the first facility of its kind, it will be the largest of any biogas-to-grid project so far announced or operating in the UK. Raw biogas - derived from anaerobic digestion (AD)  will be converted to biomethane suitable for injection into the national gas grid. Such is the anticipated raw biogas input from the AD, upgrading units will need to be coupled in parallel to optimise an output of up to 5,000 cubic metres per hour of 98% pure biomethane. The model being supplied is the Totara + , the largest in the Greenlane® range. Included in the service elements of the contract are a 3-year warranty, a guarantee of 98% system availability, and a monthly site visit by a CBG engineer. The Greenlane water-wash process is proven in operation over the last 20 years and requires no heat and no chemicals. More 75 sites are operating successfully around the world, 30 of which employ the Totara model. When the project is completed in late 2014, CBG will have six similar systems of various capacities installed in the UK - more than all other types of biogas upgrading units operational in the country put together, and more than any other single supplier.

Other  Projects  in  2014  •  NWL  Howdon  

–  Northumbrian  Water’s  STW  near  Newcastle  –  2,000Nm3/hr  biogas  –  Malmberg  WW  

•  Euston  Estates  –  High  Pressure  LTS  ConnecKon  project  in  Cambridgeshire  –  IP  main  with  remote  compressors  and  ROV  –  1st  project  to  use  this  

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

In  total  15  projects  will  go  ahead  in  2014  and  around  20  more  in  2015  helping  meet  2020  renewable  energy  targets  

MARKET  FORECAST  AND  CONCLUSIONS  

Annual  Biomethane  to  Grid  and  RHI  for  2012-­‐2015  

£778,719   £4,943,425  

£88,005,740  

£148,736,270  

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  

2012   2013   2014   2015  

Annual  RHI  TWh  

Financial  Year  End  

Forecast  Biomethane  to  Grid  TWh  &  RHI  Awarded  per  Financial  Year  

Feedstock  Categories  

Projects  were  also  categorised  according  to  sectors  determined  by  the  EU  Green  Gas  Grids  Project:  

   1.  Sewage  Sludge  2.  Agricultural  

a.  Animal  manure  (slurry)    b.  Agricultural  by-­‐products  and  residues  c.  Crops  for  Energy  d.  Agricultural  biomass  is  modelled  as  one  sub-­‐group  as  projects  will  olen  contain  

elements  of  all  3  streams  

3.  Industrial  Food  Processing  waste  4.  Food  Waste  (commercial,  domesKc,  local  authority)  5.  Biodegradable  waste  (e.g.  from  an  MBT  plant  or  garden  waste  collected  by  

local  authority)    

Propor\on  of  Projects  in  Each  Feedstock  Category  

Propor\on  of  Projects  in  each  Feedstock  Category  

Sewage  Sludge  

Agricultural  

Food  Waste  

Industrial  Food  Processing  Biodegradable  

GGG  Feedstock  Category   Number  projects  in  Category   %  

Sewage  Sludge   9   15%  Agricultural   25   42%  Food  Waste   12   20%  Industrial  Food  Processing   10   17%  Biodegradable   3   5%  Unknown   0   0%  Total  Projects   59      

Biomethane  Market  Forecast  

•  UK  total  gas  demand  now  is  around  800  TWh/annum  –  Around  50%  domesKc  heaKng,  25%  power  gen  and  25%  industry  –  Stretch  maximum  biomethane  by  2030  is  around  20  TWh  

•  For  heat  in  ciKes  there  are  few  pracKcal/economic  alternaKves  –  Biomass  (air  quality),  heat  pumps  (do  not  work  in  very  cold  weather),  district  heaKng  (too  

late  to  dig  up  ciKes)    

 

GREEN  GAS  CERTIFICATES  

REAL  Green  Gas  Cer\ficate  Scheme    •  Designed  to  allow  ‘tracking  of  

biomethane  from  injecKon  point  to  customer’  

•  Integrity  -­‐  no  ‘double  counKng’  •  Separate  from  the  gas  to  

provide  flexibility  •  Can  only  be  used  once  

•  NaKonal  Grid  •  BriKsh  Gas  •  E.ON  •  Thames  Water  (Didcot)  •  Adnams  Biogroup  (Adnams)  •  Milton  Keynes  City  Council  •  CNG  Services  Ltd  •  hop://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 (hop://www.greengasgrids.eu/info/news.html  )  

Gas  shipper  

AD  Developer  Organic  Material  

Gas    Distribu\on  Network  

Sale  of    

‘CerKficates’  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  injecKon    

Gas  can  be  used  to  fuel  trucks  on  CNG  or  for  CHP    

Sale  of  gas  

Customer  

Sainsburys    

Duchy  of  Cornwall    

Crewe  CNG  Sta\on  

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

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

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

Largest  grid  supplied  CNG  sta\on  in  UK  –  now  selling  biomethane  via  Green  Gas  Cer\ficates  

Brit  European    

•  Provide  transport  services  for  JCB  •  Run  36  dual  fuel  diesel-­‐CNG  trucks  •  Purchase  Green  Gas  CerKficates  to  demonstrate  gas  sourced  

from  UK  organic  feedstock  

Biomethane  to  Grid  Conclusions  

•  It  has  taken  6  years  but  the  regime  looks  good:    •  Over  50  projects  in  next  3  years  is  possible,  all  technologies  

•  Majority  of  biomethane  from  waste  feedstock  •  Need  focus  on  reducing  capital  costs  

•  Grid  Entry  Unit  costs  reduced  by  50%  in  last  5  years  •  New  processes  being  developed  for  high  pressure  connecKons  •  7  acKve  biomethane  equipment  providers  in  UK  –  compeKKon    

•  Green  Gas  CerKficates    •  CNG  for  trucks  and  buses  and  CHP/District  HeaKng  for  new  housing  •  REAL  not  for  profit  scheme  is  helping  to  facilitate  biomethane  projects    

 

The  biomethane  market  is  set  to  grow,  delivering  significant  benefits  and  helping  meet  2020  renewable  energy  targets