Creating a biomethane market in Ireland

James Browne (B.E., Ph.D.) – Innovation Engineer

Presentation Topics

Background

Biomethane Resources in Ireland

Biomethane Market Overview

Gas Quality Standard

The Causeway Project

Green Gas Certification Project

2

Creating a biomethane market in Ireland -

EBC - 2017

Background

• Gas Networks Ireland owns and operates

the transmission and distribution natural

gas network in Ireland.

• Over 13,500 km of gas pipelines

• 2,422Km Transmission Network

• 11,288Km Distribution Network

More than 675,000 gas consumers

• 650,000 homes and 25,000 businesses

• Over 160 population centres present in 19 counties

• Gas Network with Abundant Capacity, Secure and Reliable supply of energy

Gas Networks Ireland

• 16% overall renewable energy by 2020

• 40% electricity;12% heat; 10% transport

• Most progress to date has been in electricity

sector

• Least progress has been in the transport

sector

• The heat sector may have to make up the

short fall from transport

• Renewable Gas will enable Industry to

achieve renewable targets, without the need

to re-invest in alternative infrastructure,

• Industry can help Ireland meet its renewable

heat (RES-H) targets of 12% by 2020 by

using renewable gas.

Ireland’s Renewable Energy 2020 Commitments

Data sourced from SEAI, 2015 “Renewable Heat in Ireland

to 2020”

Transition to decarbonisation – “Our Vision”

Agri-Food Industry Commitments

• Agri-Food companies are “going green”

for commercial reasons and corporate

social responsibility

• There is increasing demand for

renewable gas from food and drinks

processors

• Many large natural gas users and now

want to procure “green gas” in the same

manner as they buy “green” electricity

Biomethane Resources in Ireland

Potential Renewable Gas Resource in Ireland

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

Theoretical Renewable GasResource

Estimated Renewable GasProduction by 2030

Current natural gas demand

Ene

rgy

(GW

h/a

nn

um

)

Organic Waste Agricultural Manure Grass Natural Gas demand Emerging Sources

Grass biomethane resource in Ireland

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

Other sustainable energy crops

such as energy beet also have

significant potential in Ireland

Grass to transport fuel

harvest silage storage

macerator

Source: energiewerkstatt, IEA

anaerobic

digester

weigh bridge

Biogas service station Scrubbing &

storage

Biogas from Seaweed

Renewable Gas Network

Cost of Biogas Scenarios for Ireland

• The levellised cost of energy (LCOE)

for biomethane production can range

from €40-€90/MWh depending on the

scenario

• Integration of small scale agri biogas

is more expensive but has many

benefits for local economies

• A guaranteed payment for the

biomethane produced is required for

investor confidence

• Renewable Heat Incentive is

expected by fourth quarter of 2017

0

10

20

30

40

50

60

70

80

90

100

Integratedsmall scale

Agri AD(Slurry and

Grass)

Large ScaleAgri AD(Grass)

Agri-Foodprocessing AD

LC

OE

(€

/MW

h)

Biomethane Market Overview

Overview of the Biomethane Market Structure

Biomethane

Producer /

Injection Plant

Operator

Entry

Connection

Agreement

Connected

Systems

Agreement

Gas Networks Ireland

(Transporter)

Gas

Purchase

Agreement

[Renewable

Heat

Incentive]

Gas Shipper / Supplier

Code of

Operations

Green Gas

Certificatio

n

Customer Sector

Parties involved in Renewable Gas to Grid

Production Upgrading

and purification

Grid Entry Grid

Delivery Facility Operator Gas Transporter Biogas Producer

Biogas Producer & Delivery Facility

Operator (DFO) can be the same entity

17

Connection Model for Ireland

18

• GNI following the National Grid

UK “Minimum Connection

Model”

Well developed in GB,

reflects best practice and

applications of lessons

learned.

Competitive; several

competent and capable

technology providers and

operators on the market.

DFO Network Operator

GNI’s Connection Process

1. Initial Enquiry with preliminary Network Assessment

2. Detailed Analysis Study

3. Customer Application to Connect

4. Economic Test (if applicable)

5. Impact Assessment

6. Final Technical Assessment & Design

7. Connection Agreement

8. Connected Systems Agreement

9. Build & Installation

10. Sign-up/Register with Shipper(s)

11. Testing & Commission

12. Project close out & Business as usual

19

Gas Quality Standard

Gas Quality Appendix 1 – Part G - Code of Operations Gas Quality Specification at an Entry Point

‒ 3 The CO2 limit of 2.5% will not be considered breached if the total inerts (including CO2) in the gas is less than 8% where: “inerts” in natural gas means carbon dioxide(CO2), nitrogen(N2), helium(He), argon(Ar), and oxygen(O2).

‒ 4 Natural Gas shall not contain solid liquid or gaseous material which may interfere with the integrity or operation of pipes or any Natural Gas appliance which a consumer or transporter could reasonably be expected to operate. With respect to mist, dust, liquid, gas delivered shall be technically free in accordance with BS3156 11.0 [1998].

‒ 5 Natural Gas shall have no odour that might contravene the obligation of the Transporter to transmit gas which possesses a distinctive and characteristic odour. Where the Transporter requires gas to be odourised, the gas shall be odourised in accordance with the following specification: - Odour intensity of 2 olfactory degrees on the SALES Scale (Ref- IGE/SR/16/1989), or - such other specification determined by the Transporter acting as an RPO

21

Continuous Monitoring Required at Network Entry Facility

Parameter to be monitored

Delivery temperature

Delivery pressure

Biomethane flowrate

Wobbe index

Incomplete combustion factor

Sooting index

Gross calorific value

Oxygen (O2)

Carbon dioxide (CO2)

Hydrogen Sulphide (H2S)

Water dew temperature

Odorant injection rate

Odorant injection status

ROV status 22

• The Delivery Facility Operator (DFO) is responsible for Controlling Gas Quality

• GNI is responsible for Assuring Gas Quality

• Network Entry Facility serves both the DFO and the Network Operator (GNI)

‒ Fully integrated into the DFOs Gas Purification and Process Control system; live streaming data, automatic interface controls.

‒ It will provide interval data (repeat signals) to GNI Grid Control to provide Assurance of quality conformance and consumer protection.

Includes a Remotely Operated Valve (ROV), required for Network Control.

Constituents that may requiring routine monitoring

23

POTENTIAL CONSTITUENTS

Total Sulphur

Hydrogen Sulphide

Ammonia

Hydrogen Chloride

Hydrogen Fluoride

Total halogenated hydrocarbons

Xylenes

Arsenic

Siloxanes, as Silicon

• GNI will conduct a Measurement Impact Assessment (MIA) with the DFO as part of the connection process.

‒ Among the expected outputs of this MIA will be identification of constituents that may only be present in very small quantities, but may require sample monitoring

• DFO must also notify GNI in advance of any material change in the type of feedstock;

‒ E.g. a farm based operator obtaining an EPA license to take in Brown Bin waste

‒ MIA may need revising, and increased monitoring may be required

Biomethane Key Market Enablers in UK

• UK Government support through Renewable Heat Incentive for biomethane

included in 2014

• “Class exemption” with respect to oxygen (up to 1% mol) that permits any

gas injected into a pipeline, provided it is compliant with all other aspects of

GSMR

• Gas Transporter Licence Exemption - assisted biomethane to grid sector by

enabling producers to own and operate biomethane pipelines less than 7 bar

pressure.

24

The Causeway Project

The Causeway Project

The project aims to examine the impact

of increased levels of CNG fast refill

stations and renewable gas injection on

the operation of the gas network in

Ireland.

14 Fast Fill CNG stations installed;

Vehicle fund established to support

CNG vehicle acquisition;

Renewable gas injection facility; and

System operation & behaviour data

analysis.

Our vision for CNG in Ireland

• CNG is targeting the bus and truck fleets

‒ Over 1,000 HGVs (Truck)

‒ Over 1,000 Large PSV (Bus)

‒ Vans also

• Refuelling Network – Fast Fill CNG

‒ Causeway Project –

GNI delivering 14 High Capacity Fast

Fill Stations and 1 Renewable Gas

injection point in RoI by 2019

The Causeway Project is co-financed

by the European Union's TEN-

T programme

‒ National Network of 70 CNG stations by

2027

‒ 27 Public Access Stations CNG Stations

‒ Min. 8 Renewable Gas injection points

1 4 10 15 18 23 29 35 41 49 57

70

0 50 100

2016

2018

2020

2022

2024

2026

Total Stations

Ireland’s first Biogas to Grid Project

Feedstock

“Soup” = Pig

slurry + food

waste Biogas Production Biogas Purification & Upgrading

Biomethane Network

Entry Facility

Compressed Gas

Transport by Road

Renewable Gas Project Timeline

1st Quarter 2017 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2018

Design & Procurement Phase

Fri 20/01/17 - Thu 30/09/17

Construction & Installation

Wed 23/08/17 - Thu 25/01/18

Biogas to Grid Flow On

Today

Green Gas Certification Project

Green Gas Certification - GHG Accounting

Typical GHG emissions from different biomethane sources

-200 -150 -100 -50 0 50 100

MANURE

BIOWASTE

GRASS SILAGE

EU NATURAL GAS

Net GHG emissions (gCO2/MJ)

Data sources for biowaste and manure taken from "Solid and

Gaseous bioenergy pathways: input values and GHG emissions"

JRC. p.162. Available at:

https://ec.europa.eu/jrc/en/publication/eur-scientific-and-technical-

research-reports/solid-and-gaseous-bioenergy-pathways-input-

values-and-ghg-emissions

Data for grass biomethane emissions savings taken from Korres et

al., 2010, “Is grass biomethane a sustainable transport fuel?

Biofuels Bioprod, & Bioref. Vol. 4. pp. 310-325

• Net Greenhouse gas (GHG)

savings from manure

biomethane ~140% relative to

natural gas (i.e. carbon

negative)

• This includes carbon saving

from avoided GHG emissions

from conventional manure

storage as per IPCC guidelines

• Net GHG savings from

biowaste biomethane (including

agri-food processing residues)

~80% relative to natural gas

• Net GHG savings from grass

biomethane can be ~ 75%

relative to natural gas

Summary

• Biomethane can deliver major environmental and economic benefits to the

agricultural and agri-food processing industry in Ireland

• Gas Networks Ireland is strongly advocating for policy support for

biomethane to decarbonise the heat and transport sectors in Ireland

• GNI is committed to facilitating renewable gas on our network

Email: james.browne@gasnetworks.ie Tel: +353 87 1128973