transport alternatives for biogas · transport alternatives for biogas 6 figure 3: transport chain...

TRANSPORT ALTERNATIVES FOR BIOGAS

in the region of Skåne

BIOMASTER

Anders Hjort

Daniel Tamm

8 Nov 2012

BioMil ABbiogas, miljö och kretslopp

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Author: Phone: Control:

Anders Hjort and Daniel Tamm 046-101450 ADCustomer: e-mail: Approved:

BIOMASTER [email protected] DTProject: Rev.date: Ver.:

Transport alternatives for biogas 8 Nov 2012 A

Contents1 Introduction...........................................................................................................................4

2 Methods for distribution.....................................................................................................52.1 Gas grid................................................................................................................................62.2 Road transport....................................................................................................................82.3 Economy.............................................................................................................................102.4 Environmental considerations.........................................................................................15

3 Market analysis...................................................................................................................173.1 Supply.................................................................................................................................183.2 Demand..............................................................................................................................193.3 Transportation of biogas..................................................................................................21

4 Scenario analysis................................................................................................................244.1 Distribution without new Trunk pipelines....................................................................254.2 Distribution with additional Trunk pipelines...............................................................274.3 Distribution based on the biogas potential....................................................................284.4 Scenario summary............................................................................................................29

5 Business model...................................................................................................................305.1 Identified actors................................................................................................................305.2 Ownership.........................................................................................................................325.3 Investment plan.................................................................................................................335.4 Access to the grid..............................................................................................................34

Revision historyDate Sig. Changes

0 20121030 AH, DT Original version

A 20121108 AH, DT Several changes according to customer suggestions

Transport alternatives for biogas 2

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AbstractIn Skåne, the southernmost region of Sweden, a regional target has been set implying the annual production of 3 TWh of biogas in 2020. Biogas sales reach higher volumes in the western part of Skåne, while the production potential is highest in the eastern part.

Different means of transport for raw and upgraded biogas, namely road transport of compressed and liquefied biogas as well as pipeline transport, have been evaluated in terms of technological, economical and environmental aspects. The most favourable transport method has been identified with respect to production and consumption volumes as well as transport distance. For bulk transport over greater distances, pipeline transport has been shown to be the most economical alternative. For local distribution, short distances up to approximately 30 km should be covered by lowpressure pipelines, while longer distribution transports are most economical by LBG trucks for larger volumes and CBG trucks for smaller volumes.

The future biogas market has been analysed by collecting data on planned production capacity as well as the possible biogas potential. These numbers have been compared to the future gas consumption based on assumptions for how the industrial and vehicle sector could develop. While the planned production capacity in the eastern part almost will cover the expected consumption, the western part will continue to be dependent on external gas imports. However, the biogas potential is considerably higher than the planned capacity. With only half the potential being exploited, the eastern part of Skåne would become an area with a considerable excess gas production.

Based on this market analysis, different transport scenarios have been developed. The most favourable scenario has been identified to include two new highpressure gas pipelines connecting the eastern and the western part of Skåne. The establishment of such pipelines would permit for the whole gas transmission and distribution being done by pipeline, leading to the most economical and flexible solution in a holistic perspective. All places in the region would be within a 30 km radius from a highpressure pipeline and could be connected by lowpressure distribution pipes. Also, this would create an economical way to transport the gas surplus from the eastern part to the consumers at the western coast.

An example of a business model for the expansion of the biogas grid in Skåne, which includes ownership, investment plan and costs for local connections with the consideration of the planned production plants and the biogas potential was developed. There are different aspects that have to be considered for the planning and ownerships of the gas grids regarding technical preconditions, political decisions, legislation, investment costs and constellations between business partners. It is therefore suggested that a working group is formed to pursue the matter of expanding the gas grid as mentioned in Skåne's roadmap for biogas.


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1 IntroductionIn Skåne, the southernmost region of Sweden, a regional target has been set implying the annual production of 3 TWh of biogas in 2020, divided into 1.5 TWh from digestion and 1.5 TWh from gasification.

Biogas sales reach higher volumes in the western part of Skåne due to higher population density, access to the natural gas grid and the placement of most of the public gas filling stations as shown in Figure 1.

The biogas potential from digestion is shown in Figure 2. The biggest potential can be found in eastern, southern and mid Skåne, which can be compared to the route of the natural gas grid at the western coast, where most gas is consumed. This imbalance puts special requirements on the distribution of gas in the region. The distribution options as well as a comparison of the different alternatives are revised in this report.


Figure 1: The natural gas grid (left) and the placement of public gas filling stations (right) in the region of Skåne

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2 Methods for distributionBiogas can be transported by different means, the most interesting being truck transport in gaseous or liquid state on the one hand, and pipeline transport on the other hand (see Figure 3). These three alternatives are described in the following chapters with regard to technical, economical and environmental aspects.


Figure 2: The natural gas grid (left) and the total biogas potential (right) in Skåne

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2.1 Gas gridOne option for the transportation of biogas is via a gas grid. Gas pipelines offer a convenient method to transport large quantities of gas at low running costs. Another major advantage of this form of distribution is that it is easier to market/sell the gas. The addressable market is generally larger and the gas will not be limited to a local market in the same way as it would be if it relied on the storage and transport of compressed gas in cylinders; neither does it require the same type of storage as this is partly secured by the grid.

In order to be used at vehicle filling stations, gas transported by pipeline must be pressurized to 230 bar at the filling station (see Figure 3). Often, also a gas dryer is needed in this case in order to meet the requirements on humidity for vehicle fuel.

2.1.1 Distribution in the natural gas gridThe natural gas grid that is currently available in Skåne is shown in the map in Figure 1 and 2. It extends from Trelleborg to Stenungsund in southern Sweden, and by this, cities in west Skåne have access to it and can distribute biogas. The grid can be divided into the transmission grid operated at 60 to 80 barg, and the distribution pipelines, normally operated at a pressure below 4 barg. High pressure pipelines are normally


Figure 3: Transport chain for biogas used as vehicle fuel

digester

conventionalupgrading

compressionto 230 bar

steel orcompositeswap body

CBG fillingstation

gas pipeline4 bar

(ev. drying)compression

to 230 bar

cryogenicupgrading

LBG trailer

cryo pumpto 230 bar,

evaporation

polishing,liquefaction

LBG fillingstation

pro

duc

tion

upg

rad

ing

trans

po

rtfil

ling

sta

tion

natural gas

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made from steel, while lowpressure distribution pipelines are usually made from polyethylene.

The injection of biogas into the natural gas grid requires that its quality is adjusted to the set parameters of the grid, which normally implies the upgrading of the gas to vehicle fuel quality according to the Swedish standard SS 15 54 38. The Wobbe Index is connected to the heating value and density of a gas and is a measure which describes the effect in a gas burner; gases with the same Wobbe Index lead to the same power at given burner settings. For gas turbines, variations must not exceed 5 %. As the difference between upgraded biogas and Danish natural gas is normally 8 %, the biogas must be adjusted by the addition of 78 % propane, in addition to the normal gas upgrading steps (cleaning, upgrading and drying).

Although the Swedish gas grid is small from a European perspective, it is relatively new and modern and has good reliability. In 2008, 130 GWh were distributed through the regional natural gas grid, this was increased to 190 GWh the following year. The Swedish grid has a builtin capacity to transport 20 TWh, which can, with an increase in pressure, be increased to 30 TWh (over 300 000 Nm³/h). 1.47 TWh of biogas were produced in Sweden in 2011.

There are significant differences in the injection into the transmission grid as compared to the distribution grid. Distribution grids cannot accept more biogas than what is consumed within the grid at each time. Therefore, injection quantities are normally limited to the lowest consumption during the year (summer holiday). On the other hand, the operating pressure in distribution grids usually is below 4 barg, so no additional compression is needed after the gas upgrading. In contrast, the transmission grid has a virtually unlimited capacity, so injection into it is an interesting option for larger plants. The drawback is the grid's higher operating pressure (6080 barg), making an additional compression step necessary. The compression to this higher pressure requires an energy input of approx. 0.13 kWh/Nm³ biomethane.

2.1.2 Distribution in local gas gridsLocal gas grids are grids that are not connected to the natural gas grid. This alternative is suitable in areas without a natural gas grid, as well as to transport raw biogas from satellite digestion plants to central gas upgrading plants in order to minimize investment costs. In contrast to the natural gas grid, the gas quality can be set arbitrarily in local grids, so no propane addition is normally needed. However, as moisture can cause operational problems in the pipes, dewatering of the gas is normally considered a worthwhile treatment step. Additionally, local gas pipelines are often operated with a gas quality according to the Swedish gas fuel standard SS 15 54 38.

In some cases, even “local” gas grids can be connected to the natural gas grid. This can be done in order to mitigate fluctuations in production and consumption, so that natural gas is let into the local grid at high consumption, whereas gas may be sold to


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the natural gas market at times of low local consumption. However, the latter would require that the gas meets natural gas specifications. Without this connection, it is important that local grids are equipped with efficient storage facilities in order to buffer fluctuations in the consumption profile.

As grids are not considered to be an environmental hazard in Sweden, they do not require a special license, nor do they require any concession regarding local gas grids. However, as the products are flammable, the executive management has a responsibility for the grid.

With the exception of lowpressure pipelines, anyone must be granted access to the natural gas grid. On the other hand, gas suppliers cannot demand access to local grids.

2.2 Road transportIf a grid is not available, there are other options. The gas can be transported in tanks as compressed biogas (CBG) or liquefied biogas (LBG). The efficiency of the transport is dependent upon the choice of cylinders and whether the gas is compressed or liquefied as this determines the quantity of gas transported. A summary of the possible options is described below.

2.2.1 CBGCompressed biogas can be transported in steel cylinders or composite material at a pressure of 230 bar. In order to be able to compress the gas to that pressure, and to meet the expectations on the consumer side, the gas is normally upgraded to vehicle fuel quality. The compression of raw biogas would lead to the condensation of carbon dioxide and water and as a consequence to operational problems.

In terms of the amount of gas that can be transported on swap bodies, it is the overall weight of the truck including the load that is the limiting factor. A swap body carrying steel cylinders with a capacity of 2000 Nm³ holds just 1500 Nm³; this is because the cylinders are not completely filled as there must be some back pressure. Each truck can carry three swap bodies carrying a total of 4500 Nm³. Trucks carrying gas cylinders made from low weight composite materials have about double the capacity of steel tube containers.


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The main challenge with CBG swap bodies is the logistics, so the demand is met at any time with a minimum of unnecessary transports. This is specially difficult in cases where the consumption suddenly and unpredictably increases.

2.2.2 LBGBiogas can be liquefied by cooling it to a temperature below the boiling point of methane, which is dependent on the pressure. At atmospheric pressure, the temperature must be lowered to 162 °C; at higher pressure, the temperature may be higher.

An interesting development can be seen in the upgrading market where cryogenic upgrading technology is being developed. This is a promising approach if the gas is to be converted to LBG because it has the potential of synergy effects between upgrading and liquefaction. However, this technology has not yet become fully commercial.

A prerequisite for the liquefaction of biogas is a thorough removal of other compounds in order to avoid freezing in the heat exchangers and/or nozzles in the filling station. In addition to the requirements according to the Swedish vehicle fuel gas standard (SS 15 54 38), this affects mostly the CO2 concentration which must be below 50 ppmv. Therefore, a polishing step between conventional upgrading processes and the liquefaction plant is normally needed.

The energy content of LBG is 2.6 times higher than that of compressed biogas (CBG) at 200 bar. At the same time, cryogenic vessels are not as heavy as vessels for CBG. As large quantities of energy can be transported as liquid gas, this method is more competitive over long distances. A standard LNG trailer can carry 56 m³ of liquid gas (25 tons), corresponding to about 35 000 Nm³ (Figure 5).


Figure 4: Swap body for CBG transport

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If the biogas is to be used as vehicle fuel, LBG has the advantage that simpler equipment is needed at the filling station, because LBG can be pressurized to 230 barg with a cryogenic pump prior to evaporation. Thus, no compressor is needed, and the energy demand at the filling station is minimal. Also, the filling station can supply both compressed and liquefied fuel from the same source.

2.3 EconomyThe costs for transporting biogas depend on a lot of parameters which can be difficult to generalize. In the calculations, some general simplifications have been made in order to get a usable model with the main variable parameters being, transport distance, method of distribution, and biogas production plant size. The following simplifications are considered reasonable and should have an acceptably small impact on the calculations:

• No biogas production or gas upgrading costs to vehicle fuel quality have been calculated, since these costs are the same for all distribution alternatives. However, eventual additional costs such as a polishing step prior to liquefaction have been considered.

• For gas pipelines, only the length has been considered, with a standard cost per meter independent on possibly different diameter.

• The same size and costs for process equipment such as compressors, liquefaction etc. have been used regardless of the production capacity. This has a special impact on small production plants with a liquefaction step, where the high investment costs must be paid by a small amount of gas. However, all energy consumption has been calculated per gas volume.

The following table lists the data used in the calculations:

• 3 different cases have been studied, where the gas production plant size has been varied (10, 30, and 50 GWh/a respectively). On the consumption side, only a fuelling station with the standard consumption of 7.2 GWh/a (which is the


Figure 5: LNG trailer

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mean annual consumption at Skåne's fuelling stations) has been considered. The results would change a bit if the consumption was higher, which can be expected for future fuelling stations. The effect of higher consumption is discussed further down.

Table 1: Parameters for economical calculations

Parameter Value

Interest 4 % p.a.

Lifetime technical equipment 15 a

Lifetime pipelines 50 a

Truck costs 900 SEK/h

Technical personnel 500 SEK/h

Electricity 1 SEK/kWh

Heat 0.5 SEK/kWh

Maintenance costs for technical equipment 3 % p.a. of investment

Maintenance costs for pipelines 1 % p.a. of investment

Diesel consumption 0.4 L/km

Diesel costs 11.2 SEK/L

Driving speed 35 km/h

Charging/discharging per CBG swap body 10 min

Charging/discharging LBG trailer 50 min

Capacity per CBG swap body 1500 Nm³

Number of CBG swap bodies per transport 1 or 3

Capacity per LBG trailer 25 ton

Gas production and upgrading capacity 10, 30 or 50 GWh/a

Gas transport and consumption quantity 7.2 GWh/a

Transport distance variable

It should be noted that the liquefaction technology for small scale such as biogas is not a mature market. Therefore, the investment cost for such plants is not exactly known and will be subject to adjustments during the following years. Since the investment cost represents a relatively big part of the overall costs for LBG distribution, these adjustments may considerably change the results of the economical analysis.

In the model, we have split the distribution costs into three parts:


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1. Costs generated at the gas production site. These costs have to be paid by the whole gas production (10, 30 or 50 GWh/a), and consist of equipment such as a highpressure compressor (for CBG transport) or polishing and liquefaction equipment (LBG transport).

2. Costs for the distribution itself, which must be paid by the gas consumed at the fuelling station (7.2 GWh/a). Here, costs for pipelines, gas containers and truck driving are included. In the case of road CBG transport, we have considered two different cases; transport with only a truck carrying one container, and transport with a truck with trailer, carrying three containers.

3. Costs at the fuelling station, paid by the gas consumed there (7.2 GWh/a). The equipment needed at the fuelling station varies with the type of fuel delivered, and is more expensive for CBG than for LBG with regard to both investment and operation.

Figure 6 to 8 show the overall costs for the different distribution methods as a function of the transport distance.


Figure 7: Distribution costs from a medium biogas plant (30 GWh/a) to a standard fuelling station

0 20 40 60 80 100 120 1400

1

2

3

4

5

6

7

8

9

10

Pipeline

CBG (1 cont.)

CBG (3 cont.)

LBG

Distance [km]

Co

sts

[SE

K/N

m³]

Figure 6: Distribution costs from a smaller biogas plant (10 GWh/a) to a standard fuelling station

0 20 40 60 80 100 120 1400

1

2

3

4

5

6

7

8

9

10

Pipeline

CBG (1 cont.)

CBG (3 cont.)

LBG

Distance [km]

Co

sts

[SE

K/N

m³]

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In order to get a better overview of the different options, the three figures above have been aggregated into Figure 9 and 10, which give a notion on the best transport option depending on the biogas plant size and the distribution range.


Figure 9: Most economical distribution method to a filling station (7.2 GWh/a) if CBG road transport is done with three swap bodies (truck and trailer).

Figure 10: Most economical distribution method to a filling station (7.2 GWh/a) if CBG road transport is done with only one swap body (truck without trailer).

Figure 8: Distribution costs from a big biogas plant (50 GWh/a) to a standard fuelling station

0 20 40 60 80 100 120 1400

1

2

3

4

5

6

7

8

9

10

Pipeline

CBG (1 cont.)

CBG (3 cont.)

LBG

Distance [km]

Co

sts

[SE

K/N

m³]

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As can be seen, the most common distribution method, road transport of CBG, is only viable if it is done with truck and trailer where three swap bodies are transported simultaneously. Transport of only one swap body is only interesting for small plants and long distances, whereas big biogas plants should not distribute their gas by CBG transports at all.

Independent of plant size, pipeline transport is always the most economical method for distribution over shorter distances. At longer distances, CBG transport is cheaper for smaller gas production sites, whereas LBG is most economical for larger biogas plants.

If the consumer has a higher capacity than in the previous examples (7.2 GWh/a), the main effect on the results is that pipeline transport will become cheaper. The specific costs for CBG and LBG road transport, however, are mostly independent on the consumer size. Therefore, the blue pipeline area in the above figures would extent to greater distances in the case of a bigger consumer.

Apart the distribution costs for single fuelling stations, even the transport costs for bigger volumes (150 GWh/a) as it occurs in the natural gas transmission grid has been analysed for the three transport methods pipeline, CBG swap bodies and LBG trailer. In the CBG case, it is assumed that all transports are done with three swap bodies at a time. In order to make the results comparable, a final gas pressure of 230 bar(g) has been set. The LBG alternative must also pay for the liquefaction plant as the final product is set to be compressed biomethane. (Evidently, there are real cases where LBG is needed as a final product. In that case, the liquefaction equipment would be needed even in the pipeline and CBG transport case.)

As can be seen in the following figure, transport of such big quantities of gas is most economically done by pipeline up to a distance of 250 km. Above that distance, it can be more economical to liquefy the gas and transport it by LBG trailer instead.

Transport alternatives for biogas 14Figure 11: Estimated costs for bulk long distance transport of 150 GWh/a.

0 50 100 150 200 2500

0,5

1

1,5

2

2,5

PipelineCBG truck

LBG trailer

Distance [km]

Co

sts

[kr/

Nm

³]

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Quantities over 150 GWh/a would lead to a lower slope of the pipeline curve and move down the LBG curve. The CBG curve would remain almost unaffected. The effect would be that the distance up to which pipeline transport is the most economical method would further increase.

2.4 Environmental considerationsThe distribution of biogas leads to emissions such as greenhouse gases (GHG), nitrogen oxides (NOx) and particles (PM). The magnitude of these emissions depends on a multitude of parameters, and is different for the different distribution methods.

Generally, emissions with relation to gas transport can be divided into emissions caused by the energy consumption during operation, and emissions related to the creation of necessary infrastructure:

Table 2: Emission categories

Origin of emission Examples

Infrastructure Production of pipesDigging for pipelinesWearing of roads

Operation Compression energyTruck fuelEnergy for liquefaction

Generally speaking, the LBG alternative has relatively high operational emissions due to the liquefaction process, while CBG and pipeline transport have lower operational emissions generated by the compressors. These operational emissions are caused by the consumption of electricity which implies low GHG, NOx and particles emissions.

Apart from the operational emissions, transports cause emissions per kilometre. These emissions are related to truck driving and digging activities and are mostly due to the use of fossil fuels. Therefore, the GHG, NOx and particles emissions can be expected to be relatively higher than the ones related to electricity consumption. Transportation in pipe lines eliminates consumption of truck fuel and the related emissions of GHG, NOx

and particles. Instead there are emissions originated from the production of plastic for the pipelines.

The LBG alternative with high operational emissions has lower emissions for the transport than CBG due to the higher energy content in LBG while transportation with pipelines has the lowest emissions values.

While the operational emissions easily can be calculated from energy consumption data presented earlier in this report, the infrastructure related factors present much more


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difficulties since they share their emissions with other processes (so called allocation). This is specially true for the wearing of roads by CBG and LBG transports. In order to calculate the emissions for gas transport quantitatively, it would be necessary to perform a whole LCA which has been outside the scope of this work.


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3 Market analysisThe market analysis consists of an analysis of the existing market, future production and possible demand for biomethane in the year 2020. This chapter also describes the volume that can be transported from production to possible markets based on future production facilities and possible demand.

The Skåne region is divided into 10 traffic areas as mentioned in Skånetrafiken's market analysis (Trivector 2012). This classification is done to manage the data collected and is shown in Figure 12 below.

The supply of biomethane consists of existing and planned biogas plants. The demand has been set to the amount of consumed vehicle gas, the industrial consumption of biomethane and a possible future demand.


Figure 12: Map of the 10 traffic areas in Skåne

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3.1 SupplyThe supply of biogas is based on the production of biogas from sewage treatment plants, codigestion plants, farm based plants and landfills. The amount of biogas produced in 2011 is shown in table 3 (SCB 2012).

Table 3: Production of biogas in the region of Skåne 2011

No of Plants Biogas production Landfill gas production Total production

41 211.6 GWh/a 78.3 GWh/a 289.8 GWh/a

In Sweden in 2011 approximately 50 % of the biogas was upgraded, 38 % was used for heating, 3 % for electricity and 8 % of the biogas was flared. This is similar to the situation in the region of Skåne. It is assumed that the usage of biogas is similar as for heat and electricity production from biogas as in Sweden in general. The total amount of upgraded biogas per biogas plant as shown in table 4 (Skånes färdplan 2011) is lower than 50 %. The reason for that is that the production values are actual values. This means that the production capacity could be higher in some of the plants.

Table 4: Production of vehicle gas in Skåne 2010. * production values from 2009.

Plant Traffic Area Type Biogas (GWh/a)

Upgraded (GWh/a)

Ellingeverket Eslöv Sewage treatment plant 14.2 0.5

Öresundsverket Helsingborg Sewage treatment plant 10 * 10

Kristianstad's WWTP

Kristianstad Sewage treatment plant 8.4 3.3

Källby Lund Sewage treatment plant 7 7

Sjölunda Malmö Sewage treatment plant 32 16.7

Söderåsens biogas plant

Helsingborg Codigestion 25 25

Filborna NSR Helsingborg Codigestion 29 29

Karpalund Kristianstad Codigestion 42 27

Total 167.5 118.5


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3.1.1 Future supplyThe list of planned production plants as shown in table 5 is based on data from Region Skåne's roadmap for biogas (Skånes färdplan 2011). These plants are in various planning stages. This means that it is difficult to predict when the plants start to produce biomethane. It is assumed in this report that the plants produce biomethane by 2020 and that the biomethane can be transported to other areas within Skåne.

The total possible future supply of biomethane is 2 185 GWh. This potential is largely based on a production of 1 600 GWh from a planned gasification plant. The rest of the planned plants have a possible total production of 585 GWh.

Table 5: Planned biogas plants in Skåne, compared to table 4. * planned or recent increase in production.

Plant Traffic Area Type Biomethane (GWh/a)

Jordberga Trelleborg Codigestion 100

Malmö Malmö Codigestion 35

Malmö Malmö Codigestion 50

Dalby Lund Codigestion 60

Eslöv Eslöv Codigestion 44

Biogas Färs Ystad Codigestion 41

Kullahalvön Helsingborg Codigestion 15

Filborna NSR Helsingborg Codigestion 163*

Nymölla Kristianstad Industry 100

Karpalund Kristianstad Codigestion 83*

Österlen Ystad Codigestion 60

Svedala Trelleborg Codigestion 50

Farm based plants (20 plants) Agriculture 30

Gasification plant Landskrona or Malmö Gasification 1 600

Total 2 431

Total without gasification 831

3.2 DemandAs shown in table 6 (SCB 2011), approx. 371.4 GWh/a vehicle gas is consumed in Region Skåne.


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Table 6: Consumed amount of vehicle gas in Region Skåne 2011

Biogas (GWh)

Natural gas(GWh)

Total(GWh)

147.8 223.6 371.4

The largest consumer was Skånetrafiken who operates over 60 % of its buses with vehicle gas. The gas buses consumed nearly 198.3 GWh vehicle gas in 2011, of which 50.8 % was biogas, and the remaining 49.2 % natural gas (Skånetrafiken's environmental report 2012). The remaining consumers of vehicle gas are assumed to consist of private and public cars as well as heavy vehicles that are refuelling at public gas stations.

The amount of vehicle gas sold at each gas station is not known, only the placement of the gas stations and bus depots as well as the number of buses per depot. It is therefore assumed that the demand for vehicle gas is equally distributed between each filling station and that each bus consumes the same amount of fuel. Table 7 below shows the amount of consumed vehicle gas as well as the consumed amount of biogas at industries.

Table 7: Estimated current biogas consumption per traffic area

Area Buses(GWh/a)

Public filling stations(GWh/a)

Industry(GWh/a)

Eslöv 3 7

Helsinborg 27 28

Hässleholm 3 7

Kristianstad 23 21

Landskrona 7 7 24

Lund 31 21

Malmö 94 42

Trelleborg 4 14

Ystad 0 7

Ängelholm 7 14

Total 199 175 24


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3.2.1 Future demandPossible demand as shown in table 8 is based on data from Skånetrafiken's market analysis and information from Biogas Syd (Trivector 2012, Biogas Syd 2012). The potential demand is based on the assumption that all buses run on vehicle gas, 10 % of the supply of fuel (gasoline, ethanol and diesel) to Skåne for vehicles besides the demand for buses is biogas and that the industry's use of natural gas completely can be replaced with biogas.

Table 8: Possible demand year 2020

Area Buses (GWh/a)

Public filling stations(GWh/a)

Industry(GWh/a)

Eslöv 32 65 82

Helsingborg 87 173 233

Hässleholm 32 79 36

Kristianstad 52 91 0

Landskrona 46 102 78

Lund 108 93 278

Malmö 133 194 3643

Trelleborg 74 87 2351

Ystad 42 86 0

Ängelholm 44 101 12

Total 650 1071 6713

3.3 Transportation of biogasThe amount of biogas that can be transported is based on the amount of upgraded biogas in table 4 and a possible production of biomethane in the year 2020 which is about 2.3 TWh/a. The potential demand consists of the demand listed in table 8 which is 8.4 TWh/a.

Table 9 below shows the amount of biogas that must be transported to each transport area based on the planned production capacity. The production volume of biogas from the planned gasification plant is shown in two areas. Those two areas are Landskrona and Malmö which are the identified possible locations of the plant.


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Table 9: Amount of biogas needed in each of the traffic areas based on planned production capacity. Bracketed numbers are possible supply from the gasification plant. Negative numbers indicate a demand for biogas while positive numbers indicate an excess production of biogas.

Area Planned supply(GWh/a)

Demand(GWh/a)

Difference(GWh/a)

Eslöv 45 179 134



Kristianstad 203 143 +60

Landskrona 0 (1 600) 226 226 (+1374)

Lund 67 479 412

Malmö 102 (1 702) 3970 3 868 (2 268)

Trelleborg 150 2512 2362

Ystad 101 128 27

Ängelholm 0 157 157

Total 2 520 8 434 5 914

The table shows a small surplus in Kristianstad, as well as a big export potential in Landskrona if the gasification plant is built there. All other traffic areas must import gas, with the highest import need being located near the natural gas grid in the western part of Skåne. This is due to the assumption that today's industrial consumption of natural gas would be replaced by biogas.

Instead of comparing the demand with the today known planned production capacity, it is also possible to do a comparison with the biogas potential which could be the development in a longterm perspective. This is shown in table 10 where the difference is shown between half of the biogas potential from residues and half of the potential from energy crops using 5 % of the areal in respective area (not including forest residues) that could be digested, and the calculated demand.


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Table 10: Amount of biogas needed in each of the traffic areas based on the biogas potential (without gasification). Negative numbers indicate a demand for biogas while positive numbers indicate an excess production of biogas.

Area 50 % of biogas potential(GWh/a)

Demand(GWh/a)

Difference(GWh/a)

Eslöv 385 179 +206



Kristianstad 594 143 +451

Landskrona 267 226 +41

Lund 189 479 290

Malmö 119 3 970 3 851

Trelleborg 309 2 512 2 203

Ystad 630 128 +502

Ängelholm 278 157 +121

Total 3 237 8 434 5 197

With this longterm perspective, there are areas mainly in the eastern part of Skåne which present a significant surplus production of biogas and would therefore become net export areas.


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4 Scenario analysisIn order to analyse the distribution of biogas for the Skåne region, transports can be divided into two categories:

1. Bulk transport of large gas volumes between regions. In the context of gas pipelines, this is normally denominated the “transmission grid” with pipelines operated at elevated pressure between 60 and 80 barg. Due to the high pressure, the pressure loss caused by friction is very small, so the transport over longer distances is possible.

2. Local distribution of smaller amounts of gas to the consumer, normally done in lowpressure pipelines up to 4 barg in the case of pipeline distribution. This offers the possibility to use plastic pipes and lower investment costs, but limits the transport range due to pressure losses.

As can be seen in Figure 11 on page 14, bulk transports of large gas quantities are most economically done by pipelines over distances up to approx. 250 km. At longer distances, LBG transports may be more economical. In the case of Skåne, with an extension of approx. 100 km in all directions, this implies that pipeline transport is the method of choice for all such bulk transports. Therefore, the extent of the high pressure grid is crucial for further analysing a transport concept for the region.

In the following, pipelines for bulk transport will be called “Trunk pipelines”. They have a similar function as the natural gas transmission grid, but are not necessarily operated at the same pressure and may be situated behind an MR station. Thus, the Trunk pipelines include both the natural gas transmission grid and eventual regional gas pipelines operated at a pressure suitable for the transport over longer distances.

The pressure needed in Trunk pipelines (apart the transmission grid) depends on the gas volume to be transferred, the pipe diameter and the distance. In Skåne, the net transfer volume between transport areas is in the order of magnitude of several 100 GWh/a in the eastern part and some 1000 GWh/a in the western part near the existing natural gas grid. For the transport requirements to/from the eastern part of Skåne, Trunk pipelines with a diameter of 160200 mm and an operating pressure of 1625 barg are considered a good choice with a reasonable pressure drop over the given distances (50 to 100 km). Smaller dimensions may be chosen if the pipelines are equipped with compressor stations at regular distances.

In order to reach producers and consumers, the Trunk pipelines must be combined with other transport methods for the transport between Trunk pipelines and the consumer or producer. According to chapter 2.3, this is most economically done by local lowpressure pipelines for shorter distances and/or smaller volumes, while CBG swap bodies should be used for small volumes over longer distances and LBG trailers for larger volumes (see Figure 9 and 10). The range where local pipelines are the best


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choice depends on the size of the gas production site (with higher ranges for smaller plants) and the number of CBG swap bodies per transport.

In order to keep the model usable, the following scenario simplifies this and assumes that local pipeline transport always is preferable up to appox. 30 km. In other words, all consumers and producers within a 30 km distance from high pressure Trunk pipelines should be connected by local (lowpressure) gas pipelines. Transports to or from sites outside this threshold should be done by CBG swap bodies or LBG trailers depending on the gas volume.

For a future gas distribution scenario, three different cases have been studied:

1. The Trunk pipelines consist of the existing highpressure natural gas grid only. No new trunk pipelines are built. Amounts to be transported are based on the planned production capacity.

2. In addition to the existing highpressure natural gas grid, two medium pressure Trunk pipelines are build from the transmission grid eastwards. Amounts to be transported are based on the planned production capacity.

3. As number 2, but based on the estimated biogas potential according to table 10 on page 23.

4.1 Distribution without new Trunk pipelinesToday's natural gas highpressure grid in Skåne consists mainly of the main transmission pipeline from Denmark to Gothenburg with some local forks. Figure 13 shows these pipelines as well as the area within a 15 and 30 km distance from them. The figure also shows the expected surplus / shortage in each traffic area.


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As can be seen, the 30 km border around the highpressure pipelines covers the whole western part of Skåne. This is also the area with the by far highest gas shortage. In this area, all gas transports should be done by pipelines as stated above. A big part of the consumption in the western part will not be covered by the planned biogas production, making the use of a natural gas/biogas mix necessary.

The remaining. eastern part of Skåne is relatively equilibrated in terms of production and consumption. Kristianstad has some excess gas, while Ystad and Hässleholm need to import some gas. The eastern areas are too far away from the Trunk pipelines to be connected by local lowpressure pipelines to these Trunk pipes and must therefore be served by other means. Producers in the eastern part have the choice to distribute their gas by local lowpressure pipelines, CBG swap bodies and LBG trailers. If the whole production of a biogas plant can be consumed within approx. 30 km distance, it should be distributed by local pipelines. Otherwise, it will be more economical to invest in liquefaction equipment (bigger plants) or a swap body infrastructure (smaller plants) and distribute the plant's whole production by truck transports. In this case, local pipelines will only be interesting for quite short distances.


Figure 13: Areas in Skåne within a 15 and 30 km distance from the existing high pressure natural gas grid. The bubbles indicate the gas shortage (orange) or surplus (green) in each traffic area based on the planned capacity.

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In order to meet the remaining gas demand in the eastern part, one or several liquefaction plants may be built at the Trunk pipelines, preferably at the eastmost ends in Klippan or Eslöv. As can be seen in Figure 9, LBG transports will be the most economical solution in this case where the liquefaction plant fills the role of the “Biogas plant”. This LBG infrastructure can also be used to provide a backup solution for local gas grids without a pipeline connection to the Trunk grid. In a holistic perspective, bigger consumers without proximity to a local gas producer should be prioritized by LBG transports.

4.2 Distribution with additional Trunk pipelinesIt is desirable to extend the Trunk pipeline system eastwards in order to cover a bigger area with the 30 km ribbon described above. A possible expansion of the distribution grid has been proposed by Energigas Sverige in the Biogas Portal (www.biogas portalen.se). This proposal consists of two pipelines which are shown in Figure 14.

As can be seen in the figure, almost every place in Skåne would be within a 30 km distance of a Trunk pipeline if the expansion pipes were built for medium pressure as


Figure 14: Areas in Skåne within a 15 and 30 km distance from Trunk pipelines if some new regional pipelines are built (green lines). The bubbles indicate the gas shortage (orange) or surplus (green) in each traffic area based on the planned capacity.

http://www.biogasportalen.se/



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explained above. Only some smaller parts of Ystad, Simrishamn and Osby would have a slightly larger distance to the Trunk grid. With minor modifications of the proposed route, also these areas could get nearer the new pipelines.

As a consequence, the whole gas transport could and should be accomplished by a mix of Trunk pipelines and local lowpressure pipelines. Eventually, some swap body filling stations could be used in order to supply consumers where the consumption is too low for a dedicated pipeline.

4.3 Distribution based on the biogas potentialThe above scenarios build on the assumption that the biogas production corresponds to the existing and planned plant capacity. However, the biogas potential is somewhat higher than that. Figure 15 shows the same map as in the previous scenario, but with demand/excess bubbles based on the biogas potential according to table 10.

As can be seen, the unused biogas potential converts the eastern parts of Skåne from a net gas importer to an area with considerable surplus biogas production. The amount


Figure 15: Areas in Skåne within a 15 and 30 km distance from Trunk pipelines if some new regional pipelines are built (green lines). The bubbles indicate the gas shortage (orange) or surplus (green) in each traffic area based on the biogas potential.

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of excess production in the eastern part is approximately 1 TWh per year. If it was possible for these biogas quantities to be transported to other parts of Skåne, a considerable part of today's natural gas consumption in the southwestern region could be replaced by biogas.

While the need for extended Trunk pipelines may not be obvious in scenario 2 with mainly medium transport volumes over medium distances, the scenario based on biogas potential presents another picture. In order to transfer the expected amount of biogas (1 TWh per year, distributed on two main routes), Trunk pipelines to the eastern part of Skåne are the by far most economical method as explained in chapter 2.3.

4.4 Scenario summaryFor a simplified scenario analysis, Skåne can be devided in an eastern and a western part, the latter being in proximity to the existing highpressure gas grid. Here, all gas transport should be done by gas pipelines.

Depending on the assumptions with respect to biogas production and consumption, the eastern part of Skåne could be almost selfsufficient on biogas, with a little need for gas import. In this case, transmission transports could be done by road or pipeline.

However, if the production capacity is further developed beyond the currently planned production plants, the eastern part of Skåne will become a significant net exporter of biogas. The establishment of new Trunk pipelines from the existing highpressure grid eastwards would be the most economical way of transporting the excess gas from east to west. Furthermore, these Trunk pipelines will give access to the gas grid within a 30 km range to all areas in Skåne, making gas distribution by lowpressure pipes the method of choice.


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5 Business modelIn their investigation of how the problem of infrastructure can be solved in the region of Skåne, KarlErik Grevendal and Chris Lannesstam give an example of a business model for the cooperation of a local gas grid (Skånet AB 2010). This report attempts to further develop that business model into a business model where focus is on a distribution grid and a regional gas grid.

When forming the business model, different possible market models have been considered. Consideration was also taken regarding that the gas market could change. It is therefore possible that the business model needs to be revised in the future, e.g. because of new legislation that changes the different ownerships and roles.

5.1 Identified actorsThere are a number of identified key actors involved when biogas is distributed in a gas grid. The identified actors are listed below:

• Biogas producer: Owns the biogas plant and produces biogas. Sells the biogas to the biogas supplier.

• Grid owner: Owns gas pipelines and gas meters and makes sure that the gas is transferred to the purchaser of the biogas. The grid owner is a central actor when it comes to information in the gas market. It is the grid owner that measures and reports the amount of biomethane in the entry and exit points in the gas grid. He provides gas suppliers, balance providers and the system manager with the information needed to calculate supply and regulate the balance in the gas system. Three different grid types have been identified:

1. Regional gas transmission grid, 16 barg or more

2. Distribution grid: Normally up to 4 barg.

3. Local raw gas grid: Connects the biogas plants, normally up to 4 barg.

• Transmission system operator (TSO). A TSO shall, in accordance to directive 2003/55/EG and besides being responsible for the operation and maintenance, be responsible for balancing his own network. There are two actors in Sweden that share that responsibility:

1. Svenska kraftnät is the actor who is the system operator (responsible for that the balance between supply and demand of gas is maintaned in the national natural gas system).

2. SWEDEGAS: Private company that owns Swedens transmission grid and is responsible for the operation and maintenace of it. It is the only


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Certified TSO and will probably soon take over the responsibility as system operator from Svenska kraftnät.

• Balance provider: An actor that has the economical responsibility for that there is a balance between supplied and withdrawn amount of gas from the entry and exit points in a specific gas grid. The balance provider signs a contract for balance responsibility with Svenska Kraftnät.

• Biogas supplier: Purchases biogas from the producer and delivers the biogas to the consumer of biogas. Uses the gas grid but does not own it. According to the Natural gas law, gas suppliers are allowed to deliver biogas to an exit point only if somebody has the balance responsibility. Business model.

• Consumer: User of biogas, e.g. as vehicle fuel or for industrial purposes.

Figure 16 below shows a business model for the distribution of biogas. The model is just an example because there is a chance that the different actors involved in the different identified projects choose different solutions. Each part of the model is owned by an actor in different types of constellations which is discussed further in chapter 5.2.

After being upgraded to vehicle standard, the produced biomethane is bought by the biogas supplier. The biogas supplier signs an agreement with an owner of one of the


Figure 16: Dashed lines represent road transport and continuous lines represent transport in a gas grid.

Regional gas grid

Bio

gas

prod

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Distribution grid

Local grid

Co

nsum

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Roa

d tr

ansp

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Biogas supplier

System operatorBalance provider

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three different grids depending on local conditions, or arranges transport by road. Chapter 2 and 4 discuss the economical and technical conditions further. The grid owner distributes the biogas to the consumer. The biogas supplier does also sign an agreement with the consumer of the biogas, e.g. a municipality, bus company or gas station.

The biogas supplier may also have a socalled balance sheet liability. If a biogas supplier does not want to manage its balance responsibility, it can let another biogas supplier or specialized company manage the balance responsibility. The balance responsibility in the regional gas grid is maintained by the system operator.

The consumer of the biogas is an actor that gets an agreement with the gas grid owner in order to connect to the gas grid and gets another agreement with a biogas supplier for the delivery of biogas.

5.2 OwnershipThere are different conditions that have to be considered for the ownerships of the gas grids regarding political decisions, legislation, investment costs and constellations between business partners. It is therefore not possible to pinpoint an actor that could own a gas grid. Those decisions are something that should take place where all necessarily information are gathered (technical, political and economical).

It is therefore suggested that a working group is formed to pursue the matter of expanding the gas grid as mentioned in Skåne's roadmap for biogas. Below are the respective grids discussed in order to illustrate the complexity.

5.2.1 Local gridsOnly a few local gas grids exist in Sweden. Those are owned by constellations of different actors depending on the local circumstances. E.g. biogas producers could start a separate company that owns a share of the grid, local municipalities or energy companies could own another share of the grid.

The most important factor here to consider is the actors that are involved in the projects that want to use the local gas grid. Hence, the ownership could be different in every project depending on the local circumstances.

5.2.2 Distribution gridsDistribution grids are usually more complex, the investment costs are higher, more actors are involved and the grids extend over several municipalities compared to local gas grids.

The above mentioned factors make the project harder tor realise and require a larger project organisation. The ownership of the gas grid is one piece in a bigger puzzle.


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One option is that the respective municipalities own the project until commissioning in a separate company. If its desired, another actor or actors could take over the ownership after commissioning. Another possibility is that several local gas grid companies together start a new company that owns the distribution grid.

5.2.3 Regional gridsRegional grids are grids that supply gas to distributors rather than to end customers across Skåne. This is a larger infrastructure project and involves all of the actors that have an interest in a regional gas grid.

One option could be that Region Skåne owns the project until commissioning in a separate company. If its desired, another actor or actors could take over the ownership after commissioning. Another possibility is that several distribution gas grid companies together start a new company that owns the regional distribution grid.

5.3 Investment planThis investment plan is based on several assumptions and should therefore only be considered as one of different possible investment plans. The investment costs should be considered as rough assumptions.

The investors are the owner of the projects. This does not mean that the owners of the projects for the gas grids are the only investors. It is for example also possible that the first steps that take place during 2013 – 2015 are divided into several other projects. This is something that could be discussed in the working group mentioned above.

The investment costs are higher during the construction phase of the gas grids because it's there the actual investments are made. The total estimated costs are 605 MSEK. These costs are based on the following assumptions:

• The total length of the regional gas grid is 120 km and the investment cost for the regional gas grid 1 500 SEK/m.

• The length of each distribution gas grid is 50 km, there are 10 such distribution grids, and the investment cost for the distribution gas grid is 700 SEK/m.

• 10 compressors are needed for the compression from distribution grids into the transmission grid, with an investment cost of 6 MSEK per compressor depending on the gas quantity.

• There are in total 12 connection points with an investment cost of 0.5 MSEK each.


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Table 11: Time table for investments

Activity Subactivity 2013(kSEK)

2015(kSEK)

2017(kSEK)

2019(kSEK)

2021(kSEK)

Regional gas grid Preliminary study 500

Planning 1 000

Permits/Easements 500 500

Construction 62 000 62 000 62 500

Commissioning 1 000

Distribution gas grid Preliminary study 1 000

Planning 2 000

Permits/Easements 1 000

Construction 125 000 125 000 160 000

Commissioning 1 000

Total 2 000 4 500 187 000 187 000 224 500

5.4 Access to the gridThe possibilities and the costs of connection vary depending on the distance to the existing gas grid, technical conditions and the amount of biogas produced. Since it is not always obvious whether or not a connection to a regional gas grid is preferable, it is crucial to evaluate the distance to gas grids in the vicinity. It is assumed here that the planned production facilities owns a local gas grid in a separate company that connect to the distribution grid and that the distribution grid are connected to the regional grid.

It also requires an agreement with the owner of the distribution gas grid in order for the producer of biogas to be able to access the distribution gas grid. Costs arising from accessing the distribution gas grid are:

• Investment costs arising from the actual gas pipeline. An estimated cost with the assumption that the distance is 1 km to the distribution grid is 0.7 MSEK.

• Investment costs arising from gas blower, gas meter, gas analysis etc. An estimated cost is 0.3 to 1 MSEK.

• Connection fee to the owner of the regional grid. An estimated cost as mentioned above is 0.1 MSEK for one local gas grid.

There is a possibility that the demand in the distribution grid are lower than the supply from the biogas producers that connects to the distribution grid. Then the owner of the


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distribution grid has to invest in a compressor station in order to inject it to the regional grid. Such an investment cost does not affect the investment costs for the biogas producers. It will probably instead lead to higher running costs because the owner of the distribution grid has to finance the investment.


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