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London bio lng case study van der gaag


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London bio lng case study van der gaag

  1. 1. Bio-LNG case study: how is liquid bio-methanean enabler for liquid natural gas? Peter van der Gaag 1 Hilton Tower Bridge London 26 June 2012
  2. 2. Contents• Introduction: LNG and bio-LNG• Standard and premium quality: similarity to oil companies’ policy• Bio-LNG can be used to combat methane slip and improve methane number• Comparing small scale LNG and bio-LNG with other fuels: advantages and disadvantages• How much bio-LNG can there be? What would be the price? What are the outlooks for small and large LNG and how can bio-LNG fit in?• We advise blending of bio-LNG into LNG• Holland Innovation Team and Chive Fuels are building the bio-LNG chain: Anglo Dutch bio-LNG, current projects• Conclusions and recommendations 2 Hilton Tower Bridge London 26 June 2012
  3. 3. LNG accepted worldwideLNG, liquid natural gas, consists for thelargest part of methane, which is liquid at atemperature of minus 162 degrees Celsius.LNG is made from natural gas all over theworld. All CO2, H2S, particles, mercury haveto be removed. Water freezes out.Depending on the source, the composition ofLNG still varies. Methane content is between80% and 99.9%.Essentially we consider two types of LNG:• Rich LNG contains a relative large quantityof heavy hydrocarbons• Lean LNG contains few (no) heavyhydrocarbons. 3 Hilton Tower Bridge London 26 June 2012
  4. 4. The lesser known Bio-LNG: what is it? Bio-LNG is produced from biogas. Biogas is produced by anaerobic digestion. All organic waste can rot and can produce biogas, the bacteria do the work. Therefore biogas is the cheapest and cleanest biofuel without competition with food or land use. Bio-LNG (LBM) = liquid bio-methane. For the first time there is a biofuel which has always a better quality than its fossil counterpart LNG, so: besides fossil LNG there is the premium Bio-LNG 4 Hilton Tower Bridge London 26 June 2012
  5. 5. bio- Advantages of bio-LNG versus fossil LNG• Bio-LNG is of better quality than fossil LNG. This is the first time that a bio fuel is better than its fossil counterpart.• While bio-LNG can be used without blending, it can also be used to improve the quality of fossil LNG.• Bio-LNG can replace 20% of our fossil transportation fuels by 2020 in inland navigation, heavy duty trucks and cold ironing in ports.• Bio-LNG can be used to produce bio-CNG for private cars with minor additional costs.• Bio-LNG emits negligible NOx or PM when burnt.• Bio-LNG has a much lower carbon footprint than other fossil fuels or bio fuels: can even be carbon negative.• Bio-LNG is cheapest bio fuel per energy unit. 5 Hilton Tower Bridge London 26 June 2012
  6. 6. About LNG qualityHolland Innovation Team wrote a position paper about LNGquality after consultation of experts and gas enginemanufacturers. are engines which can run on almost anything but this will temper theachievements, especially of next generation high performing gas engines.Many heavy LNG qualities will not be good enough for direct use in engines, soshould be upgraded before leaving the terminal site.The need for standardization of LNG quality for transportation is gaining supportin various working groups.Bio-LNG will always full fill minimum demands and can be used to improve LNGquality, so bio-LNG producers will be happy with worldwide LNG developments. 6 Hilton Tower Bridge London 26 June 2012
  7. 7. Why apply methane number for engines: opinions which matter Euromot, 5 Dec. 2011, advises minimum methane number of 80 for gas engines. For dual fuel engines: “Ideally, the LNG will have a MN >90 and will have a low percentage of heavier hydrocarbons such as ethane, propane and butane.” http://www.cleanairpower.comVolvo Trucks NL advises MN 90 (CARB) for their dual fuel vehicles (pers com. April 2012)“Lower methane number increases NOx emission and methane slip for lean burning gasengines”: Feist, M., Landau, M., and Harte, E., The Effect of Fuel Composition onPerformance and Emissions of a Variety of Natural Gas Engines, SAE Int. J. Fuels Lubr. 7 Hilton Tower Bridge London 26 June 2012
  8. 8. Well to wheel CO2 emissions (source: Air-LNG GmbH) 8 Hilton Tower Bridge London 26 June 2012
  9. 9. Methane slip: LNG / bio-LNGWhen gas is burnt in gas engines, some of the methane is emitted unburnt.Research shows that methane slip is higher for dual fuel engines than forlean burning gas engines, especially in case of retrofit (refurbishing).Modern four stroke gas engines can emit 4-8 gr of CH4 per kWh or 5.5-11%. (source: Tanker shipping and trade, April/May 2012)Methane slip can decrease the benefits of use of LNG.Since bio-LNG is made from waste which would have created methaneemissions anyway, 1% methane slip from bio-LNG fuel still means 99%reduction of methane emissions. 9 Hilton Tower Bridge London 26 June 2012
  10. 10. How much bio-LNG can be made? Enough! Source: government agency forecasts that 3 billion cbm of so-called‘green gas’ can be produced from anaerobic digestion (NL) and gassificationof biomass i,.e. equivalent >>> 1 million ton of bio-LNG. 10 Hilton Tower Bridge London 26 June 2012
  11. 11. We see a great future for bio-LNG•Use bio-LNG to bring heavy LNG up to necessary specs – small scale(bio) LNG carriers to LNG terminals (“reverse break bulk”)•Use bio-LNG to improve methane number of fossil LNG•Use bio-LNG for implementation of the EU directive for biofuels (5% now –10% in 2020)•Use bio-LNG as a premium fuel, including for companies that will producebio-LNG from their own wasteAt the occasion of the European Industrial Bioenergy Initiative (EIBI)Conference in Brussels June 5th, 2012, we proposed to the EuropeanCommission to mandate blending of bio-LNG into fossil LNG, the same asfor biodiesel into diesel and bio-ethanol into gasoline (RED transportationmandate).After all, Bio-LNG improves quality of LNG, is not made of food, has thebest CO2 reduction, no NOx/PM and avoids methane slip!The next slides show our projects. 11 Hilton Tower Bridge London 26 June 2012
  12. 12. Inland and short sea shipping becomes "green" with Bio-LNG“Holland Innovation Team wants to build a bunkering bio-LNG terminal inZwijndrecht together with Nobel close to Rotterdam. "The bio-LNG must betransported to this to other terminals and distribution centers”, says Van der Gaag."We are creating a whole chain. This vessel is indispensable. A bio-LNG plantwould produce between 40-150 tons of bio-LNG daily. Distribution can be done bybio-LNG tankers of 1100-4000 cbm.”E-Energy Market by Erik Groen 2011 12 Hilton Tower Bridge London 26 June 2012
  13. 13. Developing bunkering and distribution vesselsThere will be a new market for (bio) LNG bunkering vessels and carriers totransport fossil LNG from small scale plants and bio-LNG to bunkeringstations and large terminals to improve LNG quality.Sizes for bio-LNG to 4000cbm and for small scale LNG to …?? 13 Hilton Tower Bridge London 26 June 2012
  14. 14. (Bio-)LNG bunker terminal A. Nobel en Zn BunkerserviceBunkerworld News22 November 2011 –‘First movers integral in LNGbunkering future ... part of trials toacquire permit for construction ofbio-LNG bunkering terminal’A grant of the Department ofInfrastructure and Environment wasawarded in November – additionalscores were awarded to bio-LNGover LNG bunkeringSee movie of bunkering trial onYoutube: ‘ 14 Hilton Tower Bridge London 26 June 2012
  15. 15. (Bio-)LNG bunker terminal A. Nobel & Zn BunkerserviceInitial bunkering from tank trucksThen permanent 500 m3 LNG storage tank,later expanded to 2000 m3 (modular layout)The bunkering station is heated and cooledby Oude Maas river water (heat exchanger);boil-off from bio-LNG storage tank will beused to generate electricity, thus creatingthe first bunkering terminal of the post-fossil fuels eraPermits process is multifaceted and hasproved lengthy but positive outcome isexpected in the coming months 15 Hilton Tower Bridge London 26 June 2012
  16. 16. Use bio-LNG for cold ironing Because a large number of power stations are coal-fired, running ships on shore electricity when alongside could result in greater levels of atmospheric pollution than the traditional practice of using ship fuel. Furthermore, installing the necessary berthside connection points in EU ports could cost EUR 675 million in aggregate and, thereafter, EUR 50 million a year to maintain. _46.aspxCold ironing using LNG was demonstrated inCalifornia. Investments costs areconsiderably lower than bertside connections.We are preparing a bio-LNG cold ironingtrial and are looking for a ship ownerwilling to participate (ships equipped forshore electricity are still scarce). Hilton Tower Bridge London 26 June 2012
  17. 17. Fuelling stationsChive Fuels has operated LNG stations since 1997 in UK; now expanding to theNetherlands via HIT/Chive joint venture Anglo Dutch bio-LNG.First (bio)LNG fuelling station to be placed in Heerenveen. 17 Hilton Tower Bridge London 26 June 2012
  18. 18. Building the chain: (bio-)LNG production Feasibility study for conversion of Dutch biogas plants (now struggling to produce electricity) to supply bio-LNG for use as fuel in agriculture, recreation and construction industry Partner: Prima Energy / SHV Energy (a leading propane supplier in 25 countries)Regional bio-LNG production is also thegoal in the aforementioned Fryslan project.Partner: waste disposal company Omrin 18 Hilton Tower Bridge London 26 June 2012
  19. 19. Bio-LNG: example of a 100 t/day plant Production of bio-gas, upgrading and liquefaction to LNG Cambi fermentation unit, Cirmac upgrading, Cryonorm liquefaction) 99% CO2, LP/MP steam LP/MP steam Bio-mass 90% s Fermentation Groen-gas (90% CH4) Bio-gas treatment, of Bio-mass H2S removal + CO2-removal LNG-gas (> 98% CH4) LP LP steam Water recycle & treatment Digestate, Digestate 10% moist. drying NH3 removal Aqua ammonia Electric energy Liquefaction Bio LNG (99% CH4)Price of bio-LNG from a 100 t/day plant would be <900 Euro / ton 19 Hilton Tower Bridge London 26 June 2012
  20. 20. Conclusions and recommendationsWhile some engines can cope with almost any quality, LNG with highmethane number holds more energy per ton and has higher efficiency inmodern gas engines than heavy LNG.Oil and gas companies always are keen on superior quality of fuel, sofollowing their example we will sell premium quality bio-LNG.Bio-LNG is the best example of a premium fuel which is renewable andmade from our own biowaste.Bio-LNG will be used to upgrade quality of fossil LNG in Europe. Weadvise to make blending of Bio-LNG in LNG in Europe obligatory (RED).We see a great future for bio-LNG and are always looking for cooperationwith same minded partners. 20 Hilton Tower Bridge London 26 June 2012
  21. 21. Keep thinking out of the box! Thank you for your attention Peter van der Gaag / Remco Hoogma / Nella Sapulette / Jesse Hofmann Holland Innovation Team 21 Hilton Tower Bridge London 26 June 2012