Gas Networks Ireland presentation from the IREC conference on Renewable Gas: Unique Heat & De-carbonisation Opportunity for Ireland. Gas has a key part to play in helping Ireland meet it's climate change targets through; • More efficient use of the existing gas networks • The deployment of more innovate technologies • Facilitating and supporting an indigenous renewable gas industry

1. Renewable Gas
Unique Heat & De-carbonisation Opportunity for Ireland
18th May 2016
Ian Kilgallon – Innovation & Business Development Manager
Ian.Kilgallon@gasnetworks.ie +353-21-4534000

2. • Gas Networks Ireland owns, operates, develops
and maintains the natural gas network in Ireland.
• World-class Modern Gas Network
• Over 13,500Km:
• 2,422Km Transmission Network
• 11,288Km Distribution Network
• More than 675,000 gas consumers
• 650,000 homes
• 25,000 businesses
• Over 160 population centres
• 19 counties
Gas Networks Ireland

3. Renewable Gas – Circular Economy

4. Purification
~80-99%
Methane
CH4
~1-19%
Alkane
Gases
~1-5%
Neutral
Gases
NATURAL GAS
30%-50%
CO2
50%-70%
Methane
CH4
-2% Trace
Gases &
Water
RAW BIOGAS
98%
Methane
CH4
~1% CO2 ~1% Trace
Gases
RENEWABLE GAS
Renewable Gas Compatibility
~60-90%
Methane
CH4~1-19%
Alkane
Gases
~5-20%
Impurities
& HC
RAW FOSSIL GAS

5. 5
• Mature and proven technologies – over 17,000
anaerobic digester have been built in EEA (2014)
• Transitioning from small remote electricity
generation to larger grid injection facilities
• State policies/prioritisation and incentives
transitioning to renewable gas for heat and CHP
consuming industries.
Renewable Gas in Europe

6. For the Customer: Renewable Gas will enable Industry in Ireland to achieve decarbonisation
targets, without the need to re-invest in alternative infrastructure.
For Security of Supply: Although GNI propose a target of 20% Renewable Gas by 2030, research
shows that Ireland has capacity to de-carbonise our entire gas demand.
For Ireland’s Agriculture
Sectors:
Reduce Agriculture GHG emissions by 20% by 2030, enhancing the premium
value of Irelands food produce, diversification of farm incomes, securing the
future of marginal agricultural sectors, and mitigate against food market price
swings.
For Ireland’s RES Targets: Making renewable gas available to large energy users will play a vital role in
helping Ireland meet its renewable heat (RES-H) targets of 12% by 2020, and
can supply 20% of Irelands Natural Gas demand by 2030.
Why Renewable Gas?

7. Research Challenge: Sustainability & Carbon Balance
• Biogas and biomethane produced from wet manure benefits greatly
from the emission credits due to avoided GHG emissions
• Additional carbon credits come from improved manure management
resulting in GHG savings (Total GHG savings up to 239% c.f. natural
gas)
• Multiple options to achieve carbon saving targets, e.g.
‒ 100% Carbon Neutrality with 58% natural gas and 42% manure derived
renewable gas
• Research Challenge: Define and Quantify Carbon
Balance implications by feedstock, processing
technology, and delivery method.
‒ Quantify the value of best practices
‒ Quantify the Carbon Savings/Credits
‒ Discourage bad practices
‒ Ability to Certify and Guarantee Origin
‒ Accreditation process & standards
Note: GHG emissions taken from EU JRC Science and Policy report on
“Solid and gaseous bioenergy pathways: input values and GHG
emissions”.
Available at:
http://iet.jrc.ec.europa.eu/bf-ca/sites/bf-
ca/files/files/documents/eur26696_online_final_v3.pdf
-120
-100
-80
-60
-40
-20
0
20
40
60
80
100
gCO2/MJ
GHG Emissions from fuel sources
Manure Biowaste Maize whole plant Stemwood pellets Natural Gas

8. National GHG Emissions 2014
8
11.35, 20%
11.12, 19%
9.02, 15%
5.70, 10%
1.57, 3%
19.38, 33%
Total National GHG Emissions 2014
(58.21 Mt CO2 eq)
Transport
Energy
Industry & commercial
Residential
Waste
Agriculture
Data Source: EPA (2015)
accessed on 13/05/2016 available at:
http://www.epa.ie/pubs/reports/air/airem
issions/GHG_1990-
2014_Provisional_11122015.pdf

9. Potential Irish GHG savings from biomethane
9
0
5
10
15
20
25
Agricultural Emissions (EPA 2014) Potential GHG Savings from
Biomethane (11.8 TWh by 2030)
GHGEmissions(MtCO2eq.)
Agricultural emissions are
composed of
• Enteric fermentation (49%)
• Nitrogen fertilisers (36%)
• Manure Storage (12%)
• Energy (3%)
Estimated biomethane
resources by 2030
• Additional grass (above
livestock demand)
• Agricultural manures
• Organic wastes and residues
• Additional sources (e.g. P2G)

10. Consumer
GNI currently facilitate a Secure & Competitive gas market
Gas
Transporter
Gas
Shipper/Supplier
Network Entry
Agreements
Gas Purchase
Agreement
Gas Code of Operations
Entry/Exit Arrangements
Gas Producer

11. Framework to enable renewable gas in the market
Consumer
Gas
Transporter
Gas
Shipper/Supplier
Network Entry
Agreements
Gas Code of Operations
Entry/Exit Arrangements
Gas Producer
Gas Purchase
Agreement
Renewable Gas
Producer
Green Certification

12. • In addition to our plans around renewable gas, GNI has observed some
interesting customer usage patterns that we feel merit further research
Residential / domestic sector trends:
• We have seen substantial decreases in annual consumption of gas (after
temperature correction) over the last 8 years:
• 590,000 to 640,000 customers (+8%), whose annual consumption has reduced
from 14,500kWh per average house to 11,000kWh (-25% or 3% per annum)
• As result the total aggregate gas demand has decreased by circa 1,500GWh (-
18%) resulting in savings of approximately 300,000 Tonnes of CO2
Delivering efficiencies and carbon savings

13. Pre-Payment Metering (early generation smart meters)
• We have seen over 80,000 customers switch from credit meter to
prepayment meters (or 'pay as you go' meters) (PPM)
• These meters now have an average annual consumption of 8,700kWh
• Annual consumption of PPM customers who had previously been on credit
meters, has shown that these particular customers have reduced by 16% (versus
a normal reduction of circa 3%)
• We have yet to determine if this increased reduction is due to fuel poverty or the
increased awareness of energy consumption that comes with using a PPM
• Not all customers who switch from a credit meter to a PPM do so for financial
hardship reasons, many switch due to lifestyle/household budgeting reasons.
• This is an area that we believe merits further research
Delivering efficiencies and carbon savings

14. • We believe that gas has a key part to play in helping
Ireland meet it's climate change targets through;
• More efficient use of the existing gas networks
• The deployment of more innovate technologies
• Facilitating and supporting an indigenous renewable gas
industry
• Secure, Reliable, Efficient, & Existing Infrastructure
• Over 50 optimum injection points for renewable gas
• Can deliver the same strong clean product, but now it can
be Green also
Capacity for more De-carbonisation of Heat & CHP