1 / 44

Biomethane Review of UK activity

Biomethane Review of UK activity. Alan Midwinter SGN Project Manager 29 th September 2011. Wardell Armstong LLP. Who are SGN?. Scotia Gas Networks – Formed in June 2005 following the acquisition of two gas distribution networks from National Grid (Scotland and South of England)

florida
Download Presentation

Biomethane Review of UK activity

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Biomethane Review of UK activity Alan Midwinter SGN Project Manager29th September 2011 Wardell Armstong LLP

  2. Who are SGN? Scotia Gas Networks – Formed in June 2005 following the acquisition of two gas distribution networks from National Grid (Scotland and South of England) Owns and operates the second largest gas distribution network in the UK. Serving over 5.8 million customers 2

  3. Why gas networks here? DECC 2050 Pathways Study Demonstrated that substantial electrification of heat and transport is required in order to meet 2050 Targets (80% GHG emission reduction) What is the future for the gas networks ? ENA Gas Futures Group commissioned Redpoint to develop future gas scenarios to 2050 and beyond :- • Retaining gas infrastructure could be up to £700bn cheaper to UK plc than a complete electrification solution • Requirelow carbon renewable gas (BIOGAS) for Bio-methane • Potential for Bio-methane injection - 50% of UK domestic heating load DECC output targets for bio-methane are 7TWh p.a. by 2020 and could extend to 150-210 TWh per annum of renewable gas by 2050 3

  4. Gas Futures Redpoint • Pathways involving significant • Biomethane to Grid Injection • Green Gas • Gas Versatility

  5. ‘Green Gas’ Incentive

  6. Low Carbon Energy - Biogas • UK produces 16 million tonnes of food waste (8 million tonnes from households) and 90 million tonnes of animal waste annually with the majority going to landfill. • Organic material degrades producing methane gas, 23 times more damaging to the environment as a greenhouse gas than carbon dioxide. • EU landfill directive obliges local authorities to send less biodegradable waste to landfill, generating requirement to recycle or reprocess. • Anaerobic Digestion (AD) is a waste treatment process for organic waste, recovering energy from waste in the form of biogas (50% to 65% methane) • Biogas traditionally has been used for Electricity generation but can be cleaned for Biomethane injection or used as CNG for vehicle fuel. 6

  7. Government Incentives • UK Government is committed to meet Greenhouse Gas Emission targets • 15% reduction by 2020 • 80% reduction by 2050 • Landfill taxes – increasing to £80 per tonne. • Energy recovery potential for AD could support 2,100 AD plants (50,000 t) will be required. • The Government has incentive schemes for the use of Biogas as a low carbon energy • Existing incentives FIT’s & ROC’s for electricity generation • RTFO’s for vehicle fuels • Government has now incentivised a scheme that will for the first time provide long-term guaranteed financial support for renewable heat installations • Renewable Heat Incentive (RHI)

  8. RHI & Bio-methane Injection Introduction of the RHI (July 2011) provides a sound economic pathway for gas injection into the grid, financially attractive above 500 m3/h bio-gas (300 m3/h biomethane). Bio-methane RHI tariff is currently 6.8p / kWh 20 year tariff to include capital cost for all plant Degression of RHI tariff will feature once target volume is reached Bio-methane injection is 50% more efficient than electricity only applications Important contribution to a stable and reliable energy supply 8

  9. Comparative Income £/m 9 Biogas Plant Capacity m3/hr

  10. Didcot - The Objectives

  11. Project time-line • SGN commissioned Feasibility study in April 2009 • Project Approval April 2010 • 3 October 2010 SGN, working with our partners, Thames Water and Centrica, delivered the first Bio-methane gas to Grid in the UK

  12. Key Objectives • SGN used Innovation Funding to deliver a number of important objectives: • Understand Legislative and Regulatory issues • Improve understanding in relation into gas quality (Oxygen and siloxanes in particular) • Understand the impacts of bio-methane on the operation and configuration of the local gas network • Prove biogas clean-up and upgrading technology in the UK • Provide a ‘base-line’ for gas quality monitoring and associated equipment from which lower cost options could be developed • Share Project learning and improve efficiency to the benefit of future schemes

  13. Regulatory Requirements • Safety (HSE) • Transporters may only Transport gas that complies with provisions of Gas Safety Management Regulations (GS(M)R) • Gas Transporters are obliged (by the Regulations) to take sufficient measures to confirm that gas is compliant or must not allow gas to flow • Commercial (Ofgem and the Uniform Network Code) • The bio-methane must have its energy measured in compliance with Gas Thermal Energy Regulations • The processes must comply with appropriate UNC arrangements

  14. Gas Quality Baseline • Establish Biogas composition and available flow-rate • Ensure the local SGN Network could accept the volume of gas that will be produced on a 24/7 basis • Establish biomethane gas quality requirement, specifically around : • Oxygen • Siloxanes • Calorific value • Identify appropriate biogas clean-up and upgrading technology for Didcot

  15. Key Objective Outputs • Oxygen content could potentially be up to 2% • HSE derogation would be required for >0.2% • Siloxanes were likely to be present in the biogas • Additional filtration equipment would be required • The calorific value from the bio-methane would be lower than the existing network values • Enrichment with propane would be required • Costs were likely to be high – SGN IFI Funding used • The project could be implemented in 2010 and would therefore provide valuable learning ahead of RHI introduction in 2011

  16. How can AD Biogas become Bio-methane • Bio-gas from an anaerobic digester contains typically • Natural gas contains around 90% methane, with ethane, propane, butane, CO2 and nitrogen making up the rest. • To inject Biogas into the gas grid it is necessary to clean it and upgrade it to biomethane • Bio- methane is around 98% methane content 16

  17. The Didcot Project

  18. Didcot Project – Before injection (April 2010) Digester Gas Bag Flare 18

  19. Why Didcot ? • Existing Sewage Treatment Works with 2 Digesters producing sufficient waste biogas • Thames Water interested in the SGN proposition to clean up the biogas, upgrade and inject into the local SGN grid • Practical details: • Resilient local Network within 400m of site • Available space • Unlikely to have issues with planning authorities

  20. Didcot – The ‘GREEN’ Gas process Biomethane Biogas Biogas Clean-up and upgrading Plant

  21. Site Location Connection to Gas Network Residential Area that will use new gas supply Location of New Plant

  22. Biomethane – The Process AD AD Electricity Output • Typical Bio-gas • 60-65% CH4 • 34-36% CO2 • 1%O2 Gas Storage Gas Engines Flare Bio-gas Clean Up Plant (Water Wash) CO2 Filters Out of Spec Bio-methane • Bio-methane • 97-98% BioCH4 • 0.3%O2 Propane Upgrade Network Entry Valve (ESD) Bio-methane to Grid Entry Equipment (Network Entry Assets) Existing Gas Network Network Connection 22

  23. Filters for Siloxanes and H2S Site Layout Water Wash Process Plant Propane Storage and Blending Plant Gas Analysis equipment Biomethane to Grid Plant

  24. Didcot Project (Apr – Oct 2010) First Biomethane to grid plant in UK DIGESTERS GAS STORAGE UPGRADE PLANT - PROPANE TELEMETRY CUSTODY TRANSFER STN CLEAN UP PLANT 24

  25. Biogas Clean-up and Upgrading Equipment • Established Water scrubbing technology • Removes CO2 • Removes H2S • Removes most siloxanes • Dries the biogas • Additional filtration to ensure no siloxanes enter network • H2S captured when it is removed from the water and not vented to atmosphere

  26. Propane Enrichment Propane Tanks refilled by Tanker every 3 to 4 weeks Propane Storage Tanks Mixing Vessel Industry Review Group (GDNs, shippers, REA, Ofgem) Sept-Oct 2010 agreed that adding propane to meet FWACV was necessary to ensure customers were not being disadvantaged by bio-methane injection

  27. Biomethane Injection – Equipment and Regulations Gas Transporter must ensure :- Regulation Requirement Gas Quality Measurement GS(M)R Reg 8 Schedule 3 pt 1 Pressure Control of gas delivery into network GS(M)R & PSSR Stenching Agent injection GS(M)R Reg 8 Schedule 3 pt 1 Volume Flow Measurement GS(M)R & Gas (Calculation of Thermal to enable calculation of gas quality Energy ) Regs Gas Flow weighted average CV to OFGEM Direction under the 1996 Gas measure/record the energy of the gas (Calculation of Thermal Energy ) Regs

  28. Gas Network Considerations • Key considerations that the project had to recognise - • Charge to Consumers CV • Consumer Safety H2S & Wobbe Number • Network Integrity Water dewpoint & Oxygen (internal corrosion) • Existing Constraints • Currently only one OFGEM approved device (Danalyser) • Siemens Microbox (FWACV hardware – supervisory software) • Total sulphur & H2S measurement (MAXUM) • Hydrocarbon dewpoint measurement • High Pressure Metering Information System (HPMIS)

  29. HSE - GAS SAFETY – GS(M)R Fast Acting and Shut Off ( ESD) Fast acting gas quality sampling equipment (H2O, H2S, S, CV, H2, O2 , etc) Emergency Shut Down System

  30. GAS SAFETY – Stenching Agent Odorant injection system

  31. GAS SAFETY - Pressure Control & Metering Accurate flow measurement Pressure control – entry into 2 bar MP 31

  32. OFGEM - Thermal Energy SGN as the gas transporter were Directed by OFGEM to use an approved type Danalyser ( Gas chromatograph) that enables highly accurate sampling. Accurate to around 0.14 MJ/M3 (less than 0.4% error) Accepted that this is an expensive solution but there was no alternative for Didcot 2010 700 Series Danalyser

  33. Completed Project (1) Digesters Propane Storage Gas bag Propane mixing and injection Thames Water control room H2S and Siloxane filters Energy and quality Measurement, odorant addition, telemetry to Gas Control Centre Biogas clean-up and upgrading plant 33

  34. Project at Completion

  35. Project at Completion (2)

  36. Project at Completion (3)

  37. Project Learning

  38. Successes – All in it together!! • Bio-methane quality of clean up plant established • Propane requirement less than anticipated HSE - Positive support for 2% Oxygen exemption OFGEM - Timely Letter of Direction - Expedited verification of Danalyser and other directed equipment Co-operation of Regulatory Bodies Single Party Delivery of Project • SGN lead project delivery as principle contractor supported by our technical partner CNG Services Ltd • Excellent H&S record on congested site • Significantly reduced construction period Modular Construction Output of the Technology

  39. Learning • Location of Anaerobic Digestion - near gas grid • Capacity of the gas grid must be able to support facility • Operating pressure (IP or MP best) • Clean up technology and AD must be designed together to meet gas and energy quality requirements – retrofit process performance difficulties • Income balance between CHP (Fit’s) and grid injection (RHI) is attractive • Network Entry Agreements – Must be appropriate • Measurement • Telemetry • Nominations – link to gas sales • Communication • Design and Build Agreements –need industry standard • Maintenance • Ownership and Responsibility for Plant • Plant Redundancy / Availability 39

  40. Future Challenges for Bio-methane Injection

  41. Technical Challenges for Biomethane Injection Technical barriers to Biomethane growth in UK • Oxygen content / specification - GS(M)R – is it appropriate at 0.2%? • CV enrichment with propane – not seen as green • Cost - Gas Quality / Thermal Energy equipment • Regulations and systems are designed for large volumes of gas. • GSMR data duplication - clean-up and network entry plant. • Increase diversity of suppliers for network entry systems • Network Entry Agreement • Historically designed for large facilities, need to be reflective of smaller biomethane sources. • Network Capacity Constraints • Capacity re-engineering and suitable models to facilitate biomethane entry • Gas Transporters Licence exemption • Class Exemption from section 6A of Gas Act for Biomethane 41

  42. Future Challenges for Biomethane Injection Socio-economic barriers to Biomethane growth in UK • Clarity on ownership and funding for network entry equipment. • Incentives for GDN’s within next Price Control Period? • RHI degression from 2012 ? • Feedstock suitability – varied feedstock contaminants / landfill gas 2012 ? • Project Funding – (Energy from Waste AD facilities)

  43. Conclusions Bio-methane could supply up to 50 % of domestic gas load here in the UK. Bio-methane into the Gas Grid is far more efficient than into the electricity grid providing a sustainable gas supply 2020 UK Government target - generate 15% of national energy requirement from renewable sources The Gas networks currently have the infrastructure to deliver this energy supply to the majority of our consumers . Bio-methane injection is the best way to supply this low Carbon energy into millions of homes and businesses

  44. The potential is huge….. Thank you Alan Midwinter alan.midwinter@sgn.co.uk www.sgn.co.uk

More Related