Bio-LNG for transportation: what are we waiting for?

1. Bio-LNG for transportation: what are we waiting for? Our offer: sustainable bio-lng with fuelling stations at competitive price 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010 1

2. Main messages There are many fairy tales about LNG! Fuel composition is really important in the LNG fuel chain. There are standards for fuel grade LNG for transportation. There are already many applications worldwide. With fuel grade renewable bio-LNG, we can skip fossil LNG and have sustainable transportation today. We can clean the air with bio-LNG! 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010 2

3. What is natural gas? • There are as many different types of natural gas as there are gas fields. • Every gas field has its own specifications, differences in Wobbe index, calorific value, density, methane number, amount of inertia (i.e. nitrogen, carbon dioxide) and percentage of heavy hydrocarbons like ethane, propane and butane. • Examples: • Natural gas with high percentage of ethane and propane has high density, low methane number, high Wobbe index, and high calorific value per cubic meter. • Natural gas with a large amount of nitrogen has high density, (also) low methane number, but low Wobbe index and low calorific value per cubic meter. • Ethane and propane provide more energy per liter but less per kilogramme. 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010 3

4. Entry specifications for the grid in several countries. HHV = high heating value = 35,1 for Groningen gas KBR, Natural Gas Specification Challenges in the LNG Industry. 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010 4

5. Why calorific value is important for transportation “A [CNG] fuel containing a high inert gas component inevitably leads to limitations in achievable mean pressure. At the rated power point, a power loss of up to 30% is expected compared with [high calorific gas], whereas a reduction of up to 11% may occur at the maximum torque operating point. However, it must be pointed out that the cited figures apply to an engine optimally tuned to [high calorific gas]. If the engine is tuned to a low calorific gas or a less knock resistant natural gas, the negative impacts of changes in gas quality on full-load response can be avoided or at least significantly diminished. However, it must be considered that the potential of [high calorific gas] that is already widespread in Europe may not be exploited to the full.” Design and Operation of a Monovalent Highly Turbocharged Natural Gas Engine by Reference to Variable Gas Qualities, Hans-Jürgen Schollmeyer, E.ON Ruhrgas AG et al. (2008, study with Daimler AG) 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010

6. LNG differs in composition • LNG, liquid natural gas, consists for the largest part of methane, which is liquid at a temperature of minus 162 degrees Celsius. • LNG is made from natural gas all over the world. All CO2, H2S, particles, mercury have to be removed. Water freezes out. • Depending on the source, the composition of LNG still varies. Methane content is between 88% and 99.9%. • Essentially we consider two types of LNG: • Rich LNG contains a relative large quantity of heavy hydrocarbons • Lean LNG contains few (no) heavy hydrocarbons. 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010

7. Compositions of LNG from large liquefaction plants Of 17 large LNG liquefaction plants in 2003 only one (Alaska) produced lean LNG and the others produced rich LNG (methane 89-91%, ethane/propane 9-11%). 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010

8. Boil-off during transportation by LNG carriers changes the composition and quality of the LNG LNG carriers sail on boil-off. During 20 days of transport boil-off can be over 2%. As boil-off is evaporated methane, increase of heavy hydrocarbons concentration means that the calorific value per cubic meter LNG can increase by 0.2-0.3 Megajoule and decrease the same amount per kilo. 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010

9. POSITION PAPER BY CIMAC WORKING GROUP ‘GAS ENGINES, INFORMATION ABOUT THE USE OF LNG AS ENGINE FUEL, DECEMBER 2008 “natural boil-off gas” which is taken off the top of the LNG tanks above the liquid will have a high methane content and some nitrogen and thus have a high knocking resistance. Analysis show values typically around MN 100 and LCV between 33 – 35MJ/nm3. (Initial gas extraction after up-loading may have reduced calorific value because of the high nitrogen content at the top of the tanks). This is a somewhat special application typical for fuelling of LNG tanker propulsion plants. “forced boil-off gas” i.e. LNG extracted from down in the tanks and evaporated separately. This gas will contain a mixture of all hydrocarbons in the liquid and its resistance to knocking may differ from origin to origin and even from load to load, with the MN typically in the range between 70 and 80. The calorific value will be higher than natural boil-off gas and quite stable at around 38 – 39 MJ/nm3. 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010 9

10. But there is more: Boil-off at LNG fuelling station also changes composition LNG 50.000 liter (-160 graden) Storage of 50.000 liters LNG with 8 % C2/C3. Boil-off 0,1% /day, storage empty after 10 days. 250 liters of methane lost. Boil-off 0,1%/day, after 100 days, storage half empty. 3750 liters of methane lost. Composition of remaining LNG 9,2% C2/C3. 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010 10

11. Don’t use oversized storage tanks for small fleets Boil-off in Large and Small-scale LNG Chains (NTNU 2008): “In this study it was calculated that for a 50 cubic metres LNG tank, which thermal conductance is estimated to be 2 W/K, the total fuel loss is about 7% of the total filled fuel, when fuelling four buses every day. The fuel loss decreases to less than 3% and less than 1%, when fuelling more than ten and more than thirty one buses every day. It is evident that the total fuel loss strongly depends on number of buses fuelled each day.” Resource Guide for Heavy-Duty LNG Vehicles, Infrastructure, and Support Operations (U.S.A. 2002): “The potential exists for heavy gases to build up in the fuel within a storage container over time, reducing the methane content of the fuel. This fuel can cause reduced engine performance and even engine failure when used on a vehicle.” And beware of change in quality because it can harm your engine and can give security problems. 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010

12. Methane number for LNG is similar to octane number for gasoline Jacob Klimstra, VIV congres 28-10-2010 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010 12

13. REVITALIZE YOUR LNG ASSET(S) MAKE VEHICLE FUEL GRADE LNG After CHI ENGINEERING SERVICES, INC. Chris Hosford, P.E., President • “Fuel Grade LNG is: • Is of consistent composition, similar to diesel or gasoline, that provides consistent engine performance. • Is of consistent composition for commercial transactions. • Public LNG dispensers can be checked by the local Weights and Measures authority.” • “Fuel Grade LNG is: • • Methane ≥ 97.0 Mole % • • Ethane ≤ 1.0 Mole % • • Total Inert gases ≤ 2.0 Mole %” “Vehicles fueled by the transportation grade LNG produce approximately one-sixth of the nitrous oxides (NOx) and up to 15 percent less greenhouse gases than comparable petroleum diesel fueled vehicles.” YourOilAndGasNews, 21 June 2010 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010 13

14. Like other transportation fuels, there is a need for an international fuel grade or vehicle grade LNG Experience in countries like USA, Australia, China, Japan etc. shows that fuel grade LNG can be provided by peak shavers and small scale LNG liquefaction plants from stranded gas, dedicated gas fields or pipeline gas). But it still will be fossil fuel, that is why we promote renewable bio-LNG from our own waste with a low carbon footprint. 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010

15. What is bio-LNG (LBG, LBM)? 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, LBG) = liquid bio-methane. Quality is always better than quality of fossil LNG, so no problems with >99% of methane. 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010 15

16. How to produce Bio-LNG? The process from natural gas to LNG costs more process energy and investment than the upgading and liquefaction of biogas to bio-LNG. The carbon footprint of bio-LNG from waste from your own country is of course much better than the footprint of fossil LNG from far across the Oceans. 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010

17. Bio-LNG: the new diesel, available now! Bio-LNG gives the highest CO2 reduction of all fuels and no dust or NOx. We can deliver bio-LNG today from the UK, in 2012 Dutch bio-LNG will be available. Costs of bio-LNG will not be higher than fossil diesel, so you save the climate and your money. 2012: BIO-LNG Productie Delfzijl takes over 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010

18. An infrastructure of LNG fuelling stations since over ten years Also 11 depot-based stations and industrial clients 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010

19. What are we waiting for? • Small fuelling stations are available. • Large stations can be built once there is enough demand to avoid large boil-off. • There are specifications and (ISO) regulations, based on over 50 years of experience with LNG. • We have experience with distribution of LNG and filling stations. • There are trucks suited for driving on LNG, preferably bio-LNG. • We decrease costs for the transportation sector. • When we replace 500 old trucks by 1000 new ones driving on LNG, we increase cargo capacity and at the same time clean the air. 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010 19

20. What can we offer you? • Immediately: • delivery of bio-LNG from UK, fuel grade LNG as back-up. • delivery / installation of small stations, storage 6.000 kg, 30 days without blow-off. • suited for filling Chart fuel tanks and (with added pump) Indox-tanks • start of delivery: immediately after permits • no investment needed by client, unless purchase is preferred. • price indication 95 ct/kg incl. station lease; 85 ct/kg when station is purchased; reduction possibly via pricing formula with biotickets • variable contracts with Chive Fuels; HIT represents Chive in the Netherlands. • > 10 years experience in developing and exploiting LNG logistics. • > 10 years experience with construction / installation of fuel stations in UK. • > 10 years experience with operational maintenance of LNG stations. • installation and maintenance in NL by Cryonorm Projects. • replacing small station by large station when fleet grows >30 trucks; collaboration with Cryonorm Projects. • possibly bio-CNG installation connected. • joint project management / grant applications. 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010 20

21. Large – L CNG filling station Dispenser units, tanks 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010

22. Some bio-LNG projects for shipping Design/building of bio-LNG distribution vessel for inland navigation with Vekagroep, Cryonorm, Sandfirden, Marin, LNG rivershipping, HollandInnovationTeam, Cold ironing with bio-LNG with Jennbacher, Chive, Cryonorm, Holland Innovation Team Bio-LNG Bunkering facilities for inland navigation, various parties 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010 22

23. Recommendations • Set a worldwide standard for LNG as a transportation fuel, like was done for all other transportation fuels. • Start with small fuel stations for trucks and avoid boil off / aging. • Start with small scale LNG plants for bunkering facilities. • Avoid methane losses in the entire chain. • Combine LNG with pure CNG in one station. • ASAP shift to bio-LNG (and bio-CNG from bio-LNG). • Any region can have its own independent bio-LNG chain from waste. Note that bio-LNG is produced from rotting biomass. Using feedstock which produces methane in nature, we avoid greenhouse gas emissions by controlled anaerobic digestion and liquefaction to bio-LNG. 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010 23

24. WE CAN START TODAY FOR A SUSTAINABLE WORLD BEYOND FOSSIL FUELS See www.bio-lng.info or contact: Holland Innovation Team 010-2417248 'Market opportunities for Small Scale LNG' WTC-Rotterdam, 15 december 2010 24