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Pacific Gas & Electric Company. San Joaquin Valley Clean Energy Organization (SJVCEO) Farming Clean Energy Conference November 5-6, 2008 in Tulare Ken Brennan. Introduction. Ken Brennan Senior Project Manager, Business Development, Gas Transmission and Distribution
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Pacific Gas & Electric Company San Joaquin Valley Clean Energy Organization (SJVCEO) Farming Clean Energy Conference November 5-6, 2008 in Tulare Ken Brennan
Introduction • Ken Brennan • Senior Project Manager, Business Development, Gas Transmission and Distribution • Responsibilities include the development of new gas-related business opportunities with a specific focus on dairy biomethane to pipeline injection projects • Also working on projects involving the digestion of food waste and materials reclamation facilities • Contact information • Office 415-973-0017; Cell 415-531-4173 • Email: KJBh@pge.com • Address: 245 Market Street, MC N15A, San Francisco, CA 94105
Biogas and Biomethane • What is “Biogas”? • Any organic material, such as manure from dairy cows, can be digested (with heat, time, and bacteria) to produce biogas • Biogas is 60% methane, 39.5% CO2, and 0.5% H2S/other • Untreated biogas may be used for flaring and limited onsite generation • What is “Biomethane”? • Biogas with impurities and inert gases cleaned out (or scrubbed) • Degree of scrubbing required depends on intended use of biomethane • End uses of biomethane • Flaring • Onsite Electric Generation • Deliver into gas transportation pipeline • Other potential uses are CNG/LNG as vehicle fuel, and fuel cells
Biomethane Injection to Pipeline • PG&E and SoCalGas can accept biomethane processed from dairy and agricultural waste into the gas transmission pipeline system • Transport to market – open access system on the least cost California production tariff • Biomethane must be fungible with gas in interconnecting pipeline • Utilities do not own or operate biomethane production facilities (only the meter set and interconnection) • Compete with other parties to purchase the biomethane • Assist with initial planning and development of projects • Test and monitor for compliance with gas quality tariff • Use biomethane to generate electricity and displace other non-renewable sources)
Biomethane Injection to Pipeline - Benefits • Benefits to the dairyman • Provides dairy with new continual revenue sources, including commodity sales, renewable energy credits, and greenhouse gas reduction credits • Significant reduction of greenhouse gas emissions at dairy • Additional tool for manure and odor management • Benefits to the Utility • Reliable renewable gas supply for California – 20% by 2010 • Most efficient use of biomethane is generating electricity • Dispatchable from storage • Utilizes existing transmission pipeline infrastructure
Biogas to Pipeline Injection – Challenges and Solutions • Challenges: Solutions • Proximity to Pipelines (max 3-5 miles): Community Digestion • Capital and Operating Costs: Community Digestion • Interconnection Costs (PG&E is $450K): Include in customer rates (public vs. private) • Gas Quality Testing: More resources and funding available • Available Incentives: Develop state and federal grants, tax credits, and low-interest loans • Regulatory Hurdles (Permitting): General water permit
Project Siting • Where are the cows?
Thank You • Next Up: • Ty Korenwinder of SoCalGas • Then: • Joint Q&A