Bio-LNG: Improving eco-performance and quality of fossil LNG (in shipping) Options for Amsterdam Peter van der Gaag www.hollandinnovationteam.nl Small-mid Scale LNG summit Victoria Plaza Amsterdam - June 18th 2013 1
Content of the presentation Introduction : LNG and bio-lng Advantages of bio-lng, standard and premium quality Comparing bio-lng with other fuels: eco-performance How much bio-lng is there (can there be)? What would be the price? Holland Innovation Team and partners are building a (bio-)lng chain LNG Projects in shipping and heavy transport How can bio-lng fit in the LNG chain Obligatory blending of bio-lng to fulfill RED? Amsterdam in favor of bio-lng, Amsterdam prepares LNG bunkering Conclusions and recommendations 2
LNG accepted worldwide 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 80% 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. Small- mid scale LNG : Victoria Plaza Amsterdam June 18th 2013 3
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 bio fuel without competition with food or land use. Bio-LNG (LBM) = liquid bio-methane. For the first time there is a bio fuel which has always a better quality than its fossil counterpart LNG, so: besides fossil LNG there is the premium Bio-LNG. 4
An optimized bio-lng production process Pre-treatment: with pre-treatment like steam explosion it is possible to digest celluloses and therefore use various cheap feedstocks. Digestion: using good mixes and elevated temperatures, you can decrease retention time and reduce cost of the biogas installation. Upgrading: using modern techniques, you can reduce methane losses and methane slip and reduce energy use. Advanced upgrading: use modules with minor energy use or use new methods (HIT develops a new method replacing molecular sieves to reach 50ppm of CO2). Liquefaction: if you use small scale liquefaction you should minimize energy consumption and use container-sized modules. 5
Advantages of bio-lng (over 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. The bacteria do not produce ethane, propane and butane, because of that: Bio-LNG has a higher methane number than fossil LNG. While bio-lng can be used without blending, it can also be used to improve the quality of fossil LNG. Bio-LNG can be used to produce bio-cng for private cars with minor additional costs (this also combats boil-off at the fuelling stations). Bio-LNG has a much lower carbon footprint than other fossil/bio fuels Bio-LNG can even be carbon negative (made of methane slip). Bio-LNG is the cheapest bio fuel per energy unit. Bio-LNG comes from own European waste and bio-lng produced in Europe delivers much more employment to Europe than fossil LNG from far away. 6
Standarisation of (bio)lng : yes or no? Recently the CEO of Shell Netherlands BV (Dick Benschop) told the press: GTL is a premium fuel according to our standards. Therefore GTL can cost more than normal diesel because it is cleaner and it cost more money to produce. Similarly we argue: why not pay more for cleaner bio-lng from European soil than for fossil LNG from far away with lower eco-performance and fuel quality? Fordongas (Sweden) states that bio-lng brings you 10% further than fossil LNG because of constant high purity and high MN (methane number) (January 2013 bio-lng excursion to Lidkoping) And Volvo states : with methane numbers lower than 85, the amount of diesel in dual fuel trucks will increase and the LNG percentage decreases (Danish Gas Technology Institute (2012)) Recent tests by a large Dutch transportation company show only 40% LNG and 60% diesel with heavy LNG in dual fuel 7
Should there be a standard for (bio) LNG? Euromot: There should be a minimum MN for making use of the efficiency of the newest generation of engines (Euromot proposes a minimum MN of 80) There is already a standard for CNG and compressed bio methane, since LCNG fuelling stations will be the future, CNG from heavy LNG will not full fill these standards For dual engines especially for refurbished older diesel engines, heavy LNG will decrease the possible amount of LNG in the total amount of fuel (LNG + diesel) NOx emissions (and methane slip?) seem to increase with increasing amount of heavy hydrocarbons in the LNG Some parties ask for new engines which can run on a LNG with (MN 60-95) Holland Innovation Team is upgrading its position paper on LNG quality and is asking for tests results and thorough studies on the quality issue 8
Well-to-wheel CO2 emissions (source: Air-LNG) 9
How much bio-lng can be made? Enough Source:http://ecocomplex.rutgers.edu/PeterBoisen.pdf Since 2003, the estimates of bio methane (i.e. bio-lng production) increase because of the fact that celluloses after (pre)treatment can be digested. 20% - >>> 50% of all vehicle fuel in some countries could be bio-lng. 10
Landfills are a waste of land, use them for bio-lng There are approximately 150,000 landfills in Europe with app. 30-50 billion cubic meters of waste (Haskoning 2011). All landfills emit landfill gas. Landfills will contribute an estimated 460 to 650 billion cubic feet of methane emissions per year (in 2000) in the USA. You can flare landfill gas. You can make electricity with landfill gas But you also can produce the cleanest and cheapest liquid bio fuel: Bio-LNG. The gas is for free so it will cost less than natural gas to LNG in certain parts of the world. Bio-LNG from landfills is made from negative methane slip 11
. Hydraulic fracturing increases landfill gas yield and therefore economy of scale for bio-lng production The method consist of a set of drillings from which at certain dept the landfill is hydraulically broken. This means a set of circular horizontal fractures are created from the well at preferred depths. Sand or other materials are injected into the fractures. Gas gathers from below in the created interlayers and flows into the drilled well. In this way a guiding circuit for landfill gas is created. With a 3-5 fold quantity of gas, economy of scale for bio-lng production will be reached rapidly. Considering the multitude of landfills worldwide this hydraulic fracturing method in combination with containerized upgrading and liquefaction units offers huge potential. The method is cost effective, especially at virgin landfills, but also at landfills with decreasing amounts of landfill gas. Estimated price <50 Eurocents per kilo for large landfills. Small--mid scale LNG: Victoria Plaza Amsterdam 18th of June 2013 12
Our future network for (bio-) LNG for transport BER BV Bio-LNG production in the Netherlands : Amsterdam (HIT major shareholder) Since 1997 LNG for heavy duty trucks,.>20 LNG UK fuelling stations (bio) LNG supply for mainland Europe, and delivery of fuelling stations Shallow hydraulic fracturing in USA, Canada, Korea for soil remediation Hydraulic fracturing of landfills, increasing landfill gas yield 3-5 fold = cheap bio-lng Information : www.bio-lng.info website sponsored by 13
(Bio) LNG bunker terminal A. Nobel & Zn Bunkerservice Initial bunkering from tank trucks See movie of test bunkering at youtube: http://tinyurl.com/testbunker Then starting with 500 m3 LNG storage tank, later expanded to 2,000 m3 (modular layout) The bunkering station is already heated and cooled by water of Oude Maas river (heat exchanger) Boil-off of LNG will generate electricity, creating the first bunkering terminal of the post-fossil fuels era Because of future replacement of LNG to bio-lng the ministry of IenM supports 0,5 million Euro Location: Zwijndrecht on Oude Maas river 20 km from Rotterdam on main route to Germany 14
LNG Bunker terminal: Zwijndrecht location 5 miles from Rotterdam Halfway Amsterdam Antwerp Halfway Rotterdam Duisburg Access for Seagoing vessels Status: All applications for permit submitted end of May 2013 First permit of a bunkering station in the Netherlands anticipated end of 2013: Ready to go 15
Development of bunkering and distribution vessels Sponsored by EU (EFRO Zuid-Holland) Partners: VEKA, Cryonorm Projects, LNG Rivers Shipping There will be a new market for (bio) LNG bunkering vessels and carriers to transport fossil LNG from small scale plants and for transport of biolng to bunkering stations and large terminals for improving LNG ecoperformance and quality for bio-lng up to 4000 cbm and for small scale LNG up to (?). Small-mid scale LNG: Victoria Plaza Amsterdam 18th of June 16
Truck fuelling stations First (bio)lng fuelling station of Anglo Dutch Liquid Methane to be placed in Heerenveen, more to follow, using Chive Fuels proven design and logistics Small mid scale LNG: Victoria Plaza Amsterdam 18th of June 2013 17
Building the chain: (bio-)lng production Feasibility study for conversion of Dutch biogas plants (now struggling as power plants) to supply bio-lng for use as fuel in agriculture and construction industry Partner: Prima Energy / SHV Energy (a leading propane supplier in 25 countries) SHV Energy daughter has founded Prima LNG in Antwerp Belgium HIT and Prima Energy talk about further cooperation 18
A new LNG-electric container vessel A grant for development of this first inland navigation container vessel on LNG awarded to Stevas Shipping and VEKA by Port of Rotterdam fund (Sept. 2012). To be operational in Q3 2014. 19
Use (bio-) LNG for cold ironing Because a large number of power stations are coalfired, 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 aggregate and, berthside connection points in EU ports could cost EUR 675 million and EUR 50 million a year to maintain. https://www.bimco.org/en/news/2009/11/11_feature_ Week_46.aspx Holland Innovation Team and partners are developing a mobile shore power generation service using bio-lng. Investment costs are considerably lower than permanent grid connections Offer for first test has been submitted to Zeeland Seaports (Anglo Dutch Liquid Methane with Aggreko) 20
The possible Hungarian project to come MSW deponie at Pusztazámor for Bio-LNG production Port of Győr-Gönnyű Lake Balaton Port of Budapest Port of Baja Descriptions Highway codes for Hungary Highways, along the TEN-T corridors, toll free routes Highways, along the TEN-T corridors, partly toll free routes Highways, along the TEN-T corridors Waterways, along the TEN-T corridors Bio-LNG plant LNG fuel station for waterways Bio-LNG from landfills close to Danube will be cheaper than fossil LNG from large LNG terminals Small-mid scale LNG: Victoria Plaza Amsterdam 18th of June
Asian projects to come? Bio-LNG has enormous potential in Asian countries with unused agricultural waste. Bio-LNG can be produced for prices lower than fossil LNG.. HIT is cooperating with companies from Vietnam, Singapore Malaysia and China to look for bio-lng production. Progress will be announced at the LNG conference in Singapore 17-20 September 2013 22
How fits bio-lng into the LNG chain? Holland Innovation Team advised at the Bio-energy Conference of the EU in Brussels (5 June 2012) to support bio-lng and to apply the same obligation to LNG as for diesel and gasoline (in accordance with the Renewable Energy Directive). The advise has been repeated at the TEN-T days in Brussels (28 th of November 2012). At least for transportation bio-lng should be used for blending fossil LNG in the same way as biodiesel in diesel and bio ethanol in gasoline. : 5% now, 10% in 2020. This is highly appropriate because: Bio-LNG improves quality of LNG, does not compete with food, has the best CO 2 reduction, no NOx/PM and avoids methane slip. It is the first bio fuel of better quality than its fossil counterpart. We can use small scale bio LNG carriers to bring bio-lng to the large terminals to upgrade heavy LNG into necessary specs. We can bring bio-lng in truckloads to LNG bunkering terminals to be blend with fossil LNG. 23
Recent news about bio-lng blends: Tesco to Fuel Its HGV Fleet with Bio LNG UK posted on Apr 29th LNG world News The distribution division of the world s third largest grocery retailer, Tesco, has committed a fleet of HGVs to fill up at facilities run by leading Bio-LNG supplier Gasrec.Thirty-five dual-fuel vehicles will run on Bio-LNG from Gasrec s refuelling station at Daventry International Rail Freight Terminal: a ground-breaking installation that will officially open to all dual-fuel LGVs next month (May), much like a traditional petrol station.bio-lng is Gasrec s proprietary, future-proof blend of liquefied natural gas (LNG) and liquid biomethane (LBM) a natural, green source of renewable energy produced from organic matter such as household food waste and sewage. 24
Recent news about bio-lng (blends) May 21, 2013 Australia, Melbourne RMIT s CLiMA team design a Bio-LNG answer for aviation.a team of Royal Melbourne Institute of Technology (RMIT) aerospace engineering students is headed to France after making it to the final five of an international Airbus competition. The Cryogenic Liquid Methane Aircraft (CLiMA) team is one of five finalists selected by experienced Airbus engineers from more than 618 submissions in the 2013 Fly Your Ideas global university challenge. The UNESCO-backed competition encourages students to develop ideas for a more sustainable aviation industry. Read more» 25
Recent news about bio-lng (blends) UK s first Bio-LNG filling station opens 23 May 2013 By Edd Gent The UK's first open access Bio-LNG filling station was opened today by Transport Minister Norman Baker.The facility in Daventry, built by Gasrec, is the first of its kind of liquefied natural gas (LNG) and liquid biomethane (LBM) a green source of renewable energy produced from organic matter such as household food waste. Gasrec is Europe's largest producer of this fuel. Gasrec s bio-lng is a 25% LBM - 75% LNG blend 26
Vision of the Port of Amsterdam Bio-LNG: No food for fuel = high quality LNG = cheaper than other bio fuels and cleaner and is improving fossil LNG quality in blends 27
Existing biogas producers in the Port Producing biogas from sewage sludge Increasing production possibilities Combination is possible with new liquefaction units 28
Port of Amsterdam:place to be for a Bio-LNG refinery of 100 tons/day Production of bio-gas, upgrading and liquefaction to LNG Cambi fermentation unit, Cirmac upgrading, Cryonorm liquefaction) LP/MP steam LP/MP steam 99% CO 2, Bio-mass 90% s Water recycle & treatment Electric energy Fermentation of Bio-mass NH3 removal Liquefaction Bio-gas treatment, H2S removal + CO2-removal LP steam Digestate drying Groen-gas (90% CH4) LNG-gas (> 98% CH4) Digestate, 10% moist. Aqua ammonia Bio LNG (99% CH4) In a large Port with cositing facilities: with waste steam and co-products production bio-lng price would be 80 ct/kg with current biomass prices in Europe. 29
Port of Amsterdam: place to be for a LNG bunkering site with increasing amount of bio-lng Eurotank, HIT and the Port of Amsterdam are making preparations for a (bio) LNG bunkering terminal at Eurotank Amsterdam 30
Port of Amsterdam: place to be for a LNG bunkering site with increasing amount of bio-lng Eurotank (VTTI), HIT and the Port of Amsterdam are making preparations for a (bio) LNG bunkering terminal at Eurotank Amsterdam, making use of existing terminal and jetties. 31
Conclusions and recommendations (1) Bio-LNG is the best example of a premium fuel as it is renewable and made from our own waste. Bio-LNG supports the recommendation of the EU to decarbonize transportation fuels. Bio-LNG can be used to upgrade quality and eco-performance of fossil LNG imported to Europe. With bio-lng the 10% bio fuels target can be fulfilled without competition with food / land use. Bio-LNG produced at a level approx 80-100 ct/kg, with incentives from the EU (subsidies, biotickets), will be at par or cheaper than fossil LNG, without incentives it will still be (much) cheaper than biodiesel and bioethanol. Landfills could produce bio-lng in Europe for less than 50 ct per kg Low biomass prices and high LNG prices in Asia mean that Asia can produce bio-lng from biomass for prices that can compete with fossil LNG prices, and in certain cases bio-lng definitely will be cheaper than fossil LNG prices. Small-mid scale LNG: Victoria Plaza Amsterdam 18th of June 32
Conclusions and recommendations (2) A large bio-lng facility in the Port of Amsterdam would be able to produce bio-lng for less than 80 cents per kilo which is much less than biodiesel /bio-ethanol equivalent. Bio-LNG can be shipped to large LNG import terminals, where it can be blended to improve quality (25% blends are possible). Amsterdam would be able to set up a LNG bunkering terminal rapidly and Is keen to increase the amount of bio-lng in fossil LNG. We are recommending standardization of LNG quality and recommending obligatory blending of bio-lng into fossil LNG from today. We can market bio-lng as a premium fuel, which means positive publicity for companies that produce bio-lng from their own waste and drive on bio-lng. Bio-LNG really can decarbonize the world of fuels. Bio-LNG would be able to replace 10-20% of our fossil transportation fuels by 2020 in inland navigation, heavy duty trucks and cold ironing in ports Small-mid scale LNG: Victoria Plaza Amsterdam 18th of June 33
So keep thinking out of the box! And we see a great future for biobio-lng Thank you for your attention Peter van der Gaag Remco Hoogma Holland Innovation Team www.hollandinnovationteam.nl The new website sponsored by the EU www.bio-lng.info Small-mid scale LNG: Victoria Plaza Amsterdam 18th of June 34