Bio-CNG from Crewe25th June 2014

John BaldwinManaging DirectorCNG Services Ltd

john.baldwin@cngservices.co.ukwww.cngservices.co.uk

07831 241217

CNG Developments in UK

1. CNG Services Ltd

2. Biomethane update

3. Crewe Bio-CNG

4. CNG Trucks

5. CO2

6. Conclusions

CNG SERVICES LTD

CNG Services Ltd

• Supports projects to inject biomethane into the gas grid– Didcot, Poundbury, Vale Green,

Doncaster, Minworth, Widnes etc.

• Bio-CNG as a fuel for trucks– Own UK’s largest CNG filling

station– Sell Bio-CNG (20 – 100%

biomethane)

We are gas engineers

Crewe CNG Station

• Filling dual fuel trucks for GIST/M&S, Brit European, Tenens, Waitrose

http://www.youtube.com/watch?v=orxBtoXyjos

Largest grid supplied CNG station in UK – now selling biomethane via Green Gas Certificates

BIOMETHANE UPDATE

Annual Biomethane to Grid and RHI for 2012-2015

2 TWh of gas = 68 million therms = 136 million kgEquivalent to around 180 million litres of diesel

Benefits - CO2 Impact

• Forecast 1.8 TWh injected into gas grid in 2015

• 130,000 tonnes of gas

• 130 x (44/16) = 360,000 tonnes of CO2 saved at the burner tip

• Marginal gas to UK is Qatar LNG

• The 130,000 tonnes of biomethane displaces 130,000 tonnes of LNG– 15% higher CO2 than UKCS gas on a “Well to Tank” basis

– 7-9% CO2 vented in Qatar

– So around 50,000 tonnes on top

• So, around 400,000 tonnes/annum benefit

• Material contribution towards 2020 renewable energy targets

Benefits – Using the Gas Grid

• UK has great gas grid– 85% of domestic market connected to

grid

– 95% of industry

– Power generation back up to wind

• To build gas grid and central heating etc would cost around £100 billion

• Vital UK asset

• All our Grid Owners are very supportive and have created an attractive regime to allow projects to go ahead at lower cost/quicker

Poundbury

• UK’s first commercial project

• Membrane CO2 removal plant

• Gas injected into 2 bar grid

• 500kWe CHP

• Development is a JV between Duchy of Cornwall and some of its tenants

• Achieving 98% availability

Prince Charles opened the project in Nov 12Flow of biogas – 500 m3/hr

First gas to grid – October 2012

Vale Green 1

• UK’s first minimum connection project• Hybrid Membrane and Cryogenic CO₂

separation plant• Separated CO₂ used to grow more

tomatoes• 75% gas to grid with a 490kWh CHP• 7 bar gas grid

Flow of biogas – 600 m3/hr

First gas to grid – August 2013

Future Biogas - Doncaster

• Agricultural feedstock

• 80% gas to grid

• 499 kWh CHP

• Membrane CO2 removal plant

• 7bar gas grid

• First project in National Grid area

Flow of biogas – 900 m3/hr

First gas to grid – October 2013

Severn Trent Water Minworth

• Sewage feedstock• 20% gas to grid – with existing 7MW CHP• Water-wash CO₂ removal plant• 20 bar LTS grid – first high pressure project• Blending allowed so minimal propane

Flow of biogas – Estimated 1,200 m3/hr

First gas to grid – Estimated Q2 2014

ReFood Widnes

• Food waste feedstock

• 100% gas to grid

• Water-wash CO₂ removal plant

• 1bar MP gas grid

Flow of biogas – Estimated 2,000 m3/hr

First gas to grid – Q2 2014

• Is there a better gas to grid project on Planet Earth? Probably not….

ReFood Widnes

• Food waste feedstock• 100% gas to grid• Water-wash CO₂ removal

plant• 2 bar gas grid• A major CO2 win for UK plc

Flow of biogas – Estimated 2,000 m3/hr

First gas to grid – Estimated Q2 2014

• Is there a better gas to grid project on Planet Earth? Probably not….

CREWE BIO-CNG

REAL Green Gas Certificate Scheme

• Designed to allow ‘tracking of biomethane from injection point to customer’

• Integrity - no ‘double counting’

• Separate from the gas to provide flexibility

• Can only be used once

GGCS is the UK’s Not for Profit Green Gas Certificate scheme

Barrow Shipping

AD DeveloperOrganicMaterial

Gas Distribution

Network

‘Certificates’

Normal grid gas

Purchase of biomethane

energy

Inject gas into grid

Processing via Anaerobic Digesters

CNG Services and Barrow Shipping Ltd

Clean-up plant and grid injection

Gas can be used to fuel

trucks on CNG

Sale of CNG in Crewe

CreweCustomers

8 Projects signed up with Barrow Shipping and REAL GGCS

CNG TRUCKS

20

Dual Fuel

• Dual fuel trucks are available• Hardstaff/Mercedes Benz

• Clean Air Power/Volvo

• Prinz/DAF/MAN/Mercedes Benz

• Euro 5 dual fuel a good way to start a shift to CNG

Brit European

• Provide transport services for JCB

• Run 36 dual fuel diesel-CNG trucks

• Purchase Green Gas Certificates to demonstrate gas sourced from UK organic feedstock

Dedicated CNG – 340 bhp

Dedicated CNG tractors are coming….first 5 in UK in summer 2015

Dedicated CNG – 400 bhp

Expected to give 20% lower CO2, very low NOX and particulates50% less noise

• Entry for Niche Vehicle Competition (3rd July 2014)

• Dedicated CNG Kenworth with Cummins 12 litre gas engine

• Trial in UK (CNG/LNG)

• Low noise ideal for moving shale gas waste water

CO2

CO2 Summary

• Dual fuel diesel-CNG offers around 10% ‘tank to wheel’ CO2 saving over diesel

• Dedicated CNG should be 20% saving– Theoretical 28% saving, less inefficiency of around 8% of spark ignition

engine

• Using biomethane instead of natural gas in a dual fuel truck gives saving of around 60% saving in ‘Well to Wheels’ compared to diesel (“Bio-CNG”)

Move to CNG aimed at Heavy and Medium Goods Vehicles with high mileage and emissions

CONCLUSIONS

Bio-CNG Conclusions

• OEMs now making trucks that run on natural gas• Dedicated - Scania

• Dual fuel - Hardstaff, Clean Air Power, Prinz, G-Volution

• Gas Distribution Networks supportive• Great gas grid

• Oil – gas price differential• Never been as large as today - gas 25% of cost of oil on an energy basis

• CNG-diesel duty differential • Fixed for 10 years

• Biomethane market growth• 130,000 tonnes in 2015

• Bio-CNG good for depot based distribution

UK set for growth in CNG and Bio-CNG