Bio-LNG: Improving eco-performance and quality of … scale LNG Victoria... · Bio-LNG: Improving eco-performance and quality of fossil LNG (in shipping) Options for Amsterdam Small-mid

Bio-LNG: Improving eco-performance and

quality of fossil LNG (in shipping) Options for Amsterdam

1Small-mid Scale LNG summit – Victoria Plaza Amsterdam - June 18th 2013

Peter van der Gaagwww.hollandinnovationteam.nl

Options for Amsterdam

• 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

Content of the presentation

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• 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

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.

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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

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.

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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.

Small-mid scale LNG: Victoria Plaza Amsterdam 18th of June 2013

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

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Liquefaction: if you use small scale liquefaction you should minimize energy

consumption and use container-sized modules.


Advantages of bioAdvantages of bioAdvantages of bioAdvantages of bio----LNG (over fossil LNG)LNG (over fossil LNG)LNG (over fossil LNG)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 • 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.

6Small-mid scale LNG: Victoria Plaza Amsterdam 18th of June 2013

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)

Standarisation of (bio)LNG : yes or no?

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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


Should there be a standard for (bio) LNG?Should there be a standard for (bio) LNG?Should there be a standard for (bio) LNG?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 + 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


Well-to-wheel CO2 emissions (source: Air-LNG)


How much bioHow much bioHow much bioHow much bio----LNG can be made? EnoughLNG can be made? EnoughLNG can be made? EnoughLNG can be made? Enough

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.

Source:http://ecocomplex.rutgers.edu/PeterBoisen.pdf


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.

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(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


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.

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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

Our future network for (bio-) LNG for transport

BER BV(HIT major shareholder)

Bio-LNG production in the

Netherlands : Amsterdam

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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

Information : www.bio-lng.info – website sponsored by

Hydraulic fracturing of landfills, increasing

landfill gas yield 3-5 fold = cheap bio-LNG

(Bio) LNG bunker terminal (Bio) LNG bunker terminal (Bio) LNG bunker terminal (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 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


LNG Bunker terminal: Zwijndrecht location

5 miles from Rotterdam

HalfwayAmsterdamAntwerp

HalfwayRotterdamDuisburg

Access for


Access forSeagoing 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

Development of bunkering and distribution vessels

Sponsored by EU (EFRO Zuid-Holland)

Partners: VEKA, Cryonorm Projects,

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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 bio-

LNG to bunkering stations and large terminals for improving LNG eco-

performance and quality – for bio-LNG up to 4000 cbm and for small

scale LNG up to (?) .

Cryonorm Projects, LNG Rivers Shipping

Small-mid scale LNG: Victoria Plaza Amsterdam 18th of June

Truck fuelling stations

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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

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

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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

A new LNG-electric container vessel

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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.


“Because a large number of power stations are coal-

fired, 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.”

Use (bio-) LNG for cold ironing

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)


MSW deponie at Pusztazámor

for Bio-LNG production

Port of Győr-Gönnyű

The possible Hungarian project to come

Highways, along the TEN-T

corridors

Waterways, along the TEN-T

corridors


corridors, partly toll free routes


corridors, toll free routes

Highway codes for Hungary

Descriptions

Bio-LNG plant

LNG fuel station for waterways

Lake Balaton

Port of Baja

Port of Budapest


Bio-LNG from landfills close to Danube will be cheaper than fossil LNG from large LNG terminals

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


to look for bio-LNG

production.

Progress will be

announced at the

LNG conference in

Singapore 17-20

September 2013

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 (28th 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:


: 5% now, 10% in 2020. This is highly appropriate because:

Bio-LNG improves quality of LNG, does not compete with food, has the best

CO2 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.

UK posted on Apr 29th

LNG world News

Recent news about bio-LNG blends:Tesco to Fuel Its HGV Fleet with Bio LNG


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.

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


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 »

Recent news about bio-LNG (blends)

UK’s first Bio-LNG filling station opens23 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


– 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

Vision of the Port of Amsterdam

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Bio-LNG:

No food for fuel = high quality LNG = cheaper than other bio fuels and cleaner and is

improving fossil LNG quality in blends

Existing biogas producers in the Port

• Producing biogas from sewage sludge

• Increasing production possibilities

• Combination is possible with new liquefaction units

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Port of Amsterdam:place to be for a Bio-LNG refinery of 100 tons/day

Production of bio-gas, upgrading and liquefaction to LNGCambi fermentation unit, Cirmac upgrading, Cryonorm liquefaction)

Fermentation

of Bio-mass

Bio-gas treatment,H2S removal+ CO2-removal

Groen-gas (90% CH4)

99% CO2,

Bio-mass

90% s

LP/MP steamLP/MP steam

LNG-gas (> 98% CH4)

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Aqua ammonia

NH3 removal

Water recycle& treatment Digestate,

10% moist.Digestatedrying

LiquefactionBio LNG (99% CH4)

Electric energy

LP

ste

am

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.


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

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.

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

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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.


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.

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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


And we see a great future for bioAnd we see a great future for bioAnd we see a great future for bioAnd we see a great future for bio----LNG LNG LNG LNG

Thank you for your attentionThank you for your attentionThank you for your attentionThank you for your attention

So keep thinking out of the box!

Peter van der Gaag

Remco Hoogma

Holland Innovation Team

www.hollandinnovationteam.nl

The new website sponsored by the EU

www.bio-lng.info

34Small-mid scale LNG: Victoria Plaza Amsterdam 18th of June

Documents

Bio-LNG: Improving eco-performance and quality of … scale LNG Victoria... · Bio-LNG: Improving eco-performance and quality of fossil LNG (in shipping) Options for Amsterdam Small-mid