Summary: How to Maximize Renewables at LNG Terminals

Steve Davis & Associates Ltd.

In collaboration with

Our Questions

1. How could a single LNG facility maximize renewables at their facility while meeting reliability and schedule constraints?

2. What are the costs and benefits od doing that relative to business as usual?

In Lock-in-Jobs not Pollution we found that proposed LNG facilities could reduce carbon pollution by 30%, increase jobs by 40% for only a 2% increase in LNG selling price. But our plan depended on a new transmission line and collaboration between LNG companies. So we commissioned Navius Research Inc. and Steve Davis & Associates Ltd. to answer two questions.

What we found

Any LNG facility can power itself reliably and be built on schedule while maximizing renewable energy. Doing so creates 40% more permanent, local jobs, reduces carbon pollution by 45% and increases the sales price of LNG by 1%.

What it looks like

Maximizing renewables at an LNG facility means using energy from the wind and natural gas to produce LNG. The two work together. When the wind’s not blowing natural gas takes up the slack, when the wind is blowing less natural gas is used. The British Columbia electricity grid provides electricity for what the industry calls ancillary services for things like pumps and industrial lighting.

Maximizing renewables produces reliable energy

• Wind and natural gas work together without the grid• Combined cycle turbines and reciprocating engines ramp up or down to

follow the wind and provide stable electricity to the LNG facility.• If there’s no wind there’s enough natural gas to power the full facility

• Batteries at the wind turbines• Small batteries at the wind turbines provide 15 to 30 mins of energy if the

wind stops; plenty of time to ramp up natural gas energy

• Electric drives are already being used• Snohvit E-LNG: Operating since 2007• Freeport E-LNG: Under construction• Woodfibre planning to use electric drives

Maximizing renewables can be built on schedule

• Natural gas, wind turbines and transmission can be built in 4 to 5 years• The four wind farms in B.C. were built in 4 to 5 years

• Natural gas power facilities typically require 4 years

• Transmission upgrades in Prince Rupert and Kitimat are already underway and are straightforward

• The facility doesn’t have to wait for wind turbines• An LNG facility, if it uses electric drives, can run on natural gas at first and

then incorporate wind as it becomes available

By the numbers – Business as Usual vs. Maximizing Renewables

Criteria Maximum Renewable Business As Usual

LNG sales price $11.20 $11.08

Carbon Intensity (tonne CO2eq/ tonne LNG)

0.13 0.24

Permanent, Local Jobs 430 300

% Renewable 44% 0%

NOx Emissions (tonnes per year) 1,100 3,300

Cost (levelize cost $/MWhr) $105 $88

Conclusion

1. Maximizing Renewables can be done reliably and affordably on schedule

2. Maximizing Renewables creates more permanent local jobs and reduces carbon pollution