Producing Clean Fuel From Biomethane
Building a small scale Bio-LNG market
Peter van der Gaag
Holland Innovation Team – Anglo Dutch bio-LNG
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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Content of the presentation
• What is LNG, what is bio-LNG?
• Differences in quality
• Advantages of bio-LNG in comparison with other fuels
• Emissions of CO2, PM, NOx
• The impact of quality in practice
• International developments
• Pricing of bio-LNG and small scale LNG
• Fulfilling the European Biofuel Obligation with Bio-LNG
• Projects by Holland Innovation Team & partners
• Latest: Zwijndrecht (bio)-LNG bunker terminal
• New projects and cooperation
• Conclusions and recommendations
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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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.
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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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 biofuel without
competition with food or land use.
Bio-LNG (LBM, LBG) = liquid biomethane. Quality is always better
than quality of fossil LNG, so:
besides heavy and lean LNG there
is the premium Bio-LNG
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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How much bio-LNG can be made?
Source:http://ecocomplex.rutgers.edu/PeterBoisen.pdf
Dutch government agency forecasts that 3 billion cubic meters of socalled ‘green gas’ can be produced from anaerobic digestion in the
Netherlands, i.e. equivalent of over 2 million tons of bio-LNG.
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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Bio-LNG advantages
Bio-LNG production does not compete with food
Bio-LNG does not need blending, BUT CAN BE
Bio-LNG can be produced in your own country
Quality of bio-LNG is better than quality of fossil LNG
Bio-LNG is much cheaper than other bio fuels per energy unit
Bio-LNG is cleaner than all other liquid fuels
Bio-LNG can be used to improve heavy LNG quality
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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CO2 Emission well to wheel by Air-LNG
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The quality issue
Any introduction of a new fuel gives rise to questions about standards and
quality, e.g. see the biodiesel controversy. Opponents use lack of standards for
opposition. We divide the new LNG market into three qualities:
1) Heavy LNG
2) Lean LNG
3) Premium Bio-LNG
Heavy LNG arrives at large terminals, often there are ethane, propane, butane
and nitrogen present, methane is between 80 and 99%. Quality can vary
strongly.
Lean LNG: most heavy hydrocarbons have been removed, production comes
from small scale LNG plants and peak shavers (the US, UK, Norwegian
experiences).
Premium bio-LNG: heavy hydrocarbons are not present (bacteria are not
capable of production heavy hydrocarbons), methane >98 %.
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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LNG quality: impact on engines
For gas engines the methane number is important. The methane
number tells you about the knocking resistance, but also about the
achievements of the engine.
Heavy hydrocarbons decrease the methane number, CO2 and N2
increases the MN
In certain countries, a standard transportation quality of LNG exists
(>97% methane)
Most engine manufacturers demand a minimum methane number of
80-85 (Dutch KEMA recommends 85), Volvo wants MN of 90 for their
dual fuel heavy duty trucks
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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Example 1
Dual-fuel (low pressure) engine characteristics
Dual Fuel low gas pressure supply (4-5
bar)
High energy efficiency at high load
Low emissions, meets IMO tire III
Challenge on methane slip, limited
possibility to combustion process control
Reduction of GHG is dependant on level
of methane slip
Sensitive to gas quality
Flexibility in fuel mix
Possible for conversion of existing
engines (extensive rebuilding)
Wärtsilä6L50DF
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
After Per Magne Einang Research Director
MARINTEK, March 2011
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Example 2
Spark Ignited Lean Burn gas engine characteristics
Single fuel, low pressure gas supply
(4-5 bar)
High energy efficiency, at high load
higher than the diesel counterpart
Low emissions, meets IMO tire III
Challenge on methane slip,
minimized by design and combustion
process control
GHG reduction potential in the
range of 30% ref. to HFO (incl.
methane)
Sensitive to gas quality
Not suitable for conversion of
existing engines
Rolls-Royce C26:33L9
After Per Magne Einang
Research Director
MARINTEK, March 2011
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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Example 3
Dual-Fuel (high pressure) engine characteristics
Wartsila
High pressure gas injection (300 -350
bar) 4-stoke and 2-stroke
Maintain diesel engine performance.
No methane slip, GHG reduction in
the range of 30% ref. to HFO
Need NOx reduction techniques to
meet IMO tier III
Not sensitive to gas quality
Pumping LNG to 350 bar and
evaporate is simple and with low energy
requirement
Flexibility in fuel mix
Suitable for conversion of existing
engines (simple rebuilding)
Per Magne Einang Research Director MARINTEK, March 2011
Small Scale Conference
Schiphol-Amsterdam, 14/15 dec 2011
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Qualities from large LNG terminals
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Report to Dutch Parliament 2011: range of possible GATE qualities
Position on quality
Holland Innovation Team wrote a position paper about LNG
quality after consultation of experts from a.o. gas engine manufacturers
http://www.bio-lng.info/blog/wp-content/uploads/2011/08/Position-paperLNG-quality-versie-30june11.pdf
We conclude that
•Designing engines to run on almost anything is possible but reduces
achievements especially compared to next generation high-performance
gas engines
•Many heavy LNG qualities will not be good enough for direct use in
engines, so should be improved at the terminal site.
•Boil off, transport and storage of heavy LNG (aging) will deteriorate quality
•There is a need for standardization of LNG quality
Bio-LNG will always fulfill minimum demands and will improve LNG quality,
so future bio-LNG producers are happy with worldwide LNG developments
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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Developments worldwide
Yangtze prepares for LNG bunkering
Taken from: LNG World Shipping May/June 2011
“News that both Fortune Oil and Kunlun Energy are pressing ahead with waterway
and bunkering trials of their respective dual-fuel engine technologies is the latest
indication that there could soon be a network of LNG fuelling stations for Yangtze
River vessels and literally hundreds of LNG-powered craft navigating the waterway.”
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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Developments worldwide
LNG-Powered GT1 Locomotive Sets New World Record
September 14, 2011 | Russia, Moscow
“The Russian-developed GT1-001 gas turbine-electric locomotive has successfully
undergone further field tests in Moscow.The 300 tonne two-section GT1 combines a
turbine and power unit with a separate section containing the 17 tonne liquefied
natural gas (LNG) fuel tank.”
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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Brunsbüttel Ports and Gasnor (Norway) agree on
bunkering LNG at Brunsbüttel as of November 2011
“On 18.10.2011 Brunsbüttel Ports GmbH and Gasnor AS agreed on bunkering
vessels with LNG in the Elbehafen at Brunsbüttel, Germany.
They are leading the way in offering LNG fuel at Brunsbüttel and the Northern
German area, at the crossing of the river Elbe and the Kiel-Canal.
In the context of generally increasing demands in environmentally conscious acting,
also in shipping, eco-friendly fuel is a forward-looking issue.”
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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Developments worldwide
LNG in Canada – Blue Road and Blue Water November 11, 2011
“Quebec’s Robert Transport intends to roll out a fleet of 180 LNG-fueled heavy-duty
trucks.Canada’s Gaz Metro is stepping up its activities with liquefied natural gas as
a transportation fuel, noting work with heavy duty trucks, with ferries, and with locomotives. Gaz Metro last month celebrated the first of three “Blue Road” LNG
stations. They are to support nearly 200 LNG trucks operated by Robert Transport.”
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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Bio-LNG: USA
May 2011: Jim Merriam, Praxair, Inc. (center), accepts
the Environmental Recognition Award for the company's
Altamont Bio-LNG Facility
•
•
•
•
•
Altamont Landfill & Recycling,
Recovery and Utilization
of Biomethane Landfill Gas
for transportation Fuel
13,000 Bio-LNG Gallons/day
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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Getting the market off the ground
Achievements 2011
Founding of Anglo Dutch bio-LNG by Holland Innovation Team and Chive
Fuels UK, which offers 2 types of LNG, bio-LNG and fuelling stations
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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Getting the market off the ground
Achievements 2011
First intermediate results in project: design/building of bio-LNG
distribution vessels for short sea and inland navigation. Lead partner
is VEKA Group / Bijlsma Shipyards, builder of Pioneer Knutsen.
SANDFIRDEN T E C H N I C S
LNG Rivers Shipping
Grant awarded by the “Clusterregeling” of the province of Zuid-Holland
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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Inland and short sea shipping becomes
"green" by Bio-LNG
E-Energy Market by Erik Groen
“LNG (Liquefied Natural Gas) is cleaner than gasoline, diesel and fuel oil. "But it's still a
fossil fuel", says Peter van der Gaag. Bio-LNG is truly "green gas". BER BV wants to build
a bio-LNG plant in Delfzijl, and a bunkering bio-LNG terminal to be built in Zwijndrecht
together with Nobel close to Rotterdam. "The bio-LNG must be transported between these
locations and to other terminals and distribution centers," Van der Gaag. "We are creating a
whole chain. This vessel is indispensable. A bio-LNG plant would produce between 40-150
tons of bio-LNG daily. Distribution can be done by bio-LNG tankers of 1100-4000 cbm.”
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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Latest achievements
Bunkerworld News - Latest News -
A. Nobel & Zn Bunkerservice
22 November 2011 'First movers' integral in LNG
bunkering future ... part of trials to
acquire permit for construction of bioLNG bunkering terminal
A grant of the ministry of
infrastructure and environment was
awarded in November – the ministry
gave additional scores to bio-LNG
bunkering above LNG bunkering
See movie of test bunkering at
youtube:
http://www.youtube.com/watch?v=UG
ZgKI_fJ14
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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The proof of the pudding: what will be the
cost of LNG and bio-LNG?
LNG will cost between € 10.40 and € 12.80 per MMBTU (quote: TNO).
This means 530 - 680 Euro per ton of LNG.
LNG from a large terminal costs 550 Euro per ton at the gate (Nov 2011)
Small scale LNG with distribution € 14 per MMBTU.
Source: conference Helsinki 18 Nov 2011
In our view transportation quality LNG for trucks will cost
800 Euro per ton for the client (ex tax)
First generation small scale bio-LNG will cost close to 1000 Euro/ton
But things go rapidly…
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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The planned bio-LNG plant in Delfzijl
Production of bio-gas, upgrading and liquefaction to LNG
Cambi fermentation unit, Cirmac upgrading, Cryonorm liquefaction)
99% CO2,
LP/MP steam
Bio-mass
90% s
LP/MP steam
Fermentation
of Bio-mass
Bio-gas treatment,
H2S removal
+ CO2-removal
Groen-gas (90% CH4)
LNG-gas (> 98% CH4)
LP steam
Water recycle
& treatment
Digestate,
Digestate 10% moist.
drying
NH3 removal
Aqua ammonia
Electric energy
Liquefaction
Bio LNG (99% CH4)
Second generation bio-LNG plant leads to production costs below €800/ton
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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Fulfilling the European Biofuel Obligation
with Bio-LNG
To fulfill the obligation of a certain percentage of bio fuels in their fossil fuels
(EU regulation), fuel distributors have to blend biodiesel or bio-ethanol.
If you do not blend these fuels physically, you have to buy so-called
biotickets from companies which have put extra effort and have blended
more biofuels than according to their obligation.
There are two reasons why bio-LNG benefits:
1) bio-LNG is much cheaper than biodiesel and bio-ethanol even with
prices above 800 Euro per ton
2) distributors of bio-LNG generate bio tickets and can sell these
By using this mechanism, which exists in the Netherlands and other
European countries, bio-LNG will be cheaper than small scale fossil LNG
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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Second generation bio-LNG production (with
incentive) is cheaper than small scale LNG
Presented at ships fuel and technology, Helsinki-Finland, November 18th 2011
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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Cooperation between Rijngas
and Anglo Dutch bio-LNG
We can deliver three kinds of LNG (including bio-LNG)
We can deliver small scale fuelling stations of 2300 liters
We can deliver 14000 liter LNG fuelling stations by Chive Fuels
We can deliver extra large fuelling stations by Chart
We provide the opportunity to order bio-LNG from the BER plant
Rijngas is a leading distributor of
propane in the Netherlands
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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Cooperation between
Anglo Dutch bio-LNG and Solbus Poland
Solbus
Solbus Poland is a producer of
busses. Solbus manufactures LNG
busses for competitive price: cheaper
than CNG busses.
Engine: Cummins
Fuel tank: Chart
Anglo Dutch bio-LNG to deliver
mobile bio-LNG fuelling station for
Poland
Introduction of bio-LNG busses in the
Netherland is planned in 2012
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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Conclusions / recommendations
1) Worldwide LNG developments go rapidly
2) There is need for standardization of LNG quality for transportation
3) Bio-LNG is the cheapest biofuel and can be used to improve fossil LNG
quality
4) 20% of our transportation fuels easily can be replaced by bio-LNG
5) Bio-LNG gets more and more interest all over the world
6) Second generation Bio-LNG will be cheaper than fossil small scale LNG
7) Holland Innovation Team and partners are paving the way for a bio-LNG
infrastructure which can improve the small scale LNG chain
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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We are building a bio-LNG chain to improve the
(fossil) small scale LNG chain now.
Thank You also on behalf of our partners
www.hollandinnovationteam.nl
pvdgaag@hollandinnovationteam.nl
A. Nobel & Zn Bunkerservice
Stop talking, start acting
Solbus
‘Producing Clean Fuel from Biomethane'
WTC-Rotterdam, 15 March 2012
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