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CLEEN Strategic Research Agenda for
the theme Sustainable Production,
Handling and Use of Gases for Energy
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Executive summary
The role of gas in power production and transportation has increased significantly during the last
decade, and this rapid growth is anticipated to continue in the future. The strategic research theme
of CLEEN for gas production, handling, and use may be broadly categorized, e.g., as follows:
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Gas based power production
Liquid natural gas (LNG) value chain
Future gas production solutions
Carbon capture and storage/utilization (CCS/CCU)
Hydrogen utilization and economy
Based on global trends, business potential, and the Finnish positioning, Finland has significant
business opportunities with respect to several of the above-mentioned areas. Especially in gas
based power production and LNG there is tremendous near- to mid-term business potential. Also
other fields such as renewable gas conversion and certain niche areas may provide significant
business opportunities for Finnish players both in near- and long-term.
To capture the opportunity and secure the Finnish positioning within the gas related development
in the future, several strategic topics are identified and proposed for CLEEN’s Strategic Research
Agenda:
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Gas engine related research and development
Small-scale arctic LNG solution research and development
Research on renewable and synthetic gas conversion technologies
Dedicated technology and solution research and development on identified niche areas,
such as fuel cells and CO2 fixation
Systemic and conceptual research to identify the future business potential and
development needs
Background
Over the last few years, the importance of (mainly) natural gas use in power production and
transportation has increased significantly. This increase was and still is fuelled by several key
factors:
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Sustained high oil prices
Increased focus on reducing air quality related emissions to increase the quality of life of
people living in the vicinity of “traditionally” fuelled power stations
Large discoveries of shale gas and development of low-cost production technology
Growing concerns on global warming and ignificant, cost efficient greenhouse gas (GHG)
emission reductions which are enabled by utilisation of gas in response for
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The nuclear accident in Yukushima
The increased importance of natural gas fuelled power production goes hand in hand with the
introduction of significant amounts of renewable energy from wind and solar. Despite the positive
development, wind and solar energy are very intermittent in nature. To ensure grid stability and
balance between production and consumption, a level of power generation dynamics that cannot
simply be achieved using steam cycle based technology is required. Even though being fossil,
natural gas is an environmentally sound fuel compared to coal and oil, and hence gas-based
power production is bound to increase in connection with large-scale deployment of renewables.
In 2012, the global natural gas consumption was 3314 bcm1, which was about 20 % higher than in
2005 (data: BP 2013). In 2012, about 22 % of world’s gas was consumed in the US and 13 % in
Russia. In Russia, the consumption has been more connected to the economic growth, and has
recently decreased slightly. The most radical change has been in Asia, where the gas consumption
has increased nearly 60 % since 2005, with China showing even three-fold figures during the
period.
The use of natural gas is expected to continue its growth, especially if the expected growing
contribution of unconventional gases is realized. Shale gas formations exist in all continents, also
in countries that are lacking conventional gas resources and are hence heavily dependent on gas
imports today. According to the existing knowledge, the largest shale gas resources exist in China
and the US. In the US, shale gas production has expanded rapidly causing a radical collapse of US
natural gas prices, and currently there is practically no need for gas imports. In fact the situation
has turned the other way round, and there are several on-going investments to transform import
terminals to export terminals in the US.
According to IEA, gas consumption will increase to 4000 - 5000 bcm by 2035 (see Fig. 1)
depending on the expected future climate policies. According to VTT scenario studies, global gas
consumption with existing energy and climate policies could increase even close to 6000 bcm by
2035. On the other hand, with tight climate policies (i.e. 2 degree mitigation target), the global gas
consumption could stagnate to the current level, especially if investments in carbon capture and
storage solutions are not realised early enough. VTT’s studies indicate that the global cumulative
investments on gas fired new electricity and CHP production could rice up to 1000 billion € in 2020
and 1500 billion € in 2030. The largest market growth is expected in developing Asia, especially in
China. In addition to power generation, the use of natural gas is expected to increase as transport
fuel especially in marine sector. Furthermore, the increasing utilisation of natural gas also boosts
production of clean synthetic gases from coal and heterogeneous biomass and waste streams as
the infrastructure for gas handling develops. Gasification technology enables utilisation of solid
fuels both in high efficiency power cycles as well as production of transportation fuels and
chemicals.
1
1 bcm (billion cubic meter) = 36 PJ = 10 TWh
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Figure 1. Scenarios for regional gas use (Source: IEA WEO 2012).
Gas to power
The above mentioned energy megatrends, i.e. renewable energies and the significant increase in
the use of gas, combine to create a favourable position for gas-fuelled internal combustion engine
based power generation as a source of clean, efficient,highly flexible, and reliable power. Internal
combustion engine (together with hydro power), is the most promising production technology that
can compensate the intermittency of renewables in an environmentally sound and cost-efficient
manner. It has been estimated that in the UK almost 1 billion € annual savings can be achieved by
2020 (Redpoint study in UK 2012) if part of the old capacity is replaced with flexible power
generation to balance the intermittency of renewables. This implies that the potential market
volume by 2020 can be up to 10 billion € in Europeand even more than 50 billion € globally.
In addition to gas-fuelled engines, also fuel cells are a highly potential and efficient technology to
convert gas into power. These are more suitable for smaller-scale and decentralized power
generation with efficiencies potentially up to more than 55%.
LNG value chains
Due to the increased use of gas, the importance and utilisation of LNG in transport will increase.
There are also further facts that highlight the importance of developing LNG infrastructure, such as:
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IMO restrictions for bunker fuel sulphur content (max 0,1 %) coming in effect in the
beginning of 2015 in SECA areas (including the Baltic Sea) increase the need for LNG
fuelled vessels and hence also LNG infrastructure
EU directive proposal COM(2013)18 according to EU’s clean fuel strategy sets heavy
minimum requirements, e.g., for LNG and compressed natural gas (CNG) fuelling
infrastructure
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In Finland there is also pressure to liberate and diversify the gas business to ensure reliable and
cost-efficient availability of gas through multiple sources. LNG terminals and handling logistics will
play an important role in this, and the Government of Finland is preparing support packages for
LNG related investments.
Future gas production solutions
There are four principle methods to compensate the intermittent nature of renewables: flexible
power generation, electricity/energy storages, high capacity transmission grids, and demand
control. None of these are either sufficient or optimal alone, and hence they all require attention
and further development. For energy storage, the so called Power-to-Gas (P2G) approach
provides an interesting alternative as gas is a supreme means to store and transport excess
energy. The conversion process of P2G consists of electrolysers using the oversupply of electricity
by converting water to hydrogen (H2), which could be stored, sold or further processed with low
price carbon dioxide (CO2) and/or monoxide (CO) to methane (CH4) or liquid hydrocarbons.
The benefit of processing hydrogen into methane is the possibility to use the whole infrastructure
and devices of the natural gas and traditional fossil oil system. The gas can then be utilized either
in power generation in engine-based plants and gas turbines, or as transportation fuel. The same
approach could also be applied to synthetic natural gas (SNG) production through biomass
gasification. One major economic barrier of P2G relates to the periodical nature of renewable
electricity oversupply that confines the annual runtimes of P2G equipment significantly below the
standard 8000 h/a. On the technical side of P2G, the low conversion efficiency and low lifetime of
electrolysers are identified as major drawbacks causing high overall life-cycle costs.
In renewable gas production and conversion, thermal gasification where solid fuels can be
converted into gaseous intermediates allows clean, cost-efficient and high efficiency production
of a wide range of end products including transportation fuels, power and heat, and chemicals.
Global markets are growing especially for fluidized bed gasification systems which convert lowgrade wood residues and waste fuels to gas to replace fossil fuels in power and combined heat
and power (CHP) plants, and in industrial kilns. In addition, thermal SNG/H2 technologies can be
integrated to the electrolysed hydrogen or to the use of off-gases from steel industries providing
additional potential for thermal gasification. In addition, biogas production by anaerobic digestion
will also create growing market in the centralised waste to energy solutions and transport/SNG
applications.
Some industrial processes produce large volumes of combustible waste gases, which could be
upgraded to valuable products or premium price energy products. In most cases these gaseous
side streams are currently used efficiently for energy production by combustion along with other
low value fuels. However, the actual value of these gases is higher than that of conventional
fuels and thus these gases could be used as raw materials for some more valuable end
products.
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CCU/CCS
In order to meet the low carbon targets, i.e.,over 85 % reduction in greenhouse gases by 2050,
commercialisation of optimized CCS and mid-term CCU is called for. Significant research efforts
have been made globally for CCS, but the large-scale implementation is postponed due to low
price of CO2 emission allowances and the lack of public acceptance as well we risk sharing
incentives. CCU may provide a stepping stone in a relatively short time frame towards realization
of CCS investments. In addition, bio-CCS has been identified as one of the most effective ways to
reduce the atmospheric CO2 content. Nevertheless, there is still lack of understanding of how well
the carbon capture concepts can adapt to the fast load changes and partial loads in the future
energy system.
Hydrogen utilization and economy
Hydrogen can be used for example to store (solar and wind) energy, to power vehicles, to upgrade
chemicals into fuels or fuels into higher value products. The vision of futuristic hydrogen economy
consists of a production of hydrogen from renewable primary energy sources and nuclear energy,
storage of hydrogen, distribution networks, and finally the use of hydrogen to produce high
efficiency power and heat with near-zero emissions. Intensive research and demonstration
activities concerning hydrogen-based energy systems are ongoing globally. Development of both
fuel cell powered vehicles (FCEV) using hydrogen as a fuel and different infrastructure options for
distribution of hydrogen are nearing commercialisation. Nevertheless, converting the world to
hydrogen economy still requires a lot of R&D&I.
Positioning of the Finnish know-how
Gas to power
Finland has a truly unique position in the area of gas-fuelled internal combustion engines. Finnish
companies are among the technology leaders of the world with companies from the US and a
small number of other EU countries. Finland also has the only global provider of large gas-fuelled
engine based power plants. Academic research is distributed to all over the world, with only few
groups specialized in gas. Overall, very little scientific research has been made on high efficiency
and low emission gas combustion. Finnish gas combustion related research can be considered as
being world class.
The development in the Far East and other upcoming regions are gearing up. To maintain the
competitive advantage and to capture the significant business potential, the Finnish industry and
academia needs to continue to invest in the entire knowledge chain from fundamental research
through product development to business operations.
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In the research on fuel cells, there are some active actors in Finland. Especially, know-how on
solid oxide fuel cell (SOFC) system integration can be considered to be of high class. However, the
actual fuel cell technology development is quite far from the state-of-the-art, and there are also
major players providing (pre)commercial systems, e.g., in the US, Asia and Germany.
In addition, gasification facilitates increased efficiency in thermal waste conversion, as well as
replacement of coal by biomass based gas in power boilers. In this sector the technology
development and know-how in Finland is at high international level.
Overall, due to the know-how of Finnish companies in gas to power business, there is a high
potential in gaining a major share of the above-mentioned over 50 billion € annual market by 2020
assuming that the development, marketing, and influencing efforts are correctly directed.
LNG value chains
In Finland,the whole value chain for gas (transportation, handling, terminals, bunkering and inert
gas solutions, integrated power plants) is represented thus enabling the development of
comprehensive and complete solutions. The special niche know-how can especially be found in
smaller scale LNG systems – most LNG solutions are currently done as large-scale applications,
and in Finland there is a need for clearly smaller solutions. These solutions require different
approach for concepts and integration, and hence such knowhow can be utilized also in other
growing markets for small-scale LNG solution.
In addition, another important area for Finnish speciality know-how comes from the arctic climate.
There is a need for special LNG solutions for arctic environment (special requirements e.g. for
transportation and bunkering solutions, and also for power plant integration). Clear added value
could be brought about if the know-how on LNG solutions and arctic conditions can be combined
into competitive advantage. It is also recognized that the better education programs are needed on
the LNG field, preferably somehow combined with the arctic know-how.
The upcoming restrictions set by the International Maritime Organization (IMO) for the Baltic Sea
area bring also about interesting business opportunities for Finnish companies. The restrictions will
force certain LNG solutions to be taken into use, and if this is utilized wisely, the Baltic Sea can act
as a piloting and demonstration platform for new competitive solutions.
To conclude, there is a high and global mid- and long-term market potential for Finnish companies
in solutions for LNG value chains, but capturing this opportunity requires bringing the key actors
together for overall solution development.
Future gas production solutions
P2G technology units and processes are currently available in the global chemical industry and
processing of hydrocarbons. The companies of the Finnish energy cluster are actively introducing
new solutions based on local/regional market demands for the global markets. Niche know-how in
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P2G can be found in biomass gasification research and development, and also in development of
electrolyser technology based on current fuel cell technology know-how.
In thermal gasification, there are world class gasification technology providers in Finland. Finnish
companies are globally leading technology suppliers of fluidized bed gasification systems, Longterm R&D activities have created technological basis to produce many alternative end products for
the power and heat sector as well as fuels and chemicals. Many units have been installed for
utilization of low-cost residues and waste materials as feedstock for CHP. Also small and
intermediate size power production by gas engines has been demonstrated with Finnish
gasification technology.
In Finnish industries, most of the larger gaseous side-streams are utilised today, but primarily for
energy production. These gases could, however, be also used for more profitable purposes. but
he knowledge how to perform this is not well-established. Industries could benefit from additional
value provided by more advanced utilization of these gases (steel mills, oil refineries, etc.).
CCU/CCS
Finnish top-expertise in the field of carbon capture and storage is found in fixation of CO2 as
inorganic carbonate minerals or as fuels or fuel compounds, in oxy-fuel combustion, and in hot
solid looping technologies. Also gasification of solid fuels, which is an important component of precombustion capture of CO2, belongs to the key competences of Finnish industries and research
organisations
Hydrogen utilisation and economy
Concerning hydrogen-based energy systems and economy, intensive research and demonstration
activities are presently going on abroad. For example, development of fuel cell powered vehicles
and different infrastructure options for distribution of hydrogen are nearing commercialisation. In
Finland, high level know-how is found especially in the production of hydrogen (gasification,
reforming, fermentation etc). In the utilisation side, the main expertise is found in the development
of SOFC systems. Production of hydrogen from biomass and waste materials is a topic where the
Finnish technology suppliers and R&D organisations could generate novel new processes for
renewable hydrogen markets.
Identification of the research needs
Based on both global and local trends, business potential, and the Finnish positioning, several
research needs in the field of gas can be distinguished. These are discussed below for each item
separately.
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In case of gas to power concepts, the main strategic research should be focused on how to
generate ultra clean, highly efficient and flexible power for marine and off-road transport, power
generation, and renewable power balancing. As large gas-fuelled engines are rather new products
and very much designed on top of the old diesel-based engines, a lot of development potential is
there to push the limits of efficiency, emissions, dynamics and reliability beyond state-of-the-art
and to take the technology to the next level. Specific research themes in this category include e.g.:
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Gas combustion fundamental research and optimization
Fuel conditioning and fuel system component research and development
Development of engine control and dynamic behaviour to increase reliability and load
response capability
Exhaust gas after-treatment to further reduce the emission levels
Gas to power -related infrastructure aspects, such as LNG and transfer capacity challenges
Concerning the SOFC systems, the main strategic research topics include developing costefficiency and reliability of the fuel cell products.
In LNG, the main strategic research should be targeted to the whole logistic chain on LNG
including transport, handling, and use. Especially, there is a need to develop solutions for smaller
scale applications and more specifically, solutions for the arctic horizon.
In P2G, the main research needs are on the conceptual level, e.g. what are the key concepts for
future energy systems on various markets applying P2G. In addition, integration of P2G with plants
producing synthetic fuels from biomass and the development of electrolyser technology should be
in focus in FForrenewable gas conversionin general, the strategic research should be focused on
developing new applications and whole value chainsfor clean synthetic gases. This is essential for
expanding and renewing the Finnish industries for fluidized bed combustion and gasification
technologies. Main research topics include for example:
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System level R&D on new applications of biomass and waste gasification, including new
integration opportunities with other renewable energy sources
Fundamental research on fluidized bed technologies and utilisation of this know-how on
new thermochemical conversion systems
For utilisation of gaseous side streams, the major streams in process industry should be identified
and the potential to use these gases as a raw material for new more advanced products, like
synthetic liquid fuels or SNG, should be evaluated. Benefits could especially be obtained from the
integration of new upgrading processes to existing production units.
In CCU/CCS, key focus areas of Finnish CCS expertise, such as hot looping cycles based on
fluidized bed technology, should be further developed. In addition, research on flexibility of CCS
plants is needed. Other targets include the direct use of CO2 as a resource or raw material for
valuable fuels or chemicals through combining CO2 with other process gases and/or gases
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produced from biomass. Furthermore, the existing expertise in fixation of CO2 as inorganic
carbonate minerals using slags, ashes and mine tailings should be strengthened.
When it comes to hydrogen economy, potential hydrogen-based energy concepts are still to be
defined. Studies should evaluate technical, environmental and economic feasibility of different
concepts in order to find the best solutions. Technology development efforts should be directed to
the most promising concepts. In addition, pre-competitive R&D on the production of hydrogen from
waste streams and biomass, and related system level studies would be beneficial, but these
should be done in close collaboration with the international hydrogen society.
Proposal for the Strategic Research Agenda at CLEEN Ltd
The Strategic Research Agenda of CLEEN should be focused on the areas that provide significant
potential for Finnish industry either in near-term business growth or long-term business potential,
and hence enhancing the Finnish economy in both time scales. High level goals for this particular
theme of Sustainable production, handling and use of gases for energy are:
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Finnish parties will have a major share in global markets for gas-fired engine based power
generation in 2020
Key actors will be brought together for joint interest and synergies in LNG value chain to
enhance the development of relevant niche solutions, enabling a significant market share in
arctic and small-scale LNG business by 2020, also in global perspective
Finnish actors will be forerunners in the development and commercialization of
technologies and solutions related to renewable gas conversion
A national network for education of high level experts will be established within thetheme
Based on the above discussion on trends, business potential, and the Finnish positioning, the
following topics are proposed for the Strategic Research Agenda.
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Gas engine related research, development and systemic demonstration
Small-scale arctic LNG solution research and development with the Baltic Sea as a
potential piloting platform
Research on renewable gas conversion
o Power to gas systems and processes
o Synthetic gas processes
o Biogas processing
Dedicated technology and solution research and development on the identified niche areas,
e.g.
o SOFC systems and applications
o Utilization of gaseous side streams to value added products
o Fixation of CO2 as inorganic carbonate minerals
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Systemic and conceptual research on other areas to identify the future business potential
and development needs, e.g.
o Development of integrated flexible concepts for production of power & synthetic fuel
(CCU)
o Development of technologies for conversion of CO2 to fuels, fuel components and/or
other chemicals
o Studies on hydrogen economy (including catalytic routes) and concepts for
hydrogen utilization
Suggested project & program portfolio for the Theme
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The Strategic Research Agenda can and should be covered through a variety of different
funding instruments that either exist or are under preparation. These include, e.g., new
potential SHOK programs, EU projects and programs (Horizon2020, EUREKA…), strategic
TEKES initiatives, Energy program of the Academy of Finland and direct funding from
Ministries (Environment, Education and Culture, Employment and the Economy, Transport
and Communications). In the suggested program portfolio, also the potential identified
funding mechanisms have been listed, but these should be understood only as indicative
mechanisms. Gas engine related research and development program (e.g. through SHOK
program and demonstration e.g. through EU funding)
Small-scale arctic LNG solution research and development program (e.g. new strategic
TEKES initiative or SHOK program and potential Baltic Sea piloting e.g. through EU
funding)
Renewable gas conversion
o Power to gas systems (e.g. strategic TEKES initiative)
o Synthetic gas processing (e.g. through SHOK program or combined with P2G
systems)
o Biogas (potential to be part of larger program, e.g. within a related SHOK)
Systemic research on niche and longer-term areas to capture the potential and to maintain
the level of understanding to enable identification of future key development areas (e.g.
dedicated EU and TEKES projects)
o SOFC system and application development
o Catalytic routes to hydrogen economy and renewable hydrogen technologies
o Carbon capture and utilisation
Participants of the SRA group
Sari Siitonen, Gasum (chair)
Tero Hottinen, Wärtsilä (deputy chair)
Anders Brink, Åbo Akademi University
Timo Hyppänen, Lappeenranta University of Technology
Riitta Keiski, University of Oulu
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Jouko Korppi-Tommola, University of Jyväskylä
Juha Lehtonen, Aalto University
Kai Sipilä, VTT
Marjut Suomalainen, VTT (secretary)
Responsible author
Tero Hottinen, Wärtsilä Finland Oy
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