Showing posts with label Germany. Show all posts
Showing posts with label Germany. Show all posts

November 12, 2013

Natural Gas: Greener and Cheaper Transport for Europe

This is the second installment in our guest blog series: A Wider Lens.
This series features first-hand accounts from people driving natural gas vehicles, industry leaders and decision-makers in the natural gas transportation industry.

By Guest Contributor, Alexander I. Medvedev
Director General of OOO Gazprom Export and Deputy Chairman of OAO Gazprom’s Management Committee

Alexander I. Medvedev:
"I can't  ignore this significant market in the making."
Energy connects. It fuels cars, trucks and ships to travel thousands of kilometres, transporting goods and people via ever-evolving networks. Modes of transport have always been drivers of innovation. Over the past decades, there have been technological breakthroughs in the design, speed, or size of vehicles. Today, the most urgent challenges are environmental and economic, and natural gas is a perfect solution for greener and cheaper mobility.

The use of natural gas in transport already grew by 220 per cent between 2008 and 2012 worldwide, from 13.6bcm to 30.1bcm.[i] The International Energy Agency (IEA) recently predicted that by 2018 alone, gas use in transport could increase by nearly 10 per cent to 50bcm worldwide. Other forecasts say that in Europe this market segment could represent no less than 40bcm of additional gas by 2030, while reaching between 200 and 400bcm worldwide.[ii]

As the Director General of Gazprom Export, I can’t ignore this significant market in the making. We at Gazprom aim to take gas as fuel to a whole new level. We recently acquired 12 compressed natural gas (CNG) filling stations in South Germany, with a target of reaching 23 stations by the end of 2013. We plan to further expand the gas filling network in the coming years. Thanks to natural gas, low-emission transport is not a vision of the future. Natural gas is readily available today: reliable, safe, affordable, and environmentally friendly.

July 9, 2013

Challenges to wider adoption of RNG for transportation

In the fifth and final post in our series on renewable natural gas (RNG), we look at some of the challenges to the widespread use of RNG for transportation.

There are promising developments in Europe and the United States that show tremendous potential for RNG in transportation. Several challenges exist, though, to commercial-scale use of RNG fuelled vehicles  including reliable feedstock availability, cost/economics of RNG production, the regulatory and policy structure, and infrastructure/fuel specification uncertainties. The first three challenges are highly interrelated, and each affects the others.

The availability of biomass feedstock is critical to expanding the use of RNG. In Europe, key factors for future supply are availability of land for RNG production[1], regulatory structures that either stimulate or inhibit growth in supply (e.g. regulations for waste water treatment and landfills), sustainability requirements (e.g. limits on land use conversions), and shifting supply-demand dynamics.[2] Competing demands for RNG, such as meeting renewable electricity generation targets, can also affect the availability and price of RNG for transportation.

The economics of RNG are driven by a number of factors, not least because RNG is a relatively new fuel type for transportation with a small market share. On the supply side, production and delivery costs to the pipeline can make it more costly than compressed natural gas (CNG), although still cheaper than gasoline and diesel, according to the analysis (below) of the California market.[3]

Source: National Petroleum Council, 2012
Without incentives, like tax treatment (e.g. Germany’s RNG processing bonus or Sweden’s energy tax deduction for CO2 neutral vehicles and RNG producers)[4], and/or some form of greenhouse gas (GHG) emissions pricing that recognizes RNG’s environmental benefits, it’s challenging to develop RNG compared to lower-cost non-renewable fuels. 

The third area, regulation and policy, also has a large impact on both availability of the feedstock and the cost of producing and selling RNG. But most policies in the U.S. on renewable and low-carbon transport fuels favour liquid biofuels.  And the renewable portfolio standards (RPS) in roughly 30 U.S. states (along with other incentives for renewable power) tend to direct RNG to electricity generation instead of transportation.  Europe has a clear path for developing renewable sources over the long term via its Energy and Transportation Roadmaps, and countries such as Germany and Sweden have taken the lead in deployment. In the U.S., the gaseous fuels renewable fuel standards together with liquid biofuels (federally, only liquid biofuels are included in the Environmental Protection Agency’s “RFS2”[5]), can help develop RNG as a transportation fuel.  

Policies such as California’s GHG offset protocol for methane capture from livestock projects can be adopted in other states – either for voluntary or compliance purposes - to help meet the challenges of limited and costly RNG.[6] In Europe, policies such as the European Union’s (EU) Directives on renewable energy, recycling and landfills, together with National Renewable Action Plans help focus activities and resources toward meeting the EU target for 20% renewables by 2020.

The final challenges to the wider use of RNG for transportation are more technical and relate to quality and common standards:
  • Can RNG be injected into natural gas pipelines? Barriers include lack of a universal definition of trace gases/impurities permitted (RNG composition is dependent on the makeup of the feedstock), and a lack of quality assurance that RNG for transportation use is sufficiently upgraded from biogas.
  • Can RNG or a blend power my natural gas vehicle? Barriers include lack of a common gas specification standard for RNG for transportation (i.e. a vehicle engine standard that clearly identifies allowed or disallowed trace compounds that can affect engine performance and life).[7]
  • The last challenge is practical: how to get the upgraded RNG to the pipeline network, when the best sources for transportation (landfills and livestock) may be far from access points? Here, a combination of incentives and connection standards or obligations can encourage distribution networks and RNG producers to establish cost-effective connections. 


[1] Non-energy crop sources including agricultural waste, landfill gas, and new approaches such as “power to gas” from wind etc. can have considerably smaller footprints.
[2] Floris van Foreest, “Perspectives for Biogas in Europe,” The Oxford Institute for Energy Studies, NG 70, December 2012.
[3] National Petroleum Council, Renewable Natural Gas for Transportation: An Overview of the Feedstock Capacity, Economics, and GHG Reduction Benefits of RNG as a Low-Carbon Fuel. Topic Paper #22, NPC Future Transportation Fuels Study, August 1, 2012, p. 13. Accessible at http://www.npc.org/FTF_Topic_papers/22-RNG.pdf.
[4] van Foreest, “Perspectives for Biogas in Europe”, Figure 12.
[5] Environmental Protection Agency, http://www.epa.gov/otaq/fuels/renewablefuels/regulations.htm.
[6] GHG-emitting firms who need to reduce their footprint are thereby encouraged to invest in these offset projects.
[7] An example of a standard that can assist customers and fuel providers alike to understand engine requirements for RNG may be found on the Cummins Westport website – technical bulletin at bottom of page. http://www.cumminswestport.com/biomethane.

April 26, 2013

The Robust and Evolving RNG Market in the European Union

By Jonathan Morissette and Karen Graham

This is the third in a series of blog posts that highlight the market and environmental potential of renewable natural gas (RNG). Check back over the next several weeks as we explore the issues and opportunities for RNG in the transportation sector.

Our previous two posts explored the processes behind renewable natural gas (RNG) that turn organic material – the same stuff we discard as compost or green waste – into a vehicle fuel that can power natural gas vehicles of all sizes: passenger vehicles, delivery trucks, buses and heavy duty (HD), long haul trucks. In this post we ask: Can RNG meaningfully contribute to the sustainability and energy security needs of the transportation sector?

Looking at the success stories of Europe’s RNG market leaders, it’s clear that the answer is yes. We profile two European nations leading the use of RNG in transportation: Sweden, where over 60 percent of the natural gas used to power their natural gas vehicle fleet (NGVs) is from renewable sources, and Germany, where at the end of last year 119 vehicle fueling stations offered 100 percent RNG.[1]

The long-term energy and transportation policies of the European Commission, together with national strategies and programs, have begun to shape the development of renewable and low-carbon fuels in Europe.

Sweden

RNG for transport is a key strategy in Sweden’s goal to achieve fossil fuel independence in its road vehicle fleet by 2030. EU directives require that 5.75 percent of total oil consumption in Sweden, and 20 percent of transport fuels, must be supplied from renewable sources by 2020.[2]

The Swedish biogas industry was initially formed to meet secure and sustainable heating fuel needs, but now transportation use has outstripped other applications. 43.9 percent of all produced biogas is used as transport fuel, the fastest growing sector for biogas, with a nearly equivalent share used for heating (the remainder is flared or for electricity generation).[3]

Over 60 percent of the methane used in Swedish NGVs is produced in local RNG plants. Over a dozen cities in Sweden have bus fleets fueled entirely by RNG. [4] At the end of 2011 there were over 130 public filling stations. Sweden’s NGV fleet is made up of 36,520 light duty vehicles, 1,530 buses and 550 HD trucks. Last summer Sweden’s first liquefied biomethane station opened in Lidköping to supply transport fuel for heavy duty vehicles.[5]

In a recent study, the total annual Swedish biogas production potential from waste and residual products has been estimated at 15.2 terawatt hours (TWh) of energy, the equivalent of just over 353 million gallons of diesel fuel. Other reports estimate that the Swedish potential for biomethane production from thermal gasification, primarily of forest wastes, is 59 TWh, equivalent to 1.37 billion gallons of diesel fuel.[6]

By the end of 2012, 119 natural gas filling stations across Germany offered 100 percent RNG (more than triple the total in 2011), and RNG blends were offered at 288 filling stations.

Germany

Germany is far and away the European leader in producing biogas and RNG. In 2012 Germany alone was responsible for 61 percent of all biogas produced in Europe. As of 2009 there were 7,090 biogas plants in Germany – 5,905 which were classified as agricultural. 80 percent of all RNG in Germany is produced from agricultural wastes.[7] The high proportion of agricultural biogas shows Germany’s potential for landfill expansion (to date, no biogas plants in Germany are supplied by landfill projects).[8]

In 2012 there were 84 RNG upgrade facilities, 82 of which inject their upgraded gas into pipeline networks.[9] While Germany lags Sweden in its RNG use for transportation, recent gains have been made. Last year, the share of RNG in natural gas for transport increased from 6 percent to over 15 percent, positioning Germany well to meet its national goal of 20 percent renewable gas in transportation by 2020.[10] By the end of last year, 119 natural gas filling stations across Germany offered 100 percent RNG (more than triple the total in 2011), and RNG blends were offered at 288 filling stations.[11]

These success stories show two ways of incorporating RNG into the transportation fuel mix at a commercial scale – Sweden’s use of a wide range of anaerobic sources, compared to Germany’s exclusive reliance to date on agricultural waste. If Germany harnesses its landfill gas sites as biogas sources, it has the potential to add even more renewable capacity using existing anaerobic technology. Both countries are continuing to develop biogas resources and the refuelling infrastructure that promote low-carbon, sustainable and secure transportation fuel networks in the coming years.



[1] NVGA Europe, “Markets & Statistics: Sweden”: available at http://www.ngvaeurope.eu/sweden last accessed March 28, 2013, and NGV Global, “Biomethane Fuel Gains Ground in Germany,” news article (March 31, 2013): available at http://www.ngvglobal.com/biomethane-fuel-gains-ground-in-germany-0331
[2] Vanciu, Gabriela and Nino Miresashvili, “Biogas Cars in Sweden: An Emerging Market,” Jonkoping University (May 2012).
[3] Ibid. (Biogas end-use: 43.90% for gas vehicles, 43.70% for heat, 8.10% flared, and 4.10% electricity; 0.20% being missing data).
[4] NVGA Europe, “Markets & Statistics: Sweden”: available at http://www.ngvaeurope.eu/sweden last accessed March 28, 2013.
[5] Ibid.
[6] Svensson, Mattias, Anneli Peterson and Jorgen Held, “Renewable Methane: An Important Aspect When Establishing a More Diversified Sourcing and Distribution of Energy Gas in Sweden” (2009).
[7] NGV Global, “Biomethane Fuel Gains Ground in Germany,” news article (March 31, 2013): available at http://www.ngvglobal.com/biomethane-fuel-gains-ground-in-germany-0331.
[8] AEBIOM, “European Bioenergy Outlook 2012”.
[9] Ibid.
[10] NGV Global, “Biomethane Fuel Gains Ground in Germany”.
[11] Ibid.