John Baldwin - CNG Services

CNG Services Ltd• Supporting innovative low carbon projects including:– Cleaning bio-gas and injecting biomethane into the gas grid• Creator of the UU-Davyhulme Project– Developing high efficiency uses for renewable methane:• Domestic heating• Vehicle use– Generation of electricity from gas pressure reduction– Supporting importation ti of LNG to UK and development of newUK gas storage projectsWe are independent from all makers of vehicles, clean-up, compression etc.Our aim is to support biogas producers in exploiting the biomethane to gridand biomethane as vehicle fuel opportunities3

DEFRA vision for ADThis is good news for the environment and for the UK economy6

Biomethane to Grid (BtG)Widespread consensus that gas grid injection is attractive because ofabsence of uses for waste heat where renewable methane is made. Takethe gas to the customers along existing pipelines and have high efficiencyutilisation….no no need to move biomass by road…7

UK biomethane potentialUK gas productionThe Renewable Heat Incentive will support biomethane production from2011 – UK can then start to catch up. By 2025, UK gas production fromNorth Sea and from organic matter will be similar10

Biomethane utilisationWhat we will be doing from 2011The Renewable Heat Incentive will support biomethane from 2011 – UK canthen start to catch up…..we can’t wait….11

Germany leading• Germany has over 3,700 agricultural scale biogas plants• The Biogas industry employs around 10,000 people• The industry is worth about 1 Billion Euro / yr to the German economy• BtG growing fast• Target of 10% of all German gas by 202012

What about biomethane as avehicle fuel?How is it made?13

Compressed biomethane vehicle fuelTypically 1 bar250 baripeCNGCompressorsStorageCascadeDispenserLocal Gas Grid PiBack-upsupply fromgas gridPropane andodorant thengas gridinjection7 barBiogas Clean-up plant0.01 barBiogas supplyfrom AnaerobicDigesterVehicle use and Biomethane to Grid go together14

How does biomethanecompare with other bio-fuelsin its ability to convertsunlight falling on a hectareof land into vehicle fuel ?15

Biomethane is the best fuel in terms of CO2Efficiency of Alternative Fuels –How many km will a car run with the fuel produced on 1 ha?Biogas from corn silage via gas grid71.200Bio-Ethanol from sugar beet57.000Bio-Ethanol o from corn33.200Bio-Ethanol from wheat19.300BTL (FT Diesel from forest biomass)13.300Bio Diesel18.5000 10.000 20.000 30.000 40.000 50.000 60.000 70.000 80.000km/ha.a• Biomethane offers carbon neutral transport option:– Lowest ‘Well to Wheel’ CO2 of any fuel– Most efficient use of land16

What about efficient utilisationof the biomethane?Key ypoint is that biomethane ismalt whisky, it should not bewasted17

Efficient appliances – Ceres fuel cell CHPCompact, wall mounted unitHigh efficiency integrated system• Heating at highest ‘SEDBUK A’efficiency• Electricity at higher efficiency thanengine based CHP• Can generate power all year (evenoutside heating season)• Working with British GasVery high efficiency, made in UK© Ceres Power20091818

Efficient cars - Passat TSI EcoFuel• engine 1.4 TSI CNG• operating mode:bivalentalready fulfills Euro-5• performance 110 kW / 150 PS• torque 220 Nm (1.500 – 4.000 U/min)• maximum speed 210 km/h• fuel consumption 5.1 kg / 100 km• CO2-emissions 119 g/km• Range CNG/biomethane 420 km3-underfloor gas tanks, steel135 Liter (22 kg)gasoline 400 km, 31 Liter820 km total operating range19

Advantages TSI plus CNG• The twincharger-technology of Volkswagen is thestarting position to deliver an alternative fuel powertrain with very low fuel consumption and very lowemissions, but very good driving performance• The turbo lag, which is normally present in a CNG-Turbo-engine, is compensated by the mechanicalcompressor• The performance of the CNG-TSI is very similar to abig bore natural aspirated engine, nevertheless theconsumption and emission are very low• In combination with the dual clutch DSG gearbox,VW achieve additional fuel consumption reductionsand very good driver experienceTSI ® 1,4l ‐ 110 kW CNGDesigning for biomethane from firstprinciples gives a fantastic outcomeDSG ® gearbox20

CO2 emissionsVW Passat - different engine/fuel options190ssionen [g/km m] (NEFZ)180170160150B6 TDI 2.0 DPF DSG6B6 TDI 2.0 DPFB6 TSI 1.8 DSG7 (Prognose)CO2 - Emi140130B6 TDI 1.9 BluemotionB6 TSI-CNG 1.4 DSG7)12070 80 90 100 110 120 130 140 150Quelle: K‐EFUPLeistung [kW]On biomethane = carbon neutralI – P/G 05.2008 Seite 2121

Efficient cars -Passat TSIEcoFuelThe Passat Ecofuel is the firstand only car on the Europeanmarket to achieve 5 stars in theADAC-Eco-Test - better than aToyota Prius22

VW Caddy Eco-fuel• Best selling CNG van in Germany,launched mid 2006– Built to run on CNG rather than a petrolconversion– Right hand drive is type approved for sale inUKEEV emissions – very low NOX andparticulates23

MB Sprinter NGT• Mercedes Benz– Sprinter CNG in UK in Q2 2009– First time MB have designed a CNG Sprinterfrom ‘first principles’ (rather than petrolconversion):– Very low emissions– 25% less CO2 than petrol on grid gas– Carbon neutral on bio-methane– Also has petrol tank– Total range of 1100 km– Ideal for supermarket home delivery, quiet,clean, long range, fast refuellingNo London CongestionCharge24

MB Econic - rigid• 20% lower CO2• Very low emissions, EEV• No congestion charge• 50% of noise of diesel andexpected to be approved fornight running (avoiding trafficand congestion charge)Decreasing CO2 impactbiomethaneDieselCNGIdeal for inner city deliveries25

MB Econic - tractor• Distribution logistics– EEV emissions and 20% lower CO2than diesel– On bio-methane, carbon neutral• MB bringing to UK in right hand driveform– In UK in Q3 2009Ideal for inner city deliveries andloads of

BtG Conclusions• We have the gas grid and the full support of UK gas distribution networkowners and energy suppliers• We have a UK domestic industry that makes highly efficient gas appliances• We have the organic resources and the political vision to develop anaerobicdigesters• We have a landfill problem and the need to recycle waste• UK gas production is declining and we need to find new gas resources tosupply domestic customers and improve security of supply• Biomethane injection into gas grid is widespread in Europe, no materialtechnical issues (its just processing gas on a small scale)• We have vehicles made by OEMs such as VW and MB• Put all this together and we can create a thriving domestic industry that isable to make a very material contribution towards the UK’s 2020 targetsThere are no material technical issues or barriers, we just need the BtGpremium to be set as soon as possible so that we can get on with it27