Bio-SNG - CNG Services

BIO-SNG FEASIBILITY STUDY – ESTABLISHMENT OF A REGIONAL PROJECTContents1 Executive Summary ...............................................................................................................................42 Introduction .......................................................................................................................................... 143 Review of the fiscal, legislative and regulatory regime ....................................................................... 163.1 Renewable Energy Incentives and Instruments ......................................................................... 163.2 Energy from Waste regulations and Issues ................................................................................ 183.3 Emissions Trading ...................................................................................................................... 193.4 The Gas Safety Management Regulations ................................................................................ 203.5 Other key regulations ................................................................................................................. 204 Feedstock ............................................................................................................................................ 214.1 The significance of Bio-SNG in the energy scene ...................................................................... 214.2 „Pure‟ Biomass resources ........................................................................................................... 224.3 Properties of „pure‟ biomass fuels .............................................................................................. 244.4 Waste materials .......................................................................................................................... 254.5 Total amount of Biomass resource for Bio-SNG production ...................................................... 284.6 Commercial considerations for „pure‟ biomass ........................................................................... 284.7 Commercial considerations for wastes ....................................................................................... 294.8 Feedstock Conclusions .............................................................................................................. 315 Process and Technology Review ........................................................................................................ 325.1 Biomass reception, preparation and handling. ........................................................................... 325.2 Gasification ................................................................................................................................. 335.3 Gas Processing .......................................................................................................................... 395.4 Methanation ................................................................................................................................ 415.5 Gas conditioning, compression and metering ............................................................................ 425.6 Conclusions on Process and Technology .................................................................................. 436 Economic Assessment ........................................................................................................................ 446.1.1 Scale and operational assumptions........................................................................................ 446.1.2 Investment Cost assumptions ................................................................................................ 456.1.3 Operating Cost assumptions .................................................................................................. 486.1.4 Feedstock ............................................................................................................................... 486.1.5 Revenue Assumptions ............................................................................................................ 506.2 Levelised Cost analysis .............................................................................................................. 506.3 Sensitivity Analysis ..................................................................................................................... 546.3.1 Escalation ............................................................................................................................... 556.3.2 Impact of capital Cost, Opex, Fuel price, RHI and heat sales ................................................ 566.3.3 Comparison with an SRF fuelled electricity project ................................................................ 576.4 Financial conclusions ................................................................................................................. 587 Lifecycle carbon emissions and Cost of Carbon Analyses compared with alternatives ..................... 607.1 Lifecycle carbon emissions ......................................................................................................... 607.2 Cost of carbon abatement via Bio-SNG ..................................................................................... 648 Risk Assessment and Financing Considerations ................................................................................ 698.1 Conclusions from risk assessment and financing considerations .............................................. 749 Preliminary Scoping of a lead, beacon project .................................................................................... 759.1 Beacon Project configuration options ......................................................................................... 759.2 Location: The North East ............................................................................................................ 779.3 Site analysis................................................................................................................................ 789.4 Regional Feedstock .................................................................................................................... 8310 Conclusions ......................................................................................................................................... 843