Madrid Forum Session 01.B.04

The role of distribution infrastructure

Eva Hennig

Setting a clear ambition for gas grids

Europe’s ambition to decarbonise relies on decarbonising its gas networks because:

Grids for natural gas are already at the heart of Europe’s energy system, provide low carbon natural gas to European consumers and can accommodate different types of renewable and decarbonised gases (biomethane – synthesised methane –hydrogen)

The gas industry has a clear vision to move to clean then green

Gas networks contribute to the decarbonisation of our wider energy system, complementing renewable electricity and supporting the move to a sustainable transport sector

Gas grids’ flexibility safeguards reliable and cost-

efficient energy supply throughout the year

Example: Germany

-

1

2

3

4

5

6

7

Jan…

Feb…

Mrz

…

Apr…

Mai…

Jun…

Jul…

Aug…

Sep…

Okt…

Nov…

Dez…

Jan…

hourl

y c

onsu

mpti

on in k

Wh/h

Residential consumer Gas heating + Hot water 15.000 kWh/aThe ratio

between –

summer and

winter load

demands

large

seasonal

storage

The gas industry has a clear vision to move to clean

then green through gaseous solutions

Speedy progress can be implemented through energy efficiency, modern appliances and renewable gas

120m* gas consumers can provide large energy savings, because:

Cost efficient new condensing boilers save up to 19 % CO2** when replacing old inefficient oil/gas boilers and even more if combined with hybrid heating systems

Biomethane and SNG injected into the DSO/TSO grid do not require any tweaks to any of the gas appliances and improve climate footprint

In many countries*** consumers can switch-with-a click to renewable gas tariffs. In addition many suppliers offer contracts with Guarantees of Origins.

*Eurogas Statistical report 2014

**Eurogas heating study 2014

***UK, DE, FR, DK, A

Using the existing grid and storage infrastructure

provides space for quick decarbonisation Further progress can be achieved through research and innovation…

Continuously improving renewable gas production processes and facilitating connection to existing infrastructure, to increase potential and reduce emissions.

Base biomethane production on sustainable feedstock as manure to push the decarbonisation of the agricultural sector

Optimise consumer heating options, through Micro CHP, fuel cells or gas heat pumps

Optimise the use of hybrid solutions through the flexibility brought by multiple sources of energy

Promote incentive-based regulation for gas DSOs to research and innovate

… and further cooperation with TSOs

Regarding biomethane injection and potential future need for reverse flow during the summer

Ensuring that intensified coordination is in place to take in the increasing use of small peak generation and refuelling infrastructure along with system requirements for closed hydrogen distribution grids

exchanges with ENTSOG should be stepped up with potential need to set up a consultative platform to ensure adequate impact

Gas networks contribute to the decarbonisation of our

wider energy system, complementing renewable electricity

As the DSO Flexibility Report showed, gas and electricity systems are already

highly interlinked. Variable renewable generation is backed up by gas networks,

gas fired power plants CHP & sector integration

The interactions between gas and electricity will increase, using opportunities

such as:

Large gas-fired CHP plants, typically located in the load centres (where electricity and

heat are required can be a relevant source of supply for district heating grids and

contribute to safeguard security of supply of the electricity grids.

Use of surplus RES electricity to transform water into hydrogen via electrolysis with

methanation process = production of synthetic gas

This can be injected at concentrations of up to 100% with no changes to end users

Use of surplus RES electricity to transform water into hydrogen via electrolysis without

methanation process = production of hydrogen

Existing appliances can work with a hydrogen levels up to 30% (residential sector)

and up to 50% (industry) * - ongoing research projects DE, FR and UK.

* 2017, Marcogaz, Impact of hydrogen in natural gas on end-use applications

Gas networks contribute to the decarbonisation of our

wider energy system, complementing renewable electricity Transport has proven to be hard to decarbonize as demand for affordable, long-distance and powerful vehicles continuously increases.

A multitude of transport devices have to be decarbonized with different technologies and fueling infrastructures. Gas mobility has the big advantage of relying on an existing infrastructure of gas networks and filling stations and long history in several EU countries

High energy density of gas allows long distances and heavy loads, which is crucial for trucks and ships

The use of biomethane reduces CO2 up to 95% , NoX/SOx by 74% and PM by 96 % which strongly improves air quality (NGVA)

Efficiency gains in existing engines have continuously been achieved, new engines optimized on CNG and H2 will be developed

Hydrogen mobility allows for zero emissions at tailpipe, like electric vehicles. The development of new optimized H2 motors to complement the fuel cell have started.

Barriers for greener gas use - and how to overcome them Appliance manufacturers are uncertain about where to invest in the future

• Ensure that regulation takes into account the best available research conclusions on the issue of compatibility, particularly regarding blending

• Ensure that an adequate Primary Energy Factor and labelling regulations recognize the true contribution and efficiency of gas solutions for the energy transition

Gas is being phased out in certain countries as it is considered to be fossil:

• Give appropriate policy signals that gaseous solutions have a role in the energy system: through renewable and decarbonised technologies, gas can become green in the middle and long-term and add speed to the decarbonisation process

Fleet owners are unsure whether to choose gas solutions as the refueling network is not developed enough

• Ensure that Member States adequately implement the Directive for Alternative Fuel Infrastructure

• Allow the development of new roles and responsibilities for market participants, including DSOs, in case the market does not deliver on charging infrastructures

Car/Truck manufacturers are unsure whether to build gas vehicles as they cannot be considered ZEV

• Push for a Cradle to Grave or Well-to-Wheel approach in the CO2 regulation which would allow renewable gas to push emissions from gas vehicles to zero through negative emissions during the production process

Measures to support the decarbonisation of the gas grid

Europe’s ambition to decarbonise relies also on gradually decarbonising its gas networks, and the Commission should develop ambitious roadmaps in cooperation with Member States

Gas DSOs should be recognised as a key vehicle for delivering policy ambitions on decarbonisation

The important role of gas DSOs in managing flexibility must be reflected in the TYNDP process

A common definition of renewable gas should be agreed, and cross-border trade should be facilitated

Develop a European blueprint for Guarantees of Origin - which could be facilitated through tools such as the ERGaR

The Commission should work with CEER, Member States and NRAs on a supportive European regulatory frameworks to further develop renewable and decarbonised gas production as well as innovation

Policy development should be linked across sectors to integrate a vision for the decarbonisation and to achieve synergies

Delivering on the circular economy by recognising the added value from waste upgrading and digestion for the purpose of biomethane production, over waste incineration

Widen the scope of the European assessment for life-cycle GHG emissions and GHG avoidance cost: publish results and build on Annex VI in RED II

Create a level playing field for gas and electric mobility: apply a well-to-wheel approach

Annex - projects

The gas industry has a clear vision to

move to clean then green Example: France

The gas industry has a clear vision to

move to clean then green

In the long term Europe’s gas networks can:

• Deliver up to 100% hydrogen to major urban centres

and industrial customers, by blending or converting

existing networks

• Support decarbonisation in other areas using

biomethane, bioSNG and smart technology such as

hybrid heating systems

This will support:

• Cost-effective decarbonisation

• Meeting targets in a timely way

• Developing European infrastructure and expertise

Biogas – Bionet (NL)

Aim: show that gases with different compositions can be distributed in public gas grids. combined grid in which production of biogas is 1st

maximised and then mixed with natural gas = no need to change gas quality.

Investments for biogas installations are low -> costs

for upgrading the biogas to natural gas standard are limited.

Gas distributed in the residential area and consumed

by special adaptive boilers that can burn natural gas, biogas and any mixture of the two.

Power-to-gas Städtische Betriebe Hassfurt & Greenpeace Energy (Germany)

Surplus power from wind farms -> converted into hydrogen.

Renewable hydrogen is fed into the local gas distribution

grid (about 1 million kWh/year) up to 3 volume percent. Part of the project is also to test a higher share of

hydrogen in the local gas grid. A local malt plant is testing the burning of the gas mixture containing 10 volume percent hydrogen in a combined heat and power (CHP) plant.

Biomethane from kitchen waste Wiener Netze (Austria)

Connection biogas plant to local DSO grid. Plant turns biogas produced from kitchen waste into

biomethane by using membrane technology that separates other gases from methane.

Plant treats around 22.000 tons of kitchen waste per year which

enables an annual production of 1,2 million m3 biomethane. No additional costs for the customer since it is not necessary to

invest in new household appliances, nor change the logistics for the collection of organic waste.

The biogas production is forecast to increase by 12.000 tons/year hence up to 2,1 million m3/year biomethane would be injected into the grid.

Biomethane from local biomass

LIGER (France)

Production of electricity, heat and fuel, and organic fertiliser with 2 energy sources from territorial biomass —wood and organic resources.

Several complementary and integrated processes: • Methanisation unit is fed by 60.000 tons of organic residues

from the local area (20km range) and enables the production of biogas, optimised through cogeneration.

• The electricity produced is injected in the grid and the heat is distributed via a heat network.

• After purification the biogas is injected in the existing gas grid. Some of the biogas (11%) is reserved for conversion to biomethane fuel for the trucks used to transport materials and vehicles belonging to the community and users of the site.

• The wood-burning heat-generation boiler is linked to the methanisation process. With 2MW, the boiler feeds the heating network of 4km enabling to heat public, industrial and private facilities. The burnt wood comes from the local forest residues (max. 25km range).

Green gas from waste water treatment – Milan (Italy)

Pilot project aim: - in cooperation with Fiat Chrysler Automobiles and National Council for Research. - allow the production of green gas from sewage by upgrading the biogas produced in the

Niguarda-Bresso plant. - assess the quality and the quantities of the green gas produced before a full

industrialisation. Project can provide 341 tons of green gas per year, able to supply 416 vehicles with 20.000km

of coverage.

In case of positive assessment of the tests, the green gas will be used for internal consumption, for external needs (by a specific biomethane station which will be built close to the wastewater treatment plant) or will be injected into the gas grid.

With 670 million m³/year of gas, the full exploitation of the municipal wastewater potential could ensure up to 70% of the national production of gas and nearly 2% of the national consumption.

* minimal cost under the assumptions

Sources: licensed by Creative Commons BY 3.0: Created by macrovector, johndory/Freepik - Freepik.com, and by Freepik - Flaticon.com

“Commit-to-Connect 2050”

… consumption Heating Mobility Industry ...

… conversion

… production

… storage

… Grids in electricity Hydrogen Methane ...

Per region:

Capacities of all

technologies for….

Between the regions:

Capacities for …

Power Power-to-Gas (H2 and SNG) and

biomethane

Region 1

Region 2 Region xx

Data-Inputs Optimal Planning Optimal * CO2-neutral system (quantified, regional)

Energy-

economical

Planning model

with adjustable

assumptions

Energy consumptions

per sector and region

EE potentials of all

sources per region

Forecast for cost

of technologies

Forecast for

technology

efficiencies

…

Until 2050

East German TSO + 10 DSOs + 1 SSO + 2 renewable gas producers + WECOM

joined forces to develop a target picture for a renewable energy economy in East Germany

19

Source: Ingrid Newsletter

1 STEP

2 STEP

INGRID PROJECT

20

MgH2

Source: Ingrid Newsletter

The INGRID PROJECT

• investigate the long-term energy storage in current power

distribution network that was not designed to allow unlimited

electricity injection generated with RES

• demonstrate the concrete opportunity to store the H2 in a solid

state (no dangerous managing operations performing)

integrated with electrolyze and fuel cell technologies to

implement an high efficiency energy generation close/open

loops

• design and implement new technologies new ITC tools for

smart grids and energy management Source: 2016 Ingrid Project

Presentation

INGRID PROJECT

The STORE&GO project goes beyond the state of the art Power to Gas technology and focuses on the daily operation of the European energy grids to investigate the level of this technology. 27 partners - organizations and companies - from all over Europe collaborate in the project to integrate P2G into the future European energy system

Source: 2017 Eurogas – Gas Distribution: Bringing Clean Energy to Consumers

23

The STORE&GO PROJECT

• respond at the challenges which are associated with high

penetration on intermittent RES storage technologies

• aim to study the feasibility of long-term storage, bringing

together engineers from Italy, Germany and Switzerland to find

a solution to overarching issue

• go beyond the state of the power to gas technology and focuses

on the daily operation of European energy grids to investigate

the level of maturity of this technology

The STORE&GO project will be demonstrated at a scale between

200kW and 1 MW in for a runtime of 2 years. The resulting

product – synthetic gas – will be injected into the existing grid

and delivered to customers, laying the groundwork for a smarter

and more coordinated design of networks

Source: 2017 Eurogas – Gas Distribution: Bringing Clean Energy to

Consumers

Source: 2017 Store&Go #D7.2 Report

Demonstration site

Falkenhagen /Germany

Demonstration site

Solothurn/Switzerland

Demonstration site

Troia/Italy

Representative region

with respect to typical

generation of RES

Rural area in the North East of

Germany with high wind power

production and low overall

electricity consumption

Municipal area in the Alps region

with considerable RES from PV

and hydro production

Rural area in the Mediterranean

area with high PV capacities,

considerable wind power

production, low overall electricity

consumption

Connection to the

electricity grid

Transmission grid

Municipal distribution grid

Municipal distribution grid

Connection to the gas

grid

Long distance transport grid

Municipal distribution grid

Regional LNG Distribution

network via cryogenic trucks

Plant size (in relation to

the el. Power input)

1 MW 700 kW

200 kW

Methanation

technology to be

demonstrated

Isothermal catalytic

honeycomb/structured wall

reactors

Biological methanation Modular milli-structured catalytic

methanation mini reactors

CO2 source Biogas or bioethanol plant Waste water treatment plant CO2 from atmosphere

Heat integration

possibilities

Veneer mill District heating CO2 enrichment

Existing facilities and

infrastructure

2 MW alkaline electrolyser,

hydrogen injection plant

350 kW PEM electrolyser,

hydrogen injection plant, district

heating, CHP plant

1000 kW alkaline electrolyser

Source: 2017 Store&Go # D7.2 Report

Developing Hydrogen Appliances

Hy4Heat Programme (UK)

Major government-funded research and innovation programme (£25m) 2018-2021

Mission statement: To establish if it is technically possible, safe and convenient to replace methane with hydrogen in residential and commercial buildings and gas appliances. This will enable the government to determine whether to proceed to a community trial.