Osaka GasOsaka Gas Efforts Efforts Towards a … address8...Contents 1．Outline of Osaka Gas Co., Ltd. 2．Advanced Application of Natural Gas 3．Utilization of Renewable Energy

Osaka GasOsaka Gas EffortsEffortsTowards a LowTowards a Low--Carbon SocietyCarbon Society

Takashi SakaiOsaka Gas Co LtdOsaka Gas Co., Ltd.

Executive Vice President and Representative Director

1

September 8, 2010

Contents

１．Outline of Osaka Gas Co., Ltd.

２．Advanced Application of Natural Gas

３．Utilization of Renewable Energy

４ Utili ti f U d E４．Utilization of Unused Energy

５ Effective Use of Coal Resources５．Effective Use of Coal Resources

2

Contents






3

Outline of Osaka Gas Co., Ltd.

KyotoFounded Oct. 19th, 1905

M j S i

Service of city gas, heat and electricitySales of gas appliances, devices and

Hyogo

Osaka

Shiga

Major Services Sales of gas appliances, devices and installation works related thereto

6 Prefectures in the Kinki District 78 Nara

Osaka

Service area6 Prefectures in the Kinki District, 78 cities, 29 towns

Customers 7.01 million houses (as of Mar. 2010）

Wakayama

Customers 7.01 million houses (as of Mar. 2010）

Capital 13.21 billion ¥ (Japanese Yen)

1096.6 billion ¥ (Consolidated)Sales 844 billion ¥ (Unconsolidated)

( as of Mar., 2010)

Employees 5,588 （as of Mar., 2010 excluding d d ff)

OsakaTokyo

<JAPAN>

4

Employees seconded staff) <JAPAN>

Business Domain of Osaka Gas

Sales of Gas ：8,150 million m3 （2009）

C tHigh Pressure

Pipeline

Medium Pressure Pipeline

Low Pressure Pipeline

Produce Gas

Customer

Import Natural Gas Distribute Gas

Gas Field Liquefaction Plant

Tanker LNG Tank Vaporizer

Pipeline

Pressure Governor

Gas Holder

p

Pressure Governor

CustomerDistribute Electricity

Generate Electricity

5

Change of Gas Materials（Coal→Oil→Natural Gas）

OilCoalCoal Natural Gas

1905 1953 1975 1990

OilCoalCoal Natural Gas

Light oil Coal tar

RecoverG

Separate/refine

Recover

GasHydrogenCarbon monoxide

Recover

Coke-Oven Gas Factory

6Coke

Use for making iron, castings, etc.

Products based on Coal Technologies

コークス炉ガス

都市ガス

粗軽油

粗軽油

ナフタリンon Coke-Oven Gas

Gas

Crude Light Oil Naphthalene石

炭

乾

留

コークス

コールタールタール酸

クレオソート油

Coa

l

Car

boni

zati

Coke

Coal Tar Tar Acid

Creosote Oil

フルオレン

ピッチ

Fluorene

Activated Carbon Fiberピッチ

＜Fluorene＞Mobile phones are made thinner by its characteristics of high refraction index

＜Activated Carbon Fiber＞Fine pores formed on carbon fiber are very effective for adsorbing and removing

Carbon Fiber

characteristics of high refraction index (over 1.6) and low birefringence.

effective for adsorbing and removing harmful materials with 10 times higher efficiency than activated carbon.

Fl

7

Mobile PhoneWith Camera

Optical LensFluorenePolyester ACF

（Activated Carbon Fiber）NOｘ removingEquipment forexpressway

Electric Power Business

Area Type No. of Plants Net Output

Th l 8 1 696 MW

Domestic

Thermal 8 1,696 MW

Wind 2 18 MW

Total 10 1,714 MW

Overseas Thermal 12 1,163 MW

Total 22 2,877 MW

Torishima IPP (150MW) Hayama Wind P.P.Senhoku P.S. (1100MW)

8

Overseas Business

Idemitsu Snorre Oil Development (North Sea oil field)8 IPPs in US (Included Guam) 8 IPPs in US (Included Guam)

Tenaska Gateway IPP

Qualhat LNG Terminal

Universe Gas & Oil (gas field)

Amorebieta IPP

Crux condensate fieldFree Port LNG Terminal

4 Gas Pipelines

Sunrise gas field

G p

Hallett 4 Wind Farm

9

Promotion of Natural Gas Use in accordance with National Policy

The United Nations Summit on Climate Change (September, 2010)The commitment whereby Japan will aim to reduce the emissions by 25% by 2020 if compared toThe commitment whereby Japan will aim to reduce the emissions by 25% by 2020, if compared to the 1990 level, has been expressed, premised on the establishment of a fair and effective international framework in which all major economies participate and agreement is obtained on ambitious targets by them.

The Review of the Basic Energy Plan (June, 2010)Promotion of "Natural Gas Shift" including fuel change in the industrial sector, use of cogeneration, promotion of technological development of fuel cell, its dissemination and extension in both Domestic and overseas market, and the extension use of biogas

・Fuel Change (gas ratio) :50% increase in 2020, doubled increase in 2030

・Cogeneration (installed capacity) :50% increase in2020 (8 million kW) doubled increase in 2030 (11 million KW):50% increase in2020 (8 million kW), doubled increase in 2030 (11 million KW)

10

Osaka Gas is promoting Advanced Applications of Natural Gas and utilization of Renewable Energy toward Realization of Low-Carbon Society

Contents






11

Scheme of Cogeneration and Effectiveness

To generate electricity and heat simultaneously on site contributes to Energy-saving and CO2-saving.

Scheme of Cogeneration

Waste heat generated simultaneously with electricity is recovered and used for supply of

Effectiveness of Distributed SystemTotal High Efficiency is achieved by effective use of exhaust heat, etc.

steam, hot water, air conditioning, etc. Thermal Power Station

Primary energy 100

Waste Heady gy

(Oil, Natural gas, Coal)

Electric energy40Transmission

loss, etc. 4Waste heat 56

Energy Use40%

Steam

H

Cogeneration

Primary energy

Waste heat 56Hot water

Air conditioning

Waste Heat Recovery

Gas EngineElectric Generator

Un sable

Primary energy(Natural gas) 100

Electric energy20-40

Energy Use

yBoiler

Electricity

12

Unusable waste heat

10-30Use of waste heat

30-60

Energy Use 70～90%

Product Line-up For Cogeneration

Product Line-up corresponding to a wide range of heat-to-power ratios and capacitycan be applied to various customer demands.

HouseholdHousehold BusinessBusiness

Public BathShops Hospital, Hotel

IndustryIndustry

Electric Machines, Chemical, SteelHouse Condominium

applie

d

ain

ly

SOFC Energy-saving:35％CO2-saving ：50％Power generation efficiency ：45%Waste heat ffi i 40%

Energy-saving:26%CO2-saving ：41 %Power generation efficiency ：41%Waste heat

Energy-saving:29%CO2-saving ：44 %Power generation efficiency ：44%Waste heat efficiency ：26%

Ele

ctr

icity

am

a

Miller cycle Gas Engine (Large Size)Energy-saving:27％

efficiency ：40%

Energy-saving:31%CO2-saving ：40 %

Energy-saving:29%CO2-saving ：43 %Power generation efficiency ：40%

efficiency ：34%

ed

ly

Miller cycle Gas Engine (Middle Size)

CO2-saving ：40％Power generation efficiency ：35%Waste heat efficiency ：45%

CO2 saving ：40 %Power generation efficiency ：34%Waste heat efficiency ：52%

efficiency ：40%Waste heat efficiency ：32%


Hea

t app

liem

ain

Gas Engine


y

13

Gas Turbine Gene-Light

Fuel Cells for Household Use

• We started to sell Fuel Cells (PEFC) for household use last June.• SOFC is under development, which can be expected to have larger CO2- and Energy-

Type Polymer Electrolyte Fuel Cell (PEFC) Solid-oxide Fuel Cell (SOFC)Cell Electrolyte Cation Exchange Membrane (fluoric resin) ceramics (Stabilized zirconia)

saving effects than PEFC.

Cell Electrolyte Cation Exchange Membrane (fluoric resin) ceramics (Stabilized zirconia)

Work Temp. 70～80℃ 700～1000℃

Power Generation

35%（ＬＨＶ） 45%（ＬＨＶ）

Efficiency

Total Eff. 80%（ＬＨＶ） 85%（ＬＨＶ）

CO2-saving CO2-saving

Appearance

CO2 saving ratio 40%

Energy-saving ratio

CO2 saving ratio 50%

Energy-saving ratio

Situation Commercialized in June 2009At the initial stage of demonstration

(to be commercialized in the first half of the

saving ratio27%

saving ratio35%

14

Situation Commercialized in June 2009 (2010 decade )

業務・産業用熱分野の省エネ・ＣＯ２削減についてRegeneration Burnar

＜STEP1＞

Fuel selection＜STEP2＞

Introduction of highly efficientand energy-saving systems

Heavy Oil＋

Conventional B

Highly Efficient Burner

Shift to Natural

GasBurner

１００：ＣＯ2 Emission Amount

４５７５

2

This is the energy-saving system

Regeneration Burner

Air preheat空気予熱

gy g ywhich enhances Waste Heat Recovery Ratio by alternate operation of thermal storage and pre-heating of 2 sets of burners storing thermal storage bodies.

Heat

Air preheat

Heat Storage of Exhaust air

g gHeat

storage

1. Advanced Application of natural gas 50% reduction CO P i

Introduction Case: Aluminum Melting Furnace

15

(Introduction of regeneration burner)2. Energy-saving provided by improving combustion control

method

CO2・Primary energy

Contents






16

Utilization of Biogas to City Gas

We are demonstrating to refine crude biogas from sewage plant, control its quality to our request level and send it to city gas customers through our pipeline.

Customers

request level and send it to city gas customers through our pipeline.

Customers

Receive crude Biogas

Refine and Quality Control

Send out refined biogas

Kitchen

Bath

Pipeline Gas Quality Control

Approx. 0.8million ｍ3/ Year ( equivalent to 2,000 households)

Surplus Biogas

Sew

age

Car fuel

Sewage sludge Biogas

17

Kobe City Higashi Nada Treatment plant

Generation and refining of digestive gas

City bus, etc.

Smart Energy Network

To introduce a large scale of renewable energy, Osaka Gas is developing an innovative energy system, “Smart Energy Network”, which could optimize social-wide energy management through cogeneration systems and energy network combined with a number of energy suppliers and consumers. For Specific Area: Heat adjustment among local customers through Thermal Network For Wide Area: Power adjustment among geographically dispersed power sources through Power Network Common to the Areas: Positive utilization of renewable energy (Power leveling by cogeneration systems)

Power Source for Adjustment＜Wide Area＞Power Supply

Photovoltaic Power Generation Power Network

Photovoltaic Power Generation

Photovoltaic Power Generation Thermal Network

Information and Telecommunication

Network＜Specific Area＞Heat Supply “Smart Energy Network”

Control System

【Business Customer】

ＧＥ

Thermal Network

ＧＥ

【Business Customer】Cogeneration

ＧＥ

Control System

Thermal NetworkThermal Network

18

【Business Customer】Cogeneration【Industrial Customer】

Cogeneration

ＧＥ

ＧＥ

Thermal Network

Thermal Network

Slide Only

Smart Energy Network

Osaka Gas is actually demonstrating “Smart Energy Network” system among several customers in Kansai area.

Photovoltaic Generation (Candidate)

Kakogawa Natural Gas Station (Old)

Idle land in front of Saito Station

Kousei Natural Gas Station (Old)

Beverage manufacturer AKRPElectric Power Testing Ground

(site for visualization) Kousei

CustomerBeverage manufacturer B

Cogeneration (Candidate)NTT head office

Kakogawa

Customer

Customer

Kyoto Research Park

NTT West headquarter office

Advanced Telecommunications Research Institute International

Iwasaki Energy Center（for power adjustment）

Research Institute International

Matsumoto Yushi-seiyaku Co., LtdHead quarter factory

Others (University, Factory etc.)

CustomerOsaka Gas head office

Smart Energy House

・ Smart Energy House could realize the optimization of the supply and demand of energy for household use including both electricity and heat, by the total management of three types of batteries (Fuel cell, solar cell and storage battery)types of batteries (Fuel cell, solar cell and storage battery)

・ ”Visualization of Energy” causes customers to make energy-saving activities andconsequently to review their own life styles.

A l bl t th iff f

Solar CellStorage Batteries

Apply renewable energy at the maximumImprove usage efficiency of energyControl output fluctuation of solar batteries

S ag a

Power

Heat

Power

Fixed Batteries

Electric Car

Fuel Cell

Heat

Power Heat

Highly efficient Use of

Battery

20Electric Load Thermal LoadFloor heating Hot water

Highly efficient Use of Heat and ElectricityElectric-powered Car

Smart Energy House

・Combining with storage battery improves availability of a fuel cell.・In the result, “further effective use of waste heat” and “Improvement of Power Generation Efficiency” can make CO2 emission amount reduced by approx. 84% compared to a conventional system.

Fuel Cell + Solar Cell Fuel Cell + Solar Cell +Storage Battery

Electricity generated by Solar Battery

Electricity discharged from Storage Battery

Electricity generated by Solar Battery

El t i it di h d

Pow

Pow

Use of Storage Battery

Uncontrolled Controlled

Fuel Cell operates at low output in the night.

from Storage BatteryElectricity generated

by Fuel CellPower Load

Electricity discharged from Storage Battery

Electricity generated by Fuel Cell

Power Load

Charging at late night

Discharging between late afternoon and evening

wer G

enerationC

wer G

enerationCapacity

(kWh)

Capacity

(kWh) )

21

Contents






22

Application of LNG Cold Energy・LNG is a liquid at extremely low temperature of －160℃ and vaporized by the conventional method of heat exchange with seawater.・Osaka Gas has developed various applications to find more effective utilization of LNG cold p ppenergy.

LNG Cold Energy

Cryogenic Power G ti

＜Facility of Cryogenic Power Generation ＞＜Air Separation Unit＞

Generation

Air Separation

Liquefied Liquefied Liquefied

ＣＯＣＯ２２ Emission ControlEmission Control：：Approx.150,000 ton/YearApprox.150,000 ton/Year AchievedAchieved

Intake Gas Cooling (Gas Turbine)

BOG R li f ti

Liquefied Nitrogen

CryogenicCrushing

Liquefied Oxygen

Liquefied Argon

Re-liquefaction

Carbon Dioxide Liquefaction Dry ice

23

＜Carbon Dioxide Liquefaction Facility＞

Cold Energy Supply for Neighbor Facility

Effective Application of Gas Associated With Crude Oil by AATG

AATG is the process of producing synthetic gas (mixed gas of H2 and CO) from methane-based gas by applying an original catalyst developed by Osaka Gas.

GTLAATGAATGPP

FTsynthesis

※AATG：Advanced Auto Thermal Gasification

ProcessProcessMethanol

c

Methanolsynthesis

AATG R t

Ammonia

ynth

etic

Gas

Ammoniasynthesis

AATG ReactorNatural Gas

ChemicalsS

y Oxosynthesis

Reforming tubes

Furnace Burners

H2, CO, CO2

Refinement

24

Steam Methane Reformer AATG Reactor

Volume approx. 1/100

Effective Application of Gas Associated With Crude Oil by AATG

By means of AATG Process, GTL could be produced from wasted gas associated with crude oil especially on offshore oil platforms.

◆AATG Reactor can be designed simple and compact and is advantageous for plants on the ocean in which the space is limited

Flaring amount per year (in the world) : 150 billion m3

Equivalent to crude oil consumption in the world for 8 days or 5% of production amount of natural gas.

Conventional(disposed by flaring)

GTL Production of Gas associated with Crude oil

by AATG Process

limited.

CO2 emission by flaring: 300 million tons per year

y

Land

C i U

Separation of Oil and GasDisposal by Flaring

Gas Associated with Crude Oil to GTLSea

Sea

Source: JAPT

Offshore Oil Field Offshore Oil Field

Carrying UpStorage of Crude Oil Storage of Crude Oil

25Land

Land

Offshore Oil Field Offshore Oil Field

CO2 emission per year (by One FPSO ) 600,000 tons

CO2 emission per year 300,000 tons (-300,000 tons)GTL produced (Increased crude oil production) + 3,000 barrel/day

Light by flaring shown in red line circle

Sea

oil production) + 3,000 barrel/day(Oil field scale around 10,000 to 100,000 barrel/day)

Sea

Source: The World Bank Global Gas Flaring Reduction

Contents






26

Development of CMM Concentration Technology

By applying the original adsorption technology developed by Osaka Gas, Coal Mine Methane (CMM), which was discharged in the air because of safety problem, could be utilized for fuel gas.u ed o ue gas

O2 / N2Condensed GasConcentration of th A 48%

Power Supplymethane Approx. 48%

Adsorbent strongly-

selected to methane Gas Tank

Supply

Gas Engine Generator

CMM

Vacuum Pump

Gas Boiler

Heal Supply

* The Global Warming Potential of methane is 21 times that of CO2.

Conventionally, CMM less than 30%

CMM Concentration of Methane

Approx. 21%Discharge in the air

CO i ff t b i t d ti f St d d i t (2 000 3/h)

Conventionally, CMM less than 30% concentration was discharged in the air without any effective application

Prevention of blow off to the excavation site

by prior extraction

27

CO2-saving effect by introduction of Standard equipment (2,000m3/h)► Reduction of Greenhouse gas: 40,000ton/Year （in CO2 Equivalent)


＜Amount of discharged CMM＞（in CO2 Equivalent/million ton）

ChiChina117.8

Rest of theworld145.0

U.S.A.56.2

Ukraine28.3

RussiaRussia29.0

Amount of discharge in the world＝ Approx. 380 million ton-CO2

28

Application of CMM concentration technology could greatly contribute to the reduction of Greenhouse effect gas.

Development of CMM Concentration TechnologySlide Only

2007～2008 : Technical demonstration of CMM concentration technology was completed in Fuxin Coal Mine in China.

2009 : 10 candidate sites were surveyed and Lu’an Area was selected in terms of commercialization.

【Technical Demonstration Site】

y2010 : Detailed feasibility study will be implemented in Lu’an Area.※All demonstrations are implemented with government subsidy.

【Technical Demonstration Site】

Location Fuxin City (China)

Name Fuxin Coal Mine

C it

＜Appearance＞

Capacity (Coal) Approx.6 million ton/year

Gas Recovery Approx.54million m3/year

Fuxin Coal Mine

【Selection of Commercial Demonstration Site】

Osaka Gas researched 10 coal mine areas in Lu’an Area

China.

O k G l t d L ’ A f 10 hi hOsaka Gas selected Lu’an Area of 10, which had an attractive business environment.

Slide Only


Employee : 3,000 staffsCoal Capacity : 5 3 million ton （2009）

＜Yogo Coal Mine in Lu’an Area＞

Coal Capacity : 5.3 million ton （2009）CMM generation :140 million m3/yearCMM concentration : avg.21％（min.19%) Completion : 2005

Planning area of CMM concentration facility

Production of Substitute Natural Gas from Low-Grade Coal

In terms of energy security, it is important to utilize unused resources. We are evaluating how feasible it is to make Substitute Natural Gas (SNG) from unused low-grade coal.

Production of substitute natural gas from coal gas into LNG

Coal

Synthetic gasH2, CO, CO2, CH4

H2O + CO → H2 + CO2

Shift Removal of

Removal of acid gas・CO2, H2S

Coal

Steam

O2

li

ShiftReactor

Removal ofAcid Gas

MethanationCO + 3H2 ⇆ CH4 + H2OCO2 + 4H2 ⇆ CH4 + 2H2O

Comp.

Steam cooling

Gasification furnace Methanaterash

CO2 SNG LNG Plant LNG

（Transport to Japan)Low-Grade Coal・The half of reserve

is low-grade coalg・Stable price

CCS EOR

31

(Carbon Dioxide Capture and Storage) (Enhanced Oil Recover)

Production of Substitute Natural Gas from Low-Grade Coal

Indonesia (East Kalimantan Island)

BEP l iBEP coal mine

Ilthabi Bara coal mine

Candidate site CO2-EOR

Bontan LNG plant

Mine at downstream of M h k i

ABK coal mine

32

Mahakam river

From ： Research Report on Technology of Production of Substitute Natural Gas from Coal 2009

Thank you for your attention.

33

Documents

Osaka GasOsaka Gas Efforts Efforts Towards a … address8...Contents 1．Outline of Osaka Gas Co., Ltd. 2．Advanced Application of Natural Gas 3．Utilization of Renewable Energy