from green gas to liquid fuels international methanol...

S U S T A I N A B L E G A S T E C H N O L O G Y

Danish Gas Technology Centre International Methanol Conference 2017 1

From Green Gas to Liquid Fuels International Methanol Conference

Thea Larsen, CEO Danish Gas Technology Centre

Copenhagen May 2017



Source: The Emissions GAP Report 2015 (COP21)

The Climate Challenge

• The Paris agreement is the world's first comprehensive climate agreement:

a) Holding the increase in the global average temperature to well below 2 °C above pre-industrial levels….

b) …. foster climate resilience and low greenhouse gas emissions development, in a manner that does not threaten food production;

c) Making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.

• Commitment to reach global peaking as soon as possible

• The climate challenge is one of the most complex challenges the world has ever faced – and now on the top of the global agenda



EU Targets for GHG Emissions

• The European Commission’s low-carbon economy roadmap suggests that by 2050, the EU should cut GHG emissions to 80% below 1990 levels

Source: EU climate strategies and targets

• GHG emission milestones: – 2030: 40% below 1990 levels – 2040: 60% below 1990 levels

• All sectors to contribute

• The transition must be – Feasible – Affordable



The Transport Sector is Lagging Behind in Fighting GHG Emission • Emissions from transport represent ~ 25 % of EU emissions • The sector has not yet seen the same gradual decline as other sectors

EU priorities: • Short term

– Fuel efficient engines and “smart” transport systems

• Mid to long term – Hybrid/EVs combined with

biofuels and other low emission fuel alternatives

– 10% biofuel in 2020

• Long term – Low/zero-emission vehicles

Source: EU climate strategies and targets



Passenger and Freight Traffic are Increasing

• Road traffic has the largest share of transport and is the biggest GHG emitter – Accounts for more than 70% of EU transport emissions (2014)

Source: EC, IATA, IHS

• Air (passenger) and sea (freight) traffic is substantial and growing – “IATA Forecasts Global Passenger Demand to Double

Over 20 Years” – “IHS Global Insight is forecasting that the global

container shipping volume will increase by 3.5 percent in 2016”

• Electric vehicles can potentially cover most passenger road traffic needs

• Other solutions must be pursued for heavy duty, aviation and maritime



Biofuels – a Growing Market

• Extensive use of biofuels is a prerequisite if EU is to live up to its own targets => CAGR ~ 5% projected

• Key considerations for biofuel products – Availability of feedstock/raw material – Cost and efficiency of conversion (scale) – Market price for the resulting product

• Other factors – Policies and regulatory framework – Fuel specifications and approvals – Engine development path – Distribution infrastructure – Avoid “food-for-fuel” technologies

Source: Biofuels International

Global biofuel market valued at $168 in 2016

Global biofuel market to grow to $246bn by 2024



Is Bio-methanol a Winning Fuel?

• Methanol used as chemical feedstock or petrol blend component is produced in industrial scale, mainly synthesized from natural gas

• M has the advantage that it can used as a blending component, be processed to additives like DME or used directly as a fuel

• A wide range of biomass feedstock, waste and green gas can be applied for production of bio-methanol – Controlling the feedstock and producing in scale is crucial – Bio-M production cost is 1.5-4 times higher than the cost of NG based M

• Increased demand for bio-methanol for transport purposes - as it is the case for other green fuels – is most likely to come from – A policy driven market demand – R & D/innovation driving much lower production cost, in combination

with increasing cost of fossil energy – Competitiveness vis-à-vis other biofuels

Global methanol market to grow to $54bn by 2021 – CAGR > 12 % Source: Biofuels International, Globe Newswire, IRENA



Biogas as “Feedstock” for Bio-methanol?

• Production of biogas and biomethane is being professionalized – increased private and public investments in state-of-the-art sites with critical mass production as demand is increasing

• Tests and innovative efforts regarding new non-food feedstock for the biogas production are carried out on producing sites

• Purification and methanation

processes are refined to optimize output and cut production costs

• Bio-methanol production must be competitive with other green fuels – Can the fast development in the

biogas sector be beneficial for achieving this goal?



Biomethane has the Lowest Fuel Cost in 2030

• Biomethane is a well-know green fuel with substantial potential in the transport sector

• In 2016, a Danish study: – evaluated if gaseous or liquid biofuels

for heavy transport are the most attractive way for a Danish transport sector independent of fossil fuels

– concluded that biomethane outperforms liquid biofuels and has the lowest fuel price (2030)

– (not evaluated if biomethane is best used as gaseous fuel or processed to methanol)

Source: EA Energy analyses and SDU

Fuel production costs 2030, various technologies



Biomethane Flows in the (Natural) Gas Grid

• The gas grid content is “greening” and nat. gas is blended with: – Upgraded/cleaned biogas from

manure and other waste products – Green gas from wind power and

electrolysis process – Synthetic methane from gasified

biomass

• The gas grid provides low-cost distribution with storage facilities => Efficient and flexible use of gas

• Content in the Danish Gas Grid = 10% biomethane (end of 2017)

Source: HMN Naturgas



Why Use Biomethane from the Gas Grid?

• Stable and flexible delivery of biomethane made from 2G green feedstock

• Distributed through low-cost, reliable, high-volume cross-European distribution infrastructure, already in place => Efficient and flexible use

Source: EBTP

• Low fuel costs acc. to recent study

• Other energy services can be provided to and from an integrated energy system => optimization of full production cycle



The Gas Grid as Backbone for Biofuel Products

Source: Energinet 2016



How to Fulfil Expectations

• Product research and innovation – Test feedstock and raw materials – Improve conversion and cleaning processes – Develop and test engines for new fuel mixes – Carry out demos and user tests

• Regulatory framework

– Implement incentives and tax benefits – Adapt common fuel specs and align approvals

• Actions on EU, country and global levels – Need for public and private sector cooperation – Short-term and long-term to-do lists



Conclusion: Successful transition requires Innovation and Investments • To deliver on the Paris Agreement, we need biofuels • Biogas and biomethane are available, flexible and “cheap”, and can

be used as raw material for bio-methanol - or directly as green fuel • No single fuel can solve the transport challenge • Green visions =>green solutions, when new technologies are

competitive and live up to user expectations on price, comfort etc.

Source: Biofuelstp



Danish Gas Technology Centre

• Danish Gas Technology Centre is a specialized supplier of consultancy, measurements, technology assessment and other knowledge intensive services in the field of gas and energy.

• DGC’s laboratory is accredited (EN 17025) to test gas appliances and to make gas analysis, and in our affiliated Test Centre for Green Gases we analyze biogas, hydrogen and other green gases.

• DGC is a public limited company, established in 1988 by the Danish gas sector to undertake advisory services and development assignments.

• Today, DGC holds a focus on gas utilization, production of green gases and on gas used in conjunction with other forms of energy



Thank you for your attention

from green gas to liquid fuels international methanol...

Documents