Transcript No Slide Title

State of New Mexico
Renewable Energy Conference
Santa Fe, New Mexico
July 22-23, 2008
Biomethane Program
Rod Boschee
Pacific Gas & Electric Company
About PG&E and Our Business
What we do:
• Deliver safe, reliable, and environmentally responsible gas
and electricity to approximately 15 million Californians
Electric and gas distribution customers 5.0 million electric
4.2 million gas
Electric transmission circuits
18,616 miles
Gas transmission backbone
6,128 miles
Electric generation capacity
6,420 MW
2
PG&E’s Stance on Climate Change
• The link between greenhouse gas emissions and the
Earth’s warming climate is clear
• The potential consequences of global climate change
are serious
• The electric and natural gas sectors are large
contributors to U.S. greenhouse gas emissions
• Industry participants should find responsible and
effective solutions to the threats posed by global
climate change and take immediate action
3
PG&E’s Climate Change Commitment
“PG&E is committed to leading by example when it comes to
climate change. That means more than just minimizing the
greenhouse gas emissions from our operations. It also
means maximizing the opportunity we have to lead efforts to
establish responsible policies and programs to address
global climate change.”
— Adopted by PG&E Corporation, May 2006
4
PG&E’s Leadership Strategies
• PG&E will continue to be a leader in energy efficiency
programs
• Increasing supplies of renewable energy
• Facilitating clean distributed generation sources
• Pursuing wind and solar initiatives
• Leveling the playing field for low-emissions sources
• Using innovative technology
• Proposing new incentives and tax rebates for customers
5
Biogas Option
• Biogas can be manufactured from:
– Any organic material
• Agricultural waste
– Field waste
– Nut shells
• Animal waste
• Food waste
• Wastewater facilities
• Landfills
• Forest waste
6
What is Biomethane?
Biomethane is pipeline-quality
natural gas generated from
biomass resources.
Biomethane
(Renewable Natural Gas)
Upgraded Biogas
or
Bio-SNG
(Bio-Synthetic Natural Gas)
Technology:
Anaerobic Digestion/Fermentation
(Biochemical process)
Gasification & Methanation
(Thermochemical process)
Status:
Commercially available
In development
Implementation:
Today
2010
Feedstock:
Wet biomass - animal waste, food
waste, wastewater, landfills
Dry biomass – ag waste, forest waste,
municipal solid waste
Project Scale:
Small (200-400 decatherms/day/
6000 cows)
Large (15,000 decatherms/day/
1,500 tons per day plant)
Statewide Potential:
Limited (20,000-40,000 Dth/day)
Large (200,000 Dth/day)
Both processes can deliver a product that is interchangeable with conventional natural gas
7
PG&E’s Interest in Biogas Opportunities
• “We just announced that we’re seeking partners for a major
biomethane demonstration project to evaluate technologies
for creating large quantities of pipeline-quality natural gas.”
• “We think this has the real potential to contribute to the
state's renewable goals while also providing benefits like
reducing greenhouse gas emissions, helping with fire
prevention, improving local air quality, and decreasing landfill
disposal.”
Peter A. Darbee, Chairman, CEO and President, PG&E Corporation, at the United Nations CERES
Investors Forum, February 14, 2008
8
Potential Types of Biomethanation Projects
• Technologies to increase conversion efficiency, expand the range of usable
feedstock, and improve the quality of the biomethane
– Bio-SNG
• Potentially 70% energy converted to biomethane
• Unlike anaerobic, can access all ligno-cellulosic matter
• Demonstration projects in Austria, the Netherlands, and Sweden
• Similar to other demonstrated technologies (coal to SNG, IGCC, xTL)
– Advanced anaerobic digestion
– Efficient integration with liquid biofuel
– Hybrid projects (biomass with petcoke/coal gasification with CO2
sequestration).
9
Why is Biomethanation Important?
Biomethanation is an Effective Way to Generate Biopower
• Flexibility in feedstock
supply
• Gas storage maximizes
value of production
• Multiple end-use
markets
• Reduced energy loss
(pipe vs. electric
transmission)
Separating fuel production from power
generation improves economics for
utility and bioenergy developer
Generating
biomethane
instead of power
at conversion
facility
Generating
biopower in a
conventional
system gas-fired
plant
• Higher electric
efficiency
• Dispatchable
and shaping
resource
• Best available
emissions
control
10
Why is Biomethanation Important?
Renewable
Portfolio
Standard
• RPS compliant
• Meets potential
biomass set-aside
Procurement Portfolio Needs
Environmental Benefits
• Meets multiple local and system
environmental needs
• Responds to customer demand
for more green products
Biomethane
(Renewable Natural Gas)
• New gas supply source
• Fits with gas pipeline network
• Avoids electric transmission and
ancillary services investments
• More flexible than biomass
combustion for electricity
GHG
Reduction
• GHG neutral or
better
• Provides option for
reducing natural
gas’s GHG profile
11
Biomass Energy Potential in California, 2006
1,200
1030 MDth/day
1,000
800
Bio-SNG
600
400
200
Manure+GreenWaste
Shells, Prunings
Upgraded Biogas
Wastewater
Forest
Landfill upgrade
MSW
Source: Team analysis, California Biomass Collaborative
http://biomass.ucdavis.edu/pages/reports/Roadmap.doc and
http://biomass.ucdavis.edu/materials/reports%20and%20publications/2006/2006_Biomass_Resource_Assessment.pdf
*Assumes all “technically available” bioenergy converted to biomethane; thermo-chemical biomass converts to Bio-SNG at 10 dth/ton
12
Overview of Process For Biomethanation Projects
Commercially established
technologies and on-site power
Information on
needs and market
potential
Refined
RFI
Emerging biomethane
technology demonstration
proposals (Complete teams)
Gas upgrading
Site hosts
Consultants
Bioenergy Financiers
Forum
Participants and
Biomethanation Contact List
Stakeholders
Conversion
Technology
Feedstock
supplier
13
Cow Power
• PG&E is partnering with industry
participants to develop a new,
creative renewable energy
source
• Biomethane from dairy manure
will be received into PG&E’s
natural gas pipelines
• Provides renewable energy and
prevents methane from escaping
to the atmosphere
14
Options for Methane Capture
Registry Certified GHG Emission Reduction
(eliminates the release of methane to the atmosphere)
Flare on-site
Manure Digester
Generate electricity on-site
Put in pipeline for use in
a natural gas plant
Renewable
energy credit
(displaces the
use of fossilbased fuels)
15
Current Practice and Desired Goals
• Dairy cows across California produce waste that
releases greenhouse gases into the atmosphere
(biogas)
• Biogas is mostly made up of methane and CO2,
which can be processed by existing technology
resulting in pipeline quality gas
• Anaerobic digestion is a proven available
technology commonly used in Europe
16
Transportation of Biogas to Markets
• PG&E will provide open access to markets under
existing lowest-cost tariffs similar to California gas
producers
• Gas Supplier (dairy of its digester provider) will
execute Interconnect and Operating Agreement
• Gas Supplier will also execute standard California
Production Balancing Agreement
17
Interconnect and Operating Agreement
• PG&E will provide all engineering and planning
• Gas Supplier will provide digesters, scrubbing equipment,
pipeline to deliver gas to PG&E, compression, meter lot and
meter equipment, and reimburse PG&E for pipeline tap
• Supply over 500 Mcf/d
– PG&E will provide tap to the transmission pipeline
– PG&E will provide and install the meter equipment
18
Pipeline Delivery Requirements
• Gas must be compressed into PG&E’s transmission
pipeline
• Gas must meet PG&E’s Gas Rule 21.C. Quality of
Gas
– Rule21.C.13 states “…Biogas must be free from bacteria,
pathogens and any other substances injurious to utility
facilities or that would cause the gas to be unmarketable
and it shall conform to all gas quality specifications
identified in this Rule.”
– Specifications include 1% CO2 and 4 ppm H2S
19
Advantages of Pipeline Biogas
• Provides reliable renewable gas supply
• Most efficient use of biogas for generating electric energy
• Significant reduction of greenhouse gas emissions at dairy
• Utilizes existing transmission pipeline infrastructure
• Provides dairy with new revenue source
20
Overcoming Challenges
• Monitor quality of biogas delivered from dairy digesters
• Review and evaluate CO2 removal technologies
• Assist with identifying funding to cover initial investments
– Work with Western United Dairymen to develop grants
– Modify existing tax rebates to include delivery of pipeline
biogas
• Assist the efforts to make co-digestion in dairy digesters a
feasible alternative
21
22
23
24
25
26