CALSTART Biomethane AB 118 Biofuels Workshop 9 09

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Taking Advantage of the Lowest Carbon Fuel: Building the CA Biomethane Industry Advanced Transportation Technologies John Boesel President and CEO AB 118 Biofuels Workshop September 15, 2009 Clean Transportation Solutions SM

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CALSTART President and CEO, John Boesel, presentation at California Energy Commission on Biomethane and AB 118 at a CEC biofuel workshop September 9, 2009. www.calstart.org

Transcript of CALSTART Biomethane AB 118 Biofuels Workshop 9 09

Page 1: CALSTART Biomethane AB 118 Biofuels Workshop 9 09

Taking Advantage of the Lowest Carbon Fuel: Building the CA Biomethane Industry

Advanced Transportation Technologies

John BoeselPresident and CEO

AB 118 Biofuels WorkshopSeptember 15, 2009

Clean TransportationSolutions SM

Page 2: CALSTART Biomethane AB 118 Biofuels Workshop 9 09

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Natural Gas = Biogas But with Some Important Exceptions

Methane

Natural gas Biogas

Less GHG Emissions

Net zero or negative

GHG EmissionsBoth Good for

Air Quality!

Fossil Fuel Renewable Fuel

Page 3: CALSTART Biomethane AB 118 Biofuels Workshop 9 09

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Green-Gas Principle – “Greening the Gas Pipeline”

Biogas

Natural gas

Residential housing

Industries

Filling stations

Page 4: CALSTART Biomethane AB 118 Biofuels Workshop 9 09

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Swedish Biomethane Vehicles

Page 5: CALSTART Biomethane AB 118 Biofuels Workshop 9 09

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Linkoping – The Bakersfield of Biomethane

Digester where raw products breaks down and produces methane

Off-the-Shelf Equipment is Used to Upgrade Digester Gas to

Transportation Quality Biomethane

Page 6: CALSTART Biomethane AB 118 Biofuels Workshop 9 09

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Methane Gas Vehicles in Sweden

(Source: Svenska Gasföreningen)

0

2000

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10000

12000

14000

16000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Year

Number

TrucksBusesCarsTotal

37% growth annually!

Page 7: CALSTART Biomethane AB 118 Biofuels Workshop 9 09

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Methane Fuelling Stations in Sweden

25 % growth annually

0

20

40

60

80

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120

140

1995

1996

1997

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2001

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2004

2005

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2007

Year

Number

BusPublicTotal

25% growth annually!

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0

10 000

20 000

30 000

40 000

50 000

60 000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Year

x1000 Nm3

Sales of Methane Gas for Vehicles in Sweden

21 % growth annually

BiogasNatural gasTotal

55 % biogas

Page 9: CALSTART Biomethane AB 118 Biofuels Workshop 9 09

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Biomethane is the Lowest Carbon Fuel – According to LCFS

Fuel Pathway Impact (gCO2e/MJ)

• Landfill gas to CNG 11.26• Biogas to CNG 13.45• Landfill gas to LNG 26.05• Biogas to LNG 28.27

Electricity (best case renewable mix) 34.90H2 (best case SB1505 scenario) 33.09

Gasoline (CA reformulated) 96.09Diesel (ULSD) 94.71Biodiesel (from soybeans, with land use impact) 68.93Conventional Natural Gas 68.00

Page 10: CALSTART Biomethane AB 118 Biofuels Workshop 9 09

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1,400,000 km natural gas grid in 32 countriesBiomethane can be distributed in the gas grid to the consumers

A wide range of biomass feedstock & high efficient production both from digestion and gasification

600 000 CNG vehicles already in traffic 2000 existing fueling stations for CNG and CBG

Liquified biomethane will play a important role

By 2030 Biomethane Could Replace 25-35 % of Fossil Fuels Used for Road Transport in Europe

Page 11: CALSTART Biomethane AB 118 Biofuels Workshop 9 09

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Renewable Methane: Building Upon the Success in Sweden

• In 2006 the State of California signed a joint agreement with Sweden to collaborate on the development of bioenergy and biomethane in particular

• Sweden has the largest biomethane program in the world

Undersecretary Desmond, Minister Sommestad, Commissioner Boyd Sign MOU

between CA and Sweden

Page 12: CALSTART Biomethane AB 118 Biofuels Workshop 9 09

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Cost of Biomethane Production in Sweden

Process ~ € / kWh ~ € / l petrol eq.

Sewage sludge0.03 – 0.04 0.23 – 0.36

Organic waste0.03 – 0.05 0.23 – 0.42

Energy crop gas(38 MW)

0.07 – 0.08 0.53 – 0.67

Synt. natural gas(100 MW)

0.04 0.36

Sources: Swedish Gas Centre, BioMil

Page 13: CALSTART Biomethane AB 118 Biofuels Workshop 9 09

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What’s Needed to Make Use of the Lowest Carbon Fuel?

• Need to build production plants and run vehicles• Give other fleets and operators a chance to see first hand

and “kick the tires”– SunLine and AC Transit have played similar role relative to use of

hydrogen in transportation

• Need to better understand the CA economics of biomethane and other issues– Sweden economics are different (can biomethane work in a state

with relatively low cost fuel?)

Page 14: CALSTART Biomethane AB 118 Biofuels Workshop 9 09

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Leading Biogas Producer Has Received Permits for 3 CA Biogas Plants

• Microgy has received permits to build three biogas plants in California

• At each site Microgy is cleaning up the biogas and generating “pipeline” quality biomethane

• Credit crisis has stalled projects• Technology can produce gas for pipeline and

transportation needs

Largest US biogas plant (Huckabay Ridge, TX) -- 635,000 mmbtu/yr gas

production targeted

Page 15: CALSTART Biomethane AB 118 Biofuels Workshop 9 09

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CR&R Perris Project

• First in the nation use of Arrow Bio system for municipal waste stream sorting and AD processing to biogas – process would reduce flow to landfill while cutting emissions

• Fuel to be used in growing CNG-powered refuse truck fleet

Page 16: CALSTART Biomethane AB 118 Biofuels Workshop 9 09

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Waste Management – Linde Project

• Follow-on to Altamont project

• Implementing commercialization of new landfill gas clean-up technology

• Southern CA (SCAQMD Basin) location

• LNG to be used in Waste Management fleet

Page 17: CALSTART Biomethane AB 118 Biofuels Workshop 9 09

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Multiple Feedstocks and Approaches

• Dairy Waste

• Municipal Trash

• Agricultural Waste

• Landfill Gas

• Trial of differing feedstocks• Differing biogas creation

techniques• Differing biogas cleanup

technologies• Pipeline, Liquifaction,

Compression• Displacement/Conversion of

gasoline and diesel

Biomethane JumpStart Program

Page 18: CALSTART Biomethane AB 118 Biofuels Workshop 9 09

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• Determination of optimal feedstocks for a given location

• Determination of optimal technologies for digestion and upgrading

• Better understanding of the economics of each bio process

• Better understanding of the market economics for biogas

• Recommendations on how to replicate and scale up while reducing costs Biogas Process

Biomethane JumpStart Program GOALS

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Summary

• Biomethane is the lowest carbon fuel with virtually zero technical risk

• Following the Sweden model, California needs to establish some production plants that can serve as learning centers for others

• Economics of biomethane production from different feedstocks need to be better understood

• CA could become the Sweden of the United States!

1 of 2 trucks running on biomethane in Caliofornia

today

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