Mini-to-Medium Scale LNG – A Profitable & Environmentally Sustainable Solution for Flared or...
Transcript of Mini-to-Medium Scale LNG – A Profitable & Environmentally Sustainable Solution for Flared or...
Mini-to-Medium Scale LNG – A Profitable & Environmentally
Sustainable Solution for Flared or Stranded Gas
Matt BARCLAY
Director, Energy Resources Group
Presentation overviewThe Agenda
• Introduction to Prometheus Energy • Small-Scale LNG Production from Flare Gas or
Non-Conventional Sources• Applicable Purification & Liquefaction Requirements• Why Small-to-Medium Scale Projects Work & What’s Driving
the Market• Niche LNG Market Opportunities & Future Demand Sources• Summary & Conclusions
Prometheus Energy CompanyCompany Background
• Vertically Integrated LNG Production and Supply Company
–Design, Own, Operate LNG Project Development Capabilities
–LNG Supply to Vehicle, Industrial and Utility Customers• Non-Traditional LNG Supply Sources
–Landfills, Coalmines, Associated Gas Wells & Digesters• Corporate Offices in Seattle & London
–Publicly Listed on London Stock Exchange (PEC.L)
What is small-to-medium scale LNG?An Overview of the Existing Market
• Numerous Small/Medium Scale LNG plants in operation around the world
–Plants sized for 2.5-100M scf/d–Produce between 1/50th and 1/500th the capacity of global-
scale liquefaction facilities–Niche Market Supply Focus
• Utility Peakshaving–Over 100 production/storage sites in US
• Other LNG Production Sources–NRU’s and/or Liquid Helium Plants–Non-Conventional LNG Plants (Prometheus)
Non-conventional Gas Source ComparisionA Comparision of Component Concentations and Other Properties
Methane (CH4), % 90-99 75-99 50-65 35-55Ethane + Propane, % 1-5 2-15 0 0
Water Vapor, % <0.01 1-3 1-10 1-10
Carbon Dioxide, % 0-5 .01-10 35-50 25-45
Nitrogen, other inerts, % 0-2 1-40 0-5 0-20
Hydrogen sulfide, ppm 0-15 0-300 100-3000 5-600
Higher heating value, (btu/ft3) 950-1,050 760-1150 505-655 350-550
Gas Source Pressure, (psig) 80-1000 50-1200 1-2 1-2
Chlorine in organic compounds, micrograms per liter
Digester or Wastewater
BiogasLandfill
Gas
Condensable hydrocarbons (NMOCs) ppmv 250-3,001 250-3,000
0 0 1-100 250-3,000
ComponentPipeline
Gas
0 1-1000
Associated or Stranded Well Gas
Technologies For Gas Purification A Suite of Technologies Exist for Gas Clean Up
• Trace Contaminants– Filtration – Chilling; Phase change– Absorption
• Water• Chemical Solutions
• Liquid CO2
– Adsorption• Activated Carbon/Zeolites• Batch or Regenerative
– TSA– PSA
• CO2 Removal– Water scrubbing– Chemical Absorption
• Amines of various types• Cold methanol
– Adsorption (PSA)– Membrane– Cryogenic
• Distillation using ethane• Freezing with sublimation
• Nitrogen Removal – Phase equilibria
• Batch or dynamic
Distributed Scale LNG Production A Solution for Otherwise Flared or Stranded Gas
Bowerman Landfill Gas-to-LNG Project Project Application: A 11M Scf/Day Flaring Reduction Project
Existing LNG Vehicle MarketsThe World LNG Vehicle Markets Continue to Grow
Refuse
Heavy Duty Fleet
Mass Transit
Paratransit & Shuttle Vans
Other Niche LNG Market Opportunites Existing Applications for LNG Utilization
Propane & Heating Oil Displacement
Residential supply
Pipeline Outage
Utility Peak-Load Shaving
Future LNG Demand ProspectsFuture Utilization in Heavy Fuel Demand Markets
Source: Tupolev
Comparision Of Alternative Fuel Prices Economics Ultimately Drive the Market
Prometheus Retail LNG with Federal Excise Tax Included
Other Alternative Fuel Retail Price
DOE - Alternative Fuel Price Report, June 2006
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
Gasoline CNG Propane Ethanol(E85)
No. 2Diesel
Biodiesel(B20)
Biodiesel(B99-100)
Pric
e P
er G
allo
n E
quiv
alen
t
46% 19% 47% 59% 41% 40% 53%
(GGE) (GGE) (GGE)
(GGE) (DGE) (DGE) (DGE)
GGE: Gasoline Gallon EquivalentDGE: Diesel Gallon Equivalent
Air Quality Benefits Of Alternatve Fuel Use Reductions in Ground Level Ozone Emissions can be Substantial
+2%
+10%
-53%
-15%
-47%
-85%
-20%
-48%
-89%
-100%
-80%
-60%
-40%
-20%
0%
20%
NOx
PM
CO
CNG, LNGBiodiesel 100Biodiesel 20
Source: 2005 NREL Technical Report 540-36355; Puget Sound Clean Air Agency Biodiesel Fact Sheet
Ozone Forming Emission Reduction % by Fuel Type and Pollutant
LNG & Related Green House Gas ReductionsThe Use of LNG Can Lead to Lower Greenhouse Gas Emissions
• While natural gas vehicles do emit minor amounts of methane, this slight amount of unburned methane is more than offset by a substantial reduction in carbon dioxide emissions compared to other fuels
CO2
Emissions
1913
176
2089
3295
0
500
1000
1500
2000
2500
3000
3500
Net CO2
Equivalent Emissions from 2004
Natural Gas Transit Bus
CO2
Equivalent of Unburned
Methane Emissions
CO2
Emissions from 2004
Diesel Transit Bus
When compared to diesel, natural gas transit buses are shown to
reduce greenhouse gas emissions by as much as 37%.
Source: 2005 NREL Technical Report 540-36355
Emissions of CO2 & CO2 Equivalent from Model Year 2004 Transit Buses
(grams/mile traveled)
+ =
Bowerman LNG Project Emissions BenefitsThe Beneficial Use of Flared Gas can have Substantial Environmental Benefits
• Emission Reductions and Environmental and Energy Benefits for Frank R. Bowerman Landfill Gas-to-LNG Project
7,600 standard cubic feet per minute (scfm)
tons CH4/yr tons CO2/yr
42,242 104,461Equivalent to any one of the following annual benefits:
Environmental Benefits
• Removing emissions equivalent to __ vehicles: 173,957
• Planting __ acres of forest: 247,888
• Preventing the use of __ barrels of oil: 2,109,687
• Displacing the use of __ gallons of gasoline: 99,155,286
Total Equivalent Emissions Reduced[Total = Direct + Avoided]
0.8995
MMTCO2E/yrmillion metric tons of carbon dioxide equivalents per year
tons of methane per year
tons of carbon dioxide per year
Presentation Conclusion And Key FindingsWhere Does the Market Go from Here?
• Continued strong world-wide growth of LNG supply & demand
– Market growth driven by economic & environmental factors
• Growing use of LNG in the transportation fuel market
– New, much larger NGV markets for 400+ HP NG engines
• New global role for LNG produced from stranded or waste gas
– Look for over 100 small/medium LNG projects to develop in next 10 years and for non-traditional sources of supply to play a significant role