2012 mar natural gas facts figures

7/28/2019 2012 Mar Natural Gas Facts Figures

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Natural GasFacts & Figures

March 2012

International Gas Union


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Navigation-tool for the Natural Gas Facts & Figures slide-pack

1. Markets for Gas Power Generation Industry Chemical Feedstock

2. Natural Gas Resources, Supply & Transport Reserves: Conventional & Unconventional Gas Transport LNG

3. Environmental Impact Power generation from gas with / without Carbon Capture & Storage

(CCS) Efficient Partner for Wind (and other intermittent energy sources)

4. Prospects for Developments of Further Technological Options

Commercial Sector Residential Sector Transportation Sector


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Goals and Objectives

Highlight the value of natural gas to ensure

its fullest economic and environmental

contribution in low carbon energy systems


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Note:

The cost estimates in this package have been based on reliable, verifiable data.

However they may not concur with cost estimates in other publications.

This may be due to a variety of factors and assumptions, e.g.:

Prices of fossil fuels

CO2 prices

Location factors

Size of plants

Costs of steel

EPC costs

Discount factors

Lifetime of plants

All cost comparisons in this package should therefore be considered as indicative.

While capital costs of different options may vary considerably in absolute terms, in relative termsthere is very little variance

(For reasons of consistency all cost data used in this package have been taken from the June 2010, Mott MacDonald(MMD) report for the UK DECC)

Cost estimates


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1

Markets for GasCost effective, Convenient and Efficient


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Growing Global Demand for Gas

Source: IEA, The Golden Age of Gas, 2011(GAS scenario)


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Power Generation


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Embryonic Expansion Maturity Decline

Nuclear

Hydro

Wind

Solar

Electricity demand

fluctuates from hour to hour

over a year

Jan Dec

Same demand ranked in descending orderillustrated by a

load duration curve

and corresponding supply

MID-LOADSUPPLY

BASE-LOAD SUPPLY

PEAK-LOADSUPPLY

Source: IGU/ Clingendael International Energy Programme (CIEP)

Meeting Electricity DemandEXPLANATORY NOTES

PEAK-LOAD, MID-LOAD and BASE-LOAD SUPPLY


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Gas-fired Power GenerationCCGT (Combined Cycle Gas Turbine)

Modern combined cycle 1000 MW powerplant (CCGT)

Diagram CCGT, a combination of a gasturbine and a steam turbine. Efficiency ~59 %.

Very efficient generation technology


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High efficiency (relative to other options)

Less thermal waste & less cooling needed

Compact equipment

Lower investment and operating costs than oil or coal plant

Shorter construction time and easier permitting process

Few environmental problems (relatively clean)

Less CO2

emission rights needed than for oil or coal

Suitable for meeting base-loadandmid-loaddemand

Very efficient generation technology

Gas-fired Power GenerationCCGT (Combined Cycle Gas Turbine)

Source: based on MMD, June 2010


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Source: MMD, June 2010

2

5

1

4

3

Capital costs of options may vary considerably in absolute terms,

but very little in relative termsIndicative, cost levelsmillion $/MW

Gas-fired power generationLowest capital costs per MW installed


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Prices (at plant inlet)

Gas : 8 $/MMBtu

Coal: 80 $/t

Source: MMD, June 2010 Capital costs of options may vary considerably in absolute terms, but very little in relative terms

$/MWh

Based on: 7000 hrs operation for gas and coal per year

2500 hrs for onshore wind per year

3600 hrs for offshore wind per year

7800 hrs for nuclear per year

Competitive for meeting Base-load Demand

Gas: A competitive option for new generationLow All-in Unit Costs per kwh produced


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Prices (at plant inlet)Gas : 8 $/MMBtuCoal: 80 $/t


Capital costs of options may vary considerably in absolute terms, but very little in relative terms

$/MWh

Based on: 4300 hrs operation for gas and coal per year

Flexible and Competitive for meeting Mid-load Demand

* Costs do not take account of effect of interruptibility on the plant efficiency

Gas: A competitive option for new generationLow All-in Unit Costs per kwh produced

G fi d P Effi i t


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Gas-fired Power: EfficientSmaller plant size reduces risk of overcapacity

Gas CCGT Coal

supercritical

Nuclear

450

600 -1000

1000 -1600


Minimum size to capture economies of scale (in MW)


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Gas-fired power: Efficient

0

1

2

3

4

5

6

7

8

CCGT Coal Nuclear

Plus shortest time for permitting etc

years

Source: Energy Technology Perspectives, IEA 2010

Short construction time reduces risks of demand uncertainty.


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CHP: A very energy-efficient option

CHP: Combined Heat & Power.Also: "cogeneration

Proven technology

To reduce thermal waste from

power production and use theheat.

Higher efficiency than separategeneration

Saves energy and emissions

Total efficiency ~80 %.

Can take biogas

Source: Energy Delta Institute


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Industry

Gas: Convenient & Efficient Source of Energy


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Gas: Convenient & Efficient Source of EnergyEconomic and Clean

Easy handling, lower installation and maintenance cost

Good controllability of processes and high efficiency

Direct heating or drying of products or materials

Clean and environment-friendly

Less CO2 emission rights needed (where applicable)

G C i t d Effi i t S f E


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Gas: Convenient and Efficient Source of Energy(examples)

Steam drums for paper manufacturingCeramic foam infrared heater (1150 oC)

Gas: The Efficient Source of Energy


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Gas: The Efficient Source of Energy(examples)

Infrared (IR) paint drying

Batch grain dryer


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Chemical Feedstock

Industry chemical feedstock


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Ammonia converts: some 135 bcm/year

for production of fertilizer, fibers, etc

Methanol converts: 30 bcm/year

Gas conversion industry uses gas as an efficient and valuable source for

chemical conversion into other products which are sold worldwide

Industry chemical feedstockMore than 165 bcm/year

Source: IGU/ Clingendael Institute (CIEP)

Chemical feedstock


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From Natural Gas Source: Dutch State Mines (DSM)

Chemical feedstockMany high quality and high value applications


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Commercial Sector

Gas: The Efficient Source of Energy Commercials


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Gas: The Efficient Source of Energy Commercials

Offices, schools, hospitals, leisure centers and hotels

Shops, restaurants, caf's,

Small businesses, workshops, garages

Easy handling once infrastructure is present

Lower investment cost compared to other fuels

High efficiency heating equipment available (incl. condensation)

Gas: The Efficient Source of Energy


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Gas: The Efficient Source of Energy(examples)

Green houses use

Boiler house in green house.Gas use temperature dependent.

Assimilation illumination

+ Use of CO2 from exhaust gases

as fertiliser


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Residential Sector

Effi i t d i t ll f i dl f l fResidential


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Efficient and environmentally friendly fuel forheating, hot water and cooking

High efficiency heatingsystem (hot water boiler)with storage vessel

High efficiencyheating system

Clean and easy handling once infrastructure is present

Low installation cost vs. other fuels

High efficiency heating equipment available

High comfort factor

Individual heating systems in apartment blocks

Micro CHP:


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2-

Micro CHP:

Heat and power fromone apparatus

High efficiency systemwith generator

Your own home powerplant

Commercial applications in various countries

Residential Cogeneration System


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Residential Cogeneration System

GEPEFC

PowerUnit

Grid Power

City Gas

BuckupHot Water Floor Heating

Bath

Air Conditioning Lighting

TVShower

Heating

Heat

Recovery

Unit

Source: Courtesy Osaka Gas


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Transportation Sector

Automotive Fuels: CNG and LNG


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Automotive Fuels: CNG and LNG

CNG : Compressed Natural Gas

Gas stored in vehicle at high pressure (200 bar)

LNG : Liquefied Natural Gas

Gas stored in liquefied form at atmospheric pressure(requires cryogenic tank and regasification equipment )

Best in heavy vehicles and ships

Alternatives :

Gasoline, diesel, LPG

Position gas :

Clean, low on emissions

Feasibility depends on fiscal regimeBest in vehicles with limited travel radiusand many stop-starts

Reduces dependence on/import of oil

LNG as automotive fuel for heavy vehicles


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LNG as automotive fuel for heavy vehicles

LNG is used in increasingly many places for road transport fleets: Buses, Dust Carts, ChilledContainer Transporters it gives good engine performance and a vehicle range comparable withother fuels

LNG is suitable to fuel high-consumption transport where space for the LNG storage isreadily available: e.g. trains and sea ferries

LNG is less-suitable for small privately-owned vehicles because of more complex proceduresand more expensive fuelling stations with special requirements regarding their location.

Heavy vehicles do not lend themselves to be run on electric power.

CNG and LNG as automotive fuel


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3

US builds Interstate Clean Transportation Corridor

North Americas fuelling infrastructure has been built

over the past 100 years, giving oil-based fuels anadvantage over newer alternatives, like natural gas or

hydrogen. Now, there is project to develop a newnetwork of alternative fuel filling stations for long-haultrucking fleets in western United States.

The Interstate Clean Transportation Corridor (ICTC) proposesa network of LNG and CNG facilities connecting heavilytrafficked interstate trucking routes between Utah, California,

and Nevada. The aim is to promote the conversion of heavy-duty fleets from diesel to natural gas in order to cut downemissions, reduce oil dependence and save fuel costs.

for heavy vehicles (example)

Source: Interstate Clean Transportation Corridor

LNG as fuel for ships


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LNG propelled ferry, Norway

LNG as fuel for ships

Application of LNG as bunker fuel is rising rapidly

CNG based road transport


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Examples

New VW Passat Estate TSI EcoFuel

model powered with turbocharged CNG

engine

1.4-liter TSI 110 kW (148 hp) emitting119 124 g CO2 / 100 km

With average consumption of 4.4 5.2

kg / 100 km and 21 kg reservoir

possible range with one filling is around

450 km

Turbocharged CNG engines

a growing business (examples)

CNG based road transporti b i


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Source : NGV Journal 07/2011

a growing business (examples)

CNG based road transport


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p

Natural gas for road transport


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Source: Gasunie Natural gas, part of an efficient sutainable energy future, The Dutch case, Feb 2010


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2

Natural GasResources, Supply & Transport

Natural Gas reserves:plenty & more to come


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plenty & more to come

Proven conventional reserves are growing

In addition:

Unconventional gas hascome within technological &economic reach

Volume

Conventional

Unconventional

The total long-term recoverable conventional gas resource base is more than 400 tcm,another 400 tcm is estimated for unconventionals: only 66 tcm has already beenproduced. - IEA-Golden Age of Gas 2011-

Shale gas

Coal bedmethane

Tight gas

Conventional Reserves:plenty and more to come


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plenty and more to come

Global proven gas reserves have more than doubled since 1980,reaching 190 trillion cubic metres at the beginning of 2010

0

40

80

120

160

200

1980 1990 2000 2010

tcm

Europe

Latin America

North America

Africa

Asia-Pacific

E. Europe/Eurasia

Middle East

Source: IEA World Energy Outlook 2011

Growing proven reserves

Types of Unconventional Gas


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Tight Gas Shale Gas Coalbed Methane

4

Occurs in tight

sandstone

Low porosity = Little pore

space between the rock

grains

Low permeability = gasdoes not move easily

through the rock

Natural gas trapped

between layers of shale

Low porosity & ultra-low

permeability

Production via triggered

fractures

Natural gas in coal

(organic material

converted to methane)

Permeability low

Production via natural

fractures (cleats) incoal

Recovery rates low

Source: Shell

y

Growth of unconventional gas productionImpact on US supply


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Source: James Baker Institute, Rice, 2010

Developments of shale production in the United States

have a major effect on the US market and will impact rest of the world

US shale production grows to about 45 % of total production by 2030

Impact on US supply

World gas resources by major region (tcm)significant unconventional prospects world wide


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significant unconventional prospects world-wide

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Source: IEA Golden Age of Gas, 2011

Inventorization of unconventional gas is still at an early stage

The prospects of unconventionals


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Unconventional gas offers potential for more domesticproduction in many countries

Particularly for countries like China and Poland this could

help to reduce dependence on coal

First exports of unconventional gas under developmentAustralia: First LNG export project based on Coalbed Methane (8.5 mt/acommitted with potential to expand)

US: Various LNG export projects in planning stage due to successfuldevelopment of shale gas

The prospects of shale gas


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Shale gas is so far only produced in North America. Its true potential is

still a matter of uncertainty.

Environmental concerns revolve around ground water contamination

resulting from hydraulic fracturing. Governments, together with industry,

are addressing new regulation for shale extraction to protect public

health and environment.

Energy used for production and its CO2 emission is higher than for

conventional gas (see next slides).

Well-to-burner greenhouse emissionsshale gas vs conventional gas


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shale gas vs conventional gas


Mt CO2-eq per bcmIncremental for shale gas:

Flaring & venting

Production

All types of gas:

Production, flaring,venting & transport

Combustion

4


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Gas Transport

Energy Transportationdaily equivalents


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Basis: equivalent of 50 million m3/day of natural gas

(1 large pipeline 48 or 56)

(diesel)

Source: Energy Delta Institute

y q

Natural Gas and Electricity Transmission


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Lower losses and lower costs of large volume and/or long distance energy

transmission

More energy transportation capacity for different customers in different

segments of the energy consumption

Lower visual impact

Better and more economic storage options

Gas pipelines offer:

Source: Clingendael International Energy Programme (CIEP), 2012



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Gas pipelines offer more energy transportation capacityLower visual impact from transport of gas vs overhead electricity lines

For high volume energy transportation:

8 power transmission masts of 3 GW each are equal to 1 gas pipeline (48 inch)

Source: Gasunie



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Lower costs of energy transmission


A specific advantage of gas transmission compared to electricity transmission is that

for gas in growth markets much larger economies of scale can be realised than for

power transmission and thus much lower costs per kwh. For electricity, a maximum

scale of 2-3 GW is technically achievable, after which multiple (parallel) lines are

required*. However, gas pipelines have a capacity between 10 and 25 GW.

Gas transportation for electricity generation can be combined with gas for other

consumers in other market segments, leading to substantial economic advantages.

* for very long distances (over 800 km) UHVDC lines can offer scale advantages up to 6-7 GW

5



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Overhead power transmission

Capital costs:

at least 2-3 x more expensive per unit of energy than gas pipelines sized for high

volume transmission

only in the case a gas pipeline is laid only to transmit gas for power generation, as

may be the case in an emerging market, the capital costs are of the same order of

magnitude

Underground power transmission

Capital costs: at least 10-15 x more expensive per unit of energy than gas pipelinesizedfor high volume transmission

Lower costs of energy transmission with economies of scale


5



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Losses pipelines: 0.2-0.4% per 100 km

Losses (AC): 2-4% per 100 km

Losses (DC): 0.2-0.4% per 100 km plus 1% one-off conversion loss

Lower losses from energy transmission


5



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Overhead electricity transmission(and underground gas pipeline)

Underground electricity transmission(and underground gas pipeline)

Example of large scale, long distance transmission

Indicative transmission costs of gas and electricity (ct/kWh for 200 km)(24 GW or48 pipeline over 200 km)


Load Factor = 5500 hrs

5

Natural Gas and Electricity TransmissionEXPLANATORY NOTES


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Input parameters for calculation of indicative costs of gas vs electricity transmissionDiscount factor: 10%

Load factor of electricity/gas transport: 5500

Lifetime: 25 years

Energy losses AC transmission: 3% per 100 km

Energy losses DC transmission: 0,3% per 100 km + 1% loss during AC-DC-AC conversion

Energy losses gastransport: 0,3% per 100 km.

Capex gas pipeline 24 GW: 0,2 mln/MW per 100 km

Investment costs of AC overhead transmission, AC underground cable and DC underground cable are

based on Parsons Brinckerhoff "Electricity Transmission Costing Study (Jan 2012) for the case Lo (3

GW) for75 km.

Investment costs of DC overhead line based on ABB "The ABCs of HVDC Transmission Technology",Case 500kv

Investment costs of large scale gas pipeline (24 GW) is based on the average of building costs of

existing pipelines (BBL, Blue stream, Green stream, Europiple II, Franpipe, Langeled, North stream)


5


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The LNG market:

Connecting regions

LNG Production Growingin all Global Regions


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Source: IGU World LNG Report, June 2011 (PFC)

Growing Liquidity in the LNG MarketFlexible LNG


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The LNG industry has a total of around 1 660 bcm of LNG available for salefrom existing production over the period 2009-2025

IEA WEO 2009

Flexible LNG makes the LNG industry very responsive to changingdemands of the global market

LNG adds to the diversification of the supply sources

The LNG market: Very accessible


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Considerable growth of LNG import capacity in all regions matches theflexibility of the LNG industry to supply

(production vs capacity of receiving terminals)

LNG: More flexibility through new technology


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On-board regasification offers low cost and convenientoption to supply gas to new and existing markets

LNG:More flexibility through new technology


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Source: Skaugen

Gassource

Small scale LNGoffers opportunities to produce otherwise stranded gas and reduce gas flaring

Overland transport of LNG:By road trucks and railcars


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LNG is transported by road truck in many countries

Trucked LNG has many small-scale uses:

Domestic and commercial piped gas supply from

satellite re-gasification terminals located in places

remote from pipelines

Small industrial users (electric power, engine tests,

glass, paper)

Commercial users (trains, buses, ferries, institutions)

Supply to peak-shaving plants

Supply to pipeline network during repairs or

maintenance


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Costs of Production and Supply

Indicative Cost Curve


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Source: IEA WEO 2009

Long-term gas production cost curve

Note: 5 $/MMBtu compares to less than 30 $/bbl

per

$

1$

Indicative supply cost

* Delivered

*


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3

Environmental Impact(examples are focussed on power generation)

Natural Gas with or w/o CCS:Cleanest fossil fuel for power generation


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6

1

0,75

0,5

0,25

0

GHG Emissions

Metric Tons CO2 per MWH

Wind (0)Nuclear

Solar Clean

Natural Gas*(0.04)

CleanCoal*

(0.09)

Oil (0.80) Coal(0.85)

Natural Gas(0.35)

* With CCS

Source: IGU based on CERA

Natural Gas fired generation:Smallest ecological footprint for power generation


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NaturalGas

Wind

Solar

10

10,000

40,000

Land use in acres to have 1,000 MW of capacity

Source: based on data from Union Gas Ltd.

Acres

Gas: Cleanest Fossil FuelLowest emission of CO2


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Source: US Department of Energy (DOE), US Energy Information Administration (EIA)

350(100%)

850(230%)

1,200(340%)Lignite-fired power

Hard coal-fired power

Gas-fired CCGT

Emission of CO2(in kg CO2/MWh)

Gas: The Cleanest Fossil FuelAlso lower on SOX and NOX


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Global warming effect of NOX is considerably higher than that of CO2(up to 300 times for 100 years (source ICBE))

Kg/MWh

Source: US Department of Energy (DOE): National Energy Technology Laboratory (NETL) 2010

00

0,05

0,1

0,15

0,2

0,25

0,3

0,35

Gas CCGT CoalSupercritical

SOx NOx

Mercury emission from coal: 4.3 10 kg/MWh-6

Particulate emissions from heating systems


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554

306

6,1

0,11

Hard coal**

Lignite*

Heating oil

Natural gas

mg/kWh

* Emissions based on use of briquettes and lignite from the Rhineland-area in Germany

** Emissions based on use of briquettes

LUWB Landesanstalt fr Umwelt, Messungen und Naturschutz Baden-Wrttemberg; Average emission factors for small and

medium combustion installations without exhaust gas after treatment. Status: 2006, BGW; Source: www.asue.de

7

Replacing coal with gas for electricity generationCheapest & fastest way to meet CO2 reduction targets


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Over 40% of global CO2 emissions comes from Power Generation

Over 70% comes from coal-fired Generation

Karstad IGU

A near-term initiative to displace coal generation with additional generation from existing natural gascombined cycle capacity could result in reductions in power sector CO2 emissions on the order of 10%.

MIT, 2010, on the US market

The next decade is critical. If emissions do not peak by around 2020 and decline steadily thereafter,achieving the needed 50% reduction by 2050 will become much more costly. In fact, the opportunitymay be lost completely.

Attempting to regain a 50% reduction path at a later point in time would require much greater CO2reductions, entailing much more drastic action on a shorter time scale and significantly higher coststhan may be politically acceptable.

IEA, ETP 2010


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Power generation:CCS for gas and coal

CCSEXPANATORY NOTES


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CCS = Carbon Capture and StorageProcess of carbon sequestration from fossil fuels, based on existingtechnology.

CCS currently regarded as economic at CO2-emission tax levelswell above 50 $/tonne.

This section discusses only so-called post combustion carbon-sequestration.

For the analysis a distinction is made between the CO2 capture andtransportation / storage of CO2.

To date no commercial application of CCS exists, neither for coal-nor for gas-fired generation

Lower CO2 emission after CCS


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Residual CO2 emission in kg CO2/MWh

35

85Hard coal-fired power

Gas-fired CCGT

Estimate: 90 % capture of CO2emission

Gas: CCS EfficientLow Cost of Carbon Capture


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Low Incremental CapitalCosts ($/kw)

and Low Incremental Unit

Costs per kwh($/MWh)


CCS for Gas vs CoalLess CO2 to be captured, transported and stored


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Compared with CCS for Coal:

Per kwh of electricity produced

45% less CO2 to be transported

45% less CO2 to be stored

CO2

captured in kg per Mwh of electricity produced(based on 90% CO2 removal)

Resulting in

Lower costs of CO2 transportationLower call on (scarce) CO2 storage capacity


Gas with CCS: Low all-in unit costsBaseload: 7000 hrs of operation CO2 tax: 80$/t

$/MWh


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Prices (at plant inlet)Gas : 8 $/MMBtuCoal: 80$/t

Capital costs may vary considerably in absolute terms, but very little in relative terms

$/MWh

Note: CCS reduces plant efficiency


Gas with CCS: Low all-in unit costsMidload: 4300 hrs of operation CO2 tax: 80$/t


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Prices (at plant inlet)Gas : 8$/MMBtu

Coal: 80$/t

Capital costs may vary considerably in absolute terms, but very little in relative terms

$/MWh

Note: CCS reduces plant efficiency

* Costs do not take account of effect of interruptibility on plant efficiency



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Power generation:Gas and Wind

Meeting Electricity Demand Merit order basedEXPLANATORY NOTES


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DEMAND FOR ELECTRICITY CAN BE MET FROM A VARIETY OF SOURCES WHICH

WILL CONTRIBUTE BASED ON A SO-CALLED MERIT ORDER:

1. Renewable energy

Hydro

Wind

Solar

Biomass*

2. Nuclear power plants

3. Coal-fired power

4. Gas-fired power

For installed power plants the order in which these sources called upon to meet thedemand is based on variable cost of production, leading generally to the followingranking preferences.

* Not necessarily the lowest variable cost option but often favoured for its low CO2 contribution

When You Need Electricity You Cant Flicka Switch and Turn on the Sun and Wind


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Variability creates complex grid balancing and

supply security issues

Gas-fired generation can play a key role in

maintaining grid stability and supply security

8

Meeting Electricity Demand Wind PowerEXPLANATORY NOTES


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Wind power is a growing part of the generation mix. It is attractive because it is

renewable and does not emit CO2.

However, the contribution of wind power can vary significantly.

Example: Poyry 2011 estimates over a 4 months period

solaronshoreoffshore

This overview deals with the consequences of extended absences of windpower (more than 4 hours) for which combined cycle gas-fired power generationis a suitable partner

Source: CIEP/ Poyry 2011 estimates

The Impact of Variability can be Significant

EXAMPLE OF CONTRIBUTION OF VARIABLE WIND POWER TO ACTUAL


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Source: National Review Online: Bryce, August 2011

conventional sources (gas) are needed to supply (with extra flexibility)

DEMAND (LOAD) DURING HIGH PRESSURE WEATHER IN TEXASDemand (=Load) vs actual Wind Output

DEMAND

WIND SUPPLY

Installed wind power displaces fossil sources of power

Meeting Electricity Demand Wind PowerEXPLANATORY NOTES


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The main purpose of wind power is to reduce power supply from fossil fuel and thus

reduce CO2 emission

An effective CO2 reduction will be achieved if coal-based electricity is displaced by

wind power

However, in energy systems with both gas- and coal-based generation, more gas-based electricity is generally displaced than coal, as long as the variable costs of gas-

fired generation are higher than those of coal (see also example Spanish Market).

This significantly reduces the effectiveness of CO2 reduction from wind:1 MWh of wind power replacing gas-fired power leads to a reduction of 350 kg CO21 MWh of wind power replacing coal-fired power leads to a reduction of 850 kg CO2

Once CO2 emissions are priced/taxed or other performance measures are introduced

this order could be reversed

Installed wind power displaces fossil sources of powersupply, but will it be gas or coal?


Natural Gas complementing electricitysupply from Wind

EXAMPLE OF IMPACT OF VARIABLE WIND POWER ON SUPPLY FROM


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EXAMPLE OF IMPACT OF VARIABLE WIND POWER ON SUPPLY FROMGAS- AND COAL-FIRED GENERATION

(Spanish electricity market)

Source: REE, Heren, 2010

In MWh

Meeting Electricity DemandThe Wind and Gas-fired Power Partnership


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Installed wind power capacity needs backup from other power supply sources to

maintain the required level of security of supply at times of reduced wind supplyHigh and low pressure zones can extend over vast geographical areas so that generally therecan be little compensation from wind power elsewhere in a region. Dependent on regions,interconnections and availability of renewable alternatives , in most areas between 80 and95% back-up from conventional sources will be required.

Other CO2-free back-up options are not generally available on a sufficient scale to

complement a growing share of variable wind energy

Wind power capacity always needs backup from other sources

Gas-fired generation is a flexible and reliable partner for wind at the lowestincremental CO2 emission (and at the lowest incremental costs)


Meeting Electricity DemandEXPLANATORY NOTES


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Power supply is often expressed in running hours, as a fraction of total

design capacity.

In following examples onshore wind supply accounts for 2,500 hrs in any

year.

In the same examples average market demand is approx. 5,500 hrs.

Residual demand, to be supplied from gas-fired capacity thus becomes

3,000 hrs.

8


Based on 2,500 hrs of onshore wind and3 000 h f l t l f l

Gas: A suitable option for complementing windLow emission per kwh produced from wind and gas combined


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Source: Clingendael International Energy Programme (CIEP) based on MMD

3,000 hrs of complementary supply from gas or coal

CO2 Emissions in kg/Mwh

without CCS with CCS

The example illustrates that wind combined with gas reduces CO2 emission.Wind combined with coal back-up produces more CO2 than a gas plant on its own

9

All costs are based on 5 500 hrs of power supply*

Gas: A suitable option for complementing windAlso lower all-in Unit Costs per kwh produced


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Prices (at plant inlet)

Gas : 8 $/MMBtuCoal: 80 $/t


Capital costs of options may vary considerably in absolute terms, but very little in relative terms

$/MWh

The combination of wind and gas or coal

represents 2,500 hrs of onshore wind and3,000 hrs of complementary supply from gas and coal

All costs are based on 5,500 hrs of power supply

* Costs do not take account of effect of interruptibility on the plant efficiency

9


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4

Prospects for Developments of

Further Technological Options

Potential for future developmentsInnovative steps for more climate protection


93/98

Market readiness Innovation

Condensing boilertechnology & Solar

Fuel cells

Future technology

Micro-CHP

Green gas

Gas heat pump

More efficiency and

climate protection

Source: based on E.ON Ruhrgas

9

Green Gas


94/98

9

Source: Senternovem

Fuel cells


95/98

9

1. Produce H2 using electricity from solar cells or other renewables or fromnatural gas in a reformer

2. Fuel cell :2 H2 + O2 2 H2O + electricity

+ heat

Fuel cells Some characteristics


96/98

9

Silent, low maintenance

High electrical efficiency ; total efficiency 80 to 90 %

No CO2 emissions

(with likely exception for production of H2 from natural gas)

Fuel cells have stationary applications (buildings, plants, telecommuni-cations) and transportation uses (cars, buses, trucks and machinery)

Today still high cost per installed kW

Terminology (1)


97/98

9

AC

bblbcm

BTU

CBM

CCGT

CCS

CHP

CNG

Coal supercritical

CO2

DC

EPC

GHG

LF

LNG

Flexible LNG

Load duration curve

Alternating Current

Barrel

Billion (109) cubic meter

British Thermal Unit

Coal Bed Methane

Combined Cycle Gas Turbine, the current efficient type of gas-fired power

generation

Carbon Capture and Storage

Combined Heat & Power

Compressed Natural Gas

Most efficient process of coal fired power generation

Carbon dioxide

Direct Current

Engineering, Procurement and Construction

Green House Gas

Load Factor

Liquefied Natural Gas

LNG supply potential, not committed to a single market under a long term contract

A demand load curve but the demand data is ordered in descending order of

magnitude, rather than chronologically

Terminology (2)


98/98

9

Liquefied Petroleum Gas

Mega Watt hourNitrogen Oxide

Overhead transmission

Processes of dealing efficiently with peak demand of electricity or gas

Generally a broad indication of the potential availability of gas reserves

Volume of oil or gas that has been discovered and for which there is a

90% probability that it can be extracted profitably on the basis of

prevailing assumptions about cost, geology, technology, marketability

and future prices*

Proven reserves plus volumes that are thought to exist in accumulations

that have been discovered and have a 50% probability that they can be

produced profitably*

Sulphur Oxide

Trillion (1012) cubic meterTera Watt hour

Ultra High Voltage Direct Current

* IEA WEO 2010

LPG

MWhNOX

OHT

Peak shaving

Natural Gas Resources

Reserves, proven

Reserves, proven & probable

SOX

tcmTWh

UHVDC

2012 mar natural gas facts figures

Documents