natural gas pathways: towards a clean and renewable energy future for california southern california...
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Natural Gas Pathways: Towards a Clean and Renewable Energy Future for California
Southern California Gas Company September 24, 2015
California’s Dual Emissions ChallengeFederal Clean Air Act and California Climate Change Initiative
Measures to Reduce Smog and GHG Emissions Drive Today’s Energy and Environmental Agenda
Natural Gas will Play an Increasing Role as a Solution
FEDERAL CLEAN AIR ACTReduce SMOG by
75-80% before the next 20 years
CA CLIMATE GOALS (AB32) GOVERNOR’S EO:
By 2050, reduceGHG emissions to
80% of 1990
THE TRANSPORTATION SECTOR
80% of the region’s SMOG
40% of its GHG emissions
And, we have a
CLEAR FOCUS
Major Ozone (NOx) Emissions Sources in South Coast Air Basin
It’s NOT Either/Or. It IS Both/And!
California focused on electrifying end uses and “de-carbonizing” electricity
Electrify transportation Electrify energy end uses De-carbonize generation
SoCalGas focused on “near-zero” end use technology and “de-carbonizing” the pipeline
Near-zero NGV’s Near-zero gas technology Decarbonize gas supply
• Hydrogen blending• Renewable methane feedstocks
California Climate Change PolicyMake Room for “Near-Zero” End Uses and Low Carbon Gas
2030 Targets- 50% RPS- 50% more EE savings- 50% Petroleum reduction
- 40% GHG reduction below 1990 levels
LegislationSB350SB32GHG Reduction Fund
New “Near-Zero” Truck Engine to be Ready for Prime Time
Near Zero Emission Natural Gas Engine<0.02 g NOx
• SoCalGas working with agencies and engine manufacturers to deliver truck engine 90% lower emissions for 2018!
• Tailpipe emissions the same as emissions from generating electricity to run similar truck on electricity, years before heavy-duty EV trucks ready for the market
5
NGV Game Changer
6
Expands upon 2012 Science article
Natural Gas Energy Efficiency A Resource of First Choice for Multiple End Uses
Energy Efficiency has been a
critical part of state policy for
more than two decades.
EE maximizes uses, reduces
GHG emissions, creates jobs
New EE goal is unachievable
without including “To-Code”
Savings in EE Programs.
State needs to shape Policies to
increase EE Savings.
7
Codes & Standards:The Driver of Energy Efficiency and Zero Net Energy
From Technology Conceptualization to Code Compliance
Aggressive aspiration goals for Zero Net Energy (ZNE)
• All Residential New Construction by 2020
• All Commercial New Construction by 2030
• 50% of existing buildings to be retrofit to ZNE by 2030
As codes advance, “above-code” becomes difficult to justify
The move toward “near-zero” emission technology focuses on:
Distributed Generation Community-scale Generation Matched with
Renewables Power Generation with Carbon Capture
De-Carbonizing Electricity:Natural Gas Stationary Use Pathways
Not just
Solar and
Wind…
• Fuel Cells
• Micro-turbines
• Combined Heat
& Power
De-Carbonizing the Pipeline: Renewable Natural gas
Convert waste from dairies, farms and landfills
into biogasusing anaerobic digestion
extract the methane
put in the pipeline for future use
SOURCE: Bioenergy Association of California, CARB May 2014 Look-Up Table30
POWER
2-3 million homes
WHAT’S POSSIBLE
REPLACE
75% of all diesel used by CA vehicles
When used for transportation, Biogas from food and green waste can actually
REMOVE GHGs from the atmosphere
De-Carbonizing the Pipeline: Power-to-Gas
carbon captured from factories and plants
excessrenewable
energygoes throughelectrolysis
which splits the molecule
hydrogen & carbon combine through
methanization
methane can be stored in the pipeline for future use
RD&D of cleaner, more efficient natural gas technologies, inc. P2G at UC Irvine.
Offering tariff services to support new markets Compression Services to facilitate development of
NGV market Biogas Conditioning Services to facilitate
development of renewable natural gas market Proposing Distributed Energy Services tariff to
facilitate more efficient use of heat and power
Portfolio of Energy Efficiency Programs
Supporting Legislative and Regulatory Policies that are: Fuel and Technology Neutral Maintain Customer Choice Cost Effective
SoCalGas Facilitating Cleaner Energy Options for Our Customers
Appendix
Technology Transfer and Transportation Pathway
Current State GHG Pathway Power To Gas Projects German Energy Agency on P2G E3 2050 Study – Low Carbon Gas Pathway SB350 Overview
Technology Transfer and Transportation Pathways
LocomotivesShort/Long
Haul
Transit/Fleet Vehicles
Off-road High Horsepower/ Construction Equipment
Marine VesselsHeavy Duty Trucks
Short/Long Haul
CNG LNG
Current Focus Expanding Focus
SoCalGas’ Transportation Pathway focuses on natural gas vehicles in heavy duty sectors, which represent the largest share of both ozone/greenhouse gas problem. Technology transferrable to other sectors:
2010 2015 2020 2025 2030 2035 2040 2045 20500%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Rem
ain
ing E
mis
sio
ns R
ela
tive t
o 2
010
2050 CARB Statewide
GHG Target
75 ppb ozone standard
Current State GHG Pathway -- Focused on Electrification
Will Miss Ozone Deadlines
80 ppb ozone standard
Natural GasOpportunity
Reductions need to
be achieved Faster
& Sooner than
current statewide
GHG reduction goals
CA Statewide CO2 South Coast Target NOx Reduction necessary to meet Federal Ozone Standards
Use of Natural Gas
in Transportation
Sector can help
achieve ozone
standard sooner
South Coast Air Quality Management District
2MW Power-to-Gas Demonstration Plant (Falkenhagen, Germany)
First power-to-gas plant to inject hydrogen into the natural gas grid (August 2013)
Hydrogenics Plant (Stuttgart, Germany)
Uses a PEM electrolyzer to produce H2 from water. Uses CO2 from biogas plant. Injects CH4 in pipeline system
Power-to-Gas Projects: Provides green hydrogen pathway and grid storage
30 projects
launched in
Europe to date
German Energy Agency on Power-to-Gas: “System Solution”
• DENA Website (German Energy Agency)
With the Power-to-Gas Strategy Platform, the Deutsche Energie-Agentur GmbH (dena) – the German Energy Agency – and its partners are supporting the use and development of the Power-to-Gas system solution.
• CAISO (on the “Duck Curve”)
…steps must be taken to mitigate over generation risk. These steps include increasing exports…and requiring renewable generation curtailment. The ability to export power depends on the needs of neighboring entities…the resource mix would also benefit from resources with energy storage capabilities…
• Pipeline de-carbonization works together with electrification towards Climate Change objectives
• Pipeline de-carbonization offers Cost Effective and Resilient Pathways
• De-carbonization can play an important role Integrating Variable Renewable Generation Resources
• Pipeline de-carbonization reduces emissions in sectors that are otherwise difficult to electrify, including heavy duty vehicles; residential and commercial end uses, and industrial end uses
• Managing “Energy Grid” (gas and electric together) = efficiency and cost avoidance
Strategic use of gaseous fuels supports near- and long-term goals
• In nearer term, opportunities for efficiency, “near zero” technology and new uses for natural gas (transportation)
• In medium- to long-term, new low-carbon sources of gas need development and introduction
17
Expands upon 2012 Science article
E3 Study: Integration of New Low/Zero Carbon Options
18
Expands upon 2012 Science article
Senate Bill 350 – Clean Energy and Pollution Reduction Act of 2015 (Sen. Kevin de Leon)
Purpose: Create jobs, grow the state’s economy, and improve public health by setting
new standards for California’s Renewable Portfolio Standard, reducing petroleum
use, and increasing energy efficiency in existing buildings.
Original Legislation: Called for doubling the existing energy efficiency goals
SoCalGas Position – Doubling of goal is unachievable without key policy changes
Amendments – SoCalGas lobbied to include substantive EE policy changes,
including:
Allowing for “to-code” customer incentives and energy savings
Ensures that customers receive the incentive payment amount that was committed throughout the project
Allows for pay for performance energy efficiency programs
Continued Gaps
Amended language was removed that would ensure equal treatment to all EE program administrators
Amended language was removed that would create a more advantageous energy efficiency cost-
effectiveness methodology
19
Expands upon 2012 Science article
Shaping Policy to Increase EE Savings
Challenge: CPUC policy generally limits customer incentives to
“above-code” savings.
Tougher for customers to participate in EE programs.
The standards gap between existing buildings and code requirements is widening.
Governor's goal is unachievable without including “To-Code”
Savings
Current incentives are not enough for customer participation
SoCalGas is working with stakeholders to improve energy efficiency
program policies:
CPUC authorized IOUs to implement a “To-Code” Pilot
SoCalGas has lobbied for amended language that incorporates EE policy changes
Joint Party Proposal