Biomethane connections – current developments Biomaster Network Meeting Norwich 11 th November 2011 David Pickering

2 Typical biomethane entry facility

3 Getting connected – key issues Location of gas grid compared to Anaerobic Digestion plant? Does the gas grid have capacity? The GDN will provide an indication free of charge but to confirm this, a chargeable Feasibility Study will be required What grid pressure? Will the gas meet the grid specification? Key issue is Oxygen concentration – requirement is <0.2% Design and Build Agreement Network Entry Agreement

4 Initial Enquiries Telephone : or All we need is a postcode and a flow rate of biomethane

5 What will you receive from an Initial enquiry? Details of the nearest connecting pipe to your site. Pressure tier of connecting pipe. Often multiple options available Volume of gas that can be accepted onto the network and duration of time Scale map of your site and nearest connection

6 Face to face discussion Review of site Review of nearest connecting pipe work Advice on costs Advice on injection equipment Gas specification requirements for grid entry

7 Feasibility Study Network connection options Detailed network modelling and demand forecasting Cost of providing these connections Plant and equipment required to be provided by the customer Major environmental issues and risks Foreseen major engineering difficulties Programme of work required to deliver a connection Other issues relevant to providing a connection

8 Connection issues Responsibility for providing grid connection equipment Provision of capacity Oxygen concentration <0.2% Requirement for propane Gas quality monitoring and energy measurement A number of barriers to entry have been identified, and these are being addressed by a joint industry group convened by Ofgem. See:

9 Responsibility for grid connection equipment The problem Uncertainty around responsibility for and level of costs of connection The solution GDNs to offer choice over who builds and operates (GDN or biomethane producer) GDNs to develop standard plug and play facilities Next steps GDNs to develop specifications for BM connection equipment and interfaces

10 Provision of capacity The problem Low summer demand may mean that the gas grid cannot accept the biomethane on a 365 day basis The solution Install compressor within the grid, to export gas from one pressure tier to the higher pressure one that feeds it, to access remote demand Next steps Field trial to prove concept

11 Oxygen The problem Current Regulations prescribe less than 0.2% oxygen in grid gas – difficult to achieve for BM The solution Short term – individual exemptions for BM plants, combined with blending to achieve 0.2% Longer term – class exemption for BM if HSE can be convinced that there are no material additional risks Next steps GDNs sponsoring work to demonstrate no material risk of pipe corrosion

12 Requirement for propane The problem Biomethane CV is low relative to grid CV, therefore addition of propane is required to avoid triggering CV cap (which would affect consumer bills) -but propane is expensive (capex and opex) The solution Where local conditions allow, BM can be blended with grid gas and CV measured downstream of the blending point – minimise propane input Next steps Needs approval of low-cost CV measuring instruments

13 Remote CV monitoring at Adnams

14 Gas quality monitoring and energy measurement The problem Currently monitoring and metering is very expensive (around £150k) as approved devices relate to large (North Sea scale) flows of gas The solution Revise measuring specs to be more appropriate for small volumes and for less complex gas compositions Next steps EMIB expert group to make recommendations for change in these areas by the end of 2011

15 Conclusions No material technical issues with biomethane grid entry DECC targets for gas to grid and RHI levels have incentivised solutions to be found to remaining barriers to entry Ofgem-convened Energy Market Issues for Biomethane (EMIB) group is currently meeting, with the aim of making recommendations by the end of 2011 for changes to address barriers

Thank you David Pickering Sustainable Gas Development Manager