Download Natural Gas Pathways

Natural Gas Pathways:
Towards a Clean and Renewable Energy Future for California
Southern California Gas Company
September 24, 2015
California’s Dual Emissions Challenge
Federal Clean Air Act and California Climate Change Initiative
FEDERAL CLEAN AIR ACT
Reduce SMOG by
75-80%
before the next 20 years
CA CLIMATE GOALS
(AB32)
GOVERNOR’S EO:
By 2050, reduce
GHG emissions to
80%
of 1990
Measures to Reduce Smog and GHG Emissions Drive
Today’s Energy and Environmental Agenda
Natural Gas will Play an Increasing Role as a Solution
And, we have a
CLEAR FOCUS
THE TRANSPORTATION SECTOR
Major Ozone (NOx) Emissions
Sources in South Coast Air Basin
80%
of the region’s SMOG
40%
of its GHG emissions
California Climate Change Policy
Make Room for “Near-Zero” End Uses and Low Carbon Gas
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
It’s NOT Either/Or.
It IS Both/And!
NGV Game Changer
New “Near-Zero” Truck Engine to be Ready for Prime Time
• 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 heavyduty EV trucks ready for the
market
Near Zero Emission
Natural Gas Engine
<0.02 g NOx
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Natural Gas Energy Efficiency
A Resource of First Choice for Multiple End Uses
Expands upon 2012 Science article
 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.
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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
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De-Carbonizing Electricity:
Natural Gas Stationary Use Pathways
The move toward “nearzero” emission
technology focuses on:



Distributed Generation
Community-scale Generation Matched with
Renewables
Power Generation with Carbon Capture
Not just
Solar and
Wind…
• Fuel Cells
• Micro-turbines
• Combined
Heat & Power
De-Carbonizing the Pipeline:
Renewable Natural gas
WHAT’S POSSIBLE
POWER
2-3 million homes
Convert waste
from dairies, farms
and landfills
CH4
into biogas
using anaerobic
digestion
extract the methane
put in the pipeline
for future use
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
SOURCE: Bioenergy Association of California, CARB May 2014 Look-Up Table30
De-Carbonizing the Pipeline:
Power-to-Gas
excess
renewable
energy
goes through
electrolysis
which splits
the molecule
hydrogen & carbon
combine through
methanization
carbon captured from
factories and plants
methane can be stored
in the pipeline
for future use
SoCalGas Facilitating Cleaner Energy
Options for Our Customers

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
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
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:
Current Focus
Transit/Fleet
Vehicles
Heavy Duty
Trucks
Short/Long
Haul
CNG
Expanding Focus
Off-road High
Horsepower/
Construction
Equipment
Locomotives
Short/Long
Haul
LNG
Marine Vessels
Current State GHG Pathway -Focused on Electrification
Will Miss Ozone Deadlines
Remaining Emissions Relative to 2010
100%
South Coast Air Quality Management District
90%
Reductions need
80%
to be achieved
70%
Faster & Sooner
60%
than current
50%
statewide GHG
2050 CARB
Statewide
GHG Target
40%
30%
reduction goals
20%
10%
75 ppb
ozone standard
0%
2010
2020
Use of Natural Gas
80 ppb ozone standard
2030
2040
in Transportation
2050
Sector can help
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CA Statewide CO2
South Coast Target NOx
Reduction necessary to
meet Federal Ozone
Standards
achieve ozone
standard sooner
Power-to-Gas Projects:
Provides green hydrogen pathway and grid storage
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
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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 Powerto-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…
E3 Study:
Integration Expands
of Newupon
Low/Zero
Carbon Options
2012 Science article
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 lowcarbon sources of gas need
development and introduction
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•
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
Senate Bill 350 – Clean Energy and Pollution
Reduction
Act of 2015 (Sen. Kevin de Leon)
Expands upon 2012 Science article
 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 costeffectiveness methodology
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Shaping Policy to Increase EE Savings
Expands upon 2012 Science article
 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
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