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Presentation on theme: "Natural Gas Pathways:"— Presentation transcript:
Slide1
Natural Gas Pathways: Towards a Clean and Renewable Energy Future for California
Southern California Gas Company September 24, 2015
Slide2
California’s Dual Emissions Challenge
Federal 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 ACT
Reduce SMOG by75-80% before the next 20 years
CA CLIMATE GOALS (AB32) GOVERNOR’S EO:By 2050, reduceGHG emissions to80% of 1990
Slide3
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
Slide4
It’s
NOT Either/Or. It IS Both/And!
California focused on electrifying end uses and “de-carbonizing” electricityElectrify transportationElectrify energy end usesDe-carbonize generationSoCalGas focused on “near-zero” end use technology and “de-carbonizing” the pipeline Near-zero NGV’sNear-zero gas technologyDecarbonize gas supplyHydrogen blendingRenewable methane feedstocks
California Climate Change Policy
Make 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
Legislation
SB350
SB32
GHG Reduction Fund
Slide5
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
Slide6
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 jobsNew EE goal is unachievable without including “To-Code” Savings in EE Programs.State needs to shape Policies to increase EE Savings.
Slide7
7
Codes & Standards:
The Driver of Energy Efficiency and Zero Net Energy
From Technology
C
onceptualization 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
Slide8
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
Slide9
De-Carbonizing the Pipeline
:
Renewable Natural gas
Convert waste
from dairies
,
farms
and
landfills
into biogas
using
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
REPLACE75% of all diesel used by CA vehicles
When used for transportation, Biogas from food and green waste can actuallyREMOVE GHGs from the atmosphere
Slide10
De-Carbonizing the Pipeline:
Power-to-Gas
c
arbon
captured from factories and
plants
excessrenewable energy
goes throughelectrolysis
which splits the molecule
hydrogen & carbon combine through methanization
methane
can be stored
in
the pipeline
for
future use
Slide11
RD&D of cleaner, more efficient natural gas technologies, inc. P2G at UC Irvine.Offering tariff services to support new marketsCompression Services to facilitate development of NGV marketBiogas Conditioning Services to facilitate development of renewable natural gas marketProposing Distributed Energy Services tariff to facilitate more efficient use of heat and powerPortfolio of Energy Efficiency ProgramsSupporting Legislative and Regulatory Policies that are:Fuel and Technology NeutralMaintain Customer ChoiceCost Effective
SoCalGas
Facilitating
Cleaner
Energy
Options for Our Customers
Slide12
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
Slide13
Technology Transfer
and Transportation Pathways
Locomotives
Short/Long Haul
Transit/Fleet Vehicles
Off-road High Horsepower/ Construction
Equipment
Marine Vessels
Heavy 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:
Slide14
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 Gas
Opportunity
R
eductions 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
Slide15
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
Slide16
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…
Slide17
Pipeline de-carbonization works together with electrification towards Climate Change objectivesPipeline de-carbonization offers Cost Effective and Resilient PathwaysDe-carbonization can play an important role Integrating Variable Renewable Generation ResourcesPipeline de-carbonization reduces emissions in sectors that are otherwise difficult to electrify, including heavy duty vehicles; residential and commercial end uses, and industrial end usesManaging “Energy Grid” (gas and electric together) = efficiency and cost avoidance
Strategic use of gaseous fuels
supports near- and long-term goalsIn 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
Slide18
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
Slide19
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
