Towards a Clean and Renewable Energy Future for California Southern California Gas Company September 24 2015 Californias Dual Emissions Challenge Federal Clean Air Act and California Climate Change Initiative ID: 428887
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Slide1
Natural Gas Pathways: Towards a Clean and Renewable Energy Future for California
Southern California Gas Company September 24, 2015Slide2
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 by
75-80
%
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 BasinSlide4
It’s
NOT Either/Or. It IS Both/And!
California focused on electrifying end uses
and “de-carbonizing” electricityElectrify transportationElectrify 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 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 FundSlide5
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 ChangerSlide6
6Expands upon 2012
Science articleNatural 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.Slide7
7Codes & Standards:
The Driver of Energy Efficiency and Zero Net Energy
From Technology C
onceptualization to Code ComplianceAggressive 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 justifySlide8
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 & PowerSlide9
De-Carbonizing the Pipeline
:
Renewable Natural gas
Convert waste
from dairies
,
farms
and
landfills
into biogas
using
anaerobic digestion
extract
the
methane
p
ut
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 atmosphereSlide10
De-Carbonizing the Pipeline:
Power-to-Gas
c
arbon
captured from factories and
plants
e
xcess
renewable energy
goes through
electrolysis
which splits
the molecule
h
ydrogen &
carbon combine
through
methanization
methane
can be stored
in
the pipeline
for
future useSlide11
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 power
Portfolio of Energy Efficiency ProgramsSupporting Legislative and Regulatory Policies that are:Fuel and Technology Neutral
Maintain Customer ChoiceCost Effective
SoCalGas
Facilitating
Cleaner
Energy
Options for Our CustomersSlide12
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 OverviewSlide13
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 CO
2
South Coast Target NO
x
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
DistrictSlide15
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 CH
4 in pipeline system
Power-to-Gas Projects:
Provides green hydrogen pathway and grid storage
30
projects
launched in Europe
to dateSlide16
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 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 OptionsSlide18
18Expands 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 methodologySlide19
19Expands 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