Natural Gas Pathways:
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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

Joint Party Proposal

Slide20

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