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Dr. Martin Wilmsmann Erik Van Engelen IGU – International Gas Union WOC 5 Gas Utilization Study Group 5.2 Domestic and Small Commercial Utilization Report of Study Group 5.2 Chairman Dr. Martin Wilmsmann Germany & Vice-chairman Erik van Engelen The Netherlands 1 WOC 5 Trienium 2006-2009 Study Group 5.2 Report Table of Contents 1 Introduction 2 Abstract 3 Present Market Situation and Regulation 3.1 Gas position worldwide 3.1.1 The overall gas market today 3.1.2 Market profile 3.1.3 Analysis by country 3.1.4. Analysis by application 3.2 ECO Design Directive 4 New Technologies and Innovative Applications 4.1 Abstract Distributed Generation mCHP 4.2 Abstract Natural Gas Cooling and Gas Heat Pumps 4.3 Abstract Natural Gas and Renewable Energy Sources 4.4 Abstract Alternative and Innovative Gas Appliances 5 Other Key Items for successful Application and Use in Domestic and Small Commercial Sector 5.1 Develop tools that demonstrate the advantages of the gas technologies - Efficiency Indicators - 5.2 Investigations on new acceptable EU limits for gas quality 6 Conclusions 7 Item Reports 7.1 Distributed Generation - mCHP 7.1.1 Detailed Case Studies UK – Germany – The Netherlands – Italy – Japan - France 7.2 Natural Gas Cooling and Gas Heat Pump 7.3 Natural Gas and Renewable Energy Sources 7.4 Alternative and Innovative Appliance 2 WOC 5 Trienium 2006-2009 Study Group 5.2 Report 1 Introduction: The overall objective of WOC 5 study groups is to describe the situation in the diverse areas of gas utilisation, identifying trends, tendencies, technologies and practices and evaluate and propose actions for further market development. Scope of Study Group 5.2 “Domestic and small commercial gas utilisation” was to continue the action carried out during the last triennium on evaluating the market penetration of innovative use and new technologies related to the use of natural gas in domestic and commercial segments. The group concluded to focus on the following items: • μ-CHP, DG (Distributed Generation) • Alternative and Innovative Appliances, Data Base • Natural Gas Cooling and Gas Heat Pumps • Natural Gas and Renewable Energy Sources • Efficiency Indicators • Gas Quality Variation • Energy Services The reader will especially get detailed information via item reports for the bold items”. They include detailed case studies from several countries. From these documents important conclusions for other gas industries can be drawn. Other subjects with reference to scope of study group will be addressed in the committee session in Buenos Aires during the oral and poster session. 3 WOC 5 Trienium 2006-2009 Study Group 5.2 Report Group Members are: Martin Wilmsmann (chairman), Germany E.ON Ruhrgas Erik van Engelen, (vice chairman) The Netherlands Essent Glen Beaumont, Canada Enbridge Marzouk Belmiloud, Algeria Naftal Mark Bugler, UK British Gas Kris DeWit, Belgium Technigas Thorsten Formanski, Germany ASUE Mario Gagliardi Eni Daniel Hec, Belgium Marcogaz Michael Hermann, Austria Energie Steiermark Vladislav Karasevich, Russia Promgaz Kei Kato, Japan Toho Gas Toho Gas Peter Lukacsi, Hungary Budapest Gas Works Kenji Maeda, Japan Tokyo Gas Nuno Alfonso Moreira, Portugal Dourogas Per Persson, Denmark HNG Jan Ruml, Czech Republic Plynoprojekt H. Sadeghi, Iran Khorasan Gas Jean Schweitzer, Danmark DGC Martin Seifert, Switzerland SVGW 4 WOC 5 Trienium 2006-2009 Study Group 5.2 Report 2 Abstract The domestic heating market is going through transformations and the competition between energies has never been so severe. For instance in most European countries the domestic and small commercial heating sector is strongly being threatened. Even though it is the market with the highest energy demand. The situation can be described as follows: CO2 mitigation and sustainable energy supply European governments are about to organise the change over to a sustainable energy supply for the future and aim to impose CO2 mitigation targets. Governments and authorities identify a multitude of country- specific measures relevant for natural gas, all affecting the residential and small commercial market strongly, A number of factors, initiatives, acts etc. (more or less strongly pronounced in the different countries) increase the risk for the gas industry of loosing significant market shares Emergence of high-efficient electrical appliances Till now the base technology for all power ranges for domestic and small commercial applications is the gas burner (atmospheric, premixed, fan assisted burner) In the meantime since the early eighties competitive technologies for the heating market evolved. Especially electric heat pumps have seen a strong development and conquered the market for space heating, sanitary hot water and air conditioning. Trend for renewables Geopolitics (geopolitical occurrence like in Russia/Ukraine illustrated interdependence between supply interruption and price volatility/ and climate policy discussions were in the end a reason for potential customers from the new building segment, and even operators of natural gas systems, to withdraw their favour from this environment-friendly, 5 WOC 5 Trienium 2006-2009 Study Group 5.2 Report CO2-reducing heating technology. This led to a noticeable increase use of e.g. wood pellet burners. Beginning in the nineties the renewables made its way to the household heating. Here wood in its different consumer forms like pellets and wood chips has to be mentioned. The percentage of Natural Gas market share is continuous reducing, because of an increasing number of clients requesting a self-sufficient heat supply based on renewable energy. Gas heating is also threatened by the political trends to decrease the share of fossil fuels in the domestic sector and in the same time by more ambitious efficiency requirements. Reduction of the heat demand due to the introduction of building insulation standards The heat-energy-demand continuously declines enhanced by the regulatory requirements (better construction codes). Investments on heat insulation arrangements are increasingly made for stock. Because both new and existing buildings will have a decreasing heating demand it will be difficult to defend the connection especially of new single family house to the gas grid. Idle capacities in gas grids connecting existing houses has to be compensated. The image of natural gas as a clean fuel is disappearing The image of fossil fuels has changed for the worse. (prize level, profitability, dependence/availability…) the image for renewable energy has improved. Gas is now considered just another fossil fuel and does not have the benefit of being “green” or clean any longer. Conscience for carbon footprint and global warming is increasing. Growing environmental awareness has shifted the focus on utilisation of renewables. Relative absence on the market of new gas technologies There is a technology (innovation) gap of at least 2 years. On short notice we need appliances that can replace the existing central heating boiler 6 WOC 5 Trienium 2006-2009 Study Group 5.2 Report technology when replaced, that can offer new services (electricity generation, cooling etc.) at competitive prices and that are able to handle renewable energy and comply with new political requirements. Biogas or biomethane Biogas or biomethane in its upgraded form has attracted considerable interest of different countries throughout the world. It is considered as a renewable energy source and is available from landfill, waste treatment plants, sewage plants; energy crops etc. wood, cellulosic materials etc. in the EU the European Parliament adopted even a directive to ensure the free access of the so called non-conventional source gases to the natural gas grid including biogas. The technical safety standards, gas quality considerations and technical grid rules have to be taken into account. Biomethane offers the gas industry a new distributed, renewable gas supply complementing the natural gas therefore greening this fossil resource. At the moment mainly national standard apply for grid access of upgraded biogas /for instance in Germany, Switzerland, Austria, Sweden, Holland etc.) The gas associations in Europe are trying to have European standard and regulations in place covering also the content of trace contaminants in biogas. Biogas/ Biomethane can reduce the import of fossil fuels adding so to the security of supply. Through the natural gas grid biomethane can be mobilized and transported to the final consumer as a vehicle fuel, for heating or power production (ensuring the heat use as well). The biomethane can also be used where it represents the highest market value. There is considerable interest from natural gas clients for biogas- products. In Europe some 70 biogas plants (mainly biogas from anaerobic digestion) inject their upgraded gas product into the grid. Sweden, Switzerland and Germany are the leading countries where the gas industry went already to 7 WOC 5 Trienium 2006-2009 Study Group 5.2 Report quite some efforts to get biomethane into the grid. Other countries like Spain, France and Austria will have the first or more plants on the grid this year. All the injected biogas is cleaned from trace components like ammonia or suffers constituents, dried and upgraded by removal of the carbon dioxide. Reliable and proven technologies like pressure swing adsorption, working procedures or membrane separation techniques are available. From first generation biogas (i.e. anaerobic digestion) which is well developed new developments are directed on biomass gasification of lingo-cellulosic materials like wood, straw etc. With gasification processes further types ob biomass can be accessed for biogas production even on larger scales. CO2-Reduction Gas heat Micro- cogeneration Bio natural gas pump Condensing Condensing boiler plus boiler solar Fuel cell today tomorrow In addition to the technologies already available today, such as the combination of condensing boilers with solar water heating and space heating support, the gas heat pump technology can be expected to be the next technology to assume an important role in building heating in the near future. Significant developments in the gas driven heat pump sector provide a new range of appliances for the space heating market.
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