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. The Japanese internal combustion engine driven heat pumps for outside installation made their impact on the market. They offer air conditioning solutions and heating (reversible) for commercial and industrial buildings. In the cooling mode the same GHP can be operated in different power ranges. The units 8 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

are available up to thermal power ranges of 80 kW and the working fluid is directly distributed to ceiling convectors (split units). Through cascading of more units thermal energy up to approx. 500 kW can be delivered to buildings. On the other hand advanced absorption technology (GAHP) is the key to the domestic and small commercial heating market for GHP. Efficient GAHP´s with heating and cooling features are commercially available in its air-water, water-water and ground source-water versions. The heat distribution works with a water circuit. The GAHP work with condensing burners and are modulating appliances. The commercially available systems have a power rating of 40 kW thermal out put (16kW cold water). Apart from the air-water versions the GAHP- units are conceived for indoor installation.

The majority of promising mCHP products has not reached the maturity for market introduction (issues: costs, durability, reliability, materials……). Main reasons are seen in the rather slow technology development, in the assessment of the economic opportunities, in the political framework, the regulatory framework, in lacking innovation policies and consumer acceptance.

What to do ?

The gas industry is facing new challenges to cope with the new situation caused from the legislative impact and the consumer/client needs and expectations. On one hand the gas industry, together with its market partners, the appliance manufacturers, has to initiate further developments and offer technical alternatives to the customers, on the other hand gas has to be combined with mCHP and renewables in order to have technology options which meet heat requirements of buildings best and to reinstate the clean and innovative image of natural gas as fuel for the future by demonstrating that gas technology is indispensable for the reaching the targets of a global climate protection.

9 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

The Report discusses in detail the aspects of future technologies for the domestic and small commercial heating (air conditioning) market and the role to play for the gas industry to stimulate promote and market it. The gas industry has to put in operation also measures on the marketing side focusing more on the needs of the gas client regarding cost efficient sustainable solutions. The report addresses the following topics under the headlines of different item reports:

- „Distributed Generation, mCHP“, - „Natural Gas Cooling and Gas heat Pumps”, - “Natural Gas and Renewable Energy Sources” and - “Alternative and Innovative Gas Appliances”

The IGU WOC 5 SG5.2 members contributed profoundly on a broad variety of subjects regarding technology from the point of view of their respective countries: • Technology, State of the Art • Present market Situation, • Technology Availability • Reliability and Maturity, • Standardisation • Economy and Ecology • Public Awareness

The item report “Distributed Generation, mCHP“ include detailed case studies from:

10 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

From these documents important conclusions for other gas industries can be drawn.

Further content:

• Regulatory

The ECO design directive implementation is presently under discussion and will introduce in very short term number new requirements for gas products like CH boilers and water heaters. The present plans include both a new labelling system and minimum efficiency requirements. Those are based on the application of a model that includes not only the appliance, but the whole system (distribution, system, controls, etc...) and heat demand. Readers will be informed about content of the directive & present situation.

• Efficiency Indicators

The report introduces to a current development of a tool that demonstrates the advantages of the gas technologies, the IGU ENERGY EFFICIENCY INDICATOR (IEEI): a technical-marketing tool The project aims at providing a key reference tool to natural gas users and stakeholders in general.

• Gas Quality Variation

Furthermore the report informs briefly about a study project regarding investigations on new acceptable EU limits for gas quality and the influence on the performance of new and installed gas appliances.

• Energy Services

Energy Service might very well be a lucrative way to provide users with heat, electricity and cooling (instead of selling gas). Such a system where the consumer does not own his boiler but rents it from the gas utility

11 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

could solve some of the questions as appliance, installation and service costs. The group decided to have in the next triennium a closer look at this item because we expect it to have a large potential to enlarge gas sales.

12 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

3. The Present Market Situation and Regulation (Jean Schweitzer)

Foreword

Because of priorities we haven’t been able to make an extended update of the present market situation. However we have still data from the previous triennium and most of it hasn’t changed so much within the few last years. The share of gas in the world energy balance and the gas utilisation have not be subject to revolutionary changes and probably the variation within the last few years are within the inaccuracy of the data collection method. Therefore we here present the same figures as in our previous report.

Those data allow us to gain a better idea of the impact of the domestic and commercial gas technology worldwide.

The following results are obtained with the input of technical gas experts. Also Internet research was used to collect data. There are a number of countries for which we were not able to gather data, but all in all with the large gas countries that are represented; we cover about 70 to 80% of the present market.

3.1 Gas position worldwide

Total gross energy consumption (World-wide)

Renewable Heat 7% 2% Electricity 6%

Gas 7% Domestic and commercial

Oil Industry and 12% transport 61%

Solid fuel 5%

Share of gas in the domestic and commercial sector in the world energy consumption 13 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

According to [11] the total gross energy consumption in the world is 9403 Mtoe (see conversion factors in Annex).

About 40% of the total energy consumption is used for domestic and commercial purposes, and domestic and commercial utilisations of gas represent 7% of the total energy consumed worldwide. The exact proportion of gas is, in fact, larger, because some of the energy forms that count in the statistics used are heat (e.g. district heating), which is partly produced with gas. From the data given, it is not possible to differentiate natural gas from LPG.

Today, the overall trend worldwide is an increase of the gas share in replacement of solid fuel, electricity and fuel oil. We may assume that the overall contribution of gas for domestic and commercial use in the overall energy balance worldwide is today probably about 10% and increasing (considering that the figure of 7% is from 1997 and that part of the "heat" is produced by NG).

Therefore, the impact of the improvement of the gas technology is of major importance for energy savings and CO2 reduction worldwide. Final energy consumption, domestic and commercial (in mtoe) Solid Oil Gas El. Heat Renewables Total EU 10.1 108.1 141.4 98.0 16.2 22.2 396 EFTA 0.4 8.4 0.9 6.0 0.4 0.9 17 NAFTA 10.4 259.4 134.8 107.8 2.7 14.8 530 OECD 8.5 67.0 10.1 30.6 0.3 2.6 119 Pacific Central 18.5 17.9 16.9 11.8 12.3 3.6 81 Europe CIS 31.6 60.4 106.9 44.3 107.4 9.4 360 Africa 8.6 45.6 5.5 16.0 0.0 115.2 191 Middle East 0.4 56.6 20.2 10.8 0.0 0.9 89 Asia 233.0 195.4 20.0 74.2 10.5 271.0 804 Latin 3.9 44.4 9.0 13.5 0.0 23.1 94 America TOTAL 325 863 466 413 150 464 2681

14 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Final energy consumption, domestic and commercial

EU is the European Union (UK, Germany, France, Spain, Italy, etc.) EFTA is Switzerland, Norway and Iceland OECD Pacific is Japan, Australia and New Zealand CENTRAL EUROPE is Poland, former Yugoslavia etc. CIS is the former Russian federation, including Ukraine and Russia etc. (in the statistics above it also includes the three Baltic states) Middle East includes Iraq, Iran, Israel etc. Asia includes India and China Latin America includes Brazil, Venezuela etc.

3.1.1 The overall gas market today. What are the gas aplications?

The questionnaire issued during the previous triennium was used here. Respondents were asked for both the number of appliances on the market and their average consumption. We can, therefore, combine those data to see how much each application is consuming and compare the different applications to each other. Only minor changes have been registered since the work was done in 2003, so we will assume that for the purpose of this study the data obtained three years ago are still valid. There are of course some swiftly changing markets (e.g. the expansion of the Chinese market), but despite these dramatic changes the overall impact on the world market is still small. We have not been able for this triennium to get data from those rapidly developing markets (this can be put on the list of the tasks for the next triennium).

15 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Share of gas consumption by application

COOKING COOLING commercial 2,1% 4,0%

COOKING WATER HEATER domestic 2,4% 0,11%

AIR HEATERS CH BOILERS 41% 51%

Share of gas consumption by appliance

Heating is the main gas application in the domestic and commercial sector. Therefore, heating plays a main role in the image the customer has of the energy "natural gas". If the customer is satisfied with his heating system he will have a positive image of gas and may possibly consider other applications such as cooking, drying etc. Heating is increasingly combined with hot water production. Cooking might not have a large share in the total consumption of households, but plays a more important role for the commercial sector. More and more customers want and can afford more comfort and in this respect cooling will develop in the future. But here we will have to cope with the competition with electricity as we will see further.

The decorative gas light is not a large market, but it is used for the prestige and image of gas and has become a part of the so called “Garden” appliances such as grills, patio heaters or even decorative lights have also appeared on the market, but we do not have market data for those.

16 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Home fuelling with NGV enters the family of gas appliances despite being quite different from other members of the family. However, at this stage the technology has not yet penetrated the market.

Micro CHP and fuel cells are now also on the market, but these new technologies have up to now rather confidential sales and are, therefore, not included in the present statistics (see also the report from the Study group on distributed energies).

3.1.2 Market profile

Heating with CH boilers and air heating accounts for more than 90% of the total gas consumption. For a single appliance, the gas consumption for heating is 10 times as much as for hot water and 20 times as much as for cooking.

Air heating (with furnace) is almost entirely an American market, while CH boilers are used on the European market.

3.1.3 Analysis by country

USA is the largest market in the panel of the countries covered by this study. In the world, about 40% of the gas used for domestic and commercial applications is found in the USA. Germany and UK also have a strong position with about 15 and 10%. The rest of the market is shared between other countries. But as said, there is a very large market emerging in China. The potential market is considerable, and the appliances for the new market are perhaps not exactly up-to-date.

Therefore, there is a huge potential for energy savings and CO2 reduction simply by having the newest technology available in this market.

17 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Overall gas consumption with individual appliances for domestic and commercial CROATIA CHINA BELGIUM 0,3% 0,9% CANADA 0,8% 5,5% AUSTRALIA CZECH REPUBLIC 1,3% 0,9% DENMARK 0,2% USA commercial 11,5% FRANCE 5,1% GERMANY 14,1% USA domestic 29,7% ITALY 7,3%

UK 11,3% JAPAN 0,7% UKRAINE 2,6% NETHERLANDS SPAIN RUSSIA 2,3% 0,7% 3,2% SWITZERLAND SLOVAKIA POLAND 0,1% 0,3% 1,0%

Overall gas consumption with individual appliances, domestic and commercial

3.1.4 Analysis by application

Average of gas consumption by appliance on a single installation in kWh/year

WATER HEATING 2091

COOLING

7511 CH BOILERSS 23214

52875

COOKING commercial AIR HEATERS

31516 844

COOKING

Average of gas consumption by appliance in the domestic sector

18 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

The figure above indicates the energy that is used in an average installation for the different applications considered.

Among the main conclusions that can be drawn from the figure is the potential impact on gas sales of commercial cooking. A commercial cooker will use twice as much gas as a domestic boiler.

Domestic fuelling appliances also have a very high potential, but we do not have data enough to work out accurate statistics, and the consumption in this case very much depends on the country, user habits and infrastructure for the gas fuelling. If this application develops in the future it may have quite important consequences for the gas market in terms of gas consumption.

The average annual consumption for heating varies from country to country. Note first that it is difficult to get precise values and that there are large uncertainties on the result given. Even in a single country there will be very large variations in the consumption. The main factors are the climate, the heat conservation regulations, the size and insulation of the houses and the cost of the gas for the consumer (e.g. in Japan the very low average heat demand - less than 5000 kWh - is probably due to a combination of low average housing surface, good insulation, and relatively high gas price).

For hot water production, the average annual consumption by units is also very dependant on the country. Note first that as for heating, it is difficult to get precise values and there are large uncertainties on the result given. The values given vary from 1000 to 4000 kWh/year for a family. A number of studies about the question of hot water demand have been carried out, and clearly some cultural aspects play a strong role. The family composition and habits as well as the price of water are among the factors that are of main importance. The most recent trends for Denmark show that the average is now about 2000 kWh/year.

19 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Also for cooking, there is a wide difference in estimated average gas consumption between various countries. Cultural cooking differences between countries explain part of those differences. The average gas consumption is about 800 kWh, but it may vary by a factor two.

For cooling, the estimated average gas consumption for commercial applications in France (1.84 GWh/year) is about ten times lower than that of Japan (17.5 GWh/year). This difference is due to the differences in climate and operation hours. For the domestic sector the average is about 8000 kWh.

20 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

3.2 ECO Design Directive (Jean Schweitzer)

Introduction

In the frame of energy saving and CO2 reduction plans the EU has introduce new measures in order to improve the efficiency of appliances and systems using energy in the EU. Heating and hot water production accounts for about 25 % of the CO 2 emissions in the EU and in second position just after transport. Therefore there is a very strong focus on Central heating boilers that are very much used for heating in the EU. About 60 to 70 Millions gas boilers are installed in the EU and any measure that will improve efficiency will impact the energy balance and CO2 emission quite a lot!

Content of the directive & present situation

The ECO design directive implementation is presently under discussion and will introduce in very short term (2009?) number new requirements for gas products like CH boilers and water heaters. The present plans include both a new labelling system and minimum efficiency requirements. Those are based on the application of a model that includes not only the appliance, but the whole system (distribution, system, controls, etc...) and heat demand.

21 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

The system approach

Slide by VHK

The efficiency of CH boilers is depending on external factors like heat demand, control system, etc. therefore instead of a traditional labelling system based on nominal data from lab.-testing, a system approach has been chosen. The labelling applies not to the CH boiler alone, but to the CH boiler together with some identified components and for a given heat demand. This way the customer will be certain that the boiler is adapted to his installation and need.

Impact on the market

So far it was very difficult to assess the impact of such initiative on the gas appliance market as the model is rather complicated and has been subject to changes. However the first investigations have shown that the best rating possible for high end condensing boilers will be “B” in a system where to appliances/system will be rated “A+++”. Only electrical heat pumps will be able to reach this rating with the actual plans. Better rating will be achieved by gas appliances if combined with solar or even el. heat

22 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

pumps. Furthermore the present implementation plans are suggesting that appliances that can’t reach a minimum performance (calculated with the model) will be banned from the market. A threshold is already proposed with limits that will be increasing in different steps with the time in the future. Also severe limits for NOx emission are proposed. As not all models and limits for the minimum requirements have been fixed yet it is impossible to tell what will be the impact on the market today. However we can see the following trends:

- CH gas boiler market will decrease especially in the new building sector. - In the long term CH gas boiler will have to be sold in combination with solar or heat pumps - mCHP and especially fuel cells will have a very good ranking in the labelling system (but it is not yet certain they will be part of the first measures) - NOx emission limits will make the use of many present burner technologies difficult. - The parallel evolutions on the front of gas quality variation will bring new challenges for the manufacturers that will have to find technologies that can in the same time: o Be very efficient (low air excess) o Have very low emissions o Be able to cope with wider range of gas quality.

What now?

EU member states will be asked to vote soon for the application of the proposal. In the same time stakeholders are busy to assess the impact of such measures on the market. This is not entirely possible at this stage as the final model is not yet available.

23 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

MARCOGAZ & GERG have been actively monitoring the progress of the work and been involved in discussions with the commission. For the time a project is on-going with the aim to have a pro active influence on the work done and make sure gas appliances are fairly treated. See also http://www.boilerinfo.eu/ecodesign/view

24 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

4 New Technologies and Innovative Applications

4.1 Abstract Distributed Generation – mCHP (Dr. Martin Wilmsmann)

The energy market is going through transformations and the competition between energies has never been so severe. As the building sector in most European countries is the market with highest share of energy demand, the domestic and small commercial heating sector is strongly being threatened.

European governments are about to organise the change over to a sustainable energy supply for the future. 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 market shares:

• Reduction of the heat demand due to reinforcement of building insulation standards. • Emergence of high-efficient electrical appliances. • Trend for renewable. • The image of Natural Gas as a clean fuel is disappearing. • Relative absence on the market of new gas technologies.

The question for the gas industry should be, with which strategy and technology they will react to these boundary conditions. The gas industry needs new technologies to compensate market share losses already observed and reported in many countries. In order to implement new technologies on the market the synergy of technology, marketing and an effective cooperation of all important actors playing a role will be needed. If the gas industry does not succeed, natural gas may

25 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

progressively disappear from some sectors, as for example the heating sector. The challenge now facing the gas industry, together with its market partners, the appliance manufacturers, is to develop and offer the customer appropriate technical alternatives under the difficult conditions encountered in competition with other energy fuels. Utilities and product manufacturers should take a common stance which is a prerequisite for Government´ willingness for enlarging/intensifying financial support for creating mCHP markets. In doing so the interests of the market player needs to be synchronise by the sense which bases on of the market launch of the mCHP.

The combined electricity and useful heat production are regarded as one of the most efficient measures for enhancement of energy efficiency and lowering the CO2 Emission. For instance by increasing the electricity production share CHP of the total electricity manufacture in the coming decade. The combined heat and power generation (CHP) increasingly gets more interesting due to the current climate protection targets and the energy price development. Since a long term Natural Gas became mainstream in middle and larger range of power range cogeneration technology. Through the production of electricity and useful heat at the same time CHP plants have a very high degree of efficiency: Up to 90% of the used energy can be transferred into useful energy. Compared to the conventional and separate manufacture of electricity (e.g. central power plant) and heat (e.g. trough a boiler) the saving of primary energy will be up to 30 till 40%.

At the same time considerably less carbon dioxide (CO2) will accumulate. Besides that decentralized CHP plants can produce electricity and heat on periphery where it is needed. Also the usual lost through electricity transport will be decreased. Natural Gas provides especially good possibilities for efficient electricity

26 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

and heat production through CHP. Accepted combustion engine are coming into operation such as innovated technologies like Stirling Engine, steam expansions engines or fuel cells. Admittedly each of these systems is in very indifferent phases of development. Especially in the lowest power level of electricity producing heating system there is no marketable unit for a one-family- or semidetached-house. (Europe).

The main potential of micro CHP systems is mainly seen in buildings with central heating systems. This generally means that conventional heating systems are replaced by electricity generators with heat exchangers. The produced heat is used for space- and water-heating; the electricity is used within the building or fed into the grid.

In Europe seems to be a tendency to the Stirling-Technology. Before the market launch some important steps needs to be taken including laboratory- and field-tests, which take place at the moment. They provide a detailed evaluation of the functional capability of each system and its applicability in practical experiences. In Japan the ECOwill-gas engine is already a story of success. The engine has been sold over 80.000 times. Shortly it will be introduced to the European market and establish there. Stirling- and gas-engine are in

27 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Europe the “pathfinder” for the fuel cell technology. Market establishment of the mCHP will not only depend on competitive investment cost and a consumer compatible technology, but as well as on a factor of success of the gathered R&D&D cooperation of the gas economy and the manufactures. Including a target to create a prompt and possibly ready for the market first technology. The following has to be taken into account: standardisation issues, ecology, meeting the consumer needs and installation issues. All these aspects are discussed in the mCHP report. A detailed overview about activities of the gas industry in the country-specific given frame of policy support is summarized in case studies (UK, Germany, The Netherland, Italy and Japan) followed by recommendations regarding requirements of mCHP products and opportunities for the gas industry to bring mCHP products successfully to markets.

28 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

4.2 Abstract Natural Gas Cooling and Gas Heat Pumps (Erik van Engelen)

Introduction

Today, heat pumps provide a reliable, cost-effective and future-proof heating system. The natural gas industry began work on natural gas fired heat pumps in the late 1980’s, because of the attractiveness of a higher level of the heating efficiency than is possible with natural gas furnaces, and the removal of summer cooling load from an overloaded summer electric generation and distribution system. The current environment for natural gas prices is far more volatile than it was during the nineteen nineties, due to deregulated open markets, higher oil prices and gas use for electricity generation. This paper presents the state-of-the-art technology in gas cooling and gas heat pump, focused on residential, small and medium customer segments. Today’s state-of-the-art natural gas cooling technologies are efficient, reliable, require little maintenance, last for years and provide energy users the advantage of energy choice. They offer new possibilities for reducing energy consumption and managing energy costs for cooling in home use, commercial buildings, industrial processes, refrigeration, combined heat and power plants, and district cooling plants.

Present Market Situation and Market Possibility Growth rates for heat pump for the Swiss, Swedish, German and Austrian markets are substantial. The bulk of new systems are represented by brine/water heat pumps. These extract energy from the ground, enabling mono-mode operation without additional heat source, all year round. However, a trend towards air/water heat pumps is also discernible; these are more easily and economically installed. Given the high initial investment costs, gas heat pumps sales are sensitive to subsidies and incentives and they are not suited to all homes or buildings.

29 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Technology State of the Art Absorption and engine driven chillers and heat pumps systems are the main technical approaches. The commercialized gas cooling and of course the gas heat pumps can be categorized according to their design or operational principles are follows: • Compressor-driven heat pump (engine driven), this has the advantage of (1) Effective use of energy by recovering heat from the engine jacket coolant and exhaust gas and (2) High thermal efficiency at part load with simple control of engine speed. • Sorption heat pumps (absorption heat pumps), just as effective at meeting the extreme cooling needs, and with advantage that, apart from the solvent pump, no other moving parts are required.

30 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Source: Toshihiko Fujita in IEA Heat Pump Centre News Letter Vol. 24.

Comparison of the start times for heating operation Comparison of the heating capacity

Source: Sanyo Manufacturers and Products of Small Gas Fired Absorption Chillers Robur units are already widespread over the world and provide distributors with training and technical support. The units can be used as modules and can be linked to create larger configurations. Each Gax unit can service multiple heating/air handler locations or zones, has a long lifespan and can compete economically with electric units when natural gas prices are significantly lower than electric rates.

Gas Absorption Heat Pump (GAHP) Small sorption heat pumps for individual retrofit applications could become an important heat pump technology, because it has some advantages above electric units. They can be used very well with different types of heat sources namely air, water and ground. This makes them

31 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

applicable in a wide range of (weather) conditions. When choosing a heat pump it is necessary to bear in mind the following points:

• The climate characteristics of the place where it will be installed (especially if the cold source is the external air), • The type of building, • Conditions of usage, • Process medium and emitter system.

Heat Pump with Heat Recovery The heat recovery operation produces the most economic benefit when the system is in cooling operation. Hotels with swimming pools are a good market for these systems.

Economics and Ecology Whether cooling solely with natural gas equipment or in tandem with electric, steam or hot water in a hybrid system, today’s natural gas absorption, engine-driven equipment assure customer’s business superior performance, reliability, flexibility and economy. The absorption heat pump saves the customer money in heating season and losses money in the cooling season and the gas engine driven heat pumps saves the customer money both in heating and cooling seasons. In colder climates, the overall economics are comparable or better than those of the conventional system as the heating season comes to dominate the economics. Heat pumps are suitable for providing heat in any type of building, even when the highest gas efficiency available appliance is required.

32 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Hybrid cooling and heating systems also offer many economical and ecological advantages, because of it’s flexibility and the cleanness of natural gas.

Conclusions and Recommendations Natural gas enjoys a well-established and well-deserved reputation for efficiency, economy, reliable service, superior performance, and it’s good for the environment. In fact, natural gas is the preferred energy for heating, water heating and cooking in most of today’s homes and businesses. Many case studies already showed positive results. The high initial investment is likely to mean that this solution needs the support of subsidies and incentives on a long term basis. Medium gas absorption heat pumps (>35kW output) and gas engine driven heat pump (>20 kW) have completed their development phase and are already available for light commercial and residential heating and cooling application with distinctive advantages over the electric compression heat pumps. Unfortunately, only some manufacturers invest to development of gas engine driven heat pumps and small gas absorption heat pumps. Only five Japanese manufacturers can offer GHP appliances, and they are focusing on the Japan market, where the distribution network is completely different than in Europe. One manufacturer exists, which can commercialize successfully the small gas absorption heat pump appliances. Traditionally, natural gas is most often associated with heating and is immediately linked to appliances like forced-air furnaces, ranges, water heaters and clothes dryers. Now, this clean-burning energy source can also be used to air condition customers’ home or office. GHPs have been very successfully deployed in Japan for more than 20 years. In recent years, GHP technology has also seen successes in other Asian countries. Main drivers and assets to promote the gas heat pumps: • There are calls at political level for the gas industry to provide highly

efficient, CO2-reducing heating systems. These calls will get louder.

33 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

• Activities by gas supply companies have already led to more development work by appliance manufacturers. • More far-reaching GHP production developments are necessary.

• GHP has drawn level with EHP in terms of CO2 output and full costs; GHP still has further potential. • Overall system optimisation (gas connection, installation, appliance, flue gas piping) will further reduce costs. • Joint laboratory and field test projects will allow earlier market launch.

Demand for GHP and GAHP systems is expected to continue, as the replacement market for building air-conditioning systems is growing year by year, and there is a general trend toward individual air-conditioning systems even in large and medium buildings. GHP and GAHP systems are cost-efficient; and also meet the social needs of today, particularly in respect of savings of utility power in summer and of primary energy. The next generation of heating (and cooling) systems is gas heat pumps (GHP and GAHP). They can basically use about 25% less gas than traditional condensing boilers for heating, thus emitting correspondingly less carbon dioxide. With this technology the gas companies not only sell less natural gas in winter season but can supply more natural gas in summer season. However, the technology has not yet reached market maturity.

34 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

4.3 Abstract Natural Gas and Renewable Energy Sources (Nuno Alfonso Moreira)

In the last decade the growing interest renewable energy is renewed. This interest has emerged in the 70s, when the world experienced two oil crises, which acted as an incentive for forms of primary energy sources. Today we live what we can accept that as the third oil crisis. On 2 January 2008, the price of a barrel of oil reached the historical value of $ 100. Alternatives such as solar energy and the use of biomass are the major trends. However, in most cases, alternative energy sources are unable to, alone, sustain existing needs, requiring equipment to support consumers of fuel such as natural gas, oil products, etc.. There are many advantages that natural gas offers. Its combustion results on low emission levels of pollutants, ash free, the content of carbon monoxide (the most responsible for acid rain) is practically zero and the levels of NOx formed are well below the values of any other fossil fuel. Yet in its combustion, CO2 emissions (responsible for the greenhouse effect) are much lower than alternative fuels, may even make the comparison between the products of combustion and respiration of the human (CO2 and H2O).

Reduction of CO2 emissions More than 50% 70% 60% 60% 60% 60% 50% 50% 40% 40% 30% 26% 18% 20% 10% 0% Low Natural Gas Natural Gas Natural Gas Natural Gas Biomethane Biometha Temperature Condensing Condensing Condensing Heating Condensing Gas Heat Boiler Boiler Boiler with Boiler with Pump Boiler Pump Solar (Warm Solar (Warm Water) Water and heating)

Figure 1 – Reduction of CO2 emissions (ASUE; 2007).

Thus Natural Gas is the most favourable fuel to be used in the support system for renewable energy.

35 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

4.4 Abstract Alternative and Innovative Gas Appliances (Per Persson)

Report from IGU – Study Group 5.2 (A study report from Danish Gas Technology Center) (An overview with ideas to increase numbers of gas applications)

Introduction

Believe it ... • New houses does not need natural gas ….. but electricity , water and drain is a must

The background for the study group and the purpose of this project was to make possible uses of natural gas in homes visible, aiming to maintain existing consumers on the gas grid, and to use new smart gas appliances to attract new customers.

As the work progressed it more and more became a question, if there is a basis for use of gas in new low-energy houses at all.

We have gathered data and inspiration from IGU using a questionnaire, and Danish Gas Technology Centre has – based on the possibilities in Denmark – prepared this report about available alternative and innovative commercial appliances.

Summary

In most countries better building insulation and higher efficiency are reducing the gas consumed by each consumer, especially in newly constructed houses. One example of reduced gas consumption in existing building stock is found in Germany. During the period 1997 to 2006 the gas consumption decreased by 14% (corrected for the climate) in northern Germany /x/. Interviews with selected customers showed that 60% could remember an energy reducing measure during this time and especially boiler retrofit was accountable. Approximately 20% of the boiler retrofits were a result of more stringent efficiency and emission regulations.

36 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Two paths are possible to increase the attractiveness of gas and the gas consumption.

• Reduce the investment and installation costs • New applications

This study is concentrated to the application side of the problem. It includes not only technical aspects but also marketing and social science aspects.

Conditions discussed

We believe: • A new standard house basically needs electricity, water, hat water, drain, heating and air-conditioning • Production of electricity gets more and more cheap • Electricity driven heat pumps will take over considerable market shares • Natural gas gets more and more expensive • Energy consumption in new houses (Denmark) aprox. 7,7m3 gas per m2 in 2007, 6,2m3 gas per m2 in 2010, 5,0m3 gas per m2 2015 and 4,0m3 gas per m2 in 2020 • A 25% cut in energy consumption every 5 year will be realistic as regards new houses • Energy companies will become multi-companies and will give priority to electricity • Electrical driven appliance are cheaper servicing and maintaining than gas driven appliance

• The outlet of Co2 must be reduced

37 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

We are worried about – we claim that:

• There is a lack of development and competitive products for heating • The latest big leap forward was the introduction of condensing boiler about 20 years ago • Cogeneration might never come to anything in smaller houses. CHP knocked on the door • Fuel Cells are too expensive and belong to the future • Natural Gas in combination with alternative energy is too expensive to install • Service lines are too expensive to establish • Authorisation is required. It is a barrier to cheaper installation • Lack of research and development • Electricity is safe for heating; Co accidents take place only by using gas • Gas for heating is phased out in new houses; electricity will be used for heating • Service and maintenance is too expensive compared to electricity

38 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

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. IGU ENERGY EFFICIENCY INDICATOR (IEEI): A technique-marketing tool (Jean Schweitzer)

With global warming, Kyoto protocol etc.. CO2 emissions have become one of the most discussed topics around the world.

Until recently, comparison between energies and technologies was fairly straightforward. With the market liberalisation, emergence of RE, emergence of new electrical appliances, etc. the comparison is becoming more difficult; we need now more accurate calculation tools that enable the evaluation of appliance performances, efficiency, CO2, costs etc.

This is especially important for the gas industry as in most of the case/countries, gas technologies will be in a very favourable position.

One of the recent developments is the IGU Efficiency Indicator Project that aims at providing a key reference tool to natural gas users and stakeholders in general.

The IEEI has two main features:

a) The “end user” interface allows a comparison between natural gas and other energies (electricity, fuel oil) in terms of CO2 reduction and energy and costs savings. New technologies (MCHP) will also be included. So in short the function is “Informing the customers about running costs of various technologies for heating”.

b) A “policy instrument” interface makes it possible to calculate the impact on national CO2 emissions of technology change. So far in 13 countries.

39 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

We have therefore assessed the energy efficiency of various technologies for the main gas utilisation in the domestic & commercial sectors. For the time we focus on heating only as it represents 90% of NG sale in the considered sectors

The tool is in a demo version, so far, but will soon need to be adapted to be used for marketing purposes.

Method The calculations are based on a) An appliances energy efficiency database (source IGU) b) A market database (installed appliances & annual sales).(source EU/IGU) c) Energy prices (source IEA) d) National electricity production data (source IEA) e) CO2 nominal emission by fuels (source IPPC)

Exemples of use

Energy costs and CO2 emissions FOR DEMO PURPOSE ONLY Input

Country 3Denmark Annual heat demand (kWh) 20000 Boiler size (kW) 20 Radiator system Traditional 1 User-defined appliance (optional) Description Type Natural gas,1 atmospheric boiler, non modulating Full load efficiency (% net) not operational Part load efficiency (% net) not operational Elec tricity cons umption (kWh/year) not operational

graph 0 1000 2000 3000 4000 5000 6000 Results Energy costs (kr./year) CO2 emissions (kg/year) 1 Natural gas, atmospheric boiler, non modulating 2514 4661 2513.73485 Natural gas, atmospheric boiler, modulating 2457 4555 2457.03406 Natural gas, traditional flue balanced, non modulating 2359 4375 2359.46231 Natural gas, traditional flue balanced modulating 2305 4274 2305.3653 Natural gas, condensing flue balanced non modulating 2208 4094 2208.01034 Natural gas, condensing flue balanced modulating 2197 4073 2196.87752 Natural gas, gas Radiator (flue less) 2293 4252 2293.23179 Natural gas, gas Radiator (flued) 2421 4488 2420.63356 Natural gas, gas heat pumps 2179 4039 2178.5702 Natural gas, micro CHP stearling 2179 4039 2178.5702 Natural gas, micro CHP fuel cells 2179 4039 2178.5702 Fuel oil, traditional boiler 2639 5770 2638.80866 Fuel oil, condensing boiler 2556 5589 2555.76923 Fuel oil, radiators 2437 5328 2436.5 Electrical boiler 6115 7863 6114.58333 Electrical radiators 6083 7823 6082.90155 Wood boiler with ventilator 0 0 0 Wood boiler without ventilator 000 Wood, other 000 District heating 0 10672 0 User-defined appliance 0 0

40 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Status (Dec. 2008)

A first demo version with the above function has been developed with the financial support of IGU. It was demonstrated in various places within the gas industry (IGU, Marcogaz, and GERG) Immediate next steps (Phase1)

1) First demos + Extension of the database, we have contacted more contributors (from IGU / MARCOGAZ / GERG / LABNET) to demonstrate the tool and also to feed the databases (especially the appliance database with info on non- gas appliances) and develop the missing models. This has been very useful to see the high interest for the products and we have got some first reactions, but this method was not appropriate to get direct input as we expected. Therefore we have to organise this in another way. This is so integrated in the action within Phase 2. 2) First assessment & evaluation of the benefit/ dangers. As the topic is quite sensitive, it is necessary to have a rather good idea of the

41 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

potential advantages & inconveniences of using such tool and to make it (or not public). This shall be done country by country as the eg. electricity production & energy cost are very different from countries to countries. 3) Preparation of phase 2. Planning of the work

Validation and extension (Phase2)

1) Extension of the database for the appliance we have no data or not accurate data. 2) Extension by modules to different technologies for which we have no models. Various applications such as heat pumps, mCHP, combination with solar, etc shall be envisaged. We will in a first stage have some of those technologies from already phase1, but as we don’t have models in forehand as we have for boilers there will be a need to work this out. 3) Validation work to make sure that the models/data by technology are equivalent and not giving an unfair advantage to one of the energies (we want gas being best but on a fair calculation basis!). In case we are deciding that this is an important tool for the gas industry external communication and not only an internal promotion tool, we should consider letting neutral expert doing this. 4) Integration on IGU website and links from other websites (Marcogaz, GERG, etc…) 5) Promotion, making the tool known 6) Organisation of the maintenance: the tool developed will need to be regularly updated (egg. new energy cost, new conversion factor for electricity production etc...)

Organisation of the work

Phase 1 task 1 & task 3 was/ is 100% part of IGU work and action during the triennium 2006-2009. We expected to have some feedback from wide panel of members for task2, this was not the case, so we will need to

42 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

either make what we can at this stage without funds or find a sponsor to do the assessment properly.

Phase 2 will need more collaboration to evaluate the gas industry advantages and inconveniences in using the tool. Also the development and work considered are important and can’t be carried out without sponsors.

Clearly Phase 1 will result in a product that will be able to demonstrate & possible convince later on contributors and sponsors. Already at this stage we can say that this goal was already achieved.

We are now working to set up the phase 2 and surely we will report on development at the next triennium.

43 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

5.1 Annex

WOC 5 Trienium 2006-2009 Study Group 5.2 Report

5.2 Investigations on new acceptable EU limits for gas quality. Influence on the performance of new and installed gas appliances. (Jean Schweitzer)

Study Project

Definitions GAD: European Gas Appliances Directive 90/396/EEC. This directive is the covering mainly safety aspect of gas appliances NB: Notified Body (for the GAD)

EU & variation of gas quality The EU Commission has recently invited CEN (of the EU standardisation body) to draw up standards for gas quality parameters for H-gas, that are the broadest possible within reasonable costs. This mandate relates to the Directive 2003/55/EC of the European Parliament and of the Council on the creation of a competitive single European gas market. Article 6 of the Directive states that: ‘Member States shall ensure that technical safety criteria are defined and that technical rules establishing the minimum technical design and operational requirements for the connection to the system of LNG facilities, storage facilities, other transmission or distribution systems, and direct lines, are developed and made public. These technical rules shall ensure the interoperability of systems and shall be objective and non-discriminatory.’

The mandate given the CEN states “In the current situation technical rules hinder the interoperability of systems, and especially for gas quality rules it is not clear if these rules are the minimum operational requirements. This poses a significant barrier to competition and trade within the European Union and is a risk to European security of gas supply.”

44 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

In other words, the EU like to have a new gas standards with the view to facilitate the gas market of tomorrow keeping the same level of safety using gas appliances. This follows the market trends observed: gas quality variations are increasing due to the diversification of sources and the development of LNG.

Potential risks with variation of gas quality In theory, as long as new gas specifications are within the limit gases of existing standards (e.g. EN 437), there should in principle be no problem for the appliances when they are set up in the same conditions as tested for the application of the standards or GAD. However, it appears that in many countries the appliance settings are changed during the installation or service, which means that the appliances in the field are different from the appliances tested in the laboratories. The appliances are in this case adjusted to run at the nominal input for the gas available in the grid during the installation. E.g. in Denmark, some of the appliances are adjusted with a gas having a higher Wobbe index compared to G20. In some countries (e.g. Germany) jet burners are adjusted on site during the installation phase. Finally, in many countries, appliances are also adjusted again during maintenance phases (e.g. replacement of a component). As a result, the installed gas appliances may behave differently from the one tested and approved and today we may not know what consequence a change in Wobbe index would mean for such an appliance.

Also, some experts are questioning the safety of appliances when operating for long periods close to the characteristics of limit gases. For example, the boiler standard EN 483 and others are giving requirements on CO emissions. The limit adopted (0.2% CO limit on G21 - incomplete combustion limit gas) is only tested for short-term operation, the “philosophy” of the standard being that limit gas is supposed to simulate short-term abnormal situations. Therefore, an important practical question is the capability of the appliance to run safely with gas in the highest

45 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

range of the Wobbe index for a long time. This is not tested in the present application of the GAD.

Project Objectives and Scope a) Objective/contend The project GASQUAL aims to execute a study in support of CEN work and will comprend the following aspects: 1) Market study to understand the existing population. How many appliances are installed? Typology. Market for new appliances. What will be the future gas profiles (market of the gas in the future)? 2) Existing certification practices. 3) Installation and inspection rules and practices. 4) Conclusion for the final test programme and final selection of appliances. 5) Testing of appliances. 6) Conclusions. b) Appliances covered Only GAD compliant appliances are included in this proposal (non- GAD appliances shall be treated at national level). Industrial applications or non-GAD appliances are not within the scope, but a number of results will also be applicable to those appliances. Note that appliances covered by the GAD are both domestic and non- domestic, but only domestic appliances will be subject to testing. c) Countries covered The study is intended to cover as many EU25 countries as possible. The practical goal would be to have the largest 15 gas countries and/or 75% of EU gas market. GASQUAL proposal will achieve much more than 75% of the market (probably greater than 90%).

The countries to be included are specified by the EU and chosen according the size of the market.

46 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

• Germany • UK • Italy • France • Spain • Belgium • Poland • Hungary • Czech Republic • Austria • Slovakia • Denmark • Finland • Ireland • Portugal • Greece

Potential Impacts The total number of gas customers (domestic, commercial and industrial) in the EU25 was 102 million in 2005 (source: Eurogas) and probably more than 150 Million gas appliances are installed in the EU25. The project will bring an answer to the impact of various scenarios of gas quality changes on safety, efficiency and emissions of those appliances covered by the GAD directive. For non-GAD appliances the study will enable the assessment of the potential risk on the basis of a theoretical approach and we will make some recommendations on how to investigate those appliances further. The project results will allow the national and European organisations in charge to assess the costs and actions needed for the practical operation of gas quality changes to be done without risk or inconvenience for the final user.

47 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

The study will also allow us to conclude on some aspects of the present procedure for CE certification of gas appliances.

Work organisation The work is organised in Work Packages with defined scope, target and outputs.

WP 1 to 3 are somehow independent and will be the foundation for the choice of the appliances and testing programme and procedure that will be established in the WP4 also in the light of the existing experience and theoretical considerations.

Appliances chosen will be tested according to the protocol defined in WP5 and the results of the test will be analyzed in WP6. Note that this process is not linear and that there will be one intermediate analysis of results during the course of WP5 (testing), and therefore the initial recommendations of WP4 will have to be adapted in the light of those intermediate results.

48 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Note that in co-ordination with WP4 and WP5 there will also be a number of tests carried out in order to evaluate the protocol and procedures and also to check whether the laboratories involved in the WP5 are able to carry out the test with the accuracy defined.

Interactions between the WP’s (and overall time schedule)

Outputs from WP are in red in the figure above.

49 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

The data from WP1, 2, 3 + existing data and theoretical analysis are used as input for WP4 for the choice of appliances and definition of the test procedure. (1) Preliminary testing (phase1) on basis of the appliance list and procedure developed. (2) In the light of the preliminary test results, a revised procedure is established for the second part of the test. (3) Testing (phase2) on basis of the appliance list and revised procedure.

Consortium: List of partners with short name and main roles

NUMBER PARTNER NAME SHORT NAME COUNTRY TYPE (*) 1 Danish Gas DGC DK NB / LAB / CE Technology Centre 2 Advantica ADV UK NB / LAB / CE 3 ARGB ARG BE NB / LAB / CE 4 DVGW CERT DVGW GE NB / CE 5 BRG BRG UK ME 6 Gaz de France GDF FR CE 7 Gasunie GAS NL CE 8 AFG AFG FR NB/CE 9 Inig INIG POL NB / LAB / CE 10 British Gas BG UK CE / IE 11 CETIAT CET FR LAB / CE 12 REPSOL REP SP NB / LAB / CE 13 DVGW-EBI EBI GE LAB / CE 14 BAXI BAXI UK MAN 15 RIELLO RIE IT MAN 16 VAILLANT VAI GE MAN (*) NB= Notified Body LAB= Laboratory ME = Market expert CE = Combustion expert IE = Installation expert MAN = Manufacturer

50 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Status The work will probably start in January 2008 (a contract is presently under discussion) and last for 21 months. More details: www.gasqual.eu

51 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

6 Conclusion (Martin Seifert)

Politicians and customers can count on natural gas to deliver the superior performance in the future. The state-of-the-art natural gas based technology like modulating condensing boiler as well as different burners are efficient, reliable, cost-effective, requires little maintenance and last for years. The new natural gas technology (partly already commercialised) show additional futures like small scale power production, utilisation of environmental heat climatization appliances and integration of solar power for sanitary hot water production. They offer further possibilities for reducing energy consumption and managing energy costs for cooling in home use, commercial buildings, industrial processes, refrigeration, combined heat and power plants and district cooling plants. Natural gas technology can be combined with wood appliances, electric heat pumps, pellet ovens (hybrid systems) in order to complement heating installations, to provide thermal peak demand or to enlarge flexibility regarding energy carrier. Natural gas technology can reinforce renewable and facilitate its use for instance grid based biogas. The natural gas infrastructure can mobilize biogas in bringing it to the consumers where they profit from the installed and proven natural gas technology.

Through modern, innovative technology like mCHP natural gas will be part of the future for domestic and small commercial sector. Some of these technologies are operational ready for introduction on the market. Some technologies are still in the prototype stage like testing and demonstration phase (field tests). In order to initiate a wide market penetration still non technical barriers have to be negotiated with. For instance grid connection must be assured and standardised. The technical equipment and metering has to be defined. Another issue is the evaluation of the efficiency of gas driven heat pumps, in order to point out the preferences adverse to the electrical driven heat pump.

52 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

It will be the principal task to overcome the standards and legal framework problems for these new technologies. These new appliances together with the modulating condensing boiler solar assisted will secure the success story of natural gas in the domestic and small commercial well into the future up to 2020. One prerequisite will also be continuous technical development of the natural gas application in terms of efficiency, emissions and longevity with the full support of the gas industry.

53 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7 Detailed Item Reports

Contens

7.1 Distributed Generation - mCHP

7.1.1 Case Studies

UK – Germany – France – Italy – Japan

7.2 Natural Gas Cooling and Heat Pumps

7.3 Natural Gas and Renewable Energy Sources

7.4. Alternative & Innovate Appliance

54 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.1 Distributed Generation – mCHP (Dr. Martin Wilmsmann)

Introduction

Reduction of the heat demand due to reinforcement of building insulation standards.

The heat-energy-requirements continuously reduce - enhanced by the regulatory requirement and energy price inflation- investments on heat insulation arrangements are increasingly made for stock.

Emergence of high-efficient electrical appliances.

The inherent benefits of natural gas, in combination with modern, efficient and convenient technologies, have until recently raised natural gas to the status of no. 1 energy choice among customers. Since middle of this decade, however, the observed trend has been downward. Especially in association with new buildings, there has been a decline in service connection density. Geopolitics (geopolitical occurrence like in Russia/Ukraine illustrated interdependence between supply interruption and price volatility/ and climate policy discussions were in the end a

55 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

reason for potential customers from the new building segment, and even operators of natural gas systems, to withdraw their favour from this environment-friendly, CO2-reducing heating technology. This led to a noticeable increase use of wood pellet burners or electrical heat pumps.

Trend for renewables.

The current energy and climate politics at the EU and the Federal State level is supporting this trend. They strongly require the commitment of renewable energy for the household heat production. The percentage of Natural Gas market share in the area of new buildings is continuous reducing, because of an increasing segment of clients who request a self-sufficient heat supply based on renewable energy.

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” any longer. Conscience for carbon print and global warming is increasing.

Relative absence on the market of new gas technologies.

There is a technology (innovation) gap of approx 2 years. The majority of promising mCHP products has not reached the maturity for market introduction (issues: costs, durability, reliability, materials……). In spite of the identified sustainability potential, the European development of micro CHP systems in competitive markets is rather deflating. The large gap between expectations and reality make it important to identify the barriers which are responsible for this discrepancy. Main reasons are seen in the rather slow technology development, in the assessment of the economic opportunities, in the

56 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

political framework, the regulatory framework, in lacking innovation policies and consumer acceptance.

The challenge of the gas industry

The question for the gas industry should be, with which strategy and technology they will react to these boundary conditions.

The gas industry needs new technologies to compensate market share losses already observed and reported in many countries. In order to implement new technologies on the market the synergy of technology, marketing and an effective cooperation of all important actors playing a role will be needed. If the gas industry does not succeed, natural gas may progressively disappear from some sectors, as for example the heating sector. The challenge now facing the gas industry, together with its market partners, the appliance manufacturers, is to develop and offer the customer appropriate technical alternatives under the difficult conditions encountered in competition with other energy fuels.

Utilities and product manufacturers should take a common stance which is a prerequisite for Government´ willingness for enlarging/intensifying financial support for creating mCHP markets. In doing so the interests of the market player needs to be synchronise by the sense which bases on of the market launch of the mCHP.

Government – achieving CO2 reduction targets

In the frame of saving energy, reducing CO2 emissions and enlarging share of renewable many EU countries set up their own energy efficiency action plans. Organizing their fuel and energy supply for the future R&D on mCHP finds increased favor at national (Government) level. Government´ policy support mechanisms which are designed to promote mCHP market introduction are quite different in countries. These measures include sales subsidies paid by Government to homeowners or

57 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

mCHP manufacturers, bonus payments for exported/generated electricity and other country-specific bonus like energy tax exemptions etc.

Utilities – advantages of own business, extract value from supply chain, enlarge gas sales

Utilities wish to position themselves for a potentially new market opportunity while mitigating any possible threats from new-entrant CHP players taking market share. For utilities, CHP offers the means to increase the value of their portfolio, efficiency and portfolio diversification as well as establishing new customer. There are a number of ways for utilities to secure value from mCHP value chain. They can (be) involved in creating intellectual property through Research and Development by investing in a start-up hoping to gain return of invest when developer introduces product in market invest in product manufacturer, working closely with a technology developer to bring product to market sell products to customer eventually including financing package, sell fuel or energy selling, provide warranty and service packages act technology open, that means without link to a technology or exclusiveness with a manufacturer just facilitating mCHP markets by supporting field tests helping to remove barriers etc.. (Detail information about utilities´ drivers and motivation and their involvements see case studies)

OEMs – mass market opportunity, with government and utility backing

For gas appliance OEMs demand for distributed generation solutions provides a new product line, enables to contrast from competitors, follows Company´ philosophy standing for innovation, careful use of resources and efficient energy use.

58 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Because of an innovation gap in the heating appliance market OEMs realize the opportunity to enlarge the product portfolio based on energy saving and environmental friendly technologies hoping/expecting to get support from Government and or utilities Which products are in countries on markets, which are knocking on market door and which are just in RD&D-phase are described in case studies.

59 WOC 5 Trienium 2006-2009 Study Group 5.2 Report mCHP devices for the use of natural gas in domestic and small commercial market segments

The combined electricity and useful heat production are regarded as one of the most efficient measures for enhancement of energy efficiency and lowering the CO2 Emission. For instance by increasing the electricity production share CHP of the total electricity manufacture in the coming decade. The combined heat and power generation (CHP) increasingly gets more interesting due to the current climate protection targets and the energy price development. Since a long term Natural Gas became Mainstream in middle and larger range of power cogeneration technology. Through the production of electricity and useful heat at the same time CHP plants have a very high degree of efficiency: Up to 90% of the used energy can be transferred into useful energy. Compared to the conventional and separate manufacture of electricity (e.g. central power plant) and heat (e.g. trough a boiler) the saving of primary energy will be up to 30 till 40%.

Natural Gas provides especially good possibilities for efficient electricity and heat production through CHP. Since years the combined heat and power generation with gas-powered combined heat and power units and gas turbine are in place energy saving techniques, especially regarding a power level starting from 50 kilowatt of electrical power. Because of intense technical development the spectrum of Natural Gas CHP solutions with smaller powers will increase as well.

Accepted combustion engine are coming into operation such as innovated technologies like Stirling Engine, steam expansions engines or fuel cells.

60 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Admittedly each of these systems is in very indifferent phases of development. Especially in the lowest power level of electricity producing heating system there is no marketable unit for a one-family- or semidetached-house. (Europe).

Increasing energy costs and requirements to climate protection turns little CHP plants into an important option for the future energy supply. There is a huge potential of saving capacity on primary energy and reduction of

CO2 emissions for one-family- or semidetached-house, other types of buildings and smaller trade firms. Natural Gas operational Mini- and Micro-CHP plants could be a supportive help to develop this potential. They can generate heat for space heating and hot water generation as well as produce electricity, which can be used in the place itself or it can be inducted in the electricity network.

Technology, state of the art

A number of different conversion technologies have been developed for the application in micro CHP systems.

Stirling engines run with an external burner which alternately heats up and cools down from outside a working gas in a closed chamber; this causes a movement of the piston which then activates the generator for electricity manufacture. With a steam expansions engine an external heating source (e.g. Natural Gas burner) heats up water which vaporises in a cycle. In an extra working chamber the water steam relaxes and condensates, the released heat is emitted to the heating system. The extension of the water steam while it is relaxing is activating over a piston the generator.

Fuel Cells transform the in the fuel contained energy through electro chemical processes into electro- and thermal-energy. Therefore hydrogen is decomposed at the anode by a catalyst into electrodes and protons, which then moves in different ways to another electrode (cathode).

61 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Natural Gas can be used as a hydrogen source, which will be recycled in a reformer.

Reciprocating engines are conventional internal combustion engines coupled with a generator and heat exchangers to recover the heat of the exhaust gas and the cooling cycle.

Present market situation

The main potential of micro CHP systems is mainly seen in buildings with central heating systems. This generally means that conventional heating systems are replaced by electricity generators with heat exchangers. The produced heat is used for space and water heating, the electricity is used within the building or fed into the grid.

Considerable manufactures have looked into the subject of micro-CHP- technical. There are a lot of units in indifferent stages of development and testing. These units are based on the different technologies as mentioned before. But at the moment one can see that it will take several years till market launch of micro-CHP-units with fuel cell technology. In Germany a demonstration project “Callux” has started for the next 7 years in order to prepare for the market launch. In Japan a PEM-fuel cell already has passed the demonstration phase. They have installed and run in total over 3000 units. In Japan, May this year, the PEM-fuel cell technology will change to the commercializing phase. Prototypes are partially available, but the units cannot be delivered in big number of items. In Europe seems to be a tendency to the Stirling-Technology. Before the market launch some important steps needs to be taken including laboratory- and field-tests, which take place at the moment. They provide a detailed evaluation of the functional capability of each system and its applicability in practical experiences.

62 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

In Japan the ECOwill-gas engine is already a story of success. The engine has been sold over 80.000 times. Shortly it will be introduced to the European market and establish there.

The combined heat and power generation success will as well depend on the investment cost and on the technological development (target: compact, quiet and reliable). Politically it is wanted and therefore supported financially. Some manufactures regard the CHP as the successor of the gas condensing boiler technology referring to the housing supply. For Natural Gas supplier the micro CHP is the only new technique - compared to the gas condensing boiler technology-, which increases the gas sales quantity by producing electricity and heat at the same time. Micro CHP is very suitable as a new Natural gas technology for the residential heating market: New building: Unsuitable for engine-CHP with a low electrical efficiency factor. It is only reasonable for a lower power fuel cell and a high electrical efficiency factor. Stock: Reasonable because of high thermal power for existing, older buildings, especially for Stirling- and gas-engines.

In the past several studies have been carried-out in order to determine the potential of micro CHP units in Europe. For example, studies, such as MicroMap (Austria report) see a large potential for micro CHP plants. They developed scenarios according to which in 2020 some 5 to – in the optimistic scenario – 12 million Micro CHP systems could be delivered in Europe, with United Kingdom, Germany and The Netherlands as initial markets. The mass market for micro CHP will be mainly seen in the replacement of gas and oil heating boilers.

63 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Technology availability

Research (RD&D)

Much of the RD&D (Research, Development & Demonstration) conducted by utilities and OEMs will be motivated by opportunities in what is seen as a promising new market sector. RD&D activities and involvement can take several forms. In Japan we see the gas industry deeply involved in component- and sub- system-R&D for fuel cell units and gas industry supports field trials as well. In UK, The Netherland and Germany gas utilities are heavily involved in lab testing in order to better understand the actual status of a product development and suitability for market and in field testing under real life installation as vital prerequisite to take a product from lab to commercialization. Field tests in close cooperation between utilities and OEMs help encountering unforeseen problems and help manufacturers to overcome such issues and getting their product to market.

Utilities must be involved when market happens as main player, it is necessary to gain in advance the knowledge and skills required to extend their coverage to the business (secure gas sales, energy service business, customer acquisition, customer retention…). From a research, development and demonstration (RD&D) perspective utilities focuses therefore on the identification and evaluation of near market ready or recently introduced technologies to support diverse product portfolios. In order to be able to offer appropriate distributed generation installations and related high quality advice to a wider range of customers, utilities will be well placed if it is fully familiar with the range of technologies and able to offer at least several different systems

64 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Field tests: Having participated in field tests provides an advantage in the ‘roll out phase’ of business model: make fewer mistakes as interfaces are better understood, work faster, have teams prepared etc. Lab tests: Experience gained from lab tests helps choosing right partner for field test or roll out.

Reliability, Maturity

Focusing on pre-commercial units rather than on early developments unit when conducting (large) demonstration projects it is more or less accepted among the market players. New product must be tested at least for two heating seasons before one can be sure that technology from a technical perspective does work reliably. But market readiness does as well mean competitiveness towards alternative solutions from an economic point of view. All in all one can say that the prices of a product must fall e.g. due to cost of production and production volumes to an extend that additional cost compared with alternatives are compensated between 5 and 8 years (it is country- specific). First Commercial micro-CHP will enter the EU-market in 2011/12 Stirling and ICE are considered to be a pathfinder for fuel cells. Fuel cells will enter the market 5 years later (potential successful market entry of fuel cells may boost additional dynamic in growth after 2020). Given the short “window of opportunity” for mCHP and the challenges of mass market deployment, rapid early market penetration will be required if the full value opportunity offered by mCHP is to be realized.

Standardisation

The tests of the functions and technical data as well as the mechanical and electrical tests are currently carried out only according to standards covering comparable appliances of gas boilers or according to purely national requirements. For the European market it is important to provide uniform function and

65 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

power data and to have comprehensive harmonized tests and approval procedures covered by a European product standard. Therefore it is important to elaborate a European product standard for combined heating power systems using gas fuel giving presumption of conformity under the gas appliances directive. Regulations pertaining electrical distribution system connection are also important. These will vary from state to state.

Economy

Diverse basic conditions for the economical use of mCHP units mCHP plants require an articulately higher investment as a common heating system. An increasing assignment of them will depend on whether the system can work profitable.

The viability of DG, and the relative attractiveness of different technologies in a region, is strongly influenced by the local energy prices and other market conditions e.g. subsidies. The major limiting factor in the markets for all the distributed generation technologies is the economics for the property owner. All the technologies currently have high installation costs which are to be recouped through reduction of imported electricity from the grid or export of surplus power. Payback is thus strongly influenced by the local spark gap and the availability of and rate for payment for generated / exported power. Without net metering, or some degree of payment for exported power, DG installations must achieve pay-back only through reduction of power import to the premises.

Further parameters which influence on the profitability: • Operating time of the request / annual power-on hours • Purchase and running costs

66 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

In principle smaller CHP plants can be used where ever the operator can use simultaneously the electrical and thermal energy and the units can work on base load. Therefore it requires a starting running time of min. 5,000 full usage hours per year. An economic efficiency will be reached by the CHP, if the produced electricity is used by the direct house hold or smaller commercials. Most of the time that precondition is given on official buildings. In most cases the problem is a necessary running time, which implies a certain heat usage for the whole year.

Incentives Government commitment to support mCHP technology is essential in giving developers, manufacturers, vendors and investors the confidence to invest in R&D activities, in introducing the product to the market and in ramping up the production.

It can be monitored that support measures can take several forms in the different countries in Europe and Japan (being the true potential markets for mCHP). It is quite obvious that a right kind of support at the right time in the product development process has a strong impact on a successful market introduction.

Ecology

CO2-reduction

The more average power generation (energy mix) comprises use of renewable, nuclear, coal with CCS or gas the more or less worth is the CO2-advantage of mCHP technology In order to reach CO2-targets the use of mCHP technology is essential so long as average power generation comprises unabated use of coal.

Popularity, public awareness, consumer needs

Information

67 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

In order to create a sufficient market pull consumers must be in favor of a technology due to its advantageous features. Adequate promotion and provision of information on mCHP technology increases the incentive for consumers to purchase micro generation product. Effective marketing will be the key to creating the mass market that will be required to deliver the value that could potentially be realized from this technology.

Validation of customer and market requirements

Although cost considerations of customers are the major ones there are secondary factors which will have an important impact on purchase decisions. The wishes and expectations of the client are vital for the development of the heating market. Some investigations show that the value of heating technology is based on the following motives:

• self-sufficiency (regarding supply and costs) • ecological ambitions • cost reduction / energy saving • wish for comfort / simplicity / accommodativeness

Since the mCHP are new by some point of view a cooperation would be expedient with the users of this technology, not only to optimize the power of the fuel cell, but as well as to early recognize the demand of the real users.

At the moment the demands are defined mainly by technical data e.g. power, standing time and economic numbers as well as investment- and service-cost. Requirements to this new technology of future users or buyers only have been unsystematically observed and documented. Since Micro CHP represents a new technology of combined electricity and heat production

68 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

of the house hold supply, the existing knowledge –based on the separated production of electric and heat- cannot be transferred directly. Cooperation with the users of the mCHP is very suggestive, not only to optimize the technical- and economical-power, but also to see beyond the adjustment, requirement and needs. At this moment it is not known which specific requirements have “Early User” especially. Further on no concept exist how to use economically the specific advantages of the mCHP (e.g. energy efficiency) in a quick way and with a big leverage effect. The central question is the most sufficient market development strategy. A negligence of the users needs would risk the endangerment to weight falsely important technical- and economical-requirements or to disregard them.

Installation

Education of craftsmen and multipliers

Cooperation on education in craft trades are important elements to secure the quality of installation and maintenance. Working on combined electricity and heat plants requires a sub sectional overlap qualification on the sectors of electricity and heating as well as on experience with new technologies such as mCHP-units. The early inclusion of craft trades will secure their support and their direct customer access will be used for acquisition of new customers. These target groups are: • teaching staff (and other intermediaries/multiplier) • crafts men of sanitary, heating, climate (differs in general management, sales and distribution and their marketing) • chimney sweeper • architects • energy consultant

69 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Case Studies (excerpt) with focus on policy support & activities of the gas industry

The Netherlands (Erik van Engelen, Essent)

“Slim met Gas”, freely translated to Smart Gas, is a consortium of the 4 largest energy companies (gas and power retailers) of the Netherlands (Gasterra, Essent, Eneco and Nuon). These utilities act together in the pre-market phase to support new environmental friendly gas technologies.

Their main project at this moment is mCHP. They have signed a letter of intent, January 2007, to place 10,000 mCHP units before the end of 2010. This consortium is responsible for distributing a funding of 10 Mill € which has been committed by Dutch Government. Utilities get the money depending on the number of appliances they install, whereas the subsidy per unit will decrease subject to cumulated quantity of units. It depends of the success of this “learning phase” under real life installation that Government is willing to commit for a follow up funding.

For consumers which feed in less than 3000 kWh/y into the grid, the amount of redelivered electricity is subtracted from the delivered electricity. So also no tax and transport tariff is paid. From the consumer point of view the grid can be seen as storage devise. Currently there are no other measures.

Additional mCHP related projects and activities are: e.g.

• the development of a mCHP energy Label (HRe label) • a large field trail (weiland proef) for determining the electricity network effects (2006/2007), • yearly National mCHP congress, • collaborate approach to Dutch government for mCHP legislation • field test in 2007, 2008 and following.

70 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Taking the 10000 units into account the Netherlands will be the first European country with a noticeable number of mCHP-systems, dominated by Stirling engines. Although it is not the largest market, compared with UK an Germany, most of the leading boiler manufacturer keep an eye on Dutch market, as it has a history of successful technology introduction (e.g. condensing boiler) and is the first one to bring product to market.

UK (Mark Bugler, British Gas)

A number of measures have been developed by industry and Government to support and drive the mainstream launch of mCHP, planned for 2009. The main areas are: CERT - All energy companies in the UK are keen to promote mCHP. Every company has an obligation known as the Carbon Emission Reduction Target (CERT) as part of their trading licence to reduce carbon emissions and energy consumption and offer both electricity and gas to their customers. This is achieved through funding various energy efficiency measures, in full or in part. The core part of this target is insulation and energy efficiency advice to consumers but mCHP will be a significant part of the CERT program moving forward. The energy companies may part fund the cost of the mCHP unit, reducing the cost to the consumer. The level of funding will depend upon the demonstrated energy savings. The Energy Companies are keen to offer an exclusive offering with this technology to their customers and presently British Gas and E-On have exclusive agreements in place, ready for product launch. Suppliers must focus 40 per cent of their activity on a ‘Priority Group’ of vulnerable and low-income households, including those in receipts of certain income/disability benefits and pensioners over 70. By increasing the energy efficiency of GB households, CERT will not only help households from falling into fuel poverty but is also

71 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

expected to help alleviate fuel poverty. CERT allows suppliers to meet up to 5 per cent of their obligation through a ‘flexibility mechanism’, which aims to target hard to treat homes i.e. those off grid or solid walled homes, in the Priority Group. Development of a mCHP efficiency measuring procedure (PAS 67) to allow the new products to be compared to other heating systems. New buildings carbon emission and efficiency is assessed by using a Government Tool known as SAP (Standard Assessment Procedure). Existing homes are assessed using a cut down version known as RD- SAP (Reduced Data SAP). SAP needs inputs of each technical efficiency and PAS 67 has been developed to allow the comparison to be made. A 50% uplift in the energy saving credits attributable to mCHP has been agreed by Government. This makes the funding of mCHP more attractive. The Low Carbon Building Program (LCBP) is another scheme for homeowners and ‘not for profit’ organisations where the installation of larger schemes can be part funded. mCHP will be part of this scheme A lower rate of 5% VAT will be applied to mCHP installations Government plans for a Feed In Tariff (FIT) and Renewable Heat Incentive (RHI) were announced in December 08. The FIT will include electricity generated by mCHP up to 50kW in size and the RHI may also apply if the unit uses Bio-Methane. The tariffs will may be ‘deemed’ giving homeowners an upfront ‘grant’ to install mCHP An electrical connection standard has been developed known as G83/1. This allows an approved mCHP unit to be installed without prior permission from the customer’s electricity supplier or the District Network Operator, provided it is a single mCHP installation. This is known as ‘Fit and inform’ and removed time barriers from the installation process allowing the process to be similar to a boiler

72 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

installation process. The flow chart is seen in Appendix 2 and the notification form is seen in Appendix 3. The intention to roll out Smart Metering has been announced by Government which will support the technology for the ‘smart home’ turning on electrical appliances when mCHP is generating and giving consumers the ability to sell their electricity back to energy companies The industry is developing training courses and qualifications to support the installation of mCHP.

For the time being UK policy is just little support regarding promotion of mCHP-market introduction as it is not a direct one (except VAT reduction), but there are positive signals (CERT) encouraging mass market take up of mCHP.

Germany (Martin Wilmsmann, E.ON Ruhrgas)

In Germany mCHP-support is quite tricky. On one hand the German government is, in principle, supportive towards micro-CHP in the light of the environmental benefits it brings. There are measures targeted directly at mCHP like:

German Co-generation Act: Incentives for micro-CHP in Germany include:

The tariff for, and the amount of, the electricity actually sold into the public grid. The price paid for electricity fed into the grid is determined by the „prevailing price“, which is the average base load price quoted at the Leipzig power exchange EEX for the preceding quarter. It is published online at www.eex.de.

In addition to that base price a legal incentive of 5.11 Ct per kWh

73 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

produced power for small CHP (<50kW) is guaranteed for a duration of 10 years after commissioning. It is valid for units installed up to the end of 2016.

In addition to that a bonus price for micro-CHP electricity exported to the grid is paid for avoided use of transmission and distribution networks. This is worth 0.15 – 0.55 Ct per kWh.

74 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

German energy tax act Cogeneration:

Energy tax refund for the natural gas used (currently 0.55 ct/kWh of natural gas) (provided it can be demonstrated that the power- generating heating system has an annual fuel use efficiency of more than 70 %, which is usually the case).

Impulse program In order to accelerate mCHP market introduction up to a power level of 50kW German Government launched the impulse program with a budget volume of 400 Mill €, which is granted from Ministry of Environment the for a time period of ten years. It comprises a graded basic funding starting with 1550 €/kW for the first 4 kW electrical output till 50/kW for the power range between 25 and 50 kW. Furthermore a bonus funding is granted in the case that the technology keeps defined NOx and CO emission limits. The whole funding (basic and bonus) can be obtained only in the case that technologies reach 5000 annual operating hours; otherwise one can get just a portion of the funding.

On the other hand there is a new legal framework which is assumed to decline the volume of natural gas in the domestic sector.

Integrated Energy and Climate Programme (IEKP) In the context of transposing EU-energy policy directives and requirements German Government decided to launch an “Integrated Energy and Climate Programme” (IEKP) in July 2008. This programme consists of 29 new or modified laws to save energy. It affects of course the energy business in general and the gas industry in particular. The “Integrated Energy and Climate Programme” covers the entire area of energy utilization, for mobile systems as far as for stationary ones. In the stationary area priority was given

75 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

- to stimulate combined heat and power technology in all scales, including the expansion of district and neighbourhood heating systems - to the continuous reduction of the heat demand for structures - to increase the use of renewable energy. Natural Gas was lowered in priority in the new legislation - especially for the domestic market, in favour of the renewable. Biogas is supported only while using in CHP units.

Just to quote two important acts with relevant impact on mCHP: Renewable Energy Heat Act, (EEWärmeG), came in force in 2009: The law will contribute to the more widespread use of efficient technologies as a domestic heat sources. Politics has formulated clear demands regarding the share of renewable energies. In the case of a gas boiler installation in a new building, for example, the federal legislation specifies 0.04 m² aperture area per square metre floor space or an annual power factor of 1.2 for a gas heat pump as technical compensation. But owners of new buildings can avoid the requirements for the use of renewable energy by securing that over 50% of heat demand is covered by primary energy savings compared to reference systems, mCHP as alternative compliance option.

Building Regulation on Energy Consumption, (Energieeinsparverordnung, EnEV), came in force in 2009: It defines more stringent limit values for energy requirement of new houses. Maximal acceptable primary energy consumption should be decreased by 30%. As developers are allowed to combine high efficient technologies with thermal insulation measures, mCHP is a smart answer to meet these requirements at lowest costs.

In correspondence with the aspects described in chapter “boundary conditions“ and the considerable support for mCHP it is quite obvious to

76 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

combine natural gas still having inherent environmental benefits with new innovative products like vehicles to support German climate legislation.

Callux lighthouse project: Target: Market preparation of fuel cells supplied with natural gas − Demonstration and support of further development of durability to marketable products − Development of the supply chain by binding orders of large numbers of plants − Enhancement of the publicity notice − Further development of concepts to integrate fuel cells into the infrastructure − Education of craftsmen and designers − Validation of customer and market requirements − Advancement of value creation in Germany

Italy (Mario Gagliardi, Eni)

In any case there isn’t an obligation for energy suppliers to invest in CO2 friendly technologies but Eni SpA, as part of its own program of corporate social responsibility, has invested quite a lot in promoting the reduction of hydrocarbon consumption, even introducing a special campaign “Eni 30%”, particularly towards residential market.

The great interest that Eni SpA has in all the specific branches of its business fields leads to outstanding features that differentiate Eni SpA from its competitors. It is involved in a deep analysis of the DG/CHP’s market as part of the technical and economical feasibility and the comparison of different purposes that Eni SpA’s technical consulting unit does for its clients.

77 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

All these kinds of knowledge, combined with the continuous training of its human resources, bring Eni SpA expertise regarding its own business and the applications interconnected to this one. The advantages of Eni SpA’s strategy and business can be the customer retention and image-enhancing while security in gas selling is not ensured because of the natural gas condition fixed by the Italian law.

In Italy the energy sector’s demand is a very critical argument because of the lack of primary fonts and the great increase in energy needs. The government keeps lot of attention on this problem promoting initiatives to improve efficiency, reduce and diversify the energy consumption. In the last ten years big advances have been done thanks to the application of the flexible mechanisms (Emission Trading, Clean Development Mechanism and Joint Implementation) necessary to reach the objectives fixed by the Kyoto protocol, but the most important part has been done by the White and Green Certificates.

White Certificates Green Certificates promotes renewable energy plants while White Certificates are part of a mechanism which promote the energy efficiency (DM 20/7/2004) and one of the system supported is mCHP in civil uses.

The Italian policy goals can be identified as the reduction of hydrocarbon use and increasing energy efficiency by energy recovery in existing plants or by using high power technologies. In particular, in order to achieve CO2 reduction or combat the climate change, Italy implements the flexible mechanisms (Emission Trading, Clean Development Mechanism and Joint Implementation) necessary to reach the objectives fixed by the Kyoto protocol and also the Green Certificates mechanism. The government considers favourable all technologies which help to reduce primary energy consumption or systems powered by renewable

78 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

fuels. In particular, as part of a program that promotes energy efficient uses, the Italian government sponsors the installation of DG/mCHP applications (i.e. White Certificates). The promotion by the government of DG/mCHP plants is explained by premium prices for power fed into the public grid, advantages from energy tax legislation and credits, and the possibility of making a contract between the final user who installs a new plant and an ESCo to divide in equal percentage the money contribution connected to the White Certificates mechanism. Sometimes the ESCo is able to finance the installation of more efficient power plants and to recover the investment through the management of the plant itself but usually there are no subsidies from the government and/or from the energy suppliers to cover the installation cost of the system.

Japan (Kenji Maeda, Tokyo Gas)

Government schemes: Trends of Japanese energy consumption indicate that residential and mobility demands have been rising at a rapid pace although industrial demand has been kept at a constant level since the oil crisis in 1970s. Also, CO2 emission from residential sector accounts for about 13% of total CO2 emission of Japan recently. Toward the Kyoto protocol, the Japanese government has begun to put in serious efforts to tackle the above problem, and new technologies such as PEFC and SOFC fuel cells are expected to contribute to dissolve the problem together with solar power, wind power, biomass and other renewable energies. In fact, "New Direction of New Energy Policy" advanced in September 2008 by the New Energy Committee for Ministry of Economy, Trade and Industry (METI) mentioned the importance of fuel cells as well as renewable energies. In addition, "Japan's Long-term Energy Supply and

79 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Demand Projection" made in May 2008 by the Industrial Structure Council and Advisory Committee for METI showed a scenario that 2,500,000 units of m-CHP (including ICE, PEFC and SOFC) would be installed in residential sector by2030. Furthermore, "Roadmap for Fuel Cell and Hydrogen Technology Development" revised in June 2008 by the New Energy and Industrial Technology Development Organization (NEDO) indicated technical challenges and targets in detail concretely until 2020-30. The road map's objectives are to clarify technological issues that must be tackled in the development of fuel cell, to share technology development scenarios with stakeholders and ensure efficient, effective implementation in line with these and to promote further research and development and encourage new participation, through the wide-ranging dissemination of the roadmap. As indicated above, Japanese government have been encouraging greater use of m-CHP. Their positive attitude toward m-CHP could be seen in the G8 Hokkaido Toyako Summit held in July 2008, and annual national budget for fuel cell, including basic research, demonstration and support for hydrogen infrastructure has been kept around 30 billion yen for recent years.

Subsidy The Japanese government is paying a subsidy using a budget for saving energy to a householder who installs a high efficient boiler. M-CHP "ECOWILL" is recognised as a high efficient boiler and an object of the above subsidy. The basic concept to calculate the amount of the subsidy is to compensate a half price of difference between the high efficient boiler and a conventional boiler. In addition, a part of installation cost is also compensated with the subsidy. In case of "ECOWILL", 140,000 yen will be paid as a subsidy from the price which is about 700,000 yen per system. The Japanese government also decided to pay a subsidy to a householder who installs a fuel cell m-CHP which will be sold to residential market since 2009. A high lever cap (=1,400,000 yen per system) was imposed,

80 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

however, the concept to calculate the amount of the subsidy is similar to "ECOWILL" case.

Selling generated electricity to the grid Although electricity generated by PV is sold to the grid with as an enough price as a householder can realise "economical merit", electricity generated by m-CHP is not, hence "excess electricity" from m-CHP is converted to hot water at this moment. This means that electricity from m-CHP is not authorised as sustainable energy or equivalent at this moment.

81 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Recommendation

Key requirements for mCHP products: We need more efficient products and products able to operate new functions. Only the best products will be able to compete on the market. And as the heat demand is decreasing we cannot keep our market share if we do not develop new functions for the customers. So the products we need must have the following characteristics:

Following milestones must be reached by the systems before the start of the market launch: - Dimensions, weight, adapters to compatible heating units. - Simple installation (material, time) - Acceptable characteristics for the customer (noise, vibration) - Reliability & Durability: endurance >40000h (approx.: 10 years within 4000 operating hours per annum) - Marginal maintenance cost: maintenance expenditure must not be articulately beyond the conventional boiler. - Overall efficiency: Have an uncontroversial CO2 impact/low NOx/green image. Total balance must be better as for separate produced electricity and heat (guide value for efficiency: electrical >10%, total >90%, for fuel cells >30%, total >85% - Electrical efficiency / power to heat ratio: advantages of high power to heat ratio are: • less sensitive to space heating demands • Longer running hours, which lead to more generated electricity, which implies more savings. • more flexible operation - Marginal capital cost: be competitive (payback time, energy efficiency) compared to the best of our competitors’ products.

82 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

- The prize of the pre commercials may be a factor of 2-3 over the acceptable market prize, on market launch a prize must be reached which permits amortisation of the extra invests within 5-8 years. The amount of the higher market prize depends on the -compared to conventional heating techniques- the market and their basic conditions. It should be on the level of 2000 €/kWel. - Be ready for commercialization (no half-finished products that will kill the market for the next 10 years because of failures). - Be adapted to customer demand (e.g. 10 kW heat/1 KWe (5 kWe) electricity) - Respect the new market requirements (ECO design). - Popular/accepted/known by the customer. - Offer new services (electricity generation, cooling etc.) and possibly able to handle renewable energy

So, in short, we need appliances that can replace the central heating boiler technology, that can offer new services (electricity generation, cooling etc.) at competitive prices and that are able to handle renewable energy and new EU requirements. We need those appliances to secure the gas market of tomorrow and we shall keep in mind that the image of the energy Natural Gas is mainly given by the power of appliances using our energy. So the gas industry needs to be involved in the development and integration of the appliances.

83 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Opportunities for the gas industry / utilities

The heating market is one of the biggest consumption markets for Natural Gas. It decisively has a share in the positive development of the European gas economy. The product advantages being of a natural source have made Natural Gas one of the most favourite heating energy for many years, connected to modern, efficient and comfortable technology. But profound changes will arise in this market segment. On the one hand the frame work got more difficult due to the tightened measures as legally required by the counties energy- and climate-programme for room heating and heating-systems, on the other hand occurs a development of a distinguish and a wide variety of new and efficient technologies for producing heat for housings , on the basics of various energy sources. The future market development will depend on how Natural Gas can sustain its position on it. Which strategy and innovating technologies can/must be a reaction of the gas industry to these boundary conditions? On principal it must be substantiate and demonstrate that gas technology is indispensable for the reaching the target of a global climate protection. To meet the challenge of the profitable heating market as mentioned above and to operate against negative effect of gas in the case studies described the co operational activities of the manufactures are not enough. They must be flanked with additional activities. The following summary shows the options of the gas industry in principal and how they can be implement:

Significantly shorten time to market entry of mCHP innovations Expand technology portfolio in premium market, different products for different market sectors • Need for consistent gas industry position and co-ordinated activities as regards regulations • Conducting field test with a reasonable number of units so that industry is able to exploit scale economies and learning effects

84 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

• Identify cooperation’s with manufacturers, resource sharing in order to achieve quicker market introduction Demonstrate utility commitment to political aims of CO2 abatement (image) • Lobbying towards Government to assure right kind of support at the right time of product development process • analyses existing and future domestic gas technologies in order to full fill the new legislative requirements on climate protection and energy efficiency, as far as in terms of reliability and availability React on increased attractiveness of mCHP for customers (customer acquisition / retention ) Point out the advantages of new innovative gas technologies towards customers • Influence customers decision towards energy source, advice customer with best fitting application Help filling the technology gap in domestic sector, prevent decline of market shares Define technical characteristics which meet heat requirements best (old buildings and passive homes) • Repositioning of natural gas, combine NG with mCHP and renewable, communicate the “green” positioning Gain knowledge of economic, technical and ecological power, (primary energy analysis, estimate energy costs and potential CO2 savings) • Run detailed lab test programmes to gain knowledge of economic, technical and ecological power of technology

85 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.1.1 Detailed Case Studies

UK – Germany – The Netherland – Italy – Japan - France

86 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.1.1 Which mCHP-Technologies play a manufacturer Mondragon CC to mass role in European countries ? produce units for the European market. The following technologies are under focus The factory which opened in Sept of development, are near to market or are 2008 will start producing the EU1 being sold. The discussed technologies are model from III quarter 2009, the first being sorted in different status quo. mass produced microCHP will have a α- phase: (operation of only few similar specification to the previous prototypes under laboratory conditions) model producing 1 kWe of electricity β- phase: (field trials with up to and 8 kW of heat, a number of 100 units, operation under real conditions, European partners have signed up to permanent optimisation of each become distributors. generation on basis of field experiences) χ- phase: (small series production (< 1000 units per year), reduction of costs) δ- phase: product-phase:(niche markets up to 5000 units per year or mass markets and distribution)

Stirling:

WhisperGen: It is a four cylinder unit The Microgen unit, developed by BG which leads to smooth, vibration free Group from a US (Sunpower) design, is a operation, with noise levels similar to a LFPSE which is intended for wall- domestic freezer. The MkV unit, mounting; it contains a supplementary incorporating a supplementary burner, burner which enables it to meet the full was introduced in 2005 to provide heating requirements for even larger additional flexibility, making the unit homes. suitable for larger homes. This variant Following disposal by BG Group in 2007, also incorporated an integral acoustic development of the Microgen unit was enclosure which made kitchen installation taken over by (MEC) Microgen Engine possible. Corporation Holding B.V., a consortium of In January 2008, WhisperGen announced European heating appliance manufacturers the establishment of a JV (Efficient Home (Viessmann, Baxi, Vaillant, Remeha), a Energy SL) with Spanish white goods Dutch investor group and developers of the former microgen Stirling engine in

87 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

England. The consortium was formed last year to push ahead the development of CHP products on the basis of the Stirling technology. Each of the boiler companies is expected to market their own variant of micro CHP unit incorporating the MEC engine. Ecopower: Producing 4.7 kWe, and

12.5 kWth, based on the Marathon gas engine designed for dry operation and can be modulated to match electrical load. Ecopower has been acquired by Vaillant and is manufactured by Power Plus Technologies, a subsidiary of Vaillant. It's typically installed in similar places as the DACHS unit, small commercial application.

Another LFPSE designed by Enatec and produced by Rinnai in Japan is used by MTS/Elco and BT for designing a 1kWel micro-CHP system for the European market. BT and MTS/Elco are both in the beginning of the field test phase. EC Power is a fully automatic system

with heat storage, real time load ICE: following, automatic peak-shaving and SenerTec DACHS: Producing 5.5 kWe, and optional integrated heat-pump 12.5 kWth, it is built around an internal System control. The natural gas- combustion engine. It is manufactured by fuelled engine unit generates 3-12 kWe SenerTec former Fichtel & Sachs, a of power and 17-32 kW of heat. Not subsidiary of Baxi, and sold by Baxi really suitable for individual homes, Technologies. However, it is physically too typical installations are in large and has too high an electrical output apartment blocks, small commercial to be suitable for anything but the largest buildings, farms and office buildings. family homes, or those with swimming pools.

88 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

ORC: The leader in organic rankine cycle EcoWill: micro-CHP technology is Energetix which Honda’s small household cogeneration unit is continuing to develop its strategy for is the world’s first practical cogeneration market introduction of its Genlec 1kWe unit for home use; in its current wall mounted system. They have recently configuration it is not designed for indoor launched (Nov 08) an appliance built by installation. The incorporation of catalytic their Dutch partners Daalderop for the converters and an elaborate acoustic Dutch market and are currently working attenuation system, together with novel with a number of European boiler engine design, have overcome the manufacturers so that ORC modules can principle limitations of ICE design, namely be integrated into their heating appliances. noise, emissions and service intervals. The product is still at the prototype stage However, the cost of these additional using off-the-shelf components and the components results in a very high main challenge is currently to improve the installation cost, which is difficult to justify performance which is relatively poor at on economic grounds. In the Japanese only 10% electrical efficiency. Nonetheless market, where > 8000 units have been the product is light, wall mounted and will installed, high electricity prices and capital have a future at the low cost end of the grants greatly improve the economic micro-CHP market. viability for the end user. The unit is now being marketed by Climate Energy in the USA, since 2006 approx. 50 units for CHP-application in combination with air conditioning. On the ISH 2009 cooperation with Vaillant was announced. Vaillant will adapt the system to the German/European market and signalized market entry for 2011.

89 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

mounted domestic CHP unit based on polymer fuel cell technology. Currently 1.5/1.5+-variants are tested in field trials followed by gamma-prototype (including a Ballard Stack with 1kW electrical output) in near future. Vaillant, the European boiler manufacturer, have established a partnership with PlugPower (USA) to

integrate the PEM stack into an micro CHP

system. However, the focus so far has Otag have developed a steam powered been on multi-family homes (small unit, utilising a single cylinder with two apartment blocks) comprising 4 or more opposing pistons. An integral linear homes. The fuel cell is connected to a generator converts the reciprocating thermal store and a supplementary boiler, motion directly into electrical energy with allowing the fuel cell to operate more or variable 3 phase output. less continuously. A number of these units

The unit was planned for launch in are being trialled as part of the EU funded Germany during 2006, although delays VPP (Virtual Power Plant) project. have resulted from obtaining CE approval

The PEM fuel cells used in the European PEM-Fuel-Cell: Baxi has developed its field tests for multi-family homes and micro CHP capability by the acquisition of small business enterprises were operated Senertec and Baxi Innotec (former in a temperature range up to a maximum European Fuel Cell). The later is of 75 ˚C. This temperature limit is set by developing a 1 kWe / 3 kWth floor the applied membrane technology and often restricts the applicability

90 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

of the fuel cell heating appliance. For a Germany. CFCL have supplied while now, there have been developed demonstration versions of their NetGen completely new membranes enabling the micro CHP package to energy utilities in operation at higher temperatures. Australia, New Zealand, UK and Germany. Now, in cooperation with Plug Power, CFCL recently announced collaboration Vaillant has succeeded in doing this agreements with Gaz de France (France), decisive step ahead: EWE (Germany) and EON (UK) as well as the first fuel cells of the new generation boiler manufacturers Brunns (DE), Gledhill have already successfully passed the lab (UK) and de Dietrich (France). tests. A newly developed PEM membrane now works within a temperature range of (Sulzer) Hexis,. Since 2001 the pilot 160 to 200 ˚C thus enabling to design a model «HXS 1000 premiere» has been significantly more robust overall system. installed in approximately 110 houses. The technical features are inspiring: high Over 1.5 million hours of operation have electric efficiency reduces the energy been accumulated under real conditions consumption and thus opens up new fields since the test start. At the Hannover fair of application for combined cold, heat and 2005 Hexis presented the successor, the power. fuel cell heater «Galileo 1000 N». «Galileo 1000 N» is still under SOFC-Fuel-Cell: development. The works focus on the Ceres is developing a 1 kW stainless steel improvement of the fuel cell stack. fuel cell operating at mid temperature Hexis, formerly Sulzer Hexis, is now an range (500-600°C) between polymer and independent company following its ceramic fuel cell temperatures. Value financial difficulties in early 2006. enginieering is complete and the first Field trials are ongoing with a number of demonstrator unit is scheduled in mid German utilities. On the ISH 2009 a 2008. Ceres intends to integrate the fuel partnership with Stiebel and Hoval was cell into a wall mounted domestic CHP announced. unit.

CFCL (Ceramic Fuel Cell Limited) were initially set up in Australia to develop utility scale SOFC products, but have recently moved into the domestic CHP market and have set up a marketing base in the UK as well as a manufacturing facility in

91 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Vaillant / Webasto temperature fuel cell from liquid fuels. Two leading manufacturers in the field of From now these modules shall be heating technology and component operated with natural gas as well for the supplies to the automotive industry join application in fuel cell heating appliances forces to further develop fuel cell heating installed in one-family homes. With this appliances for the application in one-family cooperation Vaillant has extended its homes. Mid of February 2006, Vaillant and development activities in the field of fuel Webasto AG, an international supplier for cell heating appliances to application in automotive components, signed a one-family homes. Since 2008 the cooperation agreement envisaging the Partnership with Webasto is cancelled, joint further development of fuel cells for Vaillant is currently developing its own use in automotive and stationary SOFC model. applications. Since 2002, Webasto has Vaillant will of course continue in parallel concentrated on the so-called Auxiliary the existing cooperation with its partner Power Units (APU) for on-board electricity Plug Power in the field of multi-family supply of motor vehicles. Electric power is homes and small commercial business. generated with the aid of a high-

How are the mCHP-Technologies supported by utilities? Which role (RD&D) does utilities play?

The question is important to explore the different ways that utilities can develop to get a stake in the mCHP value chain. Micro CHP creates potential sources of value to utilities such as service and maintenance, contracts, new customer acquisition, customer retention benefits and reducing a household electricity demand during peak periods. Some utilities are working together with mCHP product developers to bring a product to market, several are involved in field trials of mCHP units, gaining insight into applications that will help them better understanding and evaluate their future involvement with mCHP, and some are now selling mCHP to customers.

Economics

92 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

which are to be recouped through reduction of imported electricity from the grid or export of surplus power. Payback is thus strongly influenced by the local spark gap and the availability of and rate for payment for exported power. Without net metering, or some degree of payment for exported power, DG installations must achieve pay-back only through reduction of power import to the premises.

93 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Distributed Generation / Micro CHP- Technologies UK For domestic & small commercial application

Distributed Generation Technologies in U.K. The following technologies are under focus of development (α), are near to market (β) or are being sold (χ,δ), especially in the UK: Application: d = domestic, - sc = small commercial, - - si = small industrial

mCHP-technologies country Steam FC PEM FC SOFC Stirling ICE ORC GT Engine β α β χ χ, δ α - - UK d d d d, sc d

Four units are currently being sold in the Ecopower UK. WhisperGen: The WhisperGen micro CHP unit is marketed by the UK energy company, E.ON (formerly Powergen). Installed cost £3000 including VAT

EC Power Installed cost £23,000 depending on variant

The Government is supporting this development with a number of fiscal

policies. This has encouraged many SenerTec DACHS: manufacturers to develop these technologies. The leaders are as follows: ORC: E.ON UK has signed an agreement with alternative energy product developer Energetix to develop and deploy micro

Installed cost combined heat and power boilers for UK £13000 plus VAT households.

94 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

The companies plan to work together to develop a lightweight, wall-mounted CHP boilers that are similar in size to current gas boiler designs. An evaluation unit which has been undergoing tests during 2008 at the Energetix facility in Cheshire, northern England will be shipped to a major European appliance manufacturer for continued development and creation of a series of prototypes Discenco: Disneco designed a floor standing unit. The Stirling motor is running on a “rombic drive” technology and was developed by trusted motor industry designers. Having an electrical output of 3kW and a thermal output of 15kW it is designed for large homes and SME applications. An additional condensing burner is included for peak demand. The system is still in its development phase.

HOA for distribution signed with British

Gas Stirling:

Baxi Ecogen: Baxi is using a ‘Free Piston’ Stirling Engine designed within the Microgen engine corporation .It is intended as a like for like replacement of wall hung boilers. British Gas has exclusive distribution rights

SOFC-Fuel Cell: Centrica, the retail arm of the U.K.´s largest gas supplier has formed a GBP 5 million partnership with

95 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Ceres Power to develop solid oxide fuel costs and retains a first option to purchase cell micro-CHP devices for the residential future CFCL micro CHP units for the British market. Centrica has placed a forward market. During the collaboration, CFCL will order for 37500 fuel cells. The order is supply NetGen+ unit for operation with a contingent upon successful completion of supplementary boiler and a specially an initial phase of development and in- designed thermal store to produce an field testing of Ceres´fuel cell “Alpha” prototype which will subsequently be deployed in a field trail.

CFCL an E.ON UK have signed an agreement (July 2007) to develop and deploy a prototype fuel cell combined heat and power unit in the UK. E.ON UK is contributing to the product developmemt

96 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Which position (Research Development & Demonstration) do utilities take ? How are the mCHP-Technologies supported in U.K. ?

Regardless of which strategy a utility chooses to adopt, its ultimate results will be determined by the value mCHP returns to the company. There are different approaches companies can generate value from the market. One can distinguish between two main approaches and its different benefits: Direct: Intention is to benefit from the whole (or part of the) value chain, from development of mCHP product till selling the product to the market, Indirect: gain knowledge of economic, technical and ecological performance (primary energy analysis, estimate energy costs and potential CO2 savings) derive forecasts with respect to future gas consumption as part of power supply scenarios determine the impact on gas/power supply networks with respect to capacity and safety aspects • Lead R&D of specific Microgen, a wholly-owned subsidiary of the BG Group which planed market introduction of its Stirling technology, engine technology and aiming to have a wall mounted work closely with a 1 kW product on EU market in 2008 was closed down in early 2007. BG´ current intentions are unknown. manufacturer British Gas installs around 100,000 central and/or heating systems a year in the UK. The company is • Finance R&D of enthusiastic about micro-CHP as it sells both gas and electricity in addition to having an extensive installer specific technology network. and/or The key for BG is to have a product that can be pushed to market on a large scale. If no products emerge, BG can just Direct approach • Sell mCHP-units or carry on selling boilers, so no negative impacts. its If BG could have confidence in a product, it could establish a sales force relatively quickly and have confidence of energy products achieving sales. For the mass market, the opportunity now (contracting) is for the 1 kWe system;

WhisperTech Stirling Engine was first tested in a laboratory setting in UK nearly ten years ago. After lab tests WhisperTech worked with E.ON UK (former Powergen) to take the product through years of field tests in some hundred homes as models were continually evolved to address real world issues,

97 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

resulting in a mass market model to be produced in 2009 through business introductions arranged by E.ON. • Act technology open Quite recently mCHP developers and energy utilities had exclusive agreement including distribution rights (lab- / field trials) for the product in the UK. For of late utilities act more Indirect and more technology open to have a fall back position approach in case of having bet on the “wrong” horse.

E.ON UK with WhisperTec, Energetix, CFCL,

Centrica with Ceres

98 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

What are the driving forces to pay a fixed price for distributed for utilities ? generated electricity.

Government schemes: CERT- All energy companies in the UK are The UK has been amongst the leading keen to promote mCHP. Every company countries committed to combating climate has an obligation known as the Carbon change, and committed to achieving a CO2 Emission Reduction Target (CERT) as part reduction of 20% by 2010, more ambitious of their trading licence to reduce carbon than the 12.5% obligation imposed under emissions and energy consumption and the Kyoto protocol. The publication of the offer both electricity and gas to their Energy White Paper (policy document) customers. This is achieved through proposed extravagant targets for CHP and funding various energy efficiency renewables. measures, in full or in part. The core part

The Energy Act 2008 of this target is insulation and energy The amended Act received Royal Assent efficiency advice to consumers but mCHP on 26 November 2008 and puts in place will be a significant part of the CERT new legislation to reflect the program moving forward. The energy availability of new technologies (such as companies may part fund the cost of the Carbon Capture and Storage, mCHP unit, reducing the cost to the emerging renewable technologies and consumer. The level of funding will smart meters); and responds to the UK’s depend upon the demonstrated energy changing requirements for security of savings. The energy producing companies supply infrastructure (such as intend to provide their customers special offshore gas storage); and ensure CHP. Currently BG and E.ON have adequate protections for the exclusive covenant with CHP environment and the tax payer as the manufactures, which will become energy market changes. The amended act operative on market launch (exclusive legislates for the creation of a Feed-In rights). Tariff to provide consumers who install Power Management – One of the key microgeneration technologies, with an advantages of mCHP is the electricity 'with an electrical capacity of below 5kW, generation. For engine based mCHP to generate their own electricity, with a products, this will occur when the heating fixed price. The advent of such a fixed is on, generally this coincides with the price tariff mechanism for exported peak electrical demand. By having a large microgenerated electricity means that installed mCHP base it will allow electricity energy suppliers will be legally obligated generators to manage the peaks more

99 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

effectively, evening out the demands over Support Measures, a 24 hour period. Fuel cell based products Mechanisms, Regulatory and will generate 24 hours/day and will Policy perhaps allow management of electrical The Government have put fiscal measures loads in the home more effectively. in place to assists the introduction. Subject

Advantages for own business: to field test results it will reduce the rate of VAT on mCHP units from 17.5% to 5%. BritishGas has a large amount of EEC (Energy Efficiency Commitment) operational data and experience installing approval and enhancement. EEC is an and repairing domestic boilers. It is willing obligation on energy suppliers to invest in to help shape micro-CHP product energy efficient products and services for development by helping developers to the homeowner. A target is set each year create products that meets market and every scheme is given an energy requirements. They would not however credit. Energy companies then offer get directly involved in product funding to such schemes. The obligation development. is measured in TWh annually and the BG also has an extensive installer network, method and cost of achieving the target is which it could train to specify and install up to the supplier. As an example, micro- systems correctly. This structure is the CHP will have a number of energy credits best route to market as there is no real and the energy company can then offer incentive for smaller independent installers financial incentives for the product to be to sell micro-CHP. used, thus offsetting the extra costs of the

product. As an energy utility, E.ON’s primary interest in distributed generation is as a The Carbon Emissions Reduction provider of energy solutions, Target (CERT) (2008 – 2011) is the third predominantly in the domestic, small three-year phase of the energy supplier industrial and commercial retail sectors. obligation. CERT is significantly more The scope of the solutions offered varies ambitious than previous phases of the by market sector but often includes the obligation, doubling the level of activity provision and/or installation of small scale seen under EEC 2005 - 2008. It also sees generation equipment. At the upper end of a shift in emphasis, with the target set in the rating scale the scope may also extend terms of carbon savings rather than to equipment operation. (E.ON UK) terawatt hours.

100 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Under CERT, energy suppliers must, by Existing homes are assessed using a 2011, deliver measures that will provide cut down version known as RD-SAP overall lifetime carbon dioxide savings of (Reduced Data SAP). SAP needs 154 MtCO2 – equivalent to the emissions inputs of each technologies efficiency from 700,000 homes each year. It is and PAS 67 has been developed to expected to lead to energy supplier allow the comparison to be made. investment of some £2.8bn. - 50% uplift in the energy saving credits Suppliers must focus 40 per cent of their attributable to mCHP has been agreed activity on a ‘Priority Group’ of vulnerable by Government. This makes the and low-income households, including funding of mCHP more attractive. those in receipt of certain income/disability - The Low Carbon Building Program benefits and pensioners over 70. By (LCBP) is another scheme for increasing the energy efficiency of GB homeowners and ‘not for profit’ households, CERT will not only help organisations where the installation of households from falling into fuel poverty larger schemes can be part funded. but is also expected to help alleviate fuel mCHP will be part of this scheme poverty. CERT allows suppliers to meet up - A lower rate of 5% VAT will be applied to 5 per cent of their obligation through a to mCHP installations. ‘flexibility mechanism’, which aims to - Government plans for a Feed In Tariff target hard to treat homes i.e. those off (FIT) and Renewable Heat Incentive grid or solid walled homes, in the Priority (RHI) were announced in December Group. 08. The FIT will include electricity generated by mCHP up to 50kW in Furthermore a number of measures have size and the RHI may also apply if the been developed by industry and unit uses Bio-Methane. The tariffs will Government to support mCHP, may be ‘deemed’ giving homeowners an upfront ‘grant’ to install mCHP The main areas are: - An electrical connection standard has

- Development of a mCHP efficiency been developed known as G83/1. This measuring procedure (PAS 67) to allows an approved mCHP unit to be allow the new products to be installed without prior permission from compared to other heating systems. the customer’s electricity supplier or New buildings carbon emission and the District Network Operator, efficiency is assessed by using a provided it is a single mCHP Government Tool known as SAP installation. This is known as ‘Fit and (Standard Assessment Procedure). inform’ and removed time barriers

101 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

from the installation process allowing offering service and installation of gas the process to be similar to a boiler boilers which is transferable to support installation process. micro-CHP. - The intention to roll out Smart E.ON UK plans to recommence UK Metering has been announced by commercial sales after testing the new Government which will support the mass produced EU1-UK model technology for the ‘smart home’ manufactured under licence from turning on electrical appliances when WhisperTech by Efficient Home Energy. mCHP is generating and giving consumers the ability to sell their Another potential player in the UK is the electricity back to energy companies boiler manufacturer, Baxi which seems to - The industry is developing training be committed to the existing delivery courses and qualifications to support chain using independent installers the installation of mCHP. Manufacturer direct to small commercial Market Structure, Routes to energy users: Market Baxi Technologies are currently selling

the SenerTec Dachs unit directly to For residential applications, micro-CHP organisations such as local is typically installed instead of a authorities and providers of sheltered conventional boiler. For small accommodation commercial applications, it may operate alongside a conventional boiler. Present Market Condition

Boilers and heating systems are controlled Utilities to residential customers: by Building Regulations and are classified The two major UK energy suppliers, E.ON as a ‘controlled service or fitting’. Boilers UK and British Gas (Centrica), have both have to be installed by ‘competent made arrangements to commercialise persons’ and must be installed by a CORGI micro-CHP to their energy customers. registered gas installer (for gas safety). In Because customer retention is an addition, the installer has to demonstrate important issue for both suppliers they his knowledge of the Building Regulations offer several home energy services requirements by having an energy associated with the sale of micro-CHP efficiency qualification and being a units. member of an approved ‘Competent British Gas, the former monopoly gas Persons Scheme’. This allows the installer supplier, has an established business to ‘self certify’ the installation complies

102 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

with Building Regulations. This is generally achieve carbon savings. Commercial and done by the installer signing a small industrial consumers may take a commissioning document. He/she also has longer term view but unlike large to inform the local authority that the corporate organisations are again boilers has been installed and the expected to be driven mainly by cost homeowner is sent a building regulations considerations rather than the need to compliance certificated which is needed if achieve carbon savings. the homeowner moves home in the future (without this, the sale cannot proceed). If The Element Energy Report also the installer does not hold the required undertook consumer analysis to qualification, then the local Authority understand, what were the drivers for Building Control has to be contacted and replacement heating and more permission sought to fit the boiler before importantly, micro generation (all work starts. technologies as opposed to mCHP in particular). The report noted the following The building regulations now required a when replacing a boiler condensing boiler to be fitted with a few • Replaced when truly distressed (failed exceptions. These exceptions (for complex completely) 22% or costly situations) are assessed by the • Replace when unreliable or old 31% installer before installation using a form • Upgrade System 25% from the Government called the • Refurbish house 16% ‘condensing boiler exception procedure’ – The majority of consumers are happy with See appendix 1. The local authority has to their current heating system and the be informed that a non condensing boiler changing of a boiler is not seen as an has been fitted and the reason for that. aspirational purchase. Therefore, when the

time comes to replace, a number of Public Perception factors come into play in that decision. The UK market is expected to be largely cost driven at the point of sale. The Consumers also favoured grants to drive potential for longer term savings is likely their choice of system towards mCHP and to be a secondary factor in decisions lower their heating bills. The study regarding domestic heating systems and it examined which at which price consumers is unlikely that consumers will be prepared would consider paying to save energy and to pay a significant premium over reduce their heating bills. This point was condensing boiler technology in order to found to be a spend of £2.91 in upfront

103 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

cost to save £1 on their bill. Consumers Net metering generally not available. also indicated that they expected a Exported energy must be metered and payback of between 3 & 5 years which is payment will be via a contract with the in contrast to most micro generators to be supplier. Most of the big utilities will buy 10-25 years. back the energy you generate for the same price as they sell it to you. The research concluded the following:

The price points for the product is still to High market potential: 60% want be confirmed however, it is anticipated to “buy” it initially: people are that the ‘on cost’, that is to say the generally positive; ready for next premium over and above replacing a boiler generation boiler: MG perceived as such is targeted to be £900-£1100. This price Optimal price: ± £2200 ; should be net of the support mechanisms Installation costs included. Price (CERT, 5% VAT etc). perception is much more lower!

Trials of the Stirling engine based units in Economics ‘real world’ homes have shown various

savings of between £100-£250 compared The actual price for electricity and gas in to the boiler being replaced with an UK is variable depending on the method of average figure of about £150-£175/year. payment, method of billing, the tariff This ignores and export tariff for surplus selected and whether one or both energy electricity. Simple payback is therefore 5-6 types are taken. There are also geographic years. Fuel cells are not yet available so variations and different rates for domestic the paybacks cannot be verified but the and business users. It is not easy to obtain expected ‘on costs’ will be similar with and directly compare unit prices from the savings of between £200-£300 paying major energy companies on a like for like back in 3-5 years. basis, although there are many price comparison web sites that will compare Domestic energy prices annual fuel bills for specified usage. Eurocent/kWh Electricity Gas Price However, a rough calculation for a Difference medium use consumer suggests that the 16,6 4,8 11,8 High price difference. current unit prices on the standard quarterly credit tariff are about :

104 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Market Potential The report expects more than 7 Million (cumulative) installations of fuel cells and The heating market in the UK is Stirling Engines in 2020. predominantly gas. The heating statistics are as follows:

• 26 million homes in the UK • 21 Million homes are connected to the gas grid • 18 million homes have gas central heating • Approx 55 million gas appliances in total • 1.7 million boilers installed each year • Approx 1.5million boilers are replacement boilers • Approx 60% boilers installed are Combination boilers • 98% of new boilers are condensing boilers

A traditional central heating system is a wall mounted gas boiler heating a hot water tank. The system is generally ‘open vented’ having a small tank in the roof space to fill the heating system. Combination boilers are now a popular choice for replacement of the traditional boilers.

The Government with industry undertook a market study which was published in May 2008. The report (Known as the Element Energy Report) shows that mCHP could play a major part in reducing carbon emissions, given the right drive and subsidy.

105 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Distributed Generation / Micro CHP- Technologies D For domestic & small commercial application

Distributed Generation Technologies in Germany The following technologies are under focus of development (α), are near to market (β) or are being sold (χ,δ), especially in Germany: Application: d = domestic, - sc = small commercial, - - si = small industrial

mCHP-technologies country Steam FC PEM FC SOFC Stirling ICE ORC GT Engine α, β α, β α, χ α, χ, δ − δ β D d d d d, sc d, sc sc

Ecopower Two units (Senertec, Eco Power) are currently being installed on a commercial basis:

SenerTec DACHS:

Currently about 1000 units sold, 450 units sold in 2006, + 50% expected in the next 2 years.

Price. €18,000 At present, about 18,000 units have been sold in Germany, the sales rate per year is WhisperGen: All generations of about 2000 units (niche market). WhisperGen micro CHP units have been Installed cost tested at the test rig of E.ON Ruhrgas. At Appliance alone: €15,000, present a field test is ongoing within the Complete including installation, buffer E.ON Group on seven appliances of type storage and hot water module: €22,000 Mark 5b. The appliances will be tested for

practicability, reliability and availability over 2 heating periods. As soon as the

106 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

new Spanish model from EHE is available it will also be tested in the field. There are as well other field tests under way in Germany, the major players there are MVV Mannheim and GASAG. MVV has been conducting a field test of 40 appliances of Type M5b since autumn

2006. MVV looks after the installation and adjustment of the appliances, and SOFC-Fuel Cell: operates and maintains the gas-fired Hexis: All but 100 of Sulzer Hexis's 1 appliances in the cellar and will as well kW fuel cells (HXS 1000) have been extend the field trial in 2009 to test the installed in homes and other small serial machines produced in Spain. buildings in Germany, as part of an Field testing at GASAG (Berlin) began in extended field trial. E.ON Ruhrgas summer 2006 with two older generations conducted extensive laboratory tests with of the WhisperTech-Stirling. In March the HXS 1000 variant and was involved in 2007, GASAG starts a campaign in the field tests mentioned above. The Berlin-Brandenburg. Around 30 field test current Galileo prototype is also subjected participants were selected in total. The to a field test by E.ON Ruhrgas und E.ON technology was tested in their buildings Energie. Further field tests are underway over a period of two years, partner for the at EWE Oldenburg and Energie Baden- technical evaluation is DBI-Freiberg (DBI- Württemberg AG (EnBW). Hexis will as Gas Technology Institute Freiberg). Gasag well as Vaillant and Baxi take part in the will as well test the new Spanish models NIP (Nationales Innvations Programm) as soon as they are available. Callux programme. Aim of the national

programme is to create a fundament for a The one thing that the entire current field market introduction of fuel cells after tests have in common is the option of 2015. This will be achieved by large scale testing Stirling technology for household field tests with various models of each heat and power supply. The tests will manufacturer, evaluation of measured provide feedback on the practicability and values, marketing activities etc. economic conditions for implementing the technology. CFCL: Ceramic Fuel Cells Limited (CFCL), a

manufacturer of solid oxide fuel cells and

provider of enabling technology for

107 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

micro-combined heat and power units, the winter 2005/2006. The following are has signed a contract with EWE, the fifth- participating in this field test: various largest German multi-service energy power supply companies (e.g. E.ON, company, validating the initial Field trials EnBW, EWE, VNG). that began in January 2006. To support the new technology in realistic This contract follows an initial order of two applications as well, Baxi Innotech offers field trial units by EWE in July 2005 and a services for commissioning, spare parts Letter of Intent (LOI) signed by the procurement, maintenance and repair. At companies for a commercialisation the ISH Exhibition in 2009, the company programme for fuel cell based m-CHP demonstrated its new advance systems for the residential market. development with the Gamma variant CFCL is planning to produce SOFC fuel cell including a Ballard Stack and a decreased stacks in the Oberbrich Industry Park in output of 1kW electric. Heinsberg and also have them tested. The state of North Rhine Westphalia is supporting Viessmann: The company has been this project with a subsidy of €3.2 million. working since 2000 on the development of The core module in these systems, the fuel cells to supply single-family homes. stack, will by built by CFCL in Heinsberg. Development engineers at Viessmann In the first expansion stage, CFCLwill have decided in favour of a PEM fuel cell produce around 50000 stacks a year in for their domestic fuel cell power system. rented buildings from 2009 onwards. In the The objective of development is second expansion stage, production will rise therefore an electric power output of 2 to 150000 units per year. kilowatts and a heat output of 3.5 kilowatts. The aim is to achieve an PEM-Fuel-Cell: electrical efficiency of more than 32 at a Vaillant: Around 40 of Vaillant's 5 kW total efficiency of at least 87 percent. fuel cell heating appliances have been The development objective is a service installed in German buildings as part of life of more than 40,000 hours. Initial the Virtual Fuel Cell Power Plant field small field tests started in 2007. The trial, funded partially by the European company recently announced the end of Union. E.ON Ruhrgas accompanied the their active role in developing fuel cells. field trial with measurement equipment.

Baxi Innotech: The first fuel cells of type Beta 1.5 have been running under realistic conditions in buildings in the field since 108 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Steam Engine: IBZ (Fuel Cell Initiative, founded in OTAG: In 2006 a first mCHP system 2001): based on the vapour expansion system was put into operation at Energy suppliers join forces to make fuel a single-family house. cells marketable. The development work of OTAG Fuel cells are of intense interest to energy GmbH & Co. on the Lion Powerblock utilities as a promising option for power have been running since 2000. In and heat generation that is 2005 a joint venture on field testing environmentally safe and helps to was started between OTAG and conserve resources. That’s why four large GASAG with the objective of companies in the natural-gas industry launching the Lion on the market in have established the Fuel Cell Initiative Berlin-Brandenburg. (Initiative Brenstoffzelle – IBZ). The firms

Since 2006 a total of 8 Lion Powerblocks are joining forces to help this attractive were tested in everyday conditions in technology succeed in the market various buildings – single-family homes, The IBZ is a joint undertaking of the double-family homes, apartment blocks utilities EWE AG (Oldenburg), MVV Energie through to small business – together AG (Mannheim), E.ON Ruhrgas AG (Essen) with heating and air-conditioning trade and VNG — Verbundnetz Gas associations. Scientific support by DBI Aktiengesellschaft (Leipzig) as well as the Freiberg was chosen for documenting manufacturers Baxi, BT, Vaillant, the readiness for use and record Viessmann and Hexis. All four utilities potential improvements for the already have considerable experience in manufacturer. fuel-cell technology. Their common goal is

to make "compact,” natural-gas-fueled stationary fuel cells for residential needs technically and economically competitive.

Outcome of IBZ, this initiative helps to coordinate the activities of manufacturers, energy suppliers and research institutions. For example Callux project is a program that includes knowledge transfer, field tests and demo projects.

109 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Which position (Research Development & Demonstration) do utilities take? How are the mCHP-Technologies supported in Germany?

Intention is to benefit from the whole (or part of the) value chain, developmet of mCHP product – selling the product to the market, Indirect: gain knowledge of economic, technical and ecological performance (primary energy analysis, estimate energy costs and potential CO2 savings derive forecasts with respect to future gas consumption as part of power supply scenarios determine the impact on gas/power supply networks with respect to capacity and safety aspects

110 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

• Lead R&D of specific RWE: Through its subsidiary RWE Fuel Cells, RWE technology, was involved in development to bring a 5-kW, fuel work closely with a cell micro-CHP product to market in a partnership with IdaTech and Germany-based manufacturer heating equipment manufacturer Buderus. and/or IdaTech was responsible for fuel cell and fuel • Finance R&D of processor, Buderus was responsible for of the specific technology heating side of the end product, and RWE will and/or Direct approach handle the inverter, grid interface, and energy • Sell mCHP-units or control unit. RWE's long-term objective wasn´t to its be an equipment manufacturer, however, it saw

energy products the partnership as one that could accelerate

(contracting) the time it takes these companies to bring the

product to market. Then RWE planed to make

money from selling and installing micro-CHP

products.

• Act technology open EON Ruhrgas, E.ON Energie: E.ON´s interest is in stationary applications, (lab- / field trials) especially micro-CHP-systems for the residential market. Although there is not really a market yet, because the technology has still some way to go, there are quite some chances that these technologies will mature and create market opportunities in the future. Though E.ON won’t take an active part in technology development and production, it plays an active role as user and sees Indirect its role as an energy utility being able to offer approach costumers interesting products. E.ON already gained a lot of experience in field-testing micro- CHP fuel cell systems at customer sites, working together with Viessmann, Hexis, Vaillant and Baxi. WhisperTech and others. E.ON´s main focus is on trials with advanced prototypes (coming close to pre-commercials), but is also open to single demonstrations with early prototypes, if the technology seems promising. E.ON´s policy is to be open to all developers/manufacturers and to do the projects non-exclusively.

111 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

What are the driving forces - Enhance energy services business by for utilities? offering advice to building

- owner on most suitable DG technology A number of utilities are testing in labs, for them. running field tests, or actively developing - Earn value from involvement with markets for micro-CHP systems. Their product manufacturing and new activities vary from testing individual units energy services businesses. to larger field tests and market - Attract new customers. development initiatives. Most of the - Secure existing customers (protect following utilities are amongst those against loss to others who do offer involved in testing pre-commercial DG DG). units: E.ON Ruhrgas (Essen), E.ON - Co-ordinated control of micro- Energie (München) EWE (Oldenburg), generation to provide ancillary grid EnBW (Karlsruhe), RWE (Essen), MVV services and compensate for (Mannheim), Verbundnetz Gas (Leipzig), fluctuations in grid power demand. GASAG (Berlin) - Positive image and demonstration of In order to gain far-reaching experience E.ON’s commitment to CO2 reduction with the new technology, the companies policies towards Government are testing appliances by various /Regulators. manufacturers under realistic conditions.

This includes both appliances for single- Support Measures, family houses as well as apartment blocks Mechanisms, Regulatory and and small businesses. An important Policy objective is to find out the applications for Government schemes: which this technology can offer a practical option for decentralised power and heat German Co-generation Act: generation within the conceivable future, The German government is, in principle, as well as innovative concepts for future supportive towards micro-CHP in the domestic power supply. Further motivators light of the environmental benefits it are listed in summary: brings. Incentives for micro-CHP in Germany include: Advantages for own business: The tariff for, and the amount of, the

- Extract more value from supply chain. electricity actually sold into the public grid - Earn value from selling and servicing can have a significant impact on the DG equipment. economics of power-generating heating - Increased natural gas sales. systems. 112 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

The price paid for electricity fed into the sometimes benefit from low grid is determined by the „prevailing interest loans and funding for price“, which is the average baseload micro-CHP from the “Kreditanstalt price quoted at the Leipzig power fuer Wiederaufbau Bank”. exchange EEX for the preceding quarter. It is published online at www.eex.de. • Operators of micro-CHP have the Additional to that base price a legal fee of right to connect the micro-CHP to 5.11 Ct/kWh for every kilowatt hour the grid, although only after produced by a CHP <50kW electrical consultation with the grid output is guaranteed for a duration of operator. 10 years after commissioning. The • Electricity generated by micro-CHP subsidy programme ends in 2010 after that is exported to the grid flows 2010 there won´t be any legal fee. to the nearest load, thus requiring

In addition to that a bonus price for less power to pass through micro-CHP electricity exported to the transmission and distribution grid is paid for avoided use of networks. Micro-cogenerated transmission and distribution networks. electricity exported to the grid This is worth 0.15 – 0.55 cent per kWh. can, at present, only be sold to the local utility. • German petroleum tax act

Cogeneration (all CHP): National Hydrogen and Fuel Cell Energy tax refund for the natural gas Technology Innovation Programme (NIP) used (currently 0.55 ct/kWh of natural Fossil energy sources are becoming gas; if it can be demonstrated that the increasingly scarce and expensive. At the power-generating heating system has same time, excessive levels of CO2 an annual fuel use efficiency of more emissions are changing the climate. That than 70 %, which is usually the case). is why alternatives to oil and gas are • For newly constructed houses, needed. Together with the industry, the which have to align their energy Federal Government, as part of the high- consumption to energy efficiency tech strategy for Germany, is promoting regulations, micro-CHP can be applied research into drive train systems used to offset the levels of and stationary energy systems using insulation and other types of hydrogen and fuel cell technologies. energy efficiencies required.

• Older houses being renovated can

113 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

The NOW spearheading the innovation numerous hydrogen and fuel cell research programme. projects conducted by academic institutions and the industry. The public- Germany is the leading European country private partnership (PPP) is scheduled to in the field of hydrogen and fuel cell run for 10 years. Over this period, the technology. It is imperative that we Federal Government will provide 500 continue to assert and develop this million euros, with the industry international competitiveness. For this contributing at least the same amount to reason, the National Organization for the project. Hydrogen and Fuel Cell Technology (NOW) was established in February 2008. It is The objective is to develop viable market designed to be the driving force in the products from hydrogen and fuel cell development and commercialization of technology research and development internationally competitive hydrogen and projects. The process of development fuel cell technology products and to should involve as many industrial assume control of the overall programme. companies, small and medium-sized The Federal Government and the industry enterprises, users and research institutions will provide a total of 1 billion Euros for as possible. Illustrative demonstration research, development and demonstration projects are to prove that hydrogen and projects over the next 10 years. fuel cell projects that are now ready for deployment are suitable for everyday use. The NOW is a component of the National The research funds are thus not only an Hydrogen and Fuel Cell Technology investment in a clean environment but Innovation Programme (NIP), launched also help to create sustainable jobs in jointly by the Federal Ministry of Germany. Transport, Building and Urban Affairs, the (http://www.bmvbs.de/Anlage/original_96 Federal Ministry of Economics and 6376/National-Hydrogen-and-Fuel-Cell- Technology, the Federal Ministry of Technology-Innovation-Programme.pdf) Education and Research and the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety. The Callux Lighthouse Project rd programme is part of the high-tech On the 23 September 2008 the German strategy for Germany and ties in with the Federal Ministry for Traffic, Construction Federal Government's Fuel Strategy. and City planning (BMVBS) started the biggest nationwide on-road test of fuel cell The National Innovation Programme heating systems for private house holds provides a common framework for

114 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

called “Callux” together with 9 economy - Education of craftmen and designers partners. It is the beginning of a new time - Validation of customer and market of local energy supply in Germany. Within requirements the framework of NIP, the innovation - Advancement of value creation in programme of hydrogen and fuel cell Germany technology, coordinated by NOW GmbH, the industry invests together with BMVBS to Detailed information are available under: promote the assignment of innovated http://www.callux.net technology.

Market Structure, Routes to Through the “light house project Callux” an Market industrial consortium started an exemplified initiative base of real experience. It is on of Manufacturer to wholesaler to installer to the globally biggest field test for the customer: assignment of fuel cells in the resort of The gas installation trade uses a three buildings. level marketing structure: manufacturer / Three manufactures are involved such as wholesaler / gas installer. The marketing BAXI INNOTECH, Hexis and Vaillant, as well structure has so far been defended as five energy provider like EnBW, E.ON strongly by all parties involved. New Ruhrgas, EWE, MVV Energie, VNG market participants from abroad have Verbundnetz Gas. At project level the ZSW attempted other structures, but so far (Zerntrum fuer Sonnenenergie- und without success. Wasserstoff-Forschung) will take care of the coordination of Callux. The gas industry considers that a Targets are: - Market preparation of fuel cells confrontation between the gas industry supplied with natural gas and the gas installation trade would be - Demonstration and support of further harmful, as installers of gas fired development of durability to equipment might turn back to oil. This is a marketable products significant difference from the UK where - Development of the supply chain by the heat energy market is basically a pure binding orders of large numbers of gas market and the risk of increased plants competition from alternative fuels is - Enhancement of the publicity notice minimal. - Further development of concepts to The business relationship between gas integrate fuel cells into the installers and manufacturers is currently infrastructure based on graded discounts. The difference

115 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

between gross catalogue prices (payable - Only tariffs with price guarantee by the customer) and ex-works prices is - Only tariffs with online contract 40 % to 50 %. Wholesalers receive one conclusion third of the margin, gas installers two thirds. Gas installers make most of their The energy costs for a typical one-family income from the purchase and re-sale of house with an average consumption is appliances and the income earned from shown in the table below: installation is relatively modest. Domestic energy prices Eurocent/kWh Public Perception Electricity Gas Price Difference 20,11 4,58 15,5 Definitive and comprehensive market studies are not available for Germany but Market Potential specific studies in connection with heat or 36 Million residence’s (“Wohneinheiten”) in fuel cell contracting indicate a basic trend total,. in which there seem to be market niches • 0.8 – 1.0 million new boiler for: installations and boiler replacements - Customers with increased technical each year; interest (pilot users); • residential buildings overall 17.5 - Customers with high requirements for million convenience willing to pay an • detached houses 10.9 million additional price for contracting as a • semi-detached houses 3.5 million "care free package". • houses with 3 and more dwellings 3.0

Economics million • all buildings comprise approx. 37.8 A comparison of electricity and gas prices million dwellings, of which 18 Million form local energy suppliers shows are gas heated. By over three quarters considerable price differences of several gas or oil are used as heating fuels, tens percent. Prices are dependent on there is significant scope for gas-fired several tariff options, for example: micro-CHP to displace oil-fired central Tariffs with deposit heating. - Tariffs with down-payment • Over 200,000 new houses constructed - One-off bonus annually - Tariffs with payment in advance - Only ecological electricity tariffs

116 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Distributed Generation / Micro CHP- Technologies NL For domestic & small commercial application

Distributed Generation Technologies in The Netherlands The following technologies are under focus of development (α), are near to market (β) or are being sold (χ,δ), especially in The Netherlands: Application: d = domestic, - sc = small commercial, - - si = small industrial

mCHP-technologies country Steam FC PEM FC SOFC Stirling ICE ORC GT Engine β α β χ − − δ NL d d d sc sc

ICE: LOI (January 2007) on placing 10.000 microCHP’s before end of 2010 in NL. The Around one hundred 5 kWe gas engine micro-CHP units have been installed in the consortium name is “Stichting Slim met Netherlands. In the Dutch market Gas” consisting of Gasterra, Essent, Eneco following mini-CHP’s are commercially and Nuon. available e.g. SenerTec units, In 2007 and in 2008 the consortium has/ Powertherm and Ecopower. Also some will place +100 units for field test by real other types are available with larger consumers. The units are mainly Remeha electric capacity. mCHP’s but probably Vaillant, Viessmann, Bosch, Daalderop and Baxi will follow end These mini- CHP’s are usually placed at of 2008 or following year. hotels, swimming pools and Small & Before 2007 Gasterra, formerly Gasunie, Medium Enterprises. has invested in field trails with mostly WhisperGen units. Other products undergoing field Gasterra is a major investor in the trials like: developments of mCHP for the NL market. MicroGen, formerly hold by Britisch Gas,

Stirling: has been bought by a consortium and now In The Netherlands a consortium of the 4 has a Dutch Holding (New Name: largest energy suppliers have signed an Microgen Engine Company). The consortium consist out exxirion, privately 117 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

held stock and 4 boiler manufacturers devices in the context of a Europe-wide (Remeha, Vailliant, Baxi and Viessmann). field test between 2008 The Boiler manufacturers will integrate the and 2010. MEC engine into their boilersystem. The share in Enatec are held by Dutch Remeha will probably be the first to energy company ENECO and Dutch market (2009). energy research centre ECN.

Magic Boiler Company is the Dutch Fuel Cells: supplier of Whispergen Stirling mCHP’s. CFCL: The Australian fuel cell producer From 2004 till 2007 they have been CFCL intends to produce a fuel cell co- supplying mCHP’s to the Stichting Slim generation power station with 1 kW met Gas. electrical power in Heinsberg /Germany) together with the Dutch boiler producer Enatec micro-cogen signs agreement Remeha (NL). with Bosch Thermotechnik , MTS and An agreement on joint development of Rinnai. such a power and heat generator for Enatec micro-cogen (NL), Bosch domenstic homes was signed in 2007. The Thermotechnik (Germany), Merloni appliance ist destined for the markets in TermoSanitari (MTS, Italy) and Rinnai Nenlux. The starting energy is natural gas. (Japan) plan to develop an electricity- The first step will be the onstruction of an generating heater based on Stirling alpha plant comprising a CFCL fuel cell- technology. The four companies have (Netgen plus), a Remeha condensing signed a cooperation agreement to further boiler, a heat accumulator, and a control develop this form of combined heat and unit. Nuon will inspect the system for power generation (CHP) into a product efficiency, safety and networking. that is suitable for the consumer market. Several 5-kWe fuel cell micro-CHP units Enatec micro-cogen, Rinnai and Infinia developed by Vaillant had been installed have already developed a Stirling module - in multi-family homes and small based on the Infinia free piston Stirling commercial buildings as part of a design - that has been specifically adapted European wide field test. for use in small CHPsystems. Gasterra has developed the Programme: This first-generation module will be Fuel Cells. Kiwa Gastec will execute this produced by Rinnai. programme for Gasterra. Goal of the Under the cooperation agreement Bosch programme is to look at the fuel cell mCHP Thermotechnik and MTS plan to install and developments around the world for test over 1,000 gas-fired first-generation

118 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

interesting developments and lab-/ field ORC test the now most potential system for Energetic and Daaldrop are indenting to applicability in the Dutch consumer develop a micro CHP unit based on an market. At this moment the first laboratory ORC. With the ORC mCHP they tend to testing has started and probably the first address the lower or cheaper part of the field test will commence end of 2008. microCHP market as counterpart of the electric more efficient and more expensive Micro-GT stirling based mCHP’s. Micro Turbine Technology, MTT, is a dutch company developing a micro gas turbine for application in domestic micro CHPs as well as applications to provide auxiliary power for applications in trucks (so the main engine doesn’t have to run on parking places to provide power and heat).

Which position (Research Development & Demonstration) does utilities take ? How are the mCHP-Technologies supported in The Netherlands?

119 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

• Lead R&D of specific ) WhisperGen Limited and The Magic Boiler Company have signed a commercial supply technology, work closely agreement , in , of the WhisperGen CHP-system. for the distribution of WhisperGen™. with a manufacturer Magic Boiler Company is a supplier of innovative and/or and environmentally friendly energy solutions. They works with a network of installers in NL and • Finance R&D of specific supplies directly to end-users and B2B market (www.magicboilercompany.com) technology and/or 2) Micro Turbine Technology Bv. (MTT) is a Dutch R&D company of small scale gas turbines. They • Sell mCHP-units or its have a unique design to potentially overcome the challenges of turbines on this kind of small scale. energy products At this moment they are developing a micro gas turbine applicable for micro CHP’s. With a electricity (contracting) to heat ratio of 1:9 they hope to fill in the lower (cheaper) part of the mCHP market.

MTT is still engaged in laboratory testing to reach the needed rpm for a 10-12% electric efficiency. (www.mtt-eu.com)

3) Daalderop, a Dutch boiler manufacturer, has recently announced to have started a cooperative development project, together with Energetix group, for producing a Organic Rankling Cycle (ORC) mCHP unit for the Dutch market.

Daalderop is a innovative dutch boiler company. They have also, recently 2007, developed a domestic high efficient boiler combined with a air- Direct approach sourced heat pump (ventilation air).

With the ORC technology , 10-12%electric efficiency, they also aim for the lower, cheaper, part of the mCHP market. (www.daalderop.nl & www.energeticgroup.com ). Further R&D on the integrated mCHP has to be done before te first field trails can commence.

4) MicroGen, a Britisch R&D company of Stirling engines, has been sold in 2007 by Britisch Gas. The consortium who has bought the company have renamed it to Microgen Engine Company (MEC). The new holding lays in Holland. The consortium consist out of 4 large European boiler manufacturers a private investor and a large multinational.

The 4 boiler manufacturers( Vailliant, Baxi, Remeha and Viessmann) are now separately integrating the MEC stirling into a high efficient boiler.

Remeha, Hollands largest boiler manufacturer, is now leading in their R&D efforts for the Stirling mCHP and already are field testing their second batch of mCHP.

5) Bosch/ Nefit have also recently announced to commence development of a domestic stirling mCHP. The Stirling is developed by Enatec, a originally Dutch consortium of Eneco (Dutch energy company), MTS group, Bosch and ECN (Dutch advisory company). The original patent of the Stirling lays by Infinia.

120 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

The integrated stirling mCHP has to be further developed before the first field trails can commence. (www.enatec.com)

• Act technology open (lab- 1) Stichting “Slim met Gas”, freely translated to Smart Gas, is a consortium of the 4 largest energy / field trials) companies of the Netherlands (Gasterra, Essent, Eneco and Nuon). They act together in the pre- market fase to support new environmental friendly gas technologies. Their main project at this moment is mCHP. They have signed a letter of intent, January 2007, to place 10,000 mCHP units before the end of 2010.

mCHP related projects are: e.g. 1) the development of a mCHP energy Label (HRe label), 2) a large field trail (weiland proef) for determining the electricity network effects (2006/2007), 3) Yearly National mCHP congress, 4) collaborate approach to Dutch government for mCHP legislation 5) field test in 2007, 2008 and following. www.slimmetgas.nl

2) Program ‘Fuel Cells”. A Gasterra initiative to research the potentials of Fuel cell mCHP’s in the Dutch market. Gasterra has assigned KIWA Gastec to look closely to the fuel cell development around the world and which are most promising for the Dutch mCHP market. The Programm consist out of inventory fase and a laboratory fase. Goal is to determine the Indirect potential value of the fuel cell mCHP for the Dutch market. approach 3) Nuon have recently, 2007, collaborated with Ceramic Fuel cell Limited (CFCL) and Remeha to develop a SO fuel cell mCHP for the Dutch market.

Last month (February 2008) Nuon has made a deal with CFCL to take an option of 50,000 fuel cells in the period of 2009 till 2015. The deal is worth a 150 million euro but has some binding conditions. CFCL also announced they will build a factory in Heinsberge (Germany) to build the requested fuel cells.

The consortium is now developing the integrated CFCL fuel cell mCHP.

4) Eneco is participating in ENATEC for some while now. Enatec consist out ECN, Eneco, MTS group and BOSCH. Enetac is further developing the Infinia Stirling engine technology to fit in domestic mCHP’s.

In 2007 MTS and Bosch have announced to start the development of an integrated Stirling mCHP. A first, non-working, mCHP has been shown in a ducth installation manifest.

121 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

What are the driving forces than) negated by decline in electricity for utilities ? sales. However competition is an issue.

Distinctiveness: - customer retention - An engagement of your - For the retailers like Essent, Nuon and company/energy supplier leads to an Delta this is an issue. Customer outstanding feature that differentiate from competitors retention is believed to be increased by lease of chp’s, maintenance and/or mCHP technology is a innovative and electricity redelivery contracts. potentially disruptive technology. Market differentiation is a good change to stand - strategic instrument, image-enhancing out also in European context. The Image-enhancing is an important driver, foremost driving force at this moment is however it is more seen as an extra corporate social responsibility and benefit. The use of distributed generation sustainable/ innovative image. as a strategic instrument like a virtual

- development of expertise as regards power plant plays at the moment a minor DG/mCHP technologies role.

This is definitely one of the drivers for Others: following the technologies. For the grid - General companies this is the main driver. In The Netherlands energy companies (partially) own boiler installers and so Advantages of own business: have a broad position in the possible value - securing gas sendout chain of mCHP. Also the Dutch boiler Current newly build housing are very heat market is somewhat oversaturated with efficient. Some new building blocks don’t high efficient boilers. Technology have a gas connection. Gasunie development in efficiency of the current (transmission grid operator) and Gasterra boilers is limited. New technologies as (main gas trader) want to support new heat pump, ORC and stirling are used to gas technologies and want to show the increase primary energy efficiency. Most benefits of using gas for heating. They are boiler manufactures have these kind of very supporting towards mCHP because of products in their development portfolio. the declining gas need. For the remaining - company endorses a technology which (the retailers) this is less an issue, because is in public interest, the increase in gas sales will be (more This plays a minor part. Mainly because of image enhanching reasons.

122 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

- company wants to be a technical Businesses purchasing these CHP leader units are entitled to tax breaks on This probably plays a part for all the main their investment. However, at utility companies in the Netherlands. The present there are no incentives for general focus is shifted more towards households to purchase or use micro and innovation as the operational difficulties small-scale CHP. caused by the up scaling in the industry and amplified by the liberalization of the The EU has a CO2 emission reduction of electricity market are overcome. 20% in 2020 compared to 1990. The Netherlands have a CO2 emission - company´s engagement demonstrates commitment to political aims of CO2 reduction of 30% in 2020 (compared to abatement 1990). Together with generating business is this DG is considered favourable by the one of the major drivers behind the government. The prime minister for commitment of energy companies to example mentioned the μ-CHP as one of support initiatives concerning the μ-CHP. the means to meet the goal of x% CO2 emission reduction in 2012.

Support Measures, For consumers which feed in less than Mechanisms, Regulatory and 3000 kWh/y into the grid, the amount of Policy redelivered electricity is subtracted from

the delivered electricity. So also no tax A number of regulatory aspects and transport tariff is paid. From the affecting micro-CHP were not designed consumer point of view the grid can be with micro and small-scale CHP in seen as a storage devise. Currently there mind. These include issues such as are no other measures. Subsidies for the right to interconnect with t h e sustainable energy production were distribution network; metering cancelled by the end of 2006. In 2008 a requirements; and valuing generated newly designed subsidy system is going to electricity that is exported to the be implemented. grid. The current situation is not Subsidies on renewable energy and CHP preventing the installation of micro projects were cancelled end of 2006 CHP units. because the targets set for 2009 were The Dutch Government is, in reached. This caused some public principle, supportive towards micro and discussion. The new government are small-scale CHP in light of the designing a new system which will be environmental benefits it brings. operational in 2008. The government is

123 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

supporting research on renewable energy chain mainly consists of local gas and (EOS programm), not specifically DG. electricity installers and some large installers. These installers are sometimes All major energy suppliers and kettle owned or contracted by the electricity manufacturers work together in an suppliers or the large kettle manufacturers association called ‘Slim met Gas’ to (e.g. Remeha, Nefit, Vailliant). promote the μ-CHP. Next to this collaboration the energy suppliers and Manufacturer to wholesaler to installer to kettle manufacturers also independently customer: work on ‘next generation’ μ-CHP’s based for example on fuel cells or micro turbines Public Perception

Market Structure, Routes to In some public newspapers articles about Market the μ-CHP (or HRe kettle) are published. These were mildly positive. For the μ-CHP the same delivery chain will be used as for the condensing boiler. This Economics Market Potential

Domestic energy prices The Dutch market offers considerable Eurocent/kWh potential for 1 kW sized micro-CHP Electricity Gas Price Difference units suitable for individual 22 7.5 14.5 households. Of the 6.5 million The economics of running a 1 kW micro- households in The Netherlands, the CHP unit in an individual household will vast majority have access to natural depend on the characteristics of a gas, typically using gas fired boilers to particular product, energy prices and the provide their thermal needs. The high household in which it's installed. proportion of Dutch homes with Analysis by the Dutch micro-CHP individual heating systems means working group shows that annual that there is good potential for micro- savings for typical households, using CHP in the Netherlands. near-to-market units given current market conditions Gould lie between 80 € and 150 €.

124 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Distributed Generation / Micro CHP- Technologies I For domestic & small commercial application

Distributed Generation Technologies in Italy The following technologies are under focus of development (α), are near to market (β) or are being sold (χ,δ), especially in Germany: Application: d = domestic, - sc = small commercial, - - si = small industrial

mCHP-technologies country Steam FC PEM FC SOFC Stirling ICE ORC GT Engine β β χ − − δ I d d si si

In Italy there’s widely diffused knowledge Gas/Steam turbines: of the different kind of technologies used Nuovo Pignone (GE group), Solar, Rolls for distributed generation. Royce and Kawasaki In particular traditional ones such as steam, natural gas and internal These kinds of machines are delivered by combustion engines, but also emerging their own Italian distributors who are applications such as renewable systems interconnected with a specific packager. (es. solar, wind) are well known. In some cases powering afore-mentioned The devices are mostly used for industrial technologies with natural fuels and even applications, in particular plants over 300 fuel cells are well known. kWel. Small commercial and domestic The manufacturers of the most-diffused systems are not diffused even if these are distributed generation systems are: the market targets of emerging power ICE: technologies. Jenbacher (GE group), Wartsila, In Italy the technologies commonly used Caterpillar, Rolls Royce, Deutz for distributed generation are steam, gas and internal combustion powered by Fuel Cells: traditional fuels engines which can be Arcotronics, Ansaldo, Idatech, Plug Power, included in the product-phase. UTC The utilisation of these kinds of technologies with natural fuels and

125 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

emerging systems as renewable plants are very expensive and the performances have to be considered in α-phase, while are not good enough to follow mass fuel cells are still in β-phase because they market and distribution.

Which position (Research Development & Demonstration) does utilities take ? How are the mCHP-Technologies supported in Italy?

Direct: Intention is to benefit from the whole (or part of the) value chain, developmet of mCHP product – selling the product to the market, Indirect: gain knowledge of economic, technical and ecological performance (primary energy analysis, estimate energy costs and potential CO2 savings derive forecasts with respect to future gas consumption as part of power supply scenarios determine the impact on gas/power supply networks with respect to capacity and safety aspects • Lead R&D of specific Eni SpA, as an energy supplier, is interested in development of DG-technology and in particular technology, nowadays is becoming a big sponsor of high work closely with a efficiency systems which could reduce the quantity of fuel used. manufacturer Eni SpA is involved in very different fields and/or interconnected in the “energy chain” so the • Finance R&D of promotion of a particular industrial sector could bring a sort of imbalance between the engines. Direct approach specific technology This situation, added to the strengthened of Italian and/or law, makes difficult the finance of DG-technology. Eni SpA decided not to sell its own • Sell mCHP-units or products/engines for this specific sector but only its fuels (oil and natural gas) and energy vectors energy products (electricity and steam produced by its plants).

(contracting)

126 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

• Act technology open Even though Eni SpA doesn’t have links to a specific engine, it plays an important role in (lab- / field trials) promoting different kind of power generation systems, also supporting field tests of several technologies. For example, there’s a plan to increase the number of the Agip multiEnergy fuel stations. These may become, in short term, a platform for bio-building and bio-architecture to test recycled materials with low impact, electrical systems,

heating and air-conditioning solutions and more efficient lighting that reduce energy consumption in Indirect terms of kWh/mq/year. approach Eni SpA is interested in very different kind of

technologies, from traditional engines to emerging power systems. Of course the portfolio is focused on applications powered by hydrocarbons but it also takes into account renewable technologies to create a complete mix in energy generation. In the field trials Eni SpA, to mantain a neutral position over the project, usually creates partnerships with public organizations guaranteeing great visibility and no specific commercial purpose of the tests.

What are the driving forces leads to outstanding features that for utilities ? differentiate Eni SpA from its competitors.

Government schemes It is involved in a deep analysis of the In any case there isn’t an obligation for DG/CHP’s market as part of the technical energy suppliers to invest in CO2 friendly and economical feasibility and the technologies but Eni SpA, as part of its comparison of different purposes that Eni own program of corporate social SpA’s technical consulting unit does for its responsability, has invested quite a lot in clients. promoting the reduction of hydrocarbon All these kinds of knowledge, combined consumption, even introducing a special with the continuous training of its human campaign “Eni 30%”, particularly towards resources, bring Eni SpA expertise residential market. regarding its own business and the applications interconnected to this one. Distinctiveness Advantages of own business The great interest that Eni SpA has in all The advantages of Eni SpA’s strategy and the specific branches of its business fields business can be the customer retention

127 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

and image-enhancing while security in gas recovery in existing plants or by using high selling is not ensured because of the performance technologies. natural gas condition fixed by the italian In particular, in order to achive CO2 law. reduction or combat the climate change, Italy implements the flexible mechanisms Support Measures, (Emission Trading, Clean Development Mechanisms, Regulatory and Mechanism and Joint Implementation) Policy necessary to reach the objectives fixed by In Italy the energy sector’s demand is a the Kyoto protocol and also the Green very critical argument because of the lack Certificates mechanism. of primary fonts and the great increase in The government considers favourable all energy needs. technologies which help to reduce primary The government keeps lot of attention on energy consumption or systems powered this problem promoting initiatives to by renewable fuels. In particular, as part improve efficiency, reduce and diversify of a program that promotes energy the energy consumption. efficient uses, the Italian government In the last ten years big advances have sponsors the installation of DG/mCHP been done thanks to the application of the applications (i.e. White Certificates). flexible mechanisms (Emission Trading, Clean Development Mechanism and Joint The promotion by the government of Implementation) necessary to reach the DG/mCHP plants is explained by premium objectives fixed by the Kyoto protocol, but prices for power fed into the pubblic grid, the most important part has been done by advantages from energy tax legislation the White and Green Certificates. and credits, and the possibility of making a Green Certificates promotes renewable contract between the final user who energy plants while White Certificates are installs a new plant and an ESCo to divide part of a mechanism which promote the in equal percentage the money energy efficiency (DM 20/7/2004) and one contribution connected to the White of the system supported is mCHP in civil Certificates mechanism. uses. Sometimes the ESCo is able to finance the installation of more efficient power plants

and to recover the investment through the The Italian policy goals can be identified management of the plant itself but usually as the reduction of hydrocarbon use and there are no subsidies from the increasing energy efficiency by energy government and/or from the energy

128 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

suppliers to cover the installation cost of the 31st of December of two years the system. before each year of obligation (for istance, for 2009 are subjected to Detail to White Certificates System in the obligation all the local grid Italy: operators who has connected to The White Certificates mechanism was their grid more than 50.000 clients created in Italy and formally introduced by at 31/12/2007); the Ministerial Decrees of 20/07/2004 to • How to reach these targets: the promote efficiency in the final uses of manager of the mechanism which energy. is the Italian Authority for This mechanism is based on the obligation Electricity and Natural Gas of the electric energy and natural gas local (Autorità per l’Energia Elettrica e il grid operators to reach a national target of Gas - AEEG) in collaboration with energy savings in primary energy [Mtoe] the National energy research fixed year by year. institute ENEA. The energy saving The instrument used to value the primary applications recognized by the energy saving is called “White Certificate” mechanism for which it can be and every White Certificate is equal to 1 achived the White Certificates and toe of energy saved (that means nearly the types of White Certificates 1.200 m3(s) of natural gas saved). fixed by law (type 1 = electricity

In a brief synthesis the Ministerial Decrees savings, type 2 = natural gas define: savings, type 3 = other fuels • The national energy saving targets savings) (see the first slide); which are proportionally divided by the obliged subjects: (at the moment – may 2009) are, [Mtoe] 3.2 (2009); 4.3 (2010); 5.3 (2011); 6.0 (2012) – Source: AEEG; • The subjects obliged to reach the targets: right now they are all the power and natural gas local grid operators who has connected to their grid over 50.000 customers at

129 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

White certificates: Kind of Certificates and Applications

Power saving projects, i.e.: • Cogeneration plants Type 1 • Illumination systems • Gas heat pump and absorbtion chiller for air conditioning • High efficiency electric engines

NG saving projects, i.e.: • Heat termoregulation and accounting Type 2 • Heat recovery uses • Cogeneration and trigeneration plants • High efficiency boilers and burners

Other fuel saving projects, i.e.: Type 3 • Oil boiler substitution • Heat recovery uses

White certificates: The Italian Energy Efficiency Market

1 2 Realization of Energy Saving 3 an energy White certificate certification 4 saving project exchange (AEEG) and TEE White certificates in the GME’s release (GME) delivering to AEEG Regulated market or to receive the money ACTORS: using bilateral contribution as ACTORS: contracts • ESCo defined by law • AEEG •ENERGY MANAGERS ACTORS: •GME ACTORS: •DISTRIBUTORS • ESCo •DISTRIBUTORS • ENERGY MANAGERS •AEEG

•DISTRIBUTORS

•GME

130 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

• The conventional life time of the certification. This certification has project (period of time for which it to be done by the Authority (AEEG) can be asked and obtained the who gives the input to the Italian energy saving of a single Electricity Market Manager application): 5 years (Gestore del Mercato Elettrico - • The subjects who can make that GME) to release a number and application and have the access to type of White Certificates the mechanism: over the obliged equivalent to the primary energy subject (the local grid operators) saving obtained. there are volunteer subject - the 3. White Certificates are exchanged Energy Service Companies (ESCos) between the volunteer subjects and the Energy Managers of firms (ESCo and Energy Manager) and and/or public institutions. the distributors who need these certificates to reach their own How the White Certificates mechanism targets. This “buy and sell” system works can be synthesized by the second can be done by one-to-one slide: contracts or in a special market

created in 2006 by the Italian 1. the subjects involved in the Electricity Market Manager (GME). mechanism identify and realize an 4. on the 31st of May of every year of energy saving project (because the obligation, the distributors must mechanism is connected to the prove to the Authority to have final uses, most of the application reached their own targets and, as are on customers – public a partial recovery of their institutions, retail and industrial investment, they receive an on- sectors – ). If the project is tariff contribution, which is recognized by the White established year by year. Certificates mechanism, it has to

be defined the method and the The White Certificates mechanism is also technical instruments to evaluate recognized by the European Community in the energy saving and ask to the the European Directive 2006/32 on the Authority for approval. energy efficiency in the final uses of 2. every year for the whole energy. In this Directive it is emphasized conventional life of the project (5 the importance of this mechanism to reach years), the subjects who ask for energy efficiency in the different kind of approval has to ask for saving applications (for istance in the art. 6).

131 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

In the last 5 years also other European of decreasing the quantity of fuel burned countries choose these system to promote using a better performing technology energy efficiency (for example UK and France) but the main features of the Economics mechanism change country by country. In Italy the electricity price is decided day by day in a special market managed by Market Structure, Routes to GME (Electricity Market Manager). This Market price changes every hour and of course it Eni SpA, with its energy consulting unit, depends on the demand (zone by zone) has the knowledge to identify the best and on the energy load diagram. Actually solution for a client who has taken the it goes from a min of 0,04€/kWh to a max decision to install a CHP system. The next of 0,15€/kWh. step is to compare the different proposals Natural gas price is regulated by AEEG requested from the manufacturers by the (Natural Gas and Electricity Authority), it client from a technical and economical depends on local distributors and for the point of view. end consumer. So the delivery chain can be synthesized as: Market Potential

Customer (interfaced with Eni SpA as Reasons which could prevent market entry energy consulter) – Manufacturer for DG/mCHP ? (Wholesaler) – Energy Supplier (Eni SpA or other producers, depends on evaluation of In Italy some problems to the introduction the client who is the owner of the energy of DG/mCHP systems could be: contracts). • lack of informations about these solutions (no small size already Public Perception installed and even in industrial

Even if mCHP technologies are sponsored sector cogeneration plants are not by government (White Certificates very diffused); mechanism), there’s a lack of information • different building solutions which about these solutions. This situation could are characterized by big buildings be due to the fact that these systems are composed by lots of flats and so not very common in small sizes, and even very high consumption compared in industry cogeneration is now taking with the small DG applications; place as a way of reducing energy costs • costs, in particular for some kind of and not as a way of reducing pollution or engines (es. renewable font applications);

132 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

• possibility of great competition with the heat system producers who are usually quite interested in DG/mCHP technologies; • difficulties for the energy suppliers to introduce their own products in the market without creating a troubled situation and misunderstandings with the italian government;

133 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Distributed Generation / Micro CHP- Technologies Japan For domestic & small commercial application

Distributed Generation Technologies in Japan The following technologies are under focus of development (α), are near to market (β) or are being sold (χ,δ), especially in Japan: Application: d = domestic, - sc = small commercial, - - si = small industrial

mCHP-technologies country Steam FC PEM FC SOFC Stirling ICE ORC GT Engine β α − δ − - - Japan d d, sc d, sc

1. PEFC-Fuel Cell: A national demonstration project that was called "Large Scale Demonstration Project" had been strongly promoted with the Japanese government support since 2005.

Some energy suppliers and fuel cell system manufacturers cooperated and joined the project, then over 3,300 systems of PEM fuel cell m-CHP have been installed in actual residential houses all over Japan for last 4 years. Fantastic performance of PEM fuel cell m- CHP were demonstrated, for example, the best system could reduce primary energy by 25% and CO2 emission by 39% (= From the aspect of marketing, the reduction of 1.2t of CO2 per year in a brand name "Ene Farm" have been house), respectively. adopted as a universal product name In addition, important aspects for market to let people know what PEFC fuel cell introduction such as reliability, durability, m-CHP is, easily. Also, a joint cost cut and mass production technology declaration of launching Ene Farm by 6 were also checked during the project, then the market introduction phase have energy utilities and 4 system started since 2009. manufacturers was announced in June

134 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

2008 and joint press release concerning the market introduction plan against "all electricity system" by the above 10 companies was announced in January 2009

Panasonic: Panasonic is planning to sell their PEM fuel cell m-CHP system to major gas utilities such as Tokyo Gas from May 2009. The system runs by LNG basis natural gas Ebara-Ballard: and produces 0.3-1.0kW electricity and Ebara-Ballard (EBC) is a joint PEM fuel 0.3-1.4kW heat. The efficiencies of cell m-CHP system manufacturer of Ebara electricity and heat recovery are over 37% Corp. and Ballard Power System (BPS). LHV and over 52% LHV, respectively at BPS produces MEA, which is one of main rated load, and recovered heat is stored in parts of fuel cell stack, and EBC produces 200 litter hot water storage unit as hot fuel cell stack by stacking the MEA. EBC is water. mainly responsible for R&D activities for The system is expected to be installed m-CHP system and producing the system newly built and existing detached houses by combination of the stack, a fuel where a level of hot water consumption processor, balance of plants and a hot will be expected. The system also has a water storage unit. EBC is receiving a learning operation control soft ware, which licence of the fuel processor from Tokyo learns the residents' life pattern and Gas, and consigning the hot storage unit choices the best timing of operation, to to Gaster-Rinnai which is one of major maximise primary energy saving. The price boiler manufacturers. of the system will be 3,465,000 yen (= EBC is also planning to sell the system to approx. 26,700 euro). major gas utilities such as Tokyo Gas in 2009. Main specifications and the price are almost same as Panasonic system.

135 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

natural gas have 200 litter hot water storage units. The hot water storage units are manufactured by Chofu which is one of major boiler companies in Japan. The price of the systems will be 3,255,000 yen (= approx. 25,000 euro).

ENEOS-Celltech: ENEOS-Celltech is a joint company of Nippon Oil Company (NOC) and Sanyo Electrical Company, founded in 2008. ENEOS-Celltech is aiming to establish a mass scale production framework of PEM Toshiba Fuel Cell Power System: fuel cell m-CHP system and its business Toshiba Fuel Cell Power System was used domain covers business planning, R&D to be a joint company of UTC Fuel Cells including system design and production and Toshiba Electrical Company and called management of PEM fuel cell m-CHP Toshiba International Fuel Cells, however, system, and actual system assembly and it is now a 100% family company of manufacturing are confided to a Sanyo's Toshiba Electrical Company and its name family company. has been changed as Toshiba Fuel Cell ENEOS-Celltech is planning to sell its Power System (TFCP). system for LPG to NOC and its system for TFCP is planning to sell its system for LPG natural gas to Osaka Gas, respectively. to Astomos Energy which is one of major The system for LPG produces 250-750W LPG suppliers and its system for natural electricity and the efficiencies of electricity gas to Osaka Gas, respectively. The and heat recovery are 35% LHV and 50% system for LPG produces 250-700W LHV, respectively at the rated load. The electricity and the efficiencies of electricity system for natural gas produces 250- and heat recovery are over 34% LHV and 700W electricity and the efficiencies of over 46% LHV, respectively at the rated electricity and heat recovery are over 35% load. The system for natural gas produces LHV and over 50% LHV, respectively at 250-700W electricity and the efficiencies the rated load. Both systems for LPG and of electricity and heat recovery are over

136 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

35% LHV and over 50% LHV, respectively At this moment, 3 manufacturers at the rated load. TFCP is receiving a Kyocera, Nippon Oil Company (NOC) and technical support of the fuel processor TOTO are supplying SOFC m-CHP system, which can be used for both LPG and and during the SOFC Demonstration natural gas from Osaka Gas. Both systems Project, 29 and 36 SOFC m-CHP systems for LPG and natural gas have 200 litter hot were installed in 2007 and 2008, water storage units and the units are respectively. These systems are running manufactured by Chofu. The price of the with natural gas, LPG and kerosene and systems will be 3,255,000 yen (= approx. installed in mainly actual residential 25,000 euro). houses all over Japan.

Kyocera: Kyocera has been collaborating with Osaka Gas concerning development of SOFC m-CHP system and with Chofu concerning development of hot water supply and heating system since 2004 and 2006, respectively. Kyocera is a leading company in SOFC R&D region and most of systems for SOFC Demonstration Project

are supplied by this company.

2. SOFC-Fuel Cell: Kyocera is supplying their SOFC m-CHP A national demonstration project named system to Osaka Gas and 3 other gas "Solid Oxide Fuel Cell Demonstration utilities and 1 electrical utility. The system Project" has begun since 2007. The (2007 version) runs by LNG basis natural project is strongly supported by Japanese gas and produces 700W electricity at rated government as well as the Large Scale load. Their target efficiencies of electricity Demonstration Project, and will be and heat recovery are over 45% LHV and continued for 4 years until 2011. Along over 40% LHV, respectively at rated load. with the demonstration project, a national Recovered heat is stored in 70 litter hot project for developing basic technologies water storage unit as hot water. The for SOFC has also been executed. These system runs continuously (without starting projects are expected to stimulate and and shutting-down) with following make good feed back effect each other. electrical demand of households. Some The actual market entry of SOFC m-CHP is systems have already achieved 1 year expected to realise in 2015 or later.

137 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

operation time as actual demonstration produce 700W electricity at rated load. results. Their target efficiencies of electricity and heat recovery are over 45% LHV and over 40% LHV, respectively at rated load. Recovered heat is stored in 70 litter hot water storage unit as hot water.

TOTO: TOTO is supplying both SOFC systems for business use and residential use for SOFC Demonstration Project. For business use, 2kW and 8kW SOFC systems are installed in actual cites by the Kyocera announced in March 2009 that demonstration project and both systems they agreed with Osaka Gas and Toyota run by natural gas and produce electricity concerning development of SOFC m-CHP only (no heat recovery system). system. On the other hand, for residential use,

TOTO is applying their own micro tube Nippon Oil Company: SOFC technology which can reduce In contrast with other SOFC m-CHP operation temperature and suitable for systems for natural gas, Nippon Oil quick start up. Company (NOC) is supplying SOFC m-CHP The residential SOFC system (2009 system for LPG and kerosene for SOFC Demonstration Project. Although SOFC version) produces 700W electricity at rated stack is supplied from Kyocera, other load. Their target efficiencies of electricity technologies such as reforming fossil fuel and heat recovery are over 41% HHV and and system integration are based on their over 37% HHV, respectively at rated load. Recovered heat is stored in 70 litter hot own research and development. water storage unit as hot water. TOTO is association with Noriz which is one of boiler manufacturers concerning SOFC m- CHP system assembly.

3. ICE

3.1 ECOWILL: The world’s first 1kW ICE m-CHP system Both systems for LPG and kerosene for residential use was developed and

138 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

marketed with name “ECOWILL” in 2003. Since then, approximately 60,000 systems of ECOWILL were sold all over Japan by the end of 2007. ECOWILL runs by natural gas or LPG, and 3 major gas utilities, Osaka Gas, Tokyo Gas and Toho Gas and 1 major LPG utility Nippon Oil Company sell the system.

Honda: Engine units of ECOWILL are supplied from Honda, and ECOWILL produces 1kW 3.2 GENELIGHT: electricity and 2.8kW heat. Total energy Amongst ICE systems, “GENELITE” was efficiencies of electricity and heat recovery developed for small scale business market reaches over 85.5% LHV (Efficiency of such as restaurants, sports gyms, hotels, electricity is about 22 -23 % LHV). hospitals, and various institutions. 5-10kW According to Honda and Osaka Gas, the models for smaller scale demand and system price including both gas engine 25kW models for relatively larger scale unit and heat recovery unit is about demand are assorted, and some of these 790,000 yen (= approx. 6,100 euro). An models can be combined with each other ECOWILL user can receive 138,000 yen as to adapt for larger demand. Also, some a subsidy from the Japanese government models can be combined with backup when installation. Some local governments batteries to prepare against a blackout. also pay a subsidy for the system user. A GENELIGHT runs by natural gas or LPG, standard house hold is estimated to be and approximately 3,400 systems of able to cover their electricity up to 35% GENELIGHT were sold all over Japan by and save energy price up to 43,000 yen at the end of 2007. a maximum by using ECOWILL.

YANMER: Yanmer Energy System provides 3 models GENELIGHT (5kW, 9.9kW and 25kW) as m-CHP (less than 30kW). Total energy efficiencies of these 3 models reach about 85% LHV (Efficiency of electricity of 25kW model is about 33.5%)

139 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

AISIN:

Aisin Seiki provides 6kW model

GENELIGHT whose engine was developed by applying their GHP technologies. Total energy efficiencies of the model reaches about 85% LHV (Efficiency of electricity is about 28.8%). The model runs natural gas or LPG. Aisin system can use recovered heat not only for heating but also for cooling by combination with an adsorption type cooling system.

140 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Which position (Research Development & Demonstration) does utilities take ? How are the mCHP-Technologies supported in Japan ?

Direct: Intention is to benefit from the whole (or part of the) value chain, from development of mCHP product till selling the product to the market, Indirect: gain knowledge of economic, technical and ecological performance (primary energy analysis, estimate energy costs and potential CO2 savings derive forecasts with respect to future gas consumption as part of power supply scenarios determine the impact on gas/power supply networks with respect to capacity and safety aspects

• Lead R&D of specific 1. Relationship between energy utilities and m- CHP manufacturers technology, PEFC m-CHP development is a good example to work closely with a know relationship between energy utilities and m-CHP manufacturer manufacturers. Major energy utilities and some and/or leading PEFC m-CHP manufacturers have kept particular partnership with each other since very early • Finance R&D of stage of PEFC research and development.

specific technology FC stacks and process design are mainly developed and/or by manufacturers with using their own FC Direct approach technologies and process engineering know-how. On • Sell mCHP-units or the other hand, utilities' technologies and knowledge its such as steam reforming technologies, hot water storage management and energy consumption energy products management are applied when manufacturers (contracting) assemble whole PEFC m-CHP systems including FC units, hot water storage units and operation controllers. In addition, not only the above technical information but also useful business information such as marketing data, system specification and users' feed back voice have also been shared between utilities and manufacturers. As a result of the above

141 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

partnership, positive PDCA cycles occur between utilities who can reflect their request on system development and manufacturers who can improve their systems without any misdirection concerning PEFC m-CHP marketing.

The above particular relationship had been kept at least for 4 years of "Large Scale Demonstration Project" that enabled over 3,000 system installation in actual houses. For instance, Tokyo Gas, one of major gas utilities, developed 2 models with their brand with Panasonic and Ebara Ballard, respectively. Osaka Gas, also a major gas utility, developed 2 models with their brand with Toshiba Fuel Cell Power Systems and ENEOS CELLTECH, as well as Tokyo Gas.

2. Manufacturer Position by Utility

Amongst the above activities, Nippon Oil Company (NOC) who is a major oil utility and promoting m-CHP for LPG and kerosene chose a different position from others. In 2008, NOC decided to found a joint company called ENEOS CELLTECH with SANYO Electrical Company who used to supply PEFC m- CHP system to NOC. Hence, NOC now has a manufacturer company under their control. NOC decided to have both position a manufacturer and a utility.

• Act technology open M-CHP activities of ICE m-CHP have already shifted to business stage from lab / field trials. Over 60,000 (lab- / field systems of ICE m-CHP "ECOWIL" are already under trials) operation.

Concerning activities of PEFC m-CHP, some major utilities such as Tokyo Gas, Osaka Gas, Toho Gas and Nippon Oil Company announced to start selling PEFC m-CHP "ENE FARM" for residential market from Indirect 2009. However, as mentioned in the beginning of this report, a large scale national demonstration project approach

for FC m-CHP played a very important role for realisation of PEFC m-CHP business. Actually, thanks to the demonstration project, excellent performance of PEFC m-CHP was revealed and to be known to public widely. Utilities also seem to be confident of the performance and position PEFC m-CHP as a potential and important appliance against EHP. In fact, a joint declaration of launching ENE FARM by 6 energy utilities and 4 system manufacturers was

142 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

announced in January 2009 for promotion of PEFC m- CHP, although some of them should compete with each other from now. Both competition and cooperation exist amongst PEFC m-CHP companies at this moment.

(including ICE, PEFC and SOFC) would be What are the driving forces installed in residential sector by2030. for utilities ? Furthermore, "Roadmap for Fuel Cell and

Government schemes: Hydrogen Technology Development" revised in June 2008 by the New Energy Trends of Japanese energy consumption and Industrial Technology Development indicate that residential and mobility Organization (NEDO) indicated technical demands have been rising at a rapid pace challenges and targets in detail concretely although industrial demand has been kept until 2020-30. The road map's objectives at a constant level since the oil crisis in are to clarify technological issues that 1970s. Also, CO2 emission from residential must be tackled in the development of fuel sector accounts for about 13% of total cell, to share technology development CO2 emission of Japan recently. Toward scenarios with stakeholders and ensure the Kyoto protocol, the Japanese efficient, effective implementation in line government has begun to put in serious with these and to promote further efforts to tackle the above problem, and research and development and encourage new technologies such as PEFC and SOFC new participation, through the wide- fuel cells are expected to contribute to ranging dissemination of the roadmap. dissolve the problem together with solar As indicated above, Japanese government power, wind power, biomass and other have been encouraging greater use of m- renewable energies. CHP. In fact, "New Direction of New Energy Their positive attitude toward m-CHP could Policy" advanced in September 2008 by be seen in the G8 Hokkaido Toyako the New Energy Committee for Ministry of Summit held in July 2008, and annual Economy, Trade and Industry (METI) national budget for fuel cell, including mentioned the importance of fuel cells as basic research, demonstration and support well as renewable energies. In addition, for hydrogen infrastructure, has been kept "Japan's Long-term Energy Supply and around 30 billion yen for recent years. Demand Projection" made in May 2008 by the Industrial Structure Council and Advisory Committee for METI showed a Advantages for own business: scenario that 2,500,000 units of m-CHP

143 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Reduction of CO2 Emission the results obtained in the Large Scale According to the results obtained in the Demonstration Project, a household could Large Scale Demonstration Project, a save their energy up to 25%. The fact has household could reduce CO2 emission up a positive impact for users and to about 100kg a month by using PEFC m- preservation of resources. At the same CHP. That proved PEFC m-CHP can be time, as PEFC m-CHP produce electricity very strong tool to reduce CO2 emission by using city gas, LPG or kerosene, PEFC for residential sector, and the Japanese m-CHP will contribute to increase gas, LPG government considers PEFC m-CHP or kerosene sales for utilities obviously. favourably. Support Measures, Against EHP Mechanisms, Regulatory and EHP has made rapid progress on Policy reputation of reducing CO2 emission and Subsidy running cost. EHP has advanced to The Japanese government is paying a residential sector, then gas and oil boiler subsidy using a budget for saving energy sales have been pressed for recent years. to a householder who installs a high In fact, especially in newly built house efficient boiler. M-CHP "ECOWILL" is market, the ratio of houses installed EHP recognised as a high efficient boiler and an system reached 27% in 2007. EHP is also object of the above subsidy. The basic an object of Japanese government subsidy concept to calculate the amount of the for environmental protection as well as m- subsidy is to compensate a half price of CHP, and electrical utilities have started difference between the high efficient boiler campaigns to promote EHP since 2005. and a conventional boiler. In addition, a M-CHP is recognised as an important part of installation cost is also appliance against EHP by gas and oil compensated with the subsidy. In case of utilities, and they have cooperated with "ECOWILL", 140,000 yen will be paid as a each other not only in R&D but also in subsidy from the price which is about public notice of m-CHP as indicated at the 700,000 yen per system. begging of this report. The Japanese government also decided to pay a subsidy to a householder who Continuously increasing gas, LPG or installs a fuel cell m-CHP which will be sold kerosene sales to residential market since 2009. A high PEFC m-CHP can save primary energy lever cap (=1,400,000 yen per system) compared to conventional system such as was imposed, however, the concept to grid electricity and a boiler. According to

144 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

calculate the amount of the subsidy is companies basically, but in case of difficult similar to "ECOWILL" case. troubles or unexpected happenings, utilities or manufacturer would support Selling generated electricity to the grid their retail companies. Although electricity generated by PV is sold to the grid with as an enough price as However, other optional routes to a householder can realise "economical customers are used. For example, as gas merit", electricity generated by m-CHP is utilities have strong direct connection with not, hence "excess electricity" from m-CHP residential customers through gas supply is converted to hot water at this moment. contract, metering and periodical rounds This means that electricity from m-CHP is for safety check, they could apply the not authorised as sustainable energy or direct connection to promote m-CHP sales. equivalent at this moment. Also, some major energy utilities would

negotiate with major house builders, Market Structure, Routes to developers and construction companies Market directly concerning the promotion of m-

CHP. A typical distribution of m-CHP to residential customers is as follows. Manufacturers of m-CHP wholesale their Public Perception systems to gas, LPG or kerosene utilities. Users survey of PEFC m-CHP Utilities would affix their brand on the Although definitive and comprehensive systems and promote m-CHP sales by public perceptions toward m-CHP are not using mass media such as TV available at this moment, feedbacks from commercials, newspaper commercials and users' voice of "Large Scale Demonstration various exhibitions. As utilities have vast Project of m-CHP" are suggestive. amount of customers (ex. gas customers: According to the feedbacks, 25 million, LPG customers: 25million and the most impressive fascinations of m- kerosene customers: 40million, CHP are respectively), they distribute the systems - "to generate electricity stably at users' to their family retail companies such as house" installers, selling agents or construction - "to recover and use exhaust heat as hot water" agents. Residential customers will buy or then, lease the system from the above retail - "saving the primary energy" - "reduction of CO2 emission" companies. After service such as are following. maintenance could be done by retail

145 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

It is obvious that the voices could not be as for domestic, for small commercial, for definitive and comprehensive because the industrial or for vehicles, and specified survey was taken under "demonstration" appliances can be objects which are condition however, features of PEFC m- applied with discount tariff. There are also CHP are recognised as they are. Users different rate which reflects geographical seem to be almost satisfied with the variations and energy source requisition performance of PEFC m-CHP and potential methods amongst utilities, however the public perception is also expected to be difference amongst utilities is not so positive toward PEFC m-CHP. critical in Japan. Rough energy unit prices on an ordinary Main hurdles to mass market household in Japan is about : Needless to say, economical merit is one of the most important factors for m-CHP Domestic energy prices Yen/kWh Electricity Gas Price Difference to beat "the chasm" and to be acceptable 58.6 31.3 27.3 to mass market. In case of PV generator, Average of all over Japan. Source: Annual a householder could be compensated for Statistics for Domestic Energy an initial cost by the potential longer term Consumption (e.g. for 10 years) savings by selling excess electricity to the grid, however, the Electricity seems to be much more Japanese domestic PV market still seems expensive than gas. However, the price of to be cost driven at the point of sale. For electricity can be reduced up to half in m-CHP market, similar trend would be midnight, and this accelerates the EHP possible. Therefore, the government's market with reputations that EHP can save subsidy is one of the most effective energy cost. options at early stage for market Exported electricity must be metered and introduction of m-CHP. It is obvious that payment will be via a contract with the manufacturers and utilities are expected supplier. Most of the electricity utilities will not only to apply discount tariff for m-CHP buy back the electricity generated by PV users but also to realise cost reduction of and wind turbine for the same price as the system and to add optional functions they sell it to costumers. However, m-CHP such as backup and etc, as soon as run by gas, LPG, kerosene or even bio-gas possible. are out of the system, at this moment. On the other hands, gas utilities are Economics planning to apply discount tariff for m-CHP costumers to accelerate m-CHP market The actual price for electricity and gas in against EHP. Japan is variable depending on use such

146 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

- 0.52 million oil boiler (mainly Market Potential kerosene)

M-CHP system is expected to be installed - Boiler market in Japan has come to newly built detached house and existing maturity and m-CHP is expected to be detached houses. Optimisation of m-CHP installed instead of a conventional system specification will be required to boiler. install in multiple-family houses and condominiums and their market will get behind compared with detached house market by some years.

Newly built house market in Japan - 1.06 million houses are newly built each year. - 0.53 million detached houses - 0.53 million multiple-family houses and condominiums (As of 2007 by Ministry of Land, Infrastructure, Transport and Tourism)

Stock house market in Japan - 46.9 million houses exist. - 26.5 million detached houses (56.3%) - 18.7 million multiple-family houses and condominiums (40.0%) (As of 2003 by Ministry of Land, Infrastructure, Transport and Tourism) It is noteworthy that the ration of multiple- family houses and condominiums is higher in large cities (e.g. 68% in Tokyo Metropolitan).

Boiler market in Japan - 3.32 million boilers including both gas and oil are sold each year. - 2.80 million gas boiler (city gas and LPG) 147 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Distributed Generation / Micro CHP- Technologies F For domestic & small commercial application

Distributed Generation Technologies in France

The first field test of forty Micro-Combined Heat and Power (microCHP) gas boiler in France Considering the current trend towards thermal need decrease in residential market, energy players such as GDF SUEZ have to find innovating natural gas uses so as to anticipate the thermal regulation hardening. The Stirling microCHP is an efficient heat and power system for home that results from the integration of a micro-CHP Stirling technology into a condensing boiler. A part of generated electricity is used for household needs while the unused part is exported back to the grid. As an environmental friendly and economical product, Stirling gas-boiler reaches a 1tCO2/year/house reduction of CO2 emissions and is competitive compared with products such as condensing boilers, heat pumps and solar systems. GDF SUEZ R&D division leads a field test of forty Stirling boilers in the French Rhône-Alpes area in individual houses which aims at showing that the product is reliable, easy to install and maintain, and at evaluating the way the customer appreciates this new technology. With over 200 millions data/year, this experiment offers an excellent basis to improve the knowledge of production profile of the system and consumption profile of customers in a way to optimize the value of microCHP.

An innovative heat and power system for home

The Stirling microCHP is a new natural gas heating appliance very well suited to domestic home use. It results from the high-level integration of a microCHP Stirling technology into a condensing boiler. This new boiler fulfils the entire household’s thermal needs (heating and domestic hot water in the residential market). Moreover, about half the electrical needs are supplied thanks to the microCHP electricity production, meanwhile the additional part is provided by the grid. With 1kW electrical and up to 28kW thermal outputs this product turns out to be more efficient than a condensing boiler, thanks to its high global efficiency among others.

148 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Stirling gas-boiler: An environmental friendly and economical product

Environmental assumptions and results

From the French Transmission Grid Operator (RTE) forecasts of both national electricity demand and operating mode of the French power plant portfolio up to 2020, a modelisation tool has been developed in order to study the impact of the microCHP gas boiler development on the CO2 emissions. Given a number of microCHP installed, this tool is able to re-construct the production of each power plant type with a time step of ten minutes and to redraw the new national energy demand. CO2 emissions are reduced by about 1tCO2/year/house, mainly because microCHP will replace thermal power plant.

Economic assumptions and results

A tool has also been developed in order to assess the profitability of Stirling on both customer and utility sides. The product is compared with its current and future competitors, such as condensing boilers, heat pumps and solar systems, over a 15 years lifetime. The microCHP’s competitiveness is closely linked to the consumer thermal load curve (both its shape and the global consumption) that in a first approach imposes the electricity production. Considering the annual cost (composed of gas and electricity bills and maintenance), with installation and investment costs added, figures show that: • the higher the thermal demand is, the more competitive the microCHP will be because of the increasing electricity produced. • the additional equipment cost can be offset by potential fiscal deduction or by white certificates.

Field test in France: A playground for validation

Goals and methods

GDF SUEZ Research and Innovation division leads a field test of forty Stirling boilers in the French Rhône-Alpes area in individual existing houses. This demonstration aims at showing that the product is reliable enough, that it is economically and environmentally friendly for the client and at evaluating the way the customer appreciates this technology. It is also an occasion to evaluate the impact of a number of microCHP on the grid and estimate their aggregation potential. However, as the main goal is to seek the best way to introduce quickly microCHP in the market, all systems are heat-lead controlled. An electric-lead control could increase the electric production potential of such a technology. The living surface varies between 100 and 150 m². The produced electricity is firstly and in part used for household needs while the unused part is exported to the grid, because of

149 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

regulation context in France. All the sites are instrumented in order to measure the evolutions of the temperatures, flows, production and consumption of gas and electricity every minute.

Typical scheme of an installation.

The first installation in a real customer’s house has been carried out by GDF SUEZ services subsidiary Savelys at the beginning of the 2007-2008 winter season.

First results useful for aggregation concept

First results show that clients are satisfied by the product, the comfort is maintained, the installation team training has been successful. Data transmission provides a great data base upon residential customers, their habits and the way microCHP suit them. One barrier to a massive deployment of microCHP used to be the length of the procedure to connect it to the grid and install an export meter. Because of a strict regulation context and the fact that microgeneration only appears now in France, customers had to wait until eight month before to start their microCHP. After several exchanges with working groups (DSO and small producer representatives), this situation will change radically in 2009. One can notice that by nature, generation of a number of micro CHP tends to be coincident with peak load. Today, the aggregation of microCHPs is implicit : production and load are mixed without any action on the power production profile. By controlling microCHP remotely and provided that generation of electricity and heat are sufficiently decoupled, it is possible to optimize the value of microCHP. To achieve this objective, the capacity of the heat water tank should be as high as possible. So, it results in a compromise between the compactness of the installation, the optimization of the power production profile and the comfort of the customer. A critical characteristic of microCHP considering the value for aggregation is the power to heat ratio which is between 0,1 and 0,2 for actual Stirling microCHP. Fuel cell microCHP, with a ratio even higher than 1 could offer more ability for aggregation, using for example virtual power plant or microgrid concept.

150 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.2 Natural Gas Cooling and Gas Heat Pumps (Peter Lukacsi)

Introduction

Growing environmental awareness has focused attention on the utilization of renewable. As a consequence, heat pumps are experiencing their own renaissance. Initial technical shortcomings, which brought a rapid end to their first boom in the 80's, have now been overcome. Today, heat pumps provide a reliable, cost-effective and future-proof heating system, which operates with particular environmental responsibility. During the late 1980’s and much of the 1990’s, the price of natural gas was in decline. This was particularly true for natural gas delivered during the summer. The predominant use for natural gas is heating. This means the natural gas was in substantial oversupply during the summer, which set the stage for low summer prices. In reaction to this, the natural gas industry once again began to promote the use of natural gas for air conditioning. The natural gas industry began work on natural gas fired heat pumps in the late 1980’s. The attraction of a gas fired heat pump is a higher level of the heating efficiency than is possible with natural gas furnaces, and the removal of summer cooling load from an overloaded summer electric generation and distribution system. Significant development work was devoted to gas heat pump technology during this period. The current environment for natural gas prices is far more volatile than it was during the nineteen nineties. • Deregulated and open markets have affected natural gas prices. • Higher oil prices have brought natural gas prices up, as many users have switched from oil to natural gas. • The oversupply of natural gas in the summer is no longer as major an issue, as natural gas is now extensively purchased for storage systems during the summer, eliminating the much of the summer oversupply for natural gas.

151 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

• More natural gas is now used for generating electricity, particularly in summer. Natural gas enjoys a well-established and well-deserved reputation for efficiency, economy, reliable service, superior performance, and it’s good for the environment. In fact, natural gas is the preferred energy for heating, water heating and cooking in most of today’s homes and businesses. Many manufacturers offer a diverse selection of time-tested gas cooling products, including engine-driven chiller and refrigeration equipment, small and large absorption chillers. Natural gas cooling equipment is available in sizes to meet virtually every need from air conditioning in residential homes to large-scale industrial refrigeration and process cooling. This work introduce the state-of-the-art technology in gas cooling and gas heat pump, focused on residential, small and medium customer segment. Today the variety and availability of highly efficient and economical natural gas cooling technologies is spurring increasing interest in natural gas as a cooling fuel. It provides energy users with a unique opportunity to take full advantage of the benefits offered by energy choice, energy management, and the efficiency and economy of natural gas. Suppliers can count on natural gas to deliver the superior performance. Today’s state-of-the-art natural gas cooling technologies are efficient, reliable, require little maintenance and last for years. They offer new possibilities for reducing energy consumption and managing energy costs for cooling in home use, commercial buildings, industrial processes, refrigeration, combined heat and power plants, and district cooling plants.

152 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Present Market Situation and Market Possibility

In Switzerland today, every third new building is equipped with an electrically operated heat pump; in Sweden 7 out of 10 new buildings rely on a heat pump. Growth rates for the German, Austrian and some of European countries market, too, are substantial. The bulk of new systems are represented by brine/water heat pumps. These extract energy from the ground, enabling mono-mode operation without additional heat source, all year round. However, a trend towards air/water heat pumps is also discernible; these are more easily and economically installed. In Switzerland, 60% of new installations are of this type. This trend shows that the customers need more efficient and environmental friendly heating and cooling systems. The gas industry can count on new gas cooling and heat pump appliances answering to the customers needs. Heat pumps do look like an attractive energy efficient alternative, and there following the lead of Sweden there are now signs that the technology (mainly electric HPs) is starting to move into the mainstream of the heating market. However, the high initial investment is likely to mean that this solution needs the support of subsidies and incentives on a long term basis. Given the high initial costs, gas heat pumps sales are sensitive to subsidies and incentives and they are not suited to all homes or buildings. With the possible exception of heat pumps in Sweden, the evidence would appear to suggest that subsidies and incentives on their own have a very limited lasting effect on sales. Apart from anything else they are too easy to remove. Coercive legislation such as different building regulations are likely to have longer lasting impact. Long term incentivisation to bring forward replacements on a discretionary basis within the existing park have yet to be tried. They would probably need to target those specific segments of the park that are generating the most energy consumption and CO2 emission.

153 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

The market of gas heat pumps is relatively limited in Europe, as the gas to electricity rate is not sufficiently attractive to compensate the extra investment costs. Although their features of variable speed drives that enabled them to provide more constant air flow, better humidity control and higher efficiency, other factors such as operating and maintenance costs, fewer qualified repair personnel resulting in questions of long term maintainability, and the environmental impact of internal combustion engine emissions all resulted in relatively low sales. And despite gas industry promotion, the only manufacturers remaining in the business are mainly from Japan (GHP) and Italy (GAHP). The dealer network is a major problem in the commercialization. Installers are unfamiliar with the usual installation process involved and mistakes were commonly made. In addition, the unusual installation process prompted installers to charge a substantial installation premium. A gas heat pump product with an installation process that is typical of other products in the industry would have aided commercialization. The dealer network in Japan is different than in Europe. The prevalent form of distribution in Europe is: manufacturer/importer wholesaler installer/contractor. The bulk of sales go through wholesalers/merchants in Europe, however in Japan the bulk of sales go through gas companies. The share of the natural gas-fuelled system in Japan has gradually increased, reaching 67% in 2004. In recent years, shipments of GHP outdoor units have tended to decrease in number, with the effect of levelling off total capacity, which indicates the increasing demand for larger outdoor units. In fact, the Building Multi-type GHP systems have been bought even for large office buildings with floor areas of 10 000 m2 or more. In Japan, the major gas companies to conduce to research and spread of small gas engine driven heat pumps through the special local dealer network. The summer gas consumption was increased by 25% from 1987 to 2007 in Japan.

154 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Reduction in seasonal fluctuations of gas demand due to increased use of gas air conditioning

Source: Japan Gas Association

Japan is today the unique country where the GHP technology as a significant development. These units are mainly used in medium size buildings such as schools, offices, commercial or industrial buildings and hotels. Domestic applications remain marginal only few percent of the market. The GHP business is strongly supported by the Japanese gas industry. The figure below shows the market segments of the absorption and GHP cooling in Japan and the possibilities of the different utilizations of these appliances. Proportional use of gas cooling, by application

Source: Japan Gas Association

155 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Main barriers of the gas heat pump market are: • Knowledge of the gas heat pump technology; many craftsmen still don’t have the competence to design and install gas heat pump systems. • The investments costs for gas heat pump systems are high in comparison with conventional technologies. • The customers less know the gas heat pump technology.

Technology State of the Art

Cooling home with electric air conditioning during the hot summer months, when electric rates are higher, can take a real bite out of energy budget. As natural gas technology advanced over the last decades and as electricity costs continued to rise, business and industry increasingly turned to the economy of natural gas to control energy costs for cooling. This same technology that benefits business owners is getting available in small-size, packaged cooling units suitable for single-family homes, condominiums and townhouses. The technologies applied to Gas Cooling are diverse. Absorption and engine driven chillers and heat pumps systems are the main technical approaches. In this chapter, the basics of these technologies will be reviewed to provide the appropriate technical background for the report and we would like to introduce some appliances and manufacturers focused on a small and medium size utilization. Irrespective of their type, heat pumps can be viewed as equipment which vaporizes a process medium that absorbs environmental heat. The process medium is compressed using auxiliary energy, and is raised to a temperature level useful for heating purposes. The method by which this is brought about differs subject to the heat pump design. The heat pumps currently utilized in heating technology all repeatedly compress and expand a suitable process medium. This results in the desired change from heat capture to heat transfer.

156 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

The commercialized gas cooling and of course the gas heat pumps can be categorized according to their design or operational principles are follows: • Compressor-driven heat pump (engine driven) • Sorption heat pumps (absorption heat pumps) There are also further technical solutions. However, it is unlikely that these will be relevant in the foreseeable future for heating buildings or DHW.

Gas Engine Heat Pumps

In a conventional electrically driven cooling system, a refrigerant is boiled at a very low pressure. At low pressure, the refrigerant boils at a low temperature, producing a cooling effect. The refrigerant vapor is then compressed to a high pressure in an electrically driven compressor. At this high pressure, the refrigerant will condense at higher temperature and reject the heat to the outdoor environment. The liquid refrigerant is then passed back to the low pressure and the process continues. Compressor heat pumps with natural gas engine drive utilize primary energy better than electric heat pumps with conventional power generation by natural gas, since the waste heat from the combustion engine can be utilized as heating energy, whereas in the conventional power station it is generally left unused and transferred to the ambience. The Gas Engine Heat Pump operates as an air/water heat pump. During the 1980’s, in parallel with the development of engine chillers, a number of small scale engine heat pumps were developed. These systems are air cooled and directly replace electric heat pumps. These small systems have not been successful to date in European continent and America continent although over 150,000 systems have been installed in Japan in 2006. It is difficult to compare directly a gas and electrical driven heat pump, as for electrical heat pump the primary energy efficiency depends on the production method of electricity its efficiency and the losses in the distribution network.

157 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Source: ASUE Gas engine heat pumps (GHP) differ from a conventional heat by the fact that the compressor is driven by a gas engine rather than an electric motor. One of the major differences with electrical driven heat pumps is that part of the heat released by the engine is recovered and used for heating the water. The heat can be collected from the engine cooling water or from the exhaust gas for large systems. Generally, gas heat pumps use ambient air as heat source, but in some cases ground couple systems are used. For the case of air-source systems, the COP will never drop below 1, even in case of very low ambient temperatures. This means that for the worst case, the useful heat is equal to the combustion heat. Furthermore, GHP manufacturers claim having better performance in part load compared to electrical driven heat pump. This might be true with the first generation of heat pumps, but for new heat pumps with variable speed compressor this not the case anymore.

158 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Source: Toshihiko Fujita in IEA Heat Pump Centre News Letter Vol. 24.

GHP systems with high-efficiency engines can necessarily attain higher energy efficiency than Electric Heat Pump (EHP) systems because they have essentially the following advantages: • Effective use of energy by recovering heat from the engine jacket coolant and exhaust gas • High thermal efficiency at part load with simple control of engine speed Until now, GHP technology development has concentrated on improvement of efficiencies of engines, compressors and heat exchangers, reduction of maintenance requirements and establishment of microcomputer control and remote monitoring systems. Advances in GHP technology have reduced the fuel consumption by about 40% in comparison with that of ten years ago. For gas driven heat pumps, test realised in Japan have shown that the average efficiency between 1997 and 2005 has increased from 90% to over 150%. These high performances have been reached by using more efficient heat exchangers, the use of scroll compressors and improvement of the gas engine. The refrigerant fluid used today is HFC410a.

159 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Progress in COP of top-rated GHP systems

Source: Toshihiko Fujita in IEA Heat Pump Centre News Letter Vol. 24.

The GHP provides quick and powerful cooling/heating and the efficient recovery of waste heat. Defrosting operation is not required. Not only is the gas used as the heat source but the waste heat from combustion is also recovered and reused by highly efficient air-conditioning technology. This prevents energy loss enabling quick start operation and powerful heating.

Comparison of the start times for heating operation Comparison of the heating capacity

Source: Sanyo

In addition, the use of engine waste heat ensures that the gas heat pump air conditioner requires no defrost cycle, therefore providing continuous 100% heating performance in severe weather conditions with an outside air temperature as low as -20°C. During cooling mode the rejected heat from the engine is available for use with in a DHW system and can supply up to 22 kW of hot water at 65°C. The engine speed is computer-controlled and is determined by the room temperature. The room temperature is therefore kept comfortable at all times. A gas engine is used to drive the compressor. The speed of the

160 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

engine is controlled efficiently by a microcomputer according to the room temperature, so that there is no temperature loss. As a gas heat pump air conditioner uses gas as the heat source, it uses electricity only for auxiliary equipment like fans etc. The electrical load is therefore reduced and the electric power is used efficiently. As operation with 0.70 kW (50 Hz at the time of cooling) is possible, comfortable air conditioning can be achieved even in locations with low electrical power capacity. By installing a gas heat pump air conditioner, the running costs can be reduced by 20 - 40% in comparison with electric heat pumps. There are two types of GHP air conditioners on the market, depending on the arrangement of outdoor and indoor units, piping, and controls: the “Building multi” type and the “Packaged” type. The “Building multi” type can connect up to 32 indoor units of various types and capacities to an outdoor unit of 22.4 to 84 kW cooling capacity, which provides advantages in the form of flexibility of piping system design, an excellent centralised monitoring system, etc. The “Packaged” type can connect up to ten indoor units to an outdoor unit of 14 to 84 kW cooling capacity. Indoor units can be of single or twin type, simultaneous operation type with 4 - 6 indoor units, or the Store Multi type, which are packaged systems with multiple- indoor units. The latest GHP variations are: • The Ultra High-Efficiency Multi type, with average rated cooling and heating COPs of 1.60 (based on HHV) • The High-Power Multi type, i.e. multiple indoor unit type with generator, with GHP types consuming only about 1/100 of the utility power required by the equivalent EHP type. • The W Multi or Dual Multi type, using a simplified combination of two or more outdoor units • The Simultaneous Heating and Cooling Multi type • The Renewal Multi and Packaged Renewal types, which can use existing refrigerant piping systems as they are • The Building Multi type, with a hot water supply system

161 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

The biggest breakthrough in recent GHP technology is the launch of the Ultra High-Efficiency Multi type, which provides 4.0kW of power.

Source: Sanyo

Ultra High-Efficiency Multi type is a revolution in air conditioning design. Fitted with a permanent magnet, non-bearing type generator, it is the first VRF system that can supply heating, cooling, hot water and now also a supply of electrical power. unit has a 4.0kW generator, which provides enough power for 40 indoor units or the equivalent of 8 computers. In this system, the enlarged generator and the power conditioner for grid connection are additionally installed in this system. High-frequency AC power produced by the generator is converted into DC power by the converter, and its DC power is converted by the inverter in the same voltage and frequency as a commercial power. The generated power and the commercial power are connected by the grid connection by AC power.

This innovative new technology reduces CO2 emissions by more than 30%. The 2 way air conditioning system providing cooling or heating. The Ultra High-Efficiency Multi type can provide both electricity and hot water in heating and cooling mode. For example the Sanyo ECO G Power 20HP model provides 56kW cooling or 63kW heating. The features of GHP air conditioners are summarised as: • Speedy pickup and powerful heating without frosting • Comfort air-conditioning and energy savings through variable-speed operation

162 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

• Electric power savings, i.e. reduction of power consumption by a factor of about 10 compared with EHP air conditioners, and thus contributing to a reduction in demand during the summer • Cost savings with discounted gas rates for gas air-conditioning systems

Gas engine heat pumps provide both cooling in the summer and heating in the winter. Heat rejected by the engine allows engine heat pumps to provide efficient heating at lower outdoor temperatures than electric heat pumps. Although an engine heat pump will add natural gas load during the summer, the heating function is generally at COP’s above 1.0, and therefore will not add as much natural gas load in the winter as a conventional furnace. Engine heat pumps may be most attractive to the gas industry in areas where electric heat pumps are the major competitor for gas heating. Although engine heat pumps can offer customers a more highly efficient system than absorption based gas cooling, the engine will require regular maintenance, including oil and spark plug changes. Significant progress is being made by engine heat pump manufacturers in extending these service intervals up to 10,000 operating hours. Unless these systems are maintained, they will be damaged or fail to operate entirely. Given that the electric heat pump and gas furnace service network is not attuned to doing essential maintenance, this can be a major cultural change in the distribution channel for heating and cooling systems. Natural gas suppliers may wish to provide or contract for this service to assure that proper maintenance is done, as well as develop a new line of business that with little expert competition. In this way, service contracts could be packaged with the overall sale and standard service charges might be included with the gas billing.

Manufacturers and Products of Gas Engine Heat Pump The six Japanese companies selling gas heat pumps are listed in below. Some of them are commercialised in Europe.

163 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Manufacturer Minimal cooling Maximal cooling capacity capacity Sanyo 22 kW 142 kW Yanmar 14 kW 168 kW MHI 22 kW 142 kW Daikin 22 kW 142 kW Aisin 22 kW 168 kW Hitachi 22 kW 142 kW

Absorption chillers and heat pumps

Using a process known as absorption chilling, these air conditioners replace ozone-depleting chlorofluorocarbons (CFCs) by using water and an environmentally safe solution for cooling. Improved efficiency is achieved by capturing and reusing the heat that is released during the absorption process. Absorption chillers are a proven technology offering long life, exceeding 20 years. Although absorption chillers are an ideal and frequent choice for large commercial buildings, today’s technology is well suited to a variety of large and small cooling jobs. Small packaged chillers in sizes down to several tons deliver cool comfort in single family homes, condominiums and townhouses without many of the drawbacks of electric air conditioning. Absorption chillers are just as effective at meeting the extreme, often round-the-clock, cooling needs of hospitals and hotels/motels. Schools, government buildings, retail establishments such as malls and restaurants have high daytime cooling needs when electric rates are high. Absorption chillers significantly reduce electric consumption and cost, especially high peak demand charges. The chillers work equally well either in a dedicated gas cooling system or in large plants as part of a hybrid system where cooling needs are shared with gas, electric or steam-driven chillers. Whatever the size or demands

164 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

of the cooling job, absorption chillers deliver some important benefits for home and business owners, too. Residential natural gas air conditioners are small absorption chillers that operate on the same principles as larger units designed for commercial and industrial use. An absorption chiller uses a refrigerant, absorbent and heat to create a cooling effect. The air-cooled chillers utilize environmentally safe ammonia and water to create a stream of chilled water. This chilled water circulates through building via a piping system, eliminating the need for ductwork and making the system well suited to buildings with centralized baseboard heating. The chilled water can also be used in a residential ducted central air conditioning system. Absorption heat pumps are generally powered by natural gas, and usually apply the same physical principles as compressor heat pumps. Contrary to compressor heat pumps, these heat pumps use thermal compressors instead of a mechanical compressor. Here, a refrigerant is used, which boils at low temperatures, such as ammonia. This evaporates at a low temperature and pressure level, whereby it captures energy from the environment. Absorption heat pumps are also named ‘three sources’ machines as they require a low temperature source where heat is extracted, a medium temperature source where the useful heat is produced and a high temperature source for regenerating the absorbent (gas combustion). The electrical consumption of the auxiliaries represents 1% to 3% of the gas consumption for heat loads in the range of 30 kW to 40 kW. The refrigerant vapor flows into the absorber, where it is absorbed or dissolved by a solvent, e.g. water. The generated heat is delivered to the heating network via a heat exchanger. The solvent pump transports the solution of the two substances to the thermal compressor. The two substances are distinguished by their different boiling temperatures. The application of heat, for example via a gas burner, expels or evaporates the dissolved refrigerant, which has the lower boiling temperature of the two substances. The refrigerant vapor, which is at a higher temperature and

165 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

pressure level, flows into the condenser, and is liquefied whilst giving off the condensation heat. During that process, the condensation heat is transferred to the heating network. The liquid refrigerant is then expanded via the expansion valve and returned to its original pressure and temperature level. The solvent is treated similarly in the compressor circuit.

Source: ASUE The energy (electrical power) required by the solvent pump is very little. The energy for the thermal compressor is supplied in the form of heat (gas combustion). The benefits of the absorption heat pump are good utilization of primary energy and the fact that, apart from the solvent pump, no other moving parts are required. For domestic and small scale applications, the heat is generally generated by the combustion of gas. Absorption machine are based on the capacity

166 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

of a liquid or a salt to absorb the flowing refrigerant. The most common fluids uses are: • water (refrigerant) and lithium-bromide (absorbent); • ammonia (refrigerant) and water (absorbent).

Lithium Bromide Absorption Chillers Lithium bromide absorption chillers are available in three versions. One is a lower efficiency single effects cycle which can operate on low temperature heat. These are used today for producing cooling from waste heat streams, particularly from cogeneration systems. The second is a higher efficiency double effect absorption cycle, which is operated either on high pressure steam or directly fired by a fuel burner. The other is a highest efficiency triple effect absorption cycle, which is consists of a currently prevailing double effect system, with a newly added high temperature and pressure generator. Lithium Bromide absorption chillers are typically applied to large commercial buildings. These systems are used to produce chilled water which is then distributed throughout the building and used to cool air via remotely mounted water cooled coils. Lithium Bromide “Water Chillers” are capable of Coefficients of Performance of up to 1.7 (triple effect absorption chillers). These systems require a cooling tower to reject heat to the environment. Cooling towers which are typically used in large buildings are less common in small applications because of water use and maintenance. The Lithium Bromide absorption chillers do not applied to small or medium residential or commercial buildings.

Ammonia Water Absorption Cooling Systems Ammonia Water Absorption chillers have been traditionally used for small cooling systems. These systems also produce chilled water but use an air cooled condenser coils for rejecting heat to the environment. This allows these systems to be packaged into the same type of small air cooled

167 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

outdoor units common on residences or small commercial loads. Coefficients of Performance of 0.7 are as high as has been achieved in production systems to date. Smaller absorption chillers have had a traditional challenge with electric chillers and air conditioners based on high first cost and a lack of sufficient operating cost savings to produce a reasonable payback. In addition, the installation service network for small cooling systems is unfamiliar with absorption systems, which can make both installation and maintenance costly. On the positive side, absorption systems can often be left for long periods without regular maintenance. There is only one European supplier of these systems. The Robur Corporation manufactures and sells gas-fired central air conditioners (chillers) for residential, commercial, and light industrial use. The units are air-cooled and use a GAX (GAX stands for “Generator Absorber Heat Exchange”. Although technically elaborate, the concept simply productively uses heat that was wasted in older systems and uses this heat to raise the system efficiency. The result is a higher efficiency product with a somewhat higher first cost. COP’s delivered by older systems peaked at 0.48, GAX can raise efficiency up to a COP of 0.7) ammonia water cycle.

168 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Source: www.ornl.gov How GAX works A flame from the natural gas burner heats a sealed pot containing a mixture of refrigerant and absorbent solution such as ammonia and water. The refrigerant is boiled out. Because the refrigerant - the ammonia - is in an enclosed chamber, heating also raises its pressure. The high-pressure ammonia vapor is then condensed, extracting heat from the refrigerant. The condensed refrigerant travels to the low-pressure evaporator, where the liquid refrigerant picks heat up from the environment - the cooling effect - and is turned once again into vapor, except now at low pressure and temperature. At the same time, the absorbent (water) from the generator, after the refrigerant is boiled out, travels to another heat exchanger called the absorber, which is at low pressure. The refrigerant vapor from the evaporator is next recombined with the water in the absorber. This recombining of the ammonia refrigerant and the water absorbent involves a chemical reaction that produces heat. This heat is removed from the absorber to increase GAX's thermal efficiency, and the

169 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

now cool low-pressure mixture is pumped back to the generator, completing the process. In the gas-fired GAX, a chemical process substitutes for the motor-driven compressor. The GAX has its advantages: Instead of using ozone- depleting refrigerants common to electric systems, the gas-fired systems use environmentally benign natural refrigerants such as ammonia and plain old water. You can reverse the gas heat pump output to provide air- conditioning: Cooling with gas in the summer would reduce big-city brownout threats during heat waves. The GAX technology is aimed at residences. Cooling with gas absorption chillers offers many important advantages. Because it uses no compressor and has few moving parts, an absorption chiller produces less noise and vibration than electric chillers. Patients in hospitals, students in schools, and occupants of offices and eldercare facilities appreciate the quiet operation of gas absorption cooling. The relatively simple design of absorption chillers also requires less maintenance. Because natural gas reduces overall electric requirements, save money when building a new facility by installing less electric service. In existing buildings, absorption cooling frees up electric service for other uses. Also need much less emergency backup electric generation for absorption chillers than would be required to keep electric equipment running. Absorption chillers are easily installed in the same amount of space as an electric chiller and boiler.

Manufacturers and Products of Small Gas Fired Absorption Chillers There may be as many as 60,000 Robur units in service within North America, with a lower number throughout Europe, Asia, and other countries. Robur provides distributors with training and technical support. Robur have 17.72 kW models, and the 17.72 kW unit can be used as modules and linked together to create larger configurations.

170 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Outdoor air minimum Cooling temperature chilled water capacities Type min - max temperature °C °C kW GA ACF 0 ÷ 45 3 17 ÷ 89 GA ACF TK -12 ÷ 45 3 17 ÷ 89 GA ACF HT 0 ÷ 50 5 17 ÷ 86 GA ACF LB -12 ÷ 45 -10 17 ÷ 66

One or more GAX units can service multiple heating/air handler locations or zones, while electric systems generally require a separate unit for each zone. Since the unit has few moving parts, it often lasts for over twenty years. Although GAX is not as efficient as electric units, it can compete economically when natural gas prices are significantly lower than electric rates. Equipment and installation costs are roughly double those of comparable electric units. Multi-zone applications served by multi-units in a chiller link configuration can provide good seasonal and part-load efficiency. Robur’s multi-unit and multi-zone capabilities are strengths.

Gas Absorption Heat Pump (GAHP) Small sorption heat pumps for individual retrofit applications are still in their infancy, but they could become an important heat pump technology, because the gas fired absorption principle has some important advantage over the electric compressions heat pump principle. Like compression heat pumps they can be used in combination with the different type of heat sources namely air, water and ground. For air source GAHP’s the mean advantage of natural gas fired absorption principle is the fact that the unit can operate at outside air temperatures of -20°C and still have primary energy ratio (PER) or gas utilization efficiency (GUE) of around 1 (at sink temperature of 60°C). At these air temperature electric heat pumps are already switched off or at best achieve a COP of almost 2 (PER≤0.8). A second advantage is the fact that

171 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

in defrost mode, the unit still delivers 50% of its nominal heating capacity to the heating system and that there is no need for additional electric energy input. Heat pumps that use the outside air as a heat source are considerably less expensive and easier to install that ground source system.

Source: Robur

The ground is a good energy store, as underground temperatures ranging from 7 to 13°C are relatively even all the year round (at a depth of 2 m). Horizontal ground collectors, or probes set vertically into the ground, deliver this stored energy via a mixture of water and antifreeze (brine) to the evaporator of the so-called brine/water heat pump (brine in the primary and water in the secondary (heating) circuit). Energy is extracted from the ground by means of large area plastic pipe work buried underground. Here, the term "ground" as energy source means the top layer of the earth down to a depth of approx. 5 m. Energy is transferred via a heat exchanger, which is installed in an area next to the building to be heated. The energy flowing from deeper layers upwards represents only 0.063 to 0.1 W/m2 and can be disregarded as energy

172 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

source for the upper layers. The ground collector is regenerated by solar irradiation, rain, melt water, etc. or uses energy from environmental influences. The plastic pipes (PE) are buried under ground at a depth of between 1.2 and 1.5 m. Individual pipe runs should be limited to a length of 100 m, otherwise the pressure drop in pipe runs and the consequently required pump rating would be too great. All pipe runs should be of the same length to create identical pressure drops and therefore achieve identical flow conditions. This way, the collector field extracts energy evenly from the ground. The pipe ends come together in flow and return headers which are installed at a slightly higher point (venting). Each line should be able to be shut off separately. A circulation pump circulates the brine through the plastic pipes; the brine thereby captures the energy stored underground. Temporary ground frost around the pipe work has no detrimental effect on the system function or plant growth. However, deep-rooted plants should be avoided where brine pipes have been buried. Increasing solar irradiation and precipitation in spring and summer regenerates the cooled ground, which ensures that the ground is again available as energy source for the forthcoming heating season. The surface above ground collectors should not be built on or sealed in any way. In case of new build, ground works can usually be carried out without incurring too much additional expense. In existing buildings, however, such costs are generally prohibitive making a retrofit project impractical in most cases, for that reason alone. The usable amount of energy and therefore the size of the required area, is largely dependent on the thermo-physical properties of the ground and on the solar irradiation energy, i.e. it depends on the prevailing climatic conditions. As ground properties, predominantly the water content, the proportion of minerals, such as quartz or feldspar, as well as the proportion and size of pores are decisive factors. To put it simply, the storage characteristics are better, the wetter the soil, the higher the proportion of mineral constituents of the soil and the smaller the

173 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

proportion of pores. The extraction rating for underground areas lies between approx. 10 and 35 W/m2. Such systems require a permit from local water boards. Deeper drillings require the additional agreement of local mining authorities. An important advantage for ground source gas absorption heat pumps is the fact that the size of the ground source collector can be approximately 40% smaller that for the electric compression heat pumps, which is an important economic advantage.

Source: Robur

Water, too, is a good store for solar energy. Even on cold winter days, groundwater maintains a constant temperature of between 7 and 12°C. Groundwater is extracted via a supply well and transported to the evaporator of the water/water heat pump. Subsequently, the cooled down water is returned via a return well. The water quality of the ground or surface water must stay within the limits specified by the heat pump manufacturer. Where these limits are exceeded, a suitable intermediate circuit heat exchanger generally recommended in cases of fluctuating water quality - should be installed, because the highly efficient plate-type heat exchangers in the heat pump are very sensitive to fluctuations in water quality.

174 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Threaded stainless steel heat exchangers have proven to be ideal as intermediate circuit heat exchangers. The intermediate circuit protects the heat pump and balances out the process. The reason for this is that the process in the intermediate circuit, i.e. the heat transfer from groundwater to brine, operates more evenly than the process of transfer directly from groundwater to the evaporating refrigerant inside the heat pump. The utilisation of ground and surface water must be authorised by the relevant water board. Generally, the water quality should be within certain limits, which vary subject to the materials used in the different heat exchangers, i.e. stainless steel and copper. Where these limits are maintained, trouble-free operation of such wells should be quite feasible. Finally, a GAHP doesn’t require a special or additional power connection terminal, with the corresponding fuses etc. nor does it suffer from high start-up currents that could influence the power grid when large numbers of heat pumps are switched on. When choosing a heat pump it is necessary to bear in mind the following points: • The climate characteristics of the place where it will be installed. • The type of building. • Conditions of usage. • Process medium and emitter system.

Climate characteristics are important above all if the cold source is the external air. During the winter period, frost may form on the evaporator for short periods, with a reduction in heat exchange. To remedy this inconvenience the heat pump is equipped with an automatic defrosting system that ensures the continuous supply of heat to the internal environment in any case (albeit reduced) without the use of other energy or systems. The type of building likewise influences the choice of the type of heat pump. For example in residential buildings the heat pump may be installed in the open, without any additional protection. External

175 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

installation avoids the use of internal space and the risk of transmitting noise to rooms. In tertiary and industrial buildings the outputs required usually make it necessary to install heat pumps on the outside of the building, usually with air as a cold source. Usually boilers or other supplementary heating systems are not required. In commercial environments such as hairdressing studios, restaurant kitchens, etc, the installation of a heat pump can be a very convenient choice, as the processes of cooling and de-humidification make the working environment more comfortable. Usage conditions, too, influence the choice of heat pump. As has already been mentioned, the heating power of heat pumps varies with changes in the temperature of the cold source and of the hot source. The greater the difference between these two values, the greater is the reduction in heating output, and vice versa. The choice of a suitable heat pump therefore depends also on the usage of both the cold source (i.e. air or water and its temperature) and the hot source (water for heating at a low or medium temperature). With conventional air-conditioning systems, cooled air is supplied into the living space via one or more ducts, which also remove heated air. Compact units for energy-efficient houses operate according to the same principle. Both are air-handling units which essentially provide a heat transfer through air movement. Reversible heat pumps and those with the natural cooling function, on the other hand, are generally connected to a hot water heating system. On cold days, that system transfer heat from the heating water to the rooms to be heated using heat transfer surfaces (e.g. under-floor heating systems). Radiators are particularly unsuitable for cooling a room. The comparatively small temperature differential between the heating water and the room temperature in summer, and the relatively small surface area of radiators mean that only a modest heat transfer occurs through convection and radiation. The arrangement of the heat transfer surfaces near floor level is also of little benefit for cooling

176 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

operations, as hot air collects under the ceiling. In addition, radiators are particularly prone to dew corrosion due to their location and design. Under-floor heating systems are better suited to this purpose because of their larger surface area. However, cooled air collects at floor level and cannot rise. For that reason, heat from under-floor heating systems is transferred almost exclusively by radiation. On the other hand, the entire floor area is available as a cooling surface, enabling the room temperature to be influenced in accordance with personal requirements. The cooling effect of the under-floor heating system can be increased by the additional installation of a domestic ventilation system, which creates a "flushing" effect for the ambient air. Heat can be dissipated even more effectively via chilled ceilings. Hot air collects under the ceiling and is cooled by its surface. This makes it sink to the floor, enabling hot air to replace it. The resulting circulation leads greater volumes of air past the cooling surface, compared to under-floor cooling. However, chilled ceilings will not generally replace heating systems. For that reason, they are installed in most cases alongside radiators or under-floor heating systems into which they are integrated via an additional heat exchanger, which provides hydraulic system separation. Fan convectors and fan coils are especially effective, since they operate with a fan which also creates a controllable volume flow. This allows larger air volumes to be channelled past the heat exchanger surfaces, resulting in the ability to cool a space effectively in a short time. The additional option of being able to vary the volume flow via the fan, allows for sensitive space cooling. Also, fan convectors and fan coils are not prone to dew corrosion, provided any condensate is drained off.

Heat Pump with Heat Recovery In the description of the heat pump system, an installation layout was shown with the heat pump providing both air conditioning and recoverable useful heat. Given the difficulties in finding an application for natural gas fired heat cooling or pumps in hotter climates where operation is

177 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

dominated by air conditioning, recovering heat from a heat pump in air conditioning operation suggested itself. Manufacturer has suggested that the absorption heat pump be installed in a position to provide air conditioning via chilled water and to reject the heat of air conditioning and the heat of the burner to domestic water heating, pool heating, or both. With the interest in finding a practical gas fired cooling system for hot climates, pool heating may not be a major demand, but any load with a large air conditioning and domestic hot water load would be ideal for this system. One positive aspect of this system is that the economics are best in hot climates. The heat recovery operation produces the most economic benefit when the system is in cooling operation. This is the only system proposed in this report that has that operates more efficiently as the cooling hours of the year increase and therefore the only cooling system, aside from desiccants, that can be specifically recommended for hotter climates, and more importantly, would be the only system that is a perfect fit for hot dry climates. In recent years, a market has developed for electrically driven heat pump swimming pool heaters. These heaters are generally used in the hotel market or in residential applications.

A heat pump heater will provide a high efficiency that may make them competitive to using a simple natural gas fired boiler type swimming pool heater. A natural gas fired gas heat pump may be an opportunity for the swimming pool heating market. In addition, it is possible with a swimming pool heating heat pump to also deliver cooling to the occupied spaces of the hotel, or residence simultaneously. Effectively, this is like running and air conditioning system and rejecting the heat to the swimming pool.

178 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Source: Robur

Manufacturers and Products of Small Gas Absorption Heat Pump For domestic application the only company proposing commercial product is ROBUR, other companies are developing systems but mainly for cooling. Since 2004 Buderus is marketing the Loganova diffusion absorption heat pump, for capacities from 3.6 kW for hot water production to 19kW for heating. A COP of 1.5 is claimed, but no detailed data can be found. The sole manufacture of ammonia water air conditioners, Robur has, has recently introduced a heat pump into the market. Information published on this heat pump indicates that heating efficiency can be as high as 170%, based on fuel consumption. This technology may be of interest to the gas industry. Although a heat pump would reduce fuel used during the heating season, the fuel used to meet air conditioning loads during the summer would, in most cases, increase the annual fuel usage. In addition more of the fuel would be used in the cooling season and less in the high demand heating season. Robur’s newest product, a gas- fired absorption heat pump was introduced in Europe in 2004. Although it carries higher initial purchase and installation costs than electric heat pumps, these units offer better zoning flexibility and last considerably longer than electric heat pumps. The Robur heat pump is a reversing ammonia water absorption cycle that works as an air conditioner in the cooling season and a heating source in

179 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

the heating season. The same outdoor air coil that rejects heat in the cooling season takes in heat from the outdoor air in the heating season. This allows the unit to produce more heating than the input to the burner. The Robur heat pump is connected to the residence or building by two water lines. In the cooling season, this water is chilled. In the heating season, warm water is delivered. Delivery within the conditioned space is generally done with a fan coil that uses the water to deliver hot or cold air. This air source heat pump is located outdoors and therefore the only equipment needed within the occupied space is the fan coil, which can be very compact. The unit vents directly, eliminating the need for venting or any chimney stack from the building. Robur is also advertising a gas fired water to water heat pump that could be used as a ground water, often called a geothermal, heat pump. Although the heating efficiency of a geothermal arrangement would be higher, the cost of the ground loop could add to the cost of the installation. The table below presents the performance of Robur gas fired absorption heat pumps.

180 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Economics and Ecology

In summer, higher electric demand for air conditioning goes hand-in-hand with higher electric rates. For many businesses, the cost of electricity is made up of two components: the cost of the electricity consumed and the demand charge. When demand for electricity is high, demand charges can often exceed consumption costs. Natural gas reduces air conditioning operating and electric costs by dramatically reducing demand charges and electric consumption. Life cycle costs are often much lower because of the savings in energy costs over the long useful life of natural gas cooling equipment. Because natural gas requires very little electricity, it frees up electric service in existing buildings for other applications. Electric service needs in new facilities can be dramatically reduced. Less electric demand also means less requirement and expense for emergency back-up generation. One way to put energy bargains to work for customers may be with a hybrid system. Hybrid plants combine both gas and electric chillers, letting natural gas take the lead when electric rates are high and then provide back-up cooling when electric rates are lower. Hospitals, restaurants, supermarkets and hotels/motels use a lot of cooling during the hot summer season. In many instances, cooling is needed 24 hours a day, 365 days a year. Office buildings, retail stores, shopping malls, churches and schools also have large and expensive cooling demands, primarily during daytime hours. These and many other commercial enterprises struggle to balance the high cost of cooling with the need to provide comfort and a quality indoor environment for customers and employees. Natural gas air conditioning can help owners and managers of commercial buildings manage their energy costs for cooling. Additionally, many government agencies and commercial building designers recognize the contribution of natural gas equipment to attaining the different energy savings orders like EnEV in Europe or U.S. Green

181 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Building Council’s Leadership in Energy and Environmental Design certification. Whether cooling solely with natural gas equipment or in tandem with electric, steam or hot water in a hybrid system, today’s natural gas absorption, engine-driven equipment assure customer’s business superior performance, reliability, flexibility and economy. Industrial facilities require cooling for the comfort of workers and the proper operation of sensitive production equipment. For some industries, cooling is an essential ingredient to the production process. Natural gas equipment comes in sizes and types to economically and reliably handle even the most rigorous and varied cooling jobs of both large and small industrial operations. Natural gas can play an important role in meeting the specialized cooling requirements of today’s hi-tech industries. Pharmaceuticals, electronics, precision machining, surface treating, printing and many other high-tech operations require precisely regulated environments. Energy intensive industries can benefit from the reliability and flexibility of hybrid cooling systems that combine the best benefits of gas and electric technologies or combined heat and power systems for dependable, low- cost electric and thermal energy. Using natural gas in the summer, when demand is lower, avoids the very high electric demand charges and “time of day” rates associated with electric chillers. In facilities where air conditioning is critical, such as hospitals, natural gas engine-driven chillers are an excellent choice. Hospitals maintain emergency generators to support vital services when the power goes out as required by law, but the power needs of electric chillers tax most backup generators. In addition to using low-cost natural gas, thereby saving on the operating cost and peak demand charges of electric systems, engine-driven chillers provide added efficiency and economy through heat recovered from the engine-jacket coolant and the engine exhaust gases. This heat can be put

182 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

to work in a variety of applications. For example, supplying the heat needed to regenerate the desiccant material in a desiccant dehumidification system. Many businesses require hot water for heat, domestic water or process use. This heat can be supplied efficiently and economically using heat recovered from an engine-driven chiller. Thus, the hot water is generated without additional fuel consumption. Another important feature of the engine-driven chiller is variable speed operation which allows it to follow the cooling load without cycling on and off, providing high- efficiency under part load conditions, saving money on energy.

The current position of natural gas versus electricity on a country-by- country basis is shown in table below.

Tax-inclusive Household Fuel Prices 2007 Gas Electric Price Gas Price Electric Price Price Euro/G Euro/100kWh Euro/GJ Euro/100kWh J

United EU-27 EU27 15,28 14,95 Kingdom GB 13,16 11,76 Euro area EUR 16,05 16,98 Spain ES 12,25 14,23 Denmark DK 25,79 30,84 Hungary H 12,22 7,16 Italy IT 23,29 18,34 France FR 12,11 13,46 The Netherlands NL 21,80 18,42 Poland PL 11,84 10,69 Czech Germany D 19,49 18,45 Republic CZ 10,67 9,45 Sweden S 17,14 26,58 Slovenia SLO 10,64 13,86 Luxembourg L 16,84 11,52 Romania RO 10,17 9,05 Ireland IRL 16,62 16,73 Lithuania LT 7,76 7,04 Belgium B 15,81 12,89 Estonia EW 7,50 5,89 Austria A 15,45 15,99 Latvia LV 6,88 7,50 Slovakia SK 15,37 11,48 Bulgaria BG 6,60 8,83 Portugal P 15,00 13,88 Croatia HR 9,23 8,18

183 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Source: Eurostat However, although the table allows for a view of the natural gas versus electric market to be seen, all the prices shown are tax-inclusive household fuel prices. Unlike typical natural gas furnaces, gas fired cooling systems can have a wide variation in average gas utilization efficiency (GUE), ranging from 0,7 for some of the ammonia/water absorption systems to 1,5 for engine driven cooling systems. In this case, a family of lines will be developed showing the “Operating Cost Equivalence” between these gas fired air conditioning system and an average 4 COP electric air conditioner. The economics of various technologies can then be plotted on chart. As a simple example to show how this works, chart below shows a “Cost Equivalence” line between a gas fired ammonia/water absorption system has 0,7 average gas utilization efficiency and electric cooling system has average 4 COP. Each point on this line is where the gas and electric price would need to be for the operating cost of the two systems to be equal. For example, in Hungary the gas cooling with ammonia/water absorption system almost equivalent to electric cooling system; but cooling with gas engine driven system is cheaper to use than the electric cooling system. The average electric cost for some countries shown under the line in chart is higher. Therefore, in any country under the line, gas cooling is less expensive to operate than electric cooling system with average 4 COP. The Cost Equivalence lines for natural gas fired ammonia/water absorption system air conditioning versus electric air conditioning are shown below. Clearly, whether the air conditioner is at a GUE of 0,7 or a much higher value, gas firing cannot compete on an operating cost basis with electric air conditioning at current electric rates and gas prices. This indicates that gas fired air conditioning systems cannot be a mass market product competing with electric air conditioning on a head-to-head basis. This does not mean that there is not a specific submarket for gas fired cooling.

184 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

One approach to this operating cost challenge is to focus not on pure air conditioning but on a natural gas fired heat pumps, both absorption and engine driven. This will provide another avenue of economic savings to the customer, namely reduced heating costs. The chart below shows the Operating Cost Equivalences curves for a natural gas fired heat pump (absorption or gas engine driven) with average 1,3 GUE. The electric heat pump system used for this line is a seasonal average COP 3. As can be seen from the figure, the economics in for example in Italy, Hungary, Germany and the bulk of countries can be reasonable at current natural gas and electric prices provided the efficiency of the heating system is quite high.

185 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

The message in these charts is clear, the absorption heat pump saves the customer money in heating season and losses money in the cooling season and the gas engine driven heat pumps saves the customer money both in heating and cooling seasons. In colder climates, the overall economics are comparable or better than those of the conventional system as the heating season comes to dominate the economics. The natural gas fired heat pump concept saves the customer the most money in colder climates dominated by the heating load. Much of that savings comes at the expense of reduced winter gas load as the heating function, previously done by a gas furnace is now being carried out by the gas fired heat pump at substantial higher efficiency. Overall, the effect is to minimize any annual increase in gas load and to spread the load over more months of the year. The absorption heat pumps are very easy to use for summer as a peak cooling appliances to reduce the high electric demand charges. Natural gas has proven itself as a practical and cost effective partner with, or alternative to, electric cooling equipment.

186 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Working alone or in tandem with other systems such as electric chiller or combined heat and power plants, gas systems provide: • Efficiency to effectively manage energy costs. • Superior performance to satisfy the most demanding cooling requirements. • Reliability to meet critical service needs or production schedules. • No harmful emissions and far fewer pollutants than electric generation, helping to keep our environment clean.

Natural gas has proven itself as a practical and cost effective partner with, or alternative to, electric cooling equipment. With the uncertainties of energy prices, the high cost of electric demand charges, and the opportunities to negotiate more favorable electric rates due to electric deregulation, businesses with energy flexibility are in an ideal position to adapt quickly to changes in the marketplace and take advantage of the best energy buys. This is especially true for businesses that rely on cooling during the hot summer months when electric rates are higher and peak demand charges can often exceed electric consumption costs.

Source: Japan Gas Association

Hybrid systems offer the flexibility need to optimize the economical operation of cooling plant by combining two or more different types of equipment in a single plant. For example, a hybrid system may incorporate both natural gas engine- driven and electric chillers working in tandem for optimal performance and savings (see Case Studies GHP, National Gambling Company, Budapest). Such a plant would allow the gas chillers to handle the majority of the cooling load during periods when electric rates or demand charges are

187 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

higher. When electric rates and demand charges drop below the economics of natural gas, the electric chillers assume primary responsibility for cooling. Automated controls make it easy to optimize equipment operation for maximum energy and money savings. And, with natural gas as a backup, customers are never without cooling during a power outage. Heat pumps are suitable for providing heat in any type of building, such as: detached houses and apartment blocks, hotels, hospitals, schools, office buildings and industrial structures, in new build and in modernisation projects alike. Meeting the requirements specified for energy-efficient houses almost inevitably leads to the need for a heat pump. The GAHP unit is suitable for heating systems where the highest gas efficiency available appliance is required; the gas efficiency at rating conditions is 144%. In temperate climate areas, using both the GAHP unit (to supply about 25-30% of the heating load), and a standard heater (for the remaining load), this will increase the average efficiency of the overall heating system up to about 125-135%. As shown below, the utilization of a GAHP unit combined with 3 conventional boilers allows reaching energy efficiency of 93%.

Total system efficiency: 101% Total system efficiency: 107%

Total system efficiency: 117% Total system efficiency: 156% Source: Robur

188 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Application of heat pump could be:

• New-built • Renovation • Retrofit

Since heat pump boiler systems preferably require a dedicated low temperature heat distribution system and minimal heat loads, the new built market is the evident segment for these kinds of systems. Low temperature floor- and wall heating systems can be applied.

The renovation market can be an interesting segment for heat pump boilers, provided the renovation project budget permits the financial investments needed. Depending on the budget, air-source or ground source heat pumps may be selected and that heat distribution system can be made suitable for low temperature heating. In all cases, a feasibility study is necessary to determine the technical and economical options and to evaluate the primary energy savings and CO2 reduction that can be achieved in real life situation

The retrofit market is a very difficult market for heat pump boilers. In most cases the heating system is designed for higher temperature levels and the feasibility of operating at lower temperatures needs to be evaluated. In all situations one would probably need a bivalent system, meaning that a heat pump system is added to an existing gas boiler. For achieving an optimal efficiency the ground source heat pump boiler would be the preferred product, but for practical and cost reasons an ambient air source heat pump is probably more obvious.

189 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Hybrid cooling and heating systems offer these advantages: • Lower overall cooling costs • Fuel-choice flexibility during service interruptions • Equipment first-cost offset by savings • Strengthens electric rate negotiating position due to decreased load profile • Improved redundancy • Automated controls optimize plant efficiency

The ecology side is the other very important subject, too. The environmental benefits are important. More efficiency means reduced energy consumption and related emissions. Natural gas is our "cleanest" fossil fuel, and instead of using ozone-depleting refrigerants, absorption chillers use natural refrigerants—ammonia or water. In most cases, especially compared with natural gas furnaces or coal-fired electric generating plants, they will substantially reduce carbon dioxide and nitrous oxide emissions to the atmosphere. For most environmental impact categories (Global Warming, Acidification, etc.) 80-99% of impacts follow from the use phase of the products and are mostly directly linked to energy efficiency. Natural gas is the cleanest of the fossil fuels and its use helps reduce harmful emissions that contribute to ozone depleting greenhouse gases, acid rain, smog, solid wastes and water pollution. Providing a healthy environment, maintaining a high standard of living are important issues. Global warming, ozone depletion, smog, and acid rain pose serious health problems. Natural gas is the cleanest burning of all the fossil fuels, producing virtually no harmful emissions. Using natural gas in place of electricity benefits the environment. It takes an energy - such as coal, oil or natural gas - to produce electricity. In fact, up to 60% of the efficiency of the fuel used to generate electricity is lost in the production of that electricity. Power generation also requires substantial quantities of water for cooling.

190 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Natural gas helps save this valuable resource. As the demand for electricity increases, replacing electrically powered equipment with natural gas equipment minimizes our need for electricity and helps reduce:

• Overall and peak power production requirements and costs • Electric transmission and distribution costs • Standby electric requirements • Electric panel and customer electrical infrastructure • Water consumption for power generation • Emission of harmful pollutants

Growing concerns over the impact that the design of new and existing buildings can have on the environment, efficient use of energy resources, building occupant health and comfort, and building profitability led to the formation of different building regulations and energy savings orders. Natural gas is the perfect complement to the goals of building regulations. The cleanliness and efficiency of natural gas make it a strong partner in attaining energy savings certifications. Natural gas can be an effective fuel for heating and cooling with heat pumps because:

• Natural gas equipment is highly efficient. • Natural gas technologies offer energy efficiencies through waste heat recovery that exceed standard installations. • Natural gas reduces energy and water usage. • Natural gas is economical and saves on operating costs. • Natural gas is environmentally friendly with far lower harmful emissions than alternatives fuels. • Natural gas reduces or eliminates the need for underground oil storage tanks. • Natural gas minimizes system losses compared to electricity produced in a central power plant.

191 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Case Studies

Case Studies GHP: Regione Lazio, Rome, Italy Famous Italian landmark is now Europe’s largest GHP installation, with 81 outdoor and 1,390 indoor units. The HQ for the Lazio Region, is a building famous as the location for many Italian comedies over the years. As a result of refurbishment over the last two years, the building is now the site of the Source: Sanyo largest Gas Heat Pump (GHP) installation in the whole of Europe. Having been fitted with an old, energy-intensive centralised system back in the 1960s, this iconic 12-storey property is now a pleasure to occupy as it features SANYO’s innovative gas-powered air conditioning system. The new system is composed of 81 outdoor units located on the roof connected to an astonishing 1,390 internal units. The successful installation of a system this size however, was only made possible as the system did not require electrical power. With no capacity available from the existing electrical supply to the building, the owners were facing an astronomical bill to re-develop the sub-station. However by opting for gas- powered system, not only are there impressive energy savings possible (it was estimated that the new VRF system would achieve energy savings of around 50%), but the installation only requires minimal electricity for start-up and a single PC workstation. Because the installation programme took a modular approach, all offices could continue working as normal without undue disruption. All work was carried out without adversely affecting the air- conditioning of the offices during working Source: Sanyo hours, and enabled the existing system to be kept running during the period of construction. Also, GHP system is of an extremely compact design, requiring a smaller footprint than the previous system. Therefore,

192 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

although the new system serves much of the 12-storey building, less plant space is actually occupied. This has provided Regione Lazio with more free space, which is now home to the region’s archive files, which were previously housed in rented space nearby, giving the company even more cost savings.

Case Studies GHP: Sheraton Fota Island, Cork, Ireland SANYO Gas Heat Pump (GHP) technology has been installed at the new luxury five-star Sheraton Fota Island Hotel, Golf Resort and Spa, Cork, Ireland. The resort includes a championship golf course that has hosted events such as the Irish Open and the Irish PGA Championship. Source: Sanyo The options of either a gas or electric air conditioning solution were put forward, but it quickly became clear that a gas heat pump (GHP) system was the most suitable, because of its environmental benefits. Source: Sanyo The GHP system specified for the project provides 504kW cooling capacity via 139 concealed indoor units with 9 rooftop GHP VRF outdoor condensing units providing simultaneous heating and cooling.

Source: Sanyo The designer reviewed a number of alternative solutions for hotel air conditioning. A natural gas operated heat pump system was identified as providing energy-saving heat recovery, automatic heating and cooling change-over, simultaneous Source: Sanyo heating and cooling, BMS and reception desk controls interface, a low running cost, as well as a short-term payback. The bedroom units have

193 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

been highly praised for their very low noise level during night time operation. On the basis of designer’s analysis for this project, they recommended the natural gas heat pump system, which was installed. The new GHP range uses a new heat reclaim heat exchanger, allowing a system in cooling to supply waste heat from the engine into the hot water system, improving overall efficiency and COP. The ECO G use mains gas as its main power source, and single- phase electricity for start-up and fan operation. It provides the ideal solution for operators facing a shortfall in power. Due to its advanced technology and design this GHP requires no defrost cycle, which enables it to provide continuous 100% heating performance

Source: Sanyo even in severe weather conditions with an outside temperature as low as -20°C, while consuming less gas and electricity than comparable air conditioning systems. This was obviously a huge benefit when considering the correct system for the hotel. Sheraton Fota Island Hotel, Golf Resort and Spa, is twenty minutes drive east from Cork, with 131 rooms, and a further 280 lodges are in development in the grounds. The spa’s features include a pool and well-designed gym, 18 treatment rooms and hydrotherapy suite.

194 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Case Studies GHP: National Gambling Company, Budapest, Hungary The SANYO GHP equipments were installed by GÁBŐR Ltd in the beginning of 2007. The Customer, Szerencsejáték Ltd. (National Gambling Company) strove for the maximum safety: the request was to install a system that can operate even under -20°C outside temperature, and the cooling of the servers is uninterrupted in case of power failure without additional UPS systems. As the group application of gas engine driven VRF and ECO-I electric VRF systems met these special requirements, the customer chose both systems which equipments are maximally reliable and developed based on more than 50 years of experience.

Source: Sanyo

The installation also meets every demand: the aesthetic placement of the equipments satisfies all technical requirements, too. Total refrigeration capacity of the building: 800 kW. The most important task was the cooling of Szerencsejáték Ltd. server rooms designed with 150% over sizing. The half of the refrigeration capacity was insured with GHP gas engine heat pumps and the other half with electric VRF system. In a case when one of the systems halts the operation will not be stopped. The remaining performance is enough for the temporary cooling of server Source: Sanyo

195 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

room. At this time the small electrical demand of GHP system is supplied by the generators of building. As the refrigeration of this size of building is quite expensive, the energy-saving was also very important beside the protection of the environment. The low gas consumption of the gas engine system even in case of continuous operating was important consideration when the system was selected. Although we have not received from the customer the final data about system consumption yet, but after more than one year operation already discernible a lower energy consumption than it was previously calculated for the operating of system. The GHP and ECO-I electric VRF equipments were a good choice according to the customer: the systems are reliable.

196 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Case Studies GAHP: 2 MW Project in Haarlem (residential district), The Netherlands. Certain distinguishing traits make this project truly unique: first of all, a combination of technologies for energy sustainability, rarely applied to projects of this scale in the residential sector. A good 382 apartments in the Haarlem district needed a new heating system; Source: Robur instead of simply replacing the individual boilers in each apartment, several entities worked together on a different approach, more attentive to energy consumption and to protecting the environment, investing on high efficiency technologies. The city authority, the energy company (Eneco Energy), several residents’ associations and builders joined forces to turn ideas into a real project. The majority of houses in the district were refurbished to minimise heat dispersion and energy requirements, the gas boilers were removed and the heating system were centralised. This is where the project gets its name: the maximum heating capacity of this installation. is 2MW. And it is in this context that the installation of Robur natural gas fired absorption heat pump should be seen, as these appliances feature extremely high efficiency levels, which contributed substantially to a significant reduction in energy bills for the inhabitants of the district. The installation of absorption heat pumps is associated with an underground water heat accumulation system consisting of two wells (6) set approximately 80 meters apart which reach

Source: Robur

197 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

down to a sandy water bed around 110 meters in depth. An array of solar panels (1) collect the thermal energy from the sun during the summer months, providing domestic hot water (3) to the district and sending an energy surplus to the underground accumulation system. In winter, the energy accumulated is recovered through the use of GAHP- W water/water absorption heat pumps (8), which receive the heat accumulated at low temperature through a heat exchanger (7) and raises its thermal level to supply the apartments with both heating and domestic hot water. The improved thermal insulation of the buildings and the adaptation of the heat exchanger surfaces of the radiators distribution system contribute to the system’s overall efficiency, resulting in excellent performance, with peak efficiencies of over 150%. The average energy consumption of each final user went from 1 930 m3 of gas per year to 525 m3, that’s over 70% less.

198 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Case Studies GAHP: Mainfranken (barracks), Volkach, Germany.

Situated near Volkach, in northern Bavaria, the Mainfranken barracks are today one of the most modern military buildings belonging to the German Army. Built in 1986, the barracks already had its own heating system using a heat pump powered by a gas fired internal combustion engine which saw to the heating of the headquarters with a heat capacity of 290 kW. During the refurbishment work which involved the entire military area, it was deemed necessary to replace the now obsolete existing gas engine heat pump. The customer’s first request was to continue to use natural gas as the main energy source. In addition, the modernisation of the system had to ensure a considerable energy saving and a reduction in the operating costs as well. Source: Robur The designers thus chose Robur absorption heat pumps which use renewable energy and natural gas as their primary energy sources, and a significant reduction in the emission of pollutants. Moreover, the units installed require less maintenance, which contributes to cutting the operating costs to a minimum. Today, 10 Robur GAHP- W-LB gas absorption heat pumps use the free and constant supply of thermal energy from the surrounding air, with an Source: Robur

199 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

overall heat capacity of 350 kW, thus covering the needs of the four accommodation units in the barracks. Robur water/water units are connected to special water/air heat exchanger so that even at extreme outside temperatures, the heat pumps take enough energy from the environment through these air collectors. This makes it easy to achieve an efficiency level of 150%. The application of GAHP-W-LB geothermal heat pumps combined with the water/air heat exchangers is an alternative solution to the traditional use with geothermal loops. The installation of these units has another advantage: in heating mode, the GAHP-W-LB units can also cool simultaneously.

200 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Conclusions and Recommendations

Natural gas enjoys a well-established and well-deserved reputation for efficiency, economy, reliable service, superior performance, and it’s good for the environment. In fact, natural gas is the preferred energy for heating, water heating and cooking in most of today’s homes and businesses. The high initial investment is likely to mean that this solution needs the support of subsidies and incentives on a long term basis. Medium gas absorption heat pumps (>35kW output) and gas engine driven heat pump (>20 kW) have completed their development phase and are already available for light commercial and residential heating and cooling application with distinctive advantages over the electric compression heat pumps. Unfortunately, only some manufacturers invest to development of gas engine driven heat pumps and small gas absorption heat pumps. Only five Japan manufacturers can offer GHP appliances, and they are focusing on the Japan market, where the distribution network is completely different than in Europe. One manufacturer exists, which can commercialize successfully the small gas absorption heat pump appliances. Traditionally, natural gas is most often associated with heating and is immediately linked to appliances like forced-air furnaces, ranges, water heaters and clothes dryers. Now, this clean-burning energy source can also be used to air condition customers’ home or office. GHPs have been very successfully deployed in Japan for more than 20 years. In recent years, GHP technology has also seen successes in other Asian countries. Main drivers and assets to promote the gas heat pumps: • There are calls at political level for the gas industry to provide highly

efficient, CO2-reducing heating systems. These calls will get louder. • Activities by gas supply companies have already led to more development work by appliance manufacturers. • More far-reaching GHP production developments are necessary.

201 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Demand for GHP and GAHP systems is expected to continue, as the replacement market for building air-conditioning systems is growing year by year, and there is a general trend toward individual air-conditioning systems even in large and medium buildings. GHP and GAHP systems are cost-efficient; and also meet the socials need of today, particularly in respect of savings of utility power in summer and of primary energy. The next generation of heating (and cooling) systems is gas heat pumps (GHP and GAHP). They can basically use about 25% less gas than traditional condensing boilers for heating, thus emitting correspondingly less carbon dioxide. With this technology the gas companies not only sell less natural gas in winter season but can supply more natural gas in summer season. However, the technology has not yet reached market maturity.

202 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

References /1/ Gregory Kerr, Richard Sweetser, Dr. William Ryan – Assessment of Propane Fired Gas Air Conditioning, Heath Pumping and Dehumidification Technologies, Products, Markets and Economics /2/ Energy Solutions Center – A Cool Solution to the High Cost of Cooling /3/ www.ornl.gov/info /4/ Viessmann Technical Information – Heath Pumps /5/ Robur – Hydronic Heating Systems With Modulating Condensing Absorption Heath Pumps /6/ René Kemna, Martijn van Elburn, William Li, Rob van Holsteijn – Eco-design of Boilers /7/ Robur – Gas Fired Absorption Chillers and Chillers-heaters /8/ Csaba Bakai (Sanyo) – We trust in our equipments, not in the fortune /9/ www.sciencedirect.com /10/ Dr. Rolf Albus (E.ON Ruhrgas) Presentation - State of the Art of Gas Driven Heat Pumps /11/ Ferruccio De Paoli (Robur) Presentation – GAHP, Gas Absorption Heat Pump /12/ ASUE – Der Energieausweis für den Gebäudebestand /13/ Robur – Hydronic Heating and Cooling With Absorption Heat Pumps, Chillers and Chiller-heater /14/ ASUE – Energie Erdgas: Effiziente Technik und Erneuerbare Energien /15/ S. Schwarze (Kaut GmbH) Presentation – Gasklimageräte und VRF-Systeme zur Verteilung von Wärme und Kälte in Gebäuden /16/ ASUE – Gaswärmepumpen /17/ Eurostat Pocketbooks 2007 – Energy, transport and environment indicators /18/ http://eco-energy.info /19/ Toshihiko Fujita in IEA Heat Pump Centre News Letter Vol. 24. – Gas engine- driven heat pump systems /20/ www.buildingdesign.co.uk /21/ Kazuyuki Makita in IEA Heat Pump Centre News Letter Vol. 24. – Development and commercialisation of triple-effect absorption chiller-heaters /22/ M. Becker (Berndt Kältetechnik GmbH) Presentation – Gasklimageräte und Wasser-basierende Systeme zur Verteilung von Wärme und Kälte in Gebäuden /23/ Viktoria Martin in Heat Pump Centre News Letter Vol. 24. – The feasibility of absorption chillers using low-temperature heat sources /24/ www.heatpumpcentre.org /25/ Jean Schweitzer (GDC) – Next generation appliances - is there a gap between marketing and technology?

203 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

/26/ T.Sakai (Osaka Gas Co., Ltd.) – Development and Spread of GHP With a Power- generating Function (Fusion of Air-conditioning and Power Generation) /27/ Bernard Thonon – Promotion of efficient heat pumps for heating /28/ Sanyo – Gas Heat Pump Air Conditioners K Series Specification Guide /29/ Kyung-Hwan Toh – The Impact of Convergence of the Gas and Electricity Industries: Trends and Policy Implications /30/ Sanyo – Gas Heat Pump Air Conditioners M Series Specification Guide /31/ IEA – World Energy Outlook 2008 /32/ Kei Kato (Toho Gas Co. Ltd.) Presentation – Current Status of Japanese GHP /33/ www.gas.or.jp/english/

204 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.3 Alternative and Innovative Gas Appliance (Nuno Alfonso Moreira)

7.3.1. Combinations of Natural Gas and Renewable 7.3.1.1 Technology state of the art 7.3.1.1.1 Gas condensing boilers 7.3.1.1.2 Gas heat pump 7.3.1.2 Utilities 7.3.1.3 Policies and measures to support 7.3.1.3.1 Action Plan for Energy Efficiency (2007-12) 7.3.1.3.2 20% renewable energy by 2020 7.3.1.3.3 Strategic Energy Technology Plan (SET Plan) 7.3.1.4 Public opinion 7.3.1.5 Economic research 7.3.1.6 Ecology 7.3.1.7 Potential Market 7.3.1.8 Case studies 7.3.2. Bio methane in the natural gas grid 7.3.2.1 Concept 7.3.2.2 Biogas upgrading 7.3.2.2.1 Remove hydrogen sulphide 7.3.2.2.2 Removal of carbon dioxide 7.3.2.3 Synthesis gas upgrading 7.3.2.3.1 Methanation 7.3.2.3.2 Purification 7.3.2.4 Case studies 7.3.2.4.1 The Netherlands 7.3.2.4.2 Switzerland 7.3.2.4.3 Sweden 7.3.2.4.4 Austria 7.3.3. Bibliography

205 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.3.1 Combinations of Natural Gas and Renewable The climatic changes, the recent threats in the Europe energy supply and storage, and the volatility of the energy prices based in hydro-carbons, impose an ambitious reduction of primary energy consumption and a diversification of the energy sources. Presently, we are living, what it can be said as “the third oil crisis”. On 2008, January the 2nd, the price of the one barrel of crude reached the historical value of 100 dollars, and much more during the year. Alternative power plants, as solar, biomass and other electric energy became the great trends. However in the majority of the cases the alternative energies are unable to, alone, support the existing energy needs, appealing then to the combination with fossil fuels energy sources, i.e., natural gas, oil and coal.

7.3.1.1 Technology state of the art

The combination of solar energy with natural gas is present in almost all equipment manufactures catalog. Even more manufacturers of heating devices deliver compact single grain packages for the installation in new buildings or the modernization of existing heating systems. The solar collectors normally are dimensioned to satisfy between 40% and 60% of the hot water needs. The remaining 20% are assured by another source of heating, normally electricity or gas. The combination of gas – condensing boilers with the solar heating systems increased gradually in the market and is installed in many new buildings.

206 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Figure 2 – Condensing Boilers combined with Solar Thermal Systems (Utesch B.; et al; ASUE). Sometimes geothermal energy can be combined with heat pumps for greenhouse heating. In this case the heat pump rises the temperature of the fluid up to 50-65 oC, so it can heat the greenhouse more easily.

7.3.1.1.1 Gas condensing boilers

Condensing boilers recycle the energy that is normally lost through the duct into the atmosphere. It use the water vapor produced by the burning of gas, condensing back into water. This way the heat, produced as water vapor, is recovered and the boiler is more efficient.

Figure 3 –Principle of operation of gas-condensing boiler. Condensing boiler manufacturers claim that up to 98% thermal efficiency can be achieved compared to 70%-80% with conventional designs (based

207 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

on HEV). Typical models offer efficiencies around 90%, and that’s the reason why many brands of condensing gas boiler achieve the highest available categories for energy efficiency. In the UK, this is a "SEDBUK" (Seasonal Efficiency of Domestic Boilers in the UK) Band A efficiency rating, while in North America they typically receive an Eco Logo and/or Energy Star Certification. When installed in real houses, the performance of condensing boilers is typically 4-5% lower than in laboratory tests by groups such as SEDBUK. This gives typical seasonal efficiencies of 82-89% in the UK. Part of the efficiency drop is because boilers are often oversized for the thermal demand of the property, giving return temperatures over 50°C from the heating system, which prevents significant condensation in the heat exchangers. Better education of both installers and owners could be expected to raise efficiency up towards the reported laboratory values.

7.3.1.1.2 Gas heat pump

A Gas heat pump is a mechanical heat pump powered by natural gas engine. This unit operating in its heating cycle, gives an annual heating efficiency of 126%. This efficiency is over 100% due to the fact that it moves the heat from the outdoors to the indoors. With the engine being liquid cooled, the unit captures the heat from the coolant and adds this heat to warm the space. Thus, it is able to give 26% more heat than the energy that it consumes. Since this equipment is a heat pump, it runs during the cooling season to provide you with air conditioning and dehumidification. During the summer months, the unit moves heat from the air inside to the outdoors.

208 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Figure 4 – Gas absorption heat pump (Utesch B.; et al; ASUE). By coupling a gas absorption heat pump (figure 2) with a seasonal ice bank, depending on the season (summer, winter) energy that is not immediately required can be stored and plant efficiency significantly improved as a result. During the heating period, heat is removed from the water in the ice bank via a special heat exchanger layout until all the water has turned to ice. Then during the summer, the ice provides a source of refrigeration for cooling purposes that is virtually free and which can be used with no additional energy consumption. In return, if the ice is used for cooling in summer, the heat that is removed from the building can be transferred to the ice bank. This waste heat slowly melts the ice, so that by the end of the cooling period the ice bank contains warm water which the heat pump can then use for heating once more. The heat capacity that is transferred to the ice bank is equivalent to the refrigeration capacity of the building, i.e. the heat transferred to the building from the sun. In this way, solar energy is transferred to the ice bank during the summer and taken out of the bank again in winter, with the building acting as a kind of solar plant.

7.3.1.2 Utilities

More and more manufacturers of heating units deliver compact monobloc packages for installation in new buildings and for modernization of existing heating systems. The systems usually consist of a heating unit and a

209 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

stratified storage, with all necessary connections for the use of solar energy, as well as an aligned control system for energy efficient operation. Some manufacturers also supply compatible solar panels. “Packages” are available with different output (capacity) for single family houses, apartment buildings or other facilities. The aligned combination of system components facilitates the assembly. Measurements and accessibility of connections are designed for easy installation and maintenance of these mono bloc solutions. They therefore meet the requirements for heating modernization in older buildings, where the assembly can sometimes be difficult due to lack of space. The idea of natural gas companies (or other supply companies) promoting and including sales of solar energy in their activities seems to be a success story in some areas in several ways: The advantage of having access to customers and being considered trustworthy and serious is used by the gas utilities in order to sell solar systems to their customers. The result has been an ability to sell combined gas/solar systems to 10% of their potential customers in that area. On the other hand, the gas company has the added advantage of selling more gas since 60% of buyers would not otherwise have bought a pure gas based system. Even if the customers would have converted to gas later, a survey shows that over a ten year period the gas company has sold more gas than it would have done without the solar heating campaign (IEA, 1999).

7.3.1.3 Policies and measures to support

Early in 2007 the European Union (EU) proposed a new energy policy as a first resolute step towards becoming a low-energy economy, whilst making the energy we do consume more secure, competitive and sustainable. The aims of the policy are supported by market-based tools

(mainly taxes, subsidies and the CO2 emissions trading scheme), by developing energy technologies (especially technologies for energy efficiency and renewable or low-carbon energy) and by Community financial instruments.

210 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.3.1.3.1 Action Plan for Energy Efficiency (2007-12)

The Commission has adopted an Action Plan aimed at achieving a 20% reduction in energy consumption by 2020. The Action Plan includes measures to improve the energy performance of products, buildings and services, to improve the yield of energy production and distribution, to reduce the impact of transport on energy consumption, to facilitate financing and investments in the sector, to encourage and consolidate rational energy consumption behavior and to step up international action on energy efficiency. The Commission considers the biggest energy savings are to be made in the following sectors: residential and commercial buildings (tertiary), with savings potentials estimated at 27% and 30% respectively, the manufacturing industry, with the potential for a 25% reduction, and transport, with the potential for a 26% reduction in energy consumption. These sector reductions of energy consumption correspond to overall savings estimated at 390 million tons of oil equivalent (Mtoe) each year or

100 billion per year up to 2020. They would also help reduce CO2 emissions by 780 million tons per year. These potential savings come in addition to an estimated 1.8% (or 470 Mtoe) reduction in annual consumption which would partly stem from other measures already adopted and normal replacements of equipment. Combination of Natural Gas and renewable can help the reduction on the energy consumption.

7.3.1.3.2 20% renewable energy by 2020

The European Union has set itself the goal of raising the share of renewable energy sources in the final overall energy consumption of the Union from 8.5% in 2005 to 20% in 2020. This is an ambitious objective, but it is also a necessary contribution to the global fight against climate change and towards better control over our energy dependence. Governments have a crucial role to play through their good example and their support. But each individual can also help to achieve this objective. The various uses for renewable energy sources are examined: electricity

211 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

for wind and hydraulic energies; electricity or heat for geothermal and solar energies; multiple applications: electricity, heat, and biofuel for biomass. The European Union is a world leader in the use and deployment of technologies that exploit renewable energy sources, and it intends to remain so.

7.3.1.3.3 Strategic Energy Technology Plan (SET Plan)

Developing new energy technologies can play a decisive role here and help to achieve the EU's goals of reducing energy consumption and greenhouse gas emissions by 20% between now and 2020 and increasing by 20% the share of renewable sources in Europe's energy mix. The EU therefore intends to adopt a European Strategic Energy Technology (SET) plan to speed up the development of clean, efficient and low-carbon technologies. The strategic energy technology plan (SET plan) presented by the Commission aims to help achieve European objectives and face up to the challenges of this sector: • In the short term by increasing research to reduce costs and improve performance of existing technologies, and by encouraging the commercial implementation of these technologies. Activities at this level should in particular involve second-generation biofuels, capture, transport and storage of carbon, integration of renewable energy sources into the electricity network and energy efficiency in construction, transport and industry; • In the longer term by supporting development of a new generation of low carbon technologies. The activities to be carried out should focus, among other things, on the competitiveness of new technologies relating to renewable energies, energy storage, sustainability of fission energy, fusion energy, and the development of Trans-European Energy networks.

212 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Implementation of this SET plan will involve collective effort and activities in the private sector, the Member States and the EU, as well as internationally. Technological improvements on equipments for the combination of Natural Gas and renewable can help to achieve the EU goals.

7.3.1.4 Public opinion

The public is seriously concerned about global warming and climate change. In a survey conducted by Eurobarometer 62% of respondents felt the biggest problem as warming/climate change (figure 4).

DK 3%

The incresing world population 19%

The proliferation of nuclear weapons 23%

The spread of na infectious disease 23%

A major global economic downturn 24%

Armed conflicts 38%

Internacional terrorism 53%

Global warming/ climate change 62%

Poverty, lack of food and drinking water 68%

Figure 5 – Questionnaire: The most serious problem currently facing the world as a whole (Eurobarometer; 2008). At country level, absolute majorities in nearly all countries regard "global warming/climate change" as a serious problem, with the exception of citizens in the Czech Republic (45% consider this to be a serious problem), Italy and Portugal (both 47%). In Cyprus (92%) and Greece (90%) around nine in ten citizens think that “global warming / climate change” is one of the most serious problems, in Slovenia this figure is as high as eight respondents in ten. The respondents were invited to give their opinion on a number of statements linked to the problem of climate change. Their attitudes can be

213 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

summarized as follows: the issue of climate change is serious but the process is not unstoppable (figure 5). Nearly two-thirds of Europeans (65%) do not think that the seriousness of climate change has been exaggerated, but they are nevertheless predominantly optimistic and widely disagree (60%) with the statement that the process of climate change is unstoppable. However, just under a third of Europeans (31%) is rather pessimistic and believes that climate change is an unstoppable process. Around a quarter (26%) thinks that the seriousness of climate change has been exaggerated. According to a wide majority of Europeans (70%), alternative fuels15 should be used to reduce greenhouse gas emissions. 56% believe that fighting climate change can have a positive effect on the European economy. As far as the causes of climate change are concerned, a majority of citizens (55%) disagree with the statement that CO2 emissions have only a marginal impact on climate change. It is however noteworthy that a relatively high proportion of respondents have no opinion on these two matters (20% and 15% respectively) last. Turning to citizens’ personal contribution to the fight against climate change, we see that a clear majority (61%) confirm that they have taken some kind of action in this cause.

The seriousness of climate change has been exaggerated Emissions of CO2 has only a marginal impact on climate change Climate change is na unstoppable process, we cannot do anithing about it Fighting climate change can have a positive impacts on the European economy You personally have takens actions aimed at hel+ping to fight climate change Alternative fuels, such as "Bio fuels", should be used to reduce greenhouse gas emissions

Disagree Agree DK

Figure 6 – Public opinion on a number of statements linked to the problem of climate change (Eurobarometer; 2008).

214 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

When asked about measures taken personal, 46% of respondents said the separation of waste, and 39% of the decrease energy consumption at home. 7% have switched to an energy supplier or tariff supplying a greater share of energy from renewable sources than your previous one, and 3% have installed equipment at home that generates renewable energy (figure 6). When a utility enterprise uses the combination of Natural Gas and renewable on its public opinion messages, it can have positive feedback.

DK 1%

You have installed equipment in your own home that generates renewable energy generates renewable energy 3% You have switched to an energy supplier or tariff supplying a greater share of energy from renewable… 5%

Where possible you avoid taking short-haul flights 7%

You have purchased a car that consumes less fuel, or is more environmentally friendly 11% You are reducing the use of your car, for example by carsharing or using your car… 15% You buy seasonal and local products to avoid products that come from far… 16% You have chosen an environmentally friendly way of transportation 17% You are reducing the consumption of disposable items 24% You are reducing your consumption of water at home 33% You are reduncing your consumption of energy ate home 39% You are separing most of your waste for recycling 46%

Figure 7 – Actions taken to fight climate change (Eurobarometer; 2008).

7.3.1.5 Economic research

Feasibility studies show that the combination of Natural Gas with renewable, are most profitable, and the return on investment (ROI) can be less than three years. Solar panels combined with boilers (normal or condensing), depending on solar conditions, can return the investment in two years. Gas heat pumps, can also be connected with solar panels, and the ROI is also very attractive.

215 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.3.1.6 Ecology

Natural gas and biogas are ideal for combination with renewable. For example, replacing a constant temperature boiler (manufactured prior to 1978) with a natural gas condensing unit with solar assistance for hot water and heating can cut the consumption of primary energy, and hence CO2 emissions as well, by as much as 50 per cent compared with a constant temperature boiler (figure 7).

Figure 8 – Reduction of CO2 emissions (Utsch B.; 2007). Another possible combination is the natural gas heat pump; these are currently available on the market with ratings of approx. 30 kW and over, but it is expected that units with lower heating outputs will become available in the coming years, allowing a reduction of CO2 emissions from more than 50%. The savings in CO2 emissions also reach above 50% when considered the use of biometano on condensing boilers and heat pumps as we can see in Figure 7.

7.3.1.7 Potential Market

There has been no looking back for the inverter market for renewable energy systems in Europe since 2004. A combination of technological innovations and proactive energy policies will enable the market to emerge successful in the long term. Generous subsidies for green energy have propelled the growth of this market, catapulting it to a significantly

216 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

growing segment of the green electricity industry. The market earned revenues of Eur 654.4 million in 2007 and estimates this to reach Eur 3105 million in 2014 (Frost&Sullivan; 2008). A multi-million euro industry is in the making in Europe and prospects for renewable inverters are extremely optimistic. A booming market in Spain is rewriting market dynamics for renewable energy-based inverters. Moreover, new incentives for green electricity in Portugal and Greece are set to accelerate the pace of growth in the future. Across Europe, renewable energy-based inverters registered growth of 36.7% in 2007 as compared with 2006 (Frost&Sullivan; 2008). The adoption of highly attractive financial incentives for renewable energy alternatives in Spain, Portugal and Greece, based on the German model, has spurred the growth of such energy sources. These markets are experiencing soaring sales and spiralling growth, and are potential hotspots for renewable energy inverters.

7.3.1.8 Case studies Local district heating system with natural gas and solar in Neckarsulm, Germany (Utesch B.; et al; ASUE) An innovative local district heating supply system has been developed and implemented for an entire new district (Amorbach) in the German town of Neckarsulm. It combines structural measures for energy saving with two natural gas district heating stations assisted by numerous solar panels distributed around the district and a long-term geothermal probe storage facility. A new residential development being built in Neckarsulm will ultimately provide 1,300 dwellings for approx. 4,000 people. As well as apartment blocks up to four storeys’ high, the development will include terraced, semi-detached and detached dwellings. A kindergarten, a school and a housing centre for senior citizens are also planned. The heating supply has been designed with the aim of generating over half the energy needed for heating and hot water from solar power, thereby reducing the demand for fossil heating energy significantly below

217 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

the limits that currently apply. A number of energy saving measures has been combined with highly efficient technology and the use of renewable energy in order to achieve these ambitious goals in practical terms. At the heart of the system is a central district heating network with two ultra-modern natural gas fired stations supplying heat to the already completed 600 residential units by means of transfer stations. Heat production is assisted by solar panels with a total surface area of currently 6,000 m2. The panel area is being constantly added to as individual systems are installed on other buildings, and is set to total 15,000 m2 once all dwellings are completed. When construction is complete, it will be possible to convert solar energy into around 6.25 million kWh of useable heat per year, theoretically enough to supply approx. 54 per cent of the annual heating needed for the Amorbach district. This target can only be attained in practice however if the surplus solar heat that is generated during the summer can be stored so that it can still be used in the heating supply period during the cold season. A special underground long-term heat storage facility has been incorporated into the district heating network for this purpose. It uses the soil as a storage medium and consists of U-shaped probes which descend to a depth of 30 meters at 2 meter intervals. In summer, the solar panels heat the mixture of water and glycol up to as much as 95°C, and a large proportion of this heat energy is transferred through the probes to the surrounding subsoil. Here (because the heat store has good upward insulation) it continues to be available over a period of months, providing effective support for the district heating system in the heating period. After overall completion of the development, the long-term heat store - concealed beneath a green space that includes an artificial stream - will have a capacity of 140,000 m3. This innovative district heating solution is further enhanced by other measures such as the use of natural building materials, thermal insulation for all buildings to low-energy standards and a special ventilation concept. As a result, the heating demand in Neckarsulm- Amorbach will be a

218 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

maximum 50 kWh per m2 of living area per annum, equivalent to around 5 L of heating oil per m3 as against the 30 L of heating oil per m2 needed for older buildings. Solar Augmented Steam Cycles for Natural Gas (Electric Power Research Institute; 2008) The project provides a conceptual design study and two detailed case studies to evaluate solar augmented natural gas steam cycles. Design options for existing plants will be analyzed using thermodynamic modeling tools. New plant design options that would be amenable to future solar augmentation also will be identified. The technical criteria and requirements will be addressed for several solar augmented steam cycles, solar technologies, and plant configurations. The key augmentation issues are:

• Heat balance • Water consumption • Point-of-steam addition and take-off options • Metallurgy constraints • Control, ramping, and integration impacts on O&M • Blending and control strategies for steam introduction • Ideal options for peaking plants vs. base load • Operation strategies during times of solar variability

The current statement of work considers natural gas plant technologies (boilers and combined cycle/HRSG plants). A separate project, Solar Augmented Steam Cycles for Coal Plants (SPN #1018235) will address coal plant technologies. The natural gas plant case studies address large duct-fired natural gas combined-cycle plants and include site assessments, integration analyses, and development of generic plant layouts with workable drawings and schematics. A project development manual will be provided for each case study. To the extent possible, the

219 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

host sites will be treated as generic plants, so that the results will be applicable to a large number of plants. A pro forma model will be developed to estimate the cost of electricity for various operating scenarios and financial incentives. In addition, the savings due to avoided fuel costs for select cycles, technologies, and plant configurations will be quantified. Avoided emissions also will be calculated. The model will include scaling factors and clearly label the user inputs, so that project participants can run the model using parameters for their own plants. Geothermal/Natural Gas district heating (Environmental Technologies Action Plan; 2007) The Project in its complete form provides district heat to a majority of potential customers in the main Podhale Valley. The service area extends about 14 km from the production wells to the City of Zakopane and about 7 km in the opposite direction from the well field to Nowy Targ. The transmission line between the geothermal wells and Zakopane will be completed. In addition to the villages of Banska Nizna and Bialy Dunajec already receiving geothermal heat, three other villages will be connected by 2002. Three district heating boiler houses in Nowy Targ will be connected in 2001. The main components of the full project are: Production and Transmission of Heat; Heat Distribution Network Development; Installation of Heat Exchangers and Meters in individual households and other buildings.

220 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.3.2 Biomethane in the natural gas grid

7.3.2.1 Concept

The main difference between natural gas and biogas is that biogas contains major amounts of CO2 that has to be removed in order to reach natural gas quality. It may in some cases also contain constituents in higher ratios than in natural gas (e.g. siloxanes, sulphur compounds, heavy metals in the case of landfill gas). Commercially available upgrading methods are able to reduce these contaminant levels down to standards applicable to natural gas. Then, this upgraded biogas can be called Biomethane. Biomethane and natural gas are very similar in many respects: • Methane is the main combustible product • Quality may vary from source to source Currently, gas companies and national authorities adopt different approaches concerning addition of Non-conventional source (NCS) gases to natural gas networks. In the future, with networks becoming increasingly interconnected, a pan-European approach and a common position on the definition of “technical rules and safety standards” is required. Delivery of some NCS gases into distribution or transmission networks, without caution, can create not just technical and operational problems (e.g., corrosion, appliance performance and safety) but may also lead to health issues for consumers (e.g., presence of minor volatile organic compounds, carbon monoxide, micro-organisms). On the 26th June 2003, the European Parliament adopted the Directive 2003/55/EC, repealing Directive 98/30/EC, concerning common rules for internal market in natural gas. The scope of this new Directive covers not just natural gas and liquefied natural gas, but also biomethane, gas from biomass and all other types of gases that can meet necessary quality requirements. Whereas § 24 of Directive 2003/55/EC calls for admission to the gas network for biogas and gas from biomass for environmental reasons provided this is compatible with the secure and efficient operation of the network on environmental grounds: “Member States should ensure

221 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

that, taking into account the necessary quality requirements, biogas and gas from biomass or other types of gas, are granted nondiscriminatory access to the gas system, provided such access is permanently compatible with the relevant technical rules and safety standards. These rules and standards should ensure, that these gases can technically and safely be delivered into, and transported, through the natural gas system and should also address the chemical characteristics of these gases”. Directive 2003/55/EC, Chapter 1, Article 1 defines the scope of the Directive: “The rules established by this Directive for natural gas, including liquefied natural gas, shall also apply to biogas and gas from biomass or other types of gas in so far such gases can technically and safely be delivered into, and transported through, the natural gas system.” Biomethane has successfully been upgraded to natural gas quality in some 40 plants in Europe during more than 15 years. Some 10 of these inject biomethane into the natural gas grid. The number of upgrading plants is increasing and the experience from the plants shows that biogas can be upgraded to natural gas quality at reasonable costs, with a high availability and long term continuous high quality with methane contents above 97% and variations of less than +- 1%, H2S levels between 1 and 5 mg/nm³ and water dew point of minus 80°C and below. The introduction of biomethane on the natural gas grid can be regarded as connecting a new natural gas supplier to the natural gas grid. Biomethane and natural gas have different origin and therefore new standards and regulations have to be elaborated concerning properties that not are mentioned in existing standards for natural gas. A major concern from some natural gas distributors is possible contamination of biomethane by bacteria from the digestion process. It is commonly known that communities of microorganisms already reside in the natural gas system and the effect of addition of biogas to these pipe systems has to be further studied in order to establish whether biomethane has any additional effect. Similar quality assurance systems and certification

222 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

system as applied to digestate should be developed in co-operation between the natural gas industry and the biomethane associations in order to ascertain an stable framework for biomethane injection. Biomethane is to its character a “small scale” technology and this has so far made the product less interesting for the natural gas industry, which has been used to handling large energy flows. An increased focus on emission of greenhouse gases and security of supply has resulted in an increased interest in biogenic gases for injection and trading via the European gas grid. The technical regulations for the natural gas industry has focused on large-scale distribution and use of natural gas and utilisation of smaller indigenous gas reservoirs have been restricted to local utilisation or distribution in separate grids. Such examples exist e g in Denmark (Revninge). The EC-directive 2003/55/EG explicitly encourages an increased used of sustainable gas on the European gas grids and one of the main obstacles against this development is the lack of a consistent technical framework. Such a framework must take into account the size and background of biomethane production plants in a way that promotes renewable gas without endangering any safety or reliability matters. These standards should be developed on an international platform because natural gas trade will become more and more international and the regulations thus must follow the same pattern. This work has already commenced within the natural gas industry under the auspices of Marcogaz. It would be highly recommended that the national biogas associations could form a similar group on the subject in order to provide input to such a European technical framework for the injection of biomethane into the gas grids. Upgrading the biogas can reduce the dependence of fuel imports which are limited and therefore we have to look for other alternatives. Biomethane is the only way to produce renewable natural gas - at the difference of electricity, which can be produced from many other renewable sources. Biomethane may supply 10 to 30% of natural gas

223 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

needs across Europe, from organic wastes - agriculture, industry and households - and energy crops, in small or large plants. The implementation of upgrading biogas technologies offer the possibility to have decentralized production points of methane which can be used as a green alternative similar to the green electricity in case of the electricity not coming from fuel sources. Therefore, biomethane can contribute to the security of gas supply in Europe, which will be more and more dependant from import.

But concerning costs, these are not always competitive and this is the reason why it is necessary a change in the regulation, not only concerning the technical issues, but also concerning some kind of incentives because in this case this is methane coming from a renewable source. Similar to the electricity coming from a renewable source, it is necessary some kind of incentive to promote the use of methane coming from biogas and therefore reduce the dependence of fossil fuels. The injection using the natural gas grid could help the distribution of this gas and therefore the use. In most of the cases, the production points are far from the end user. Offering the possibility to be injected into the grid, would make easier the consumption of this biomethane similar to the electricity. Technically there is no problem on using this upgraded biogas as methane coming from a renewable sources, but the normative has to be adapted in order these technologies are more competitive concerning costs. Then they would be more used and could replace partially the use of fossil fuels. Some countries like Sweden, Switzerland, Germany and France have a standard for injecting biomethane into the natural gas grid. The standards have been set to avoid contamination of the gas grid or end use. Demands on Wobbe index have been set to avoid influence on gas measurements and end use.

224 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

In the standards there are limits on certain components for instance sulphur, oxygen, particles and water dew point. These demands are in most cases possible to achieve with existing upgrading processes. Experience from other countries and from the chemicals industry can be called upon for the treatment processes: the main processes (pressure swing adsorption, pressurized water scrubbing and amine scrubbing) vary in their efficiency, their need for personnel and auxiliary energy and in the level of losses.

7.3.2.2 – Biogas upgrading

Biogas produced in AD-plants or landfill sites is primarily composed of methane (CH4) and carbon dioxide (CO2) with smaller amounts of hydrogen sulfide (H2S) and ammonia (NH3). Trace amounts of hydrogen

(H2), nitrogen (N2), carbon monoxide (CO), saturated or halogenated carbohydrates and oxygen (O2) are occasionally present in the biogas. Usually, the mixed gas is saturated with water vapor and may contain dust particles and siloxanes. For injection in the net the quality of biogas has to be improved. The main parameters that may require removal in an upgrading system are H2S, water, CO2 and halogenated compounds.

7.3.2.2.1 – Remove hydrogen sulfide

The presence of H2S will cause corrosion and possibly toxic concentrations of H2S (the maximum concentration in the workplace is 5 ppm). When the biogas is burned is produced SO2/SO3 that is even more poisonous than

H2S. At the same time the SO2 lowers the point of condensing gas, while the sulfurous acid formed (H2SO3) are highly corrosive. Due to potential problems that hydrogen sulfide can cause, it is recommended removing it will advance the process of improvement of biogas. The methods most commonly used to remove H2S occurs when the process of digestion by the addition of air / oxygen in the digester or by the addition of the iron chloride to the folder of the digester. The most

225 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

common commercial methods for removing hydrogen sulfide are as follows: • Addition of air / oxygen; • Addition of the iron chloride; • Iron oxide; • Activated Carbon; • Biological Removal.

7.3.2.2.2 – Removal of carbon dioxide

For an effective use of biogas as a fuel it has to be enriched in methane. This is primarily achieved by carbon dioxide removal which then enhances the energy value of the gas to give longer driving distances with a fixed gas storage volume. Removal of carbon dioxide also provides a consistent gas quality with respect to energy value. At present four different methods are used commercially for removal of carbon dioxide from biogas either to reach vehicle fuel standard or to reach natural gas quality for injection to the natural gas grid. These methods are: • Water absorption; • Polyethylene glycol absorption; • Carbon molecular sieves; • Membrane separation.

7.3.2.3 – Synthesis gas upgrading

The synthesis gas is gas mixture of different chemical composition (mainly

H2 and CO), obtained from the gasification of biomass (natural or previously pyrolysis), with potential application to the synthesis of various chemical compounds. In our case, the interest is to obtain compounds with similar properties to natural gas produced from fossil fuels. The synthesis gas is then subject to two processes: methanisation and purification.

226 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.3.2.3.1 Methanation

The gas mixture entering the methanation process is mainly composed of

H2, CO, CO2 and CH4. Following the reversible reactions given in eq.1, the concentration of CH4 is increased during the methanation.

CO + 3H2 <-> CH4 + H2O

CO + 4H2 <-> CH4 + H2O

CO + H2O <-> H2 + CO2

The main problem to be addressed while designing a methanation process of a CO/H2 gas mixture is the control of the temperature in the reactor by an efficient heat transfer system. Most of the processes solve this problem by simply performing the methanation in successive adiabatic units and/or by diluting the gas mixture through recycling loops.

7.3.2.3.2 Purification

The gas mixture obtained at the end of the methanation is mainly composed of CO2 (45.9 %vol.) and CH4 (47.6 %vol.).

Basically, this step should remove as much CO2 as possible without a significant loss of CH4, the final concentration of CH4 being of at least 90%. Moreover, this purification step should have low specific energy consumption. It should also be able to operate under high pressure since the pressure of the gas mixture coming out of the methanation is about 50-60 bar.

7.3.2.4 Case studies

7.3.2.4.1 The Netherlands Hardenberg (Persson M.; 2006)

On the landfill site “Collendoorn” in Hardenberg, located in the east of the Netherlands, landfill gas is being upgraded to natural gas quality and introduced into the gas grid. Up to now this gas has no special use (it is not earmarked and used as green gas elsewhere). The landfill and the

227 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

upgrading installations are the property of Cogas, a small Dutch energy company. In 2006 around 200.000 m33 of upgraded gas were produced. It used to be over 700.000 m3/year in the early years of the upgrading plant, but volume of gas from the landfill has decreased. Gas upgrading is performed by membrane technology. In the first plant which was started in 1993, membranes operated with a gas pressure of 35 bar. Since 2003 a new membrane separation technology has been used enabling the gas pressure to be lowered to 9 bar. This has reduced costs and improved the economic feasibility of the plant.

The upgraded gas has a methane content of 88%, a CO2 content of almost 5% and an N2 content of 7%. This results in a heating value and a Wobbe index of 35 and 44 MJ/nm3, respectively, which are both similar to the values of the rather low calorific Groningen natural gas in The

Netherlands. By preventing landfill gas escape to the atmosphere a CO2 emission reduction of approx. 3800 tons a year is obtained (in case of 200.000 m3 upgraded gas).

Other

The Energy Research Center of the Netherlands has completed an 800 kilowatt-hour pilot-scale gasification plant based on its Milena gasifier technology, which uses an indirectly heated biomass gasification process with high cold-gas efficiency and a high methane yield, and is optimized for the production of substitute natural gas. The green gas produced by the pilot-scale plant will be used to fuel one of several natural-gas- powered consumer automobiles currently available in Europe. The demo plant will initially produce gas for a boiler. Later, it will include an oil gas scrubber tar removal system developed by the Energy Research Center to recycle tar for combustion to produce green gas. Ultimately, the plant will be equipped with a gas cleaner to produce substitute natural gas at grid specifications.

228 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.3.2.4.2 Switzerland

In spring 2005 a small scale digestion plant for the treatment of 5.000 tpy of source separated organic waste (OFMSW) has started operation in Engelhölzli, Jona. It is a solid waste digester operated at thermophilic temperatures (55 to 57°C). The retention time in the digester is about 15 days. The digestate is mixed with garden waste and post-composted in an enclosed hall (Persson M.; 2006). The gas is upgraded with a new Genosorb washing system. The hydrogen sulphide as well as the humidity is preliminary removed by activated carbon. It is the first plant in Switzerland without an additional CHP. The entire gas production is upgraded without intermediate storage and is fed to the natural gas grid. Process electricity is taken from the power line; process heat is produced with a natural gas boiler. Another novelty of the plant is the ownership. In all previous plants in Switzerland the owner of the digestion unit was also the owner of the upgrading plant. He delivered the clean and odorized gas to the grid. In Jona on the other hand he sells the raw gas to the gas company. They own and operate the upgrading plant themselves. The design capacity of the upgrading plant is 55m3 of raw gas per hour. With an input to the digester of about 20 tons of fresh waste per working day, the gas production is often far higher than the treatment capacity. Hence, some of the gas has to be flared. Actually, the plant capacity is increased. The system has been selected because it had the lowest production cost with 2.2 €cents per kWh when compared to PSA and water washing on the basis of offers.

7.3.2.4.3 Sweden

The Laholm Biogas plant in Sweden was started in 1992 with the purpose of reducing eutrophication in the area. It is a central co-digestion plant that receives manure and different kinds of organic waste from the region

229 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

and turns this into bio-fertilizer and biogas. The biogas has since 2001 been injected into the local natural gas distribution grid and now have replaced around 25% of the regional natural gas consumption thereby reducing the CO2-emissions by 3700 tons/year (Persson M.; 2006). Laholm Biogas AB is a company owned jointly by the local power utility company Södra allands Kraft AB, the local farmers association (Vallberga Lantmän) and the City of Laholm. The plant handles 28 000 tones/year animal manure and 20 000 tones/ year of other waste materials, mainly waste from 15 different food industries (waste fat, vegetable waste, slaughter-house waste, fish waste etc). The plant consists of a reactor with a capacity of 250 cubic meters, with 25 to 30 days of detention, operating at 38 C, powered by a pre-tank, with a heat exchange system. The capacity of the plant was doubled in 2002 reaching a capacity of 70 tons per year. The annual production of biofertilzante is 43 tons, which is recirculated to the surrounding farms. The production of biogas reaches 20 to 30 GWh per year with a methane content of 75%. The biogas by 2000 was used to produce heat supplying about 300 apartments. The need for heat was below the production capacity (in certain periods) which makes the release into the atmosphere of approximately 40% of biogas produced. A breeding center was established in 2000 with capacity to improve 250 m3/hour of biogas, transforming into a gas at the end with the same characteristics of NG used. The process of improvement is implemented in three phases. In the first phase of sulfur is removed using the process of Sulfatreat ®, then makes up the removal of carbon dioxide using the process of Selexol ®, and finally the Wobbe Index is adjusted to the value of NG, through the addition of 5 to 10% of propane. The gas is then introduced into the final network of natural gas. The injection of gas on the network has corresponded to an increase in sales in the same, whereas in 2004 represented 30% of gas consumed in Laholm. The Center for improving digestion and has allowed a reduction in the levels of pollution as well as a decrease in CO2 emissions.

230 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.3.2.4.4 Austria

The first plant for the production and improvement for further injection in the net of NG in Austria is in operation since June 2005. With a production of 10 m3/h of biogas, which after cleaning processes represent 6 m3/hour end gas, equivalent to a production of 400 thousand kWh annually, and corresponds to need an annual average of 40 apartments. This represents a reduction of 108 tones of CO2 per year, compared with the typical use of heating oil (Persson M.; 2006). The final gas (biogas refined) meets the quality requirements defined, and can be used for vehicles or in CHP plants. The injection of gas into a network allows increased efficiency when compared with the production of electricity (using biogas). Despite the losses in the process of improvement and consumption of electricity and heat, 80% of energy remains to be used. The improvement of biogas corresponds to losses of 5% and the consumption of electricity and heat at 15%. The process of improvement is made through various processes so as to achieve the typical values of NG. The process of improvement includes the removal of hydrogen sulfide, drying and removal of carbon dioxide. The removal of hydrogen sulfide is performed using biological processes that convert the hydrogen sulfide into sulfate and releases. The aim is to reduce the presence of hydrogen sulfide from 2000ppm to a maximum of

200ppm. Removing CO2 is performed using the process of PSA, resulting in a final methane content of 97%.

231 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Bibliography

Electric Power Research Institute; 2008; Solar Augmented Steam Cyclers for Natural Gas Plants. Eurobarometer; 2008; Europeans’ attitudes towards climate change; Report; Special Eurobarometer 300 / Wave 69.2 – TNS opinion & social. Frost&Sullivan; 2008; European Inverter Market for Renewable Energy Systems. IEA; 1999; Natural gas in combination with solar heating systems. Persson M.; Jonsson O.; Wellinger A.; 2006; Biogas Upgrading to vehicle Fuel standards and Grid injection; IEA Bioenergy. Utesch B.; Formanski T.; ASUE; Association for the Efficient and Environmentally Friendly Use of Energy; Combinations of Natural Gas and Renewable Energy; Germany.

232 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.4 Alternative and Innovative Gas Appliance (Per Persson)

Promotion of alternative and innovative gas appliances

Report from IGU – Study Group 5.2 (A study report from Danish Gas Technology Center) (An overview with ideas to increase numbers of gas applications)

Believe it ...

• New houses does not need natural gas ….. but electricity , water and drain is a must

As the work progressed it more and more became a question, if there is a basis for use of gas in new low-energy houses at all.

We discussed at great length, if there will be any need for natural gas in future homes. It will not be a necessity.

233 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

We believe:

• A new standard house basically needs electricity, water, hot water, drain, heating and air-conditioning.

• Production of electricity gets more and more cheap.

• Electrically driven heat pumps will take over considerable market shares.

• Natural gas gets more and more expensive.

• Energy consumption in new houses (in Denmark) is approx. 7,7 m3 gas per m2 in 2007, 6,2 m3 gas per m2 in 2010, 5,0 m3 gas per m2 in 2015, and 4,0 m3 gas per m2 in 2020.

• A 25 per cent cut in energy consumption every 5th year will be realistic as regards new houses.

• Energy companies will become multi-companies and will give priority to electricity.

• Electrical driven appliances are cheaper servicing and maintaining than gas driven appliances.

• The outlet of CO2 must be reduced.

234 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

We are worried about:

• There is a lack of development and competitive products for heating. The latest big leap forward was the introduction of condensing boilers about 20 years ago.

• Cogeneration might never come to anything in smaller houses.

• Fuel cells are too expensive and belong to the future.

• Natural gas in a combination with alternative energy is too expensive to install.

• Service lines are too expensive to establish.

• Authorisation is required. It is a barrier to cheaper installation.

• Lack of research and development.

• Electricity is safe for heating; CO accidents takes place only by using gas.

• Gas for heating is phased out in new houses; electricity will be used for heating.

• Service and maintenance of gas boilers is too expensive compared to electricity.

235 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

236 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Table of contents Preface Summary 1 Introduction 1.1 Definitions 1.2 Current Danish situation 2 Possible appliances 2.1 Lifestyle 2.1.1 Cooking 2.1.2 Washing and dishing machines 2.1.3 Dryers 2.1.4 Sauna 2.1.5 Fireplaces 2.1.6 Outdoor appliances 2.2 Building 2.2.1 Micro cogeneration 2.2.2 Heat pumps 2.2.3 Gas and renewables 2.2.4 Vehicle filling 2.3 Indoor piping, safety and monitoring 2.4 Gas consumption 3 International outlook 3.1 What is promotion? 3.2 Gas appliance promotion on websites and elsewhere 3.3 Questionnaire 4 Danish perspective and possibilities 4.1 Input from a seminar 5 Conclusions and recommendations 6 References Questionnaire

237 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Summary

In the future will new as well as existing buildings have a decreasing heating demand. In some cases will it be difficult to defend the connection of a new single family house to the gas grid. This study has dealt with the possibility of making gas more attractive through modern technology and new areas of use. The use of new appliances implies sometimes a change from electricity use to gas use. Any evaluation of the environmental consequences, for example the CO2 emissions, of such a conversion has not been made in this study.

The appliances have been split into alternative and innovative in this study. Alternative appliances exist today but have a limited use while the innovative appliances still need a few years of development and testing before they can be considered commercial. Two typical alternative appliances in single family houses are a gas cooker and a patio heater. Micro cogeneration units, gas-fired heat pumps and vehicle filling stations are typical innovative gas appliances. These categories are further divided into appliances connected to the lifestyle and to the building. Alternative gas appliances often belong to the lifestyle category and consume less gas than the innovative which often belong to the building category. However, the less gas consuming lifestyle appliance may be as important as the more gas consuming future gas appliances since they are more visible in the daily life. The marketing efforts may have to take that into account and there is also probably a need of social science studies to get knowledge about the attitudes toward different gas appliances.

Suggestions for an increased use of alternative appliances include early education of installers, better knowledge of installation costs, regulations, and the sales of these appliances. The installers are not sellers and the white goods stores have a limited knowledge about gas appliances. It

238 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

seems that this is not a unique situation. The good examples of field installation are also missing.

Innovative appliances such as cogeneration units and filling station mean that the gas and its products are not entirely used in the home and this is a great change in the use of energy for the home. The use of the innovative appliances may to a larger extent be influenced by regulation and taxes, since electricity can be exported to the grid and petrol exchanged by natural gas. If these innovative appliances become widespread the gas consumption will be large enough to defend the gas connection, even in new buildings.

239 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

1 Introduction In most countries better building insulation and higher efficiency are reducing the gas consumed by each consumer, especially in newly constructed houses. One example of reduced gas consumption in existing building stock is found in Germany. During the period 1997 to 2006 the gas consumption decreased by 14% (corrected for the climate) in northern Germany /x/. Interviews with selected customers showed that 60% could remember a energy reducing measure during this time and especially boiler retrofit was accountable. Approximately 20% of the boiler retrofits were a result of more stringent efficiency and emission regulations.

Two paths are possible to increase the attractiveness of gas and the gas consumption.

• Reduce the investment and installation costs • New applications

This study is concentrated to the application side of the problem. It includes not only technical aspects but also marketing and social science aspects.

1.1 Definitions The appliances of interest for this study are divided into the categories alternative and innovative. The definition of alternative is an appliance that is commercial and not in a widely use or in a prototype or field test stage. Innovative appliances need 5–10 years before they are considered commercial. The term innovative also include new technologies in existing appliances that substantially improve the energy efficiency or the handling, e.g. easy cleaning of gas cookers. This means that a certain appliance may be considered commercial in one country and considered

240 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

innovative in another country and needs further development activities depending on for example national standards.

The alternative and innovative appliances some times substitute electric energy and depending on the power generation technology the primary energy use may be reduced when gas fired appliances are used. Some of the innovative gas appliances imply a change in the way energy is distributed and used in a home, for example power generation in the home using micro cogeneration or home filling of vehicles.

1.2 Current Danish situation

Table 1 shows the use of gas applications among the domestic customers in Danish natural gas distributors. It is clear that gas is used almost entirely for space heating. It shall be noted that Københavns Energi only has customers in central Copenhagen, mostly in multi-family buildings connected to the district heating network. Table 1: Customer gas application in Denmark

Figure 1. Company Figure 2. Number of customers Figure 3. Appliance/Application

Figure 4. DONG Energy Figure 5. 103 668 Figure 6. Overall domestic customers

Figure 7. Figure 8. 4232 Figure 9. Heating and gas cooker

Figure 10. Figure 11. 214 Figure 12. Gas cooker only

Figure 13. København Energi Figure 14. 160 000 Figure 15. Overall

Figure 16. Figure 17. 1 200 Figure 18. Space heating

Figure 19. HNG/MN* Figure 20. 35 414 Figure 21. Gas cooker

Figure 22. Figure 23. 330 Figure 24. Instantaneous water heaters

Figure 25. Figure 26. 48 Figure 27. Storage water heater

Figure 28. Figure 29. 930 Figure 30. Gas radiators

Figure 31. Figure 32. 140 207 Figure 33. Gas boilers of different designs

* Greater Copenhagen Gas Company/

241 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

A survey of the Danish gas distribution companies’ web sites shows the following picture regarding information about other gas appliances. DONG Energy has no description of alternative or innovative gas appliances. Københavns Energi is especially interesting since it delivers gas almost entirely for cooking, see Table 1. The company offers information about cooking appliances and deals with installation, safety and handling. Naturgas Fyn describes only space heating. HNG has the most comprehensive description and their showroom with the appliances is advertised. Various appliances are described regarding price and installation. The alternative appliances advantages are also mentioned as well as a list of manufacturers and resellers.

The overall impression of the Danish web sites is that they show a variety in quality and they are neither better nor worse than the corresponding web sites in other countries. This is further shown and discussed later.

A first step towards promotion of alternative gas appliances are the “Mini portal” developed by DGC in early 20071. A number of products are listed with links to manufacturers and sellers. The advantages or disadvantages with these appliances are not discussed on the site. The voluntary energy labelling of gas boilers on the Danish market is also a way of promoting high efficiency gas technology2. Gas boilers are labelled A–G depending on their calculated annual efficiency. A vision of and goal for the current work is the maximum gas supplied house, in German called “Vollversorgte Haus”. Figure 1 shows the various appliances.

1 http://www.dgc.dk/privat/gasapparater.htm (In Danish) 2 http://www.dgc.dk/privat/energimaerke.htm (In Danish) 242 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Figure 1: Possible gas appliances in a house /x/

243 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

2 Possible appliances In the following short survey of different alternative and innovative appliances some of the advantages and disadvantages (pro/cons) found in various sources, literature, presentations, web sites, are shortly mentioned. This gives a picture of the marketing “words” etc. Residential gas utilization has in this study been divided into “Lifestyle” and “Building”, where the first category deals with appliances and function more connected with the human behaviour and daily life. The second category comprises appliances for the climate control (heating and cooling), and cogeneration. The appliance description in this chapter shall not be considered as a complete survey of possible appliances, rather a list of the possibilities offered by the gaseous fuel.

2.1 Lifestyle

2.1.1 Cooking Gas cookers are beside space heating the most common gas appliance in single-family houses. Today, a wide range of products are available, sometimes combined with an electric oven. Possible areas of improvement are connected to the flue gases and indoor air quality and easy cleaning and handling. The advantages claimed are available rapid heating, precise regulation, no heat after the burner is closed, low cost operation and modern design /ref/.

In several occasions the indoor air quality has been discussed when gas ranges or cookers are used. It is primarily the NO2 concentration that has been the focus. A recent Swedish investigation /Stymne/ showed that a well designed hood is sufficient for an efficient evacuation of the flue gases and a sufficient indoor air quality. Burners with low NOx formation have also been studied, for example catalytic combustion.

244 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

An alternative solution to the common flue gas evacuation method in Denmark is downward draft exhaust evacuation found in USA. A fan is located beneath the gas cooker. One example is from GE, see Figure 2. The gas cooker also has sealed burners, which according to the manufacturer ensures easy cleanup. The sealed burner is shown in the lower image of

Figure 2.

Figure 2: Gas cooker with downward draft (top) and sealed burner (bottom)

Another way to obtain an easy gas cooker cleaning is to keep the gas burners below a ceramic plate as in the Spanish Vitrogas, see Figure 3. The gas cooker has three burners with the heat input in nine steps. The operation is controlled by touch buttons visible to the right on the image. The gas cooker is connected to 220 V and has a rechargeable battery which makes it possible to operate in case of an electric breakdown. Flue 245 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

gases exit the appliance near the wall through the gratings at the top of the image in Figure 3. This design has other characteristics than conventional gas fired cookers and the main difference is probably the response time which probably is slower. A similar design is found on the German Oranier gas cooker where four infrared gas burners are covered by a glass. The burners have 12 output levels.

Figure 34.

Figure 35.

Figure 36.

Figure 3: Vitrogas gas cooker with ceramic plate above the burners (left) and Oranier”Gas-unter-Glas” (right)

2.1.2 Washing and dishing machines These appliances use hot water that can be supplied directly from a gas fired unit. Washing machines may be used with hot water either directly to a hot water inlet or using a valve is this inlet is not present. Dish washers may use hot water without additional investments /x/. Heat loss from the hot water tubes has to be considered.

2.1.3 Dryers Gas-fired dryers are not common in most European countries but the technology is used elsewhere. This is a typical example of an alternative gas appliance. Figure 4 shows a German dryer equipped with a 3 kW gas burner and it is connected by a flexible gas hose. The image shows clearly that the front view is similar to an electrically heated dryer.

246 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Figure 4: AZ Gastechnik washing dryer

The advantages mentioned by the manufacturer compared to electric dryers are 40% reduction in operating costs, 60% reduction in energy consumption and drying time and finally 50% reduction in CO2 emissions /x/. The washing machine marketed by AZ Gastechnik in Germany is regarded as the most environmentally friendly appliance on the market by the German “EcoTopTen” list. This is also clearly visible on the marketing pamphlett.

2.1.4 Sauna Saunas are a common appliance in primarily Finland and Sweden, and well known in other countries. Only a few manufacturers of gas-fired saunas exist. The gas input is approximately 10 kW and one example is shown in

Figure 5. Any wide-spread use of gas-fired saunas can not be expected but it is a good example of the wide spectrum of gas appliances. The two images in the figure show the gas heater (left) and a sauna heater installed in a sauna.

247 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Figure 38. Figure 37.

Figure 5: Gas fired sauna heater and enclosure in a sauna

2.1.5 Fireplaces Fireplaces belong both to the lifestyle and building appliances. They can be used for decorative use only or be a part of the heating system. Advantages mentioned for these appliances compared to their wood or pellet-fired counterparts are /HNG,Corsten/: fuel always available and no fuel storage, possibilities of remote control, piezo-electric ignition, clean and no ash indoor and environmentally friendly with no particle emissions either to the owner or to the neighbours.

2.1.6 Outdoor appliances The main outdoor appliances are barbeques and patio heaters. Gas fired units are today mostly LPG fired but natural gas is a possible option. Natural gas fired barbeques often belong to the more exclusive models. Outdoor patio heaters, gas or electrically driven, have recently been criticized to waste energy. For a future use of patio heater it may be necessary to improve the technology, for example develop solutions for higher efficiency and directing the heat radiation only to the area where the people is. Examples of this exist, for example the Even-GLO patio heater /x/. The burner and reflector are designed to give a different radiant pattern for an improved performance. The burner has a visible flame and has two gas input steps, 13.5 kW and 15.5 kW.

248 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

2.2 Building

2.2.1 Micro cogeneration

Several gas boiler manufacturers are today involved in the development of gas fuelled micro cogeneration units for residential use. The power producing unit may be internal combustion engines, Stirling engines and fuel cells. There are a few examples of other thermodynamic cycles for the power generation. Units for single family houses have an electric output in the 1–3 kW range. Today, micro cogeneration units with gas engines are sold in Germany and Japan and may be considered as alternative appliances while fuel cells indeed are innovative. In Figure 6 two examples of residential micro cogeneration systems are shown. The left image shows a commercially available Stirling engine based unit while the right image shows a PEM fuel cell from the Japanese demonstration program.

Figure 40.

Figure 41. Figure 39.

Figure 6: Micro cogeneration units, Stirling engine based (left) and Japanese PEM fuel cells (right)

The Stirling engine based cogeneration unit to the left in the figure is from the company Whispergen in New Zealand. The electricity generation capacity is maximum 1 kW and a 7.5–12 kW thermal output. The electrical efficiency is approximately 10%. Other data is 230 V AC output and balanced flue. The dimensions are 480×560×840 mm (w×d×h) and the unit weighs 137 kg. The fuel cell unit to the right in the figure also has

249 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

a 1 kW power output, but a considerably higher electrical efficiency, approximately 30%. This means that the thermal output is lower than the Stirling engine unit. The image shows two main parts, the fuel cell unit to the left and the hot water tank acting as a heat storage and a supplementary gas boiler in a common package to the right. The two parts form a full heating system.

Other thermodynamic processes are also possible. The German LionPowerblock uses a steam cycle and generates 0.3–2 kW electricity and 3–16 kW heat. If there is no electricity demand it can operate as a boiler. Field tests are performed in Germany.

2.2.2 Heat pumps

Electrically driven compression heat pumps are today used in homes. Gas fired heat pumps were studied already in the 1960’s but have so far not been widely used. Different concepts of absorption and adsorption heat pump processes have been investigated and prototypes developed. Heat pumps and solar energy utilization are perhaps the two areas where gas heating directly today can be called “green”. Biogas as fuel is of course also a green technology. Absorption heat pumps are a commercially available technology for offices etc and the Italian company Robur has a large number of references on their web site.

Despite the lower COP or efficiency for gas-fired heat pumps a few advantages also exist. Calculations of the primary energy reduction can be more favourable for gas-fired heat pumps compared to electric compression heat pumps but this depends to a large extent on the national power generation situation. However, the major advantage for the consumer is that the lower COP means less energy input from the outdoor air, soil etc and that underground tubes are shorter and that solar and air collectors are possible for compact outdoor parts.

250 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

An example of a new absorption heat pump design suitable for existing typical European single family houses is developed by Nefit (Buderus and Bosch are also names on this heat pump). The first generation had a heat pump unit with 3.6 kW output. A supplementary condensing boiler was placed in the same cabinet. The overall annual efficiency was in the 130– 140 % range and extensive field tests were performed in Europe. However, a second generation heat pump is currently in field tests /gat2007/. In this new version the unit consists of a heat pump only, which capacity is increased to approximately 10 kW output. The German manufacturers Vaillant and Viessmann are also developing gas fired residential heat pumps. Table 2 summarizes the designs and performances for these European heat pumps.

Table 2: Performance for new European residential heat pumps

Figure 42. Manufacturer Figure 43. Bosch Figure 44. Vaillant Figure 45. Viessmann

Figure 46. Process Figure 47. absorption Figure 48. Adsorption Figure 49. adsorption

Figure 50. Heat output Figure 51. 3.6–10 Figure 52. 1.5–10 Figure 53. 1.5–6

Figure 54. COP Figure 55. 1.5 (7/35°C) Figure 56. 1.3 (RAL-UZ 118) Figure 57. 1.3 (RAL-UZ 118)

Figure 58. Heat source Figure 59. Soil, water, Figure 60. Air/solar Figure 61. Air/solar, air soil, water

Figure 62. Cooling Figure 63. yes Figure 64. No Figure 65. Yes option

Figure 66. Weight Figure 67. 140 Figure 68. 190 Figure 69. 150

The companies listed in Table 2 has together with e.on Ruhrgas formed “Initative Gaswärmepumpe” (Gas heat pump initiative). The aim is to develop and commercialize gas-fired heat pumps.

Figure 7 shows images of gas-fired residential heat pumps. The top left images shows the Nefit absorption heat pump with a heat pump unit and

251 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

a separate boiler seen in the upper part of the unit. The bottom images shows to the left a sketch of Vaillant adsorption heat pump. The two working containers with adsorbents are clearly visible. The front image shows the burner at the top and the valve which switches the flow between the containers and the heating system.

Figure 71.

Figure 70.

Figure 73.

Figure 72.

Figure 7: Images of residential gas fired heat pumps

252 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

An example of a hybrid design between a gas furnace and a heat pump has been developed and marketed by Sanyo. It is not a gas fired heat pump, but a traditional electrically driven air-to-air heat pump and cooling appliance where the heating is managed by a gas burner included in the package. Sanyo mentions reduced heat output as the outdoor temperature goes down and that gas fired heating gives a constant heat output and lower operating costs as the main advantages with the unit. As

Figure 1 shows the unit consists of one indoor and one outdoor unit. It is controlled by a remote control as usual for this type of heating appliance. It has a maximum heat output of 4.5 kW and 2.6 kW cooling capacity. Because it is an outdoor unit it does not need any flue system.

Figure 74. Figure 75.

Figure 8: Sanyo gas and electrically driven heat and cooling unit 14KGS11

As mentioned above it is not a gas-fired heat pump but it is an interesting example of combining electrically and gas driven functions.

2.2.3 Gas and renewables Gas fired heating boilers have since a long time occasionally been combined with solar energy. The solar panels and the boilers have been connected to a top tap water tank as illustrated in Figure 9.

253 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Figure 9: Solar and gas heating system (Weishaupt)

Rotex in Germany has integrated the gas boiler and the storage tank with connections for the solar panels into a single package which gives a more compact installation. It is likely that more compact products will be developed.

2.2.4 Vehicle filling Home filling of vehicles has been interesting for the gas companies for a long time. The FuelMaker and its successor Phill have been demonstrated but not yet reached a large market. The Phill home filling station, Figure 10, delivers gas at 207 bar with an flow of 1.5 m3/h. The inlet gas pressure should be 17–34 mbar. The filling station is connected to the vehicle with a standard NGV 1 nozzle and the unit is connected to 230V.

254 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Today, Phill filling station is marketed in USA, Italy, France, Germany Finland and Russia. It seems that the unit is marketed in cooperation between gas companies, resellers and car manufacturer /pressmeddelanden/.

Figure 10: Phill Home filling station

Honda is developing a “Home Energy Station” which partly is a vehicle filling station, see Figure 11. It reforms natural gas to hydrogen which is the fuel for a residential fuel cell as well as providing fuel for a hydrogen fuelled vehicle with fuel cells. In November 2007 the 4th generation of this concept was installed at a test site in California.

255 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Figure 11: Honda "Home Energy Station" for vehicle filling and fuel cell fuelling

2.3 Indoor piping, safety and monitoring An increased use of alternative and innovative gas appliances requires an efficient way of connecting them to the gas pipes, both in new houses as well as in the existing building stock. There seems to be a lack of standardisation regarding the connectors. Unlike for example electrical plugs and CNG filling there is no standard which allows connectors and flexible tubes to be connected. This may be a limitation to a widespread use of portable outdoor appliances.

Other areas that do not directly influence the gas consumption are safety, service and maintenance and meter reading. These areas may give the customer the feeling of comfort and the impression of gas as a modern fuel. Examples of safety devices are CO-alarms and flow restrictors in case of a broken gas pipe etc.

There are a few examples of monitoring principles and systems. British Gas has developed a remote diagnostic system for boilers to monitor

256 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

operation and predict faults, identify faults when they occur and monitor the atmosphere around the appliance for safety (gas/CO). German boiler manufacturers have also shown examples of remote control of the gas boiler.

Energy labelling of gas boilers is used in Denmark and United Kingdom. In both countries these labelling programs are successful and have encouraged the use of the most efficient gas boilers.

2.4 Gas consumption The gas consumption for the various appliances has been estimated, see

Table 3. Data from the sources Corsten and Mofid are for gas appliances while the data from Öresundskraft is from an electricity distribution company in southern Sweden.

Table 3: Gas consumption for alternative and innovative gas appliances

Figure 76. Appliance Figure 77. Source

Figure 78. Figure 79. Corsten Figure 80. Mofid Figure 81. Öresundskraft

Figure 82. Fireplace Figure 83. 600 Figure 84. 2500 Figure 85. -

Figure 86. Gas cooker Figure 87. 600 Figure 88. 700 Figure 89.

Figure 90. Dish washer Figure 91. 260 Figure 92. - Figure 93. 733

Figure 94. Washing machine Figure 95. 140 Figure 96. - Figure 97. 1624

Figure 98. Dryer Figure 99. 900 Figure 100. 700 Figure 101. 208

Figure 102. Sauna Figure 103. 540 Figure 104. - Figure 105. 260

Figure 106. Patio heater Figure 107. 900 Figure 108. - Figure 109. -

Figure 110. Barbeque Figure 111. 120 Figure 112. 700 Figure 113. -

257 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

The gas consumption for micro cogeneration and home filling may be roughly estimated to 10,000–20,000 kWh per year and 5,000–15,000 kWh per year respectively.

The table shows two significant things. Firstly, the estimated gas consumption shows a large range in some cases. For example, the difference in the annual gas consumption for fire places may be explained that they may be considered either decorative only or part of the heating system. Secondly, the upper part of the table consists of alternative gas appliances and they have in general lower gas consumption than the innovative appliances in the lower part of the table. Further, the appliances with low annual gas consumption may roughly be regarded as lifestyle appliances and more visible in daily life compared to the more “hidden” micro cogeneration or home filling appliances. This would possibly result in different marketing strategies for alternative and innovative gas appliances.

3 International outlook

The international outlook regarding promotion of alternative and innovative gas appliances comprises both technical and marketing aspects. The definition of promotion needs a discussion…

3.1 What is promotion?

Energy utilities have the last 15–20 years offered the customers services of various kinds. They include the billing, energy audits and incentives to decrease the energy demand and increase the efficiency. Energy labelling of kitchen and laundry appliances is widespread and maybe the most visible today.

258 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

The International Gas Union (IGU) presented a report on developing gas markets /CommC/ at the World Gas Conference 2006. The part closest to European conditions deals with privatisation and liberalisation. It also discusses market development, but in a general manner.

A Canadian study /declining/ discusses the declining use of gas per consumer in Canada. The average gas consumption has decreased 16% between 1992 and 2005. The main reasons are higher efficiency heating boilers and furnaces and better building insulation. The recommendations are to simply ignore the change, better forecasts for the gas consumption and various changes in the tariffs etc. There is no discussion on the possibilities to increase the residential gas use by use of new applications.

At a German innovation seminar in 2004 the promotion of new appliances was discussed. An evaluation of the market by the gas distributor Gasag in Berlin pointed out a mature market, longer appliance lifetime, less technological advantage for gas, increased importance of “marktpartnern” at the choice of energy and finally uncertainty about the effects of market liberalisation. The company has concentrated on high quality of gas heating, natural gas vehicles and micro cogeneration as strategy of new products.

Erdgashaus (Natural Gas house) is a word used by the gas company Verbundnetz Gas AG in Germany. It is a cooperation between the gas company, two construction companies, a financial institute and a number of appliance and piping manufacturers. The information is collected on a web site with downloadable booklet/folder/pamphlet3. The information shows an attempt to cover the building and the gas consuming appliances, which is unusual. Only the commonly gas fired space heating and alternative gas appliances such as dryer, patio heater etc is described. Appliances defined as innovative in this study are not included.

3 http://www.erdgashaus.de and http://www.erdgashaus.de/broschuere/broerdgh.pdf (In German) 259 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

There are several examples of demonstration houses where residential gas technology has been showed. The newest example is probably a single-family house in Berlin. It was shortly presented on the constructors web sites in May 20084. The house has an area of 148 square meters and located in northern Berlin. It has a forced ventilation system including heat recovery /x/. Energy to the heating system is supplied by a gas boiler, solar collectors and a micro cogeneration unit (Whispergen Stirling engine). The heating system also delivers hot water to the dishing machine and the washing machine. The cooker, fireplace, sauna, drier and outdoor grill is also gas fired. Finally a Phill filling unit is used for vehicle fueling. No information has been obtained regarding the estimated gas and electricity consumption. This house demonstrates both the alternative and innovative gas appliances discussed in this report.

3.2 Gas appliance promotion on websites and elsewhere The Internet was search for various combinations of the words natural gas, promotion, residential, domestic and gas appliance. The web sites were visited and a few randomly chosen among those which had descriptions on alternative gas appliances for further contact. These companies were asked if they had more promotional activities for the alternative gas appliances. This discriminates the non-English speaking countries. German and Scandinavian gas company web sites were also visited.

Several gas companies show different residential gas applications on their web sites. It is basically descriptions of different options besides the space heating. A typical web site layout is shown in Figure 12. Each appliance is shortly described without any technical depth. One or two main advantages are mentioned, often related to the operating costs.

4 http://www.ncc.se/sv/OM-NCC/Press-och-Media/Aktuellt-pa-NCC-/Tanka-bilen-med-husets-gas/ and http://www.nccd.de/de/ueber-ncc/NCC_aktuell/Richtfest-fur-1-Erdgas.Haus-/ (In German)

260 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Figure 12: Typical gas company description of alternative gas appliances5

An alternative layout is found at the Australian company Envestra web site, Figure 13. The boxes around the window is clickable to give a more interactive dynamic impression. Each box contains a description, sometimes fairly extensive. The layout shows the various applications of natural gas in a home.

5 261 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Figure 13: Envestra web site6

A summary of promotion programs for space heating in North America /x/ shows that the gas distribution companies offer rebates to the customers who replace their old furnaces and boilers with new and more efficient appliances. Depending on the AFUE7 the rebate is US$ 100–400.

The gas distribution companies web sites often have information about gas appliances that can be regarded as alternative such as patio heaters, grill pool heaters etc. A few of these companies were contacted and asked if they also have had promotional activities targeted at these applications.

Terasen Gas in the Vancouver area has several brochures regarding the various types of gas appliances. The company does not provide any

262 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

financial incentives to increase the use of new appliances but includes occasionally bill inserts as promotion for gas appliances /terasen/.

Atlanta Gas Light has a web site where different home appliances are illustrated, see Figure 14.

Figure 14: Atlanta Gas Light web site, (http://www.algc.com)

263 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

The company has also developed the Gas AdvantageTM program. It has the following aims:

• Increase customer loyalty • Increase the number of appliances at each customer to keep the customers • Improve the company image, modern, forward thinking, reliable • Focus on residential and mass markets, age 24–54

The program was developed in the late 1990s as a result of deregulation and increased competition from other fuel sources. The components were for example web-based energy tools and an online appliance shop. The online shop web page can be seen in Figure 15. Atlanta Gas does not sell the appliances but cooperates with local retailers.

Figure 15: Atlanta Gas Light online shop

264 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Examples of American Gas Association (AGA) advertising can be downloaded8 at the AGA web site.

There are also examples of gas companies facing the same problem as the basis of/starting-point for this study. It is gas companies in areas where heating is not necessary. Examples are Hawaii and New Zealand.

Wanganui Gas is the smallest of the gas companies in New Zealand. It is the only gas company left in New Zealand that still sells appliances to the customer. The company claims that the advantage is seen in the statistics, which shows the highest number of connections per km. Subsidies from the network division is used to cut the price for gas water heaters or offer interest free credits. Gas water heaters are the main gas appliance in New Zealand and space heating is rare /Raybould/. The company occasionally promotes appliances such as patio heaters but they tend to be LPG fired. The reasons mentioned are that natural gas patio heaters are more expensive and require installation.

Another gas company with no customers using gas for space heating is The Gas company on Hawaii.

The ASUE (Arbeitsgemeinschaft für sparsamen und umweltfreundlichen Energiverbrauch) organisation in Germany has a web site which offers information on new natural gas fired energy efficient appliances. ASUE publishes a list of new appliances since 2000. The list contains appliance performance, price and data on the manufacturer and/or importer. It is one of the most information filled web sites regarding residential and new gas utilization.

265 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

E.ON Ruhrgas in Germany also has a fairly traditional description of the alternative and future gas technology in single family houses9. An example of the future gas utilization in a single family house is also shown. However, micro cogeneration is not mentioned in this picture of gas utilization in a future house despite the E.on Ruhrgas activities in for example fuel cell field tests.

Sweden has a relatively small natural gas grid and the situation is partly the same as in Denmark with low heating demand in new single family houses. The competition from heat pumps is also severe. The web sites show the following picture. The Swedish Gas Association gives only a brief general description of possible ways of using gas and the Swedish Gas Centre, responsible for the gas related research, has no text for promoting new residential gas applications. The transmission company Swedegas has a description of natural gas in industry, power generation and in vehicles. Among the distributions companies E.ON has examples of satisfied customers and that gas for vehicles cost less than petrol. Other distribution companies have no information about using gas for other residential application than space heating except one company which mentions patio heaters, grills and cooking as possible applications.

266 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

3.3 Questionnaire

A questionnaire was sent to members in IGU committee 5 “Gas utilization“ and Marcogaz in order clarify the international trends. The questionnaire was sent out in June 2007 and is found at the end of this report. Despite several reminders only 4 answers were received, from Germany, the Netherlands and United Kingdom. These answers may give a good picture of this restricted geographical region but are not enough for an adequate analysis on a global scale.

The answers indicate that most focus is put on the most gas consuming appliances, i.e. for space heating. The focus is put on micro cogeneration and also to some extent use of solar energy. (ej klar)

267 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

4 Danish perspective and possibilities

4.1 Input from a seminar At a seminar on small gas appliances at DGC in May 2007 the participants were asked to give their opinion on the use of small gas appliances. Different groups were asked to give answers and comments on: • What is limiting the use of small gas appliances? Spreading? • Who is responsible and what has to be done?

The answers and comments from two groups are summarised as follows:

Group A • Additional costs for the piping • The installers are not sellers • The white goods stores are not good sellers • Patio heaters and grills now! • Construction companies should offer pipe connections/outlets and space for gas piping • The gas distribution companies has to tell the installers about the new products • Installer should be educated already in the schools

Group B • Confusion about installation and sockets • Lack of clearness regarding the installation cost • Lack of clearness regarding approval • The gas distribution companies and Sikkerhedsstyrelsen are responsible for the installation • Subsidies (to the customer) for the installation part, for example installation of 2 or 5 meter piping.

268 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

5 Conclusions and recommendations

In this study alternative and innovative gas appliances and applications have been studied. Alternative appliances are defined as available today but have a limited use while the word innovative are used for appliances and applications that need some years of development before they can be in wide-spread use. The current alternative appliances such as gas cookers, patio heaters, barbeques and drying machines all have a limited gas consumption. These appliances belong to the lifestyle and are more visible for the customer. The future innovative gas applications such as micro cogeneration and vehicle fuel filling have significantly higher potential gas consumption. These applications are more connected to the building etc and are not as visible as the alternative appliances. Further, there seems to be a lack of knowledge regarding some social science aspects on energy use and attitudes towards the alternative and innovative gas appliances. This area has at least a significant academic activity but no studies regarding gas utilization has been found. Knowledge in this area may be a key factor for the marketing of new gas appliances.

From a Danish perspective should alternative gas appliances be installed in a few houses. The main purpose of this work is to evaluate the necessary work for the gas piping. Both new and old houses should be used and a discussion with the construction companies should be started to find ways of preparing new houses to gas piping.

The marketing part should include both the consumers and the installers and sellers. Importers should be encouraged to import new appliances and the consumers have to be aware of natural gas as a fuel for these appliances.

269 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

6 References /x/ Clausnitzer, Klaus-Dieter, Entwicklung des Gasverbrauchs von Einfamilienhäusern 1997 bis 2006, gwf-Gas/Erdgas, 149(2008), pp. 231–234

/x/ Corsten, Heinz-Dieter, Rundum versorgt – Komfortabel leben mit Erdgas im Haus, ASUE-Innovationstagung, Berlin May 5 2004

/x/ Wiesel, Herbert; Wein, Klaus and Jürgen Kosch, Chancen durch neue Erdgasanwendungen. Brücke zum Markt – Vertriebs- und Marketingstrategien für neue Produkte, ASUE-Innovationstagung, Berlin May 5 2004

/x/ Formanski, Thorsten, Ideen für die Zukunft. Neue Absatzmärkte durch neue Anwendungen und Technologien, ASUE-Innovationstagung, Berlin May 5 2004

/x/ Berg, Hans and Wolfhard Jording, Gasbeheizte Wäschetrockner. Eine neue Gasanwendung im Haushalt, gwf – Gas/Erdgas, 139(1998), pp 334–339

/x/ Report on Working Committee 5. Utilizations, 23rd World Gas Conference, June 5–9 2006, Amsterdam

/x/ Developing gas markets. Report of Programme Committee C, 23rd World Gas Conference, June 5–9 2006, Amsterdam

/x/ Declining Average Use of Natural Gas: Issues and Options for Canada’s Natural Gas Utilities. IndEco Strategic Consulting, December 2006, www.cga.ca

/x/ Return of Equity: Allowed Returns for Canadian Gas Utilities, Canadian Gas Association, May 2007, www.cga.ca

/x/ Stymne, Hans et al., NOx-källor, inomhusklimat och hälsoeffekter, SGC rapport 137 (In Swedish), December 2003, www.sgc.se

/x/ Natural Gas Program Summary. Residential space heating, Consortium for Energy Efficiency, June 2007, www.cee1.org

/x/ HNG (Greater Copenhagen Gas Company), www.hng.dk

/x/ Mofid, I., Fremtidig gasanvendelse i individuelle Parcelhuse, (In Danish) DGC 2007

/x/ http://www.enercomusa.com/pressreleases/022000_casestudy.pdf, 2002

/x/ e-mail communication, Jim Raybould, Wanganui Gas, New Zealand

270 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

Questionnaire Alternative and innovative residential gas appliances

This questionnaire has two purposes, firstly to investigate the use of natural gas fuelled appliances beside the traditional space heating, hot tap water and cooking appliances in various countries and secondly to investigate the work to develop new applications and technologies. They are called alternative and innovative gas appliances and the definition is given in the next section. The questionnaire is sent to members in the “Working committee 5.2: Residential and Commercial Utilisation” of the IGU and Marcogaz members. Residential gas utilization is divided into “Lifestyle” and “Building”, where the first category deals with appliances and function more connected with the human behaviour and daily life and called “Lifestyle”. The second category comprises appliances for the climate control (heating and cooling), and cogeneration. The content of the two categories are graphically explained on the following pages.

Instructions for completing the questionnaire The questionnaire is at the end of this file. The first column represents each of the boxes in the two figures. Short comments (often country specific) and links to papers or reports regarding each appliance are possible to include in the following two columns. The appliances are divided into the categories alternative and innovative. The definition of alternative is an appliance that is commercial and not in a widely use or in a prototype or field test stage. Innovative appliances need 5–10 years before they are considered commercial. The term innovative also include new technologies in existing appliances that substantially improve the energy efficiency or the handling, e.g. easy cleaning of cook tops. The situation in the current country is important and shall be the background for the box checked. This means that a certain appliance may be considered commercial in one country and considered innovative in

271 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

another country and needs further development activities. I have also included some possible appliances that I have not heard about and also included an empty line if yet another appliances not known to me exist or have been studied etc.

At the end of the questionnaire are four general topics, safety devices, remote control, labelling and conversion. These topics include all devices that may increase the safety in the gas lines, combustion or flue gas control and ease of handling etc. Labelling may include efficiency or other appliance characteristics that is subject to promotion. Conversion includes appliances that are specifically targeted for conversion, e.g. from electricity, and take certain characteristics into account.

272 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.4 Annex: Alternative and Innovative Gas Appliance (Per Persson)

Lifestyle

Cooking Hygiene/Leisure Laundry Outdoor/Gardening Transportation

Cooker Bath Washing machine Comfort heating Home filling Patio heaters etc

Oven Shower Tumble drier Lighting Electricity production for vehicles

Refrigerator/Freezer Sauna … Barbeque …

Individual kitchen Hot water Weed control appliances

Integrated kitchen Integration with Lawn mower energy system renewables

... Pool heater High pressure cleaning

… WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.4 Annex: Alternative and Innovative Gas Appliance (Per Persson)

Building

Heating Cooling Cogeneration Gas distribution

Central heating Mechanical drive Engines Piping

Warm air Thermal drive Internal combustion Connectors Thermally activated engines

Water … Stirling engines Meter reading etc

Integration with Fuel cells Safety devices ventilation

Integration with re- Low temperature, ... newables, e.g. solar PEM

Individual room High temperature, heating SOFC

Air Other cycles, steam and closed cycles

With decorative fire …

WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.4 Annex: Alternative and Innovative Gas Appliance (Per Persson)

Function/appliance Technical, economical, legislative Link, report etc and/or political pros and cons Commercial Prototype/ Field test Studied Discussed Not mentioned Alternative Innovative Lifestyle Cooking – cooker Concern at present that from 2016 all Not aware of any innovative appliances (UK1) new houses will have to be carbon free which will make these appliances obsolete in new homes. (UK1)

cons: - If gas socket is missing: Compa- Available products in Germany: (D) nies, who are building up kitchens, http://www.asue.de/ansicht/ansicht/firmen/show_entry.php?id=17 normally do not have the permission to install gas sockets. "gas-under-glas"-cookers are also available: (D) - Emissions in the room. (D) http://www.oranier.com/oranier_web/inhalt/kuechentechnik/stand/au sgabe_detail.php?id=13 Cooking – oven As above (UK1) As above (UK1)

cons: Cooking - ovens have the image to be complicate and not easy to reach the same temperature in the whole oven. (D) Cooking – individual As above (UK1) As above (UK1) kitchen appliances WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.4 Annex: Alternative and Innovative Gas Appliance (Per Persson)

not in houses - just in cars and cara- vans (D) Integrated kitchen energy No (UK1) No (UK1) X systems Hygiene/Leisure – bath No (UK1) X

see warmwater heating (D) Hygiene/Leisure – No (UK1) X shower see warmwater heating (D) Hygiene/Leisure – sauna No (UK1) Available products in Germany: (D) X http://www.asue.de/ansicht/ansicht/firmen/show_entry.php?id=11 Hygiene/Leisure – hot Solar water heating is fairly new in X X water the UK but a rapidly expanding market with great push from Govern- ment. Panels which are smaller and less intrusive are being developed (UK1)

see warmwater heating (D) WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.4 Annex: Alternative and Innovative Gas Appliance (Per Persson)

Function/appliance Technical, economical, Link, report etc legislative and/or political pros and cons Discussed Discussed Not mentioned Commercial Prototype/ Field test Studied Alternative Innovative Hygiene/Leisure – hot see Central heating – integration with X water integrated with renewables (D) renewables Hygiene/Leisure – Pool Once again solar panels to heat the x heating water as above (UK1) Laundry – Washing ma- cons: there is just one product on the German market: (D) X chine the manufacturers of washing ma- http://www.miele.de/de/haushalt/produkte/1141_8313.htm chines do not support the filling with warm water (D) Laundry – Tumble drier No (UK1) Available products in Germany: (D) http://www.asue.de/ansicht/ansicht/firmen/show_entry.php?id=24 Outdoor/Gardening – Growing market much to the concern Available products in Germany: (D) x Patio heaters etc of Government. Patio heaters really http://www.asue.de/ansicht/ansicht/firmen/show_entry.php?id=31 now starting to grow in popularity, mainly LPG however (UK1) Outdoor/Gardening – Only really in the commercial sector Available products in Germany: (D) X Lighting – gas lights in pubs or on streets http://www.asue.de/ansicht/ansicht/firmen/show_entry.php?id=10 (UK1) Outdoor/Gardening – Yes – growing in popularity (UK1) Available products in Germany: (D) x Barbeque http://www.asue.de/ansicht/ansicht/firmen/show_entry.php?id=5 Outdoor/Gardening – No (UK1) X weed control WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.4 Annex: Alternative and Innovative Gas Appliance (Per Persson)

Function/appliance Technical, economical, Link, report etc legislative and/or political pros and cons Discussed Discussed Not mentioned Commercial Prototype/ Field test Studied Alternative Innovative Outdoor/Gardening – No (UK1) X lawn mower Outdoor/Gardening – No (UK1) Available products in Germany: (D) X high pressure cleaning http://www.asue.de/ansicht/ansicht/firmen/show_entry.php?id=9 Transportation – home Was sold and promoted in the late Field test of PHILL FUELMAKER (D) filling 1990’s but died through government taxation changes in 2000’s. New Overview over new gasappliances under development: (D) agent for the UK appointed to sell http://www.transferstelle.info/seite/info/infodienst.htm Fuelmakers (UK1) cons: demand of el. Power (D) Transportation – electric- No (UK1) x ity production for vehicle batteries Central heating – warm Still many appliance in the UK. Some http://www.johnsonandstarleyltd.co.uk/default_a.asp (UK1) x x air new innovative appliances being developed by he sole manufacturer – Available products in Germany: (D) Johnson & Starley (UK1) http://www.asue.de/ansicht/ansicht/firmen/show_entry.php?id=32

not common in domestic, but in commercial buildings (D) WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.4 Annex: Alternative and Innovative Gas Appliance (Per Persson)

Function/appliance Technical, economical, legislative Link, report etc and/or political pros and cons Discussed Discussed Not mentioned Commercial Prototype/ Field test Studied Alternative Innovative Central heating – water High recovery hot water cylinders, http://www.gledhill.net/ (UK1) x x x condensing combi boilers (condens- http://albionwaterheaters.com/ (UK1) ing on DHW mode) and thermal stores. Thermal stores, direct and indirectly fired are increasing in popularity again following their fall from favour in the early 00’s (UK1) typical, a lot of systems available (D) Central heating – integra- Very little now. There is a heat re- http://www.johnsonandstarleyltd.co.uk/default_a.asp (UK1) x tion with ventilation covery unit for use with warm air heating (UK1) Central heating – integra- A few units with solar heating sys- New compact systems are available: (D) x x tion with renewables tems heating both hot water and CH. http://www.rotex.de/frameset.php?navstand=0001- Very much Niche and not main- 0006&linkzu=deutsch/allgemein_dt/Solaris.html?mnr=0001- stream yet (UK1) 0006&mt=d_bauh_reno&mt=d_bauh_reno&bild=navtitel_bau.gif&bil dpfad=deutsch/navigation_dt/&sprache=deutsch Individual room heating – There was aunit in the 1990’s which x air heated a room only by warm air (Robinson Willy Warmplan) but this has now gone (UK1) Individual room heating – No (UK1) Available products in Germany: (D) x with decorative fire http://www.asue.de/ansicht/ansicht/firmen/show_entry.php?id=25 WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.4 Annex: Alternative and Innovative Gas Appliance (Per Persson)

Function/appliance Technical, economical, Link, report etc legislative and/or political pros and cons Discussed Discussed Not mentioned Commercial Prototype/ Field test Studied Alternative Innovative Cooling – mechanical No (UK1) x drive Cooling – thermally acti- No (UK1) Available products in Germany: (D) x vated http://www.asue.de/ansicht/ansicht/firmen/show_entry.php?id=2 Cogeneration – internal Growing market and http://www.baxitech.co.uk/Baxi_Tech/BaxiTechWeb.nsf/index.html (UK1) x combustion engines known as Mini CHP. Available products in Germany: (D) http://www.asue.de/ansicht/ansicht/firmen/show_entry.php?id=18

Cogeneration – Stirling Two technologies developed for the http://www.stirlingengines.org.uk/manufact/manf/misc/whi.html x engines UK currently stalled. The Whis- (UK1) pertech unit is having a re-design and the Microgen unit development www.enatec.com (D) has been closed down although may www.whispergen.com (D) be resurrected. (UK1) Cogeneration – low tem- Under development in the UK by http://www.cerespower.com/ (UK1) x perature fuel cells CERES power. Great potential for this product (UK1) http://www.vaillant.de/Privatkunden/Zukunftsenergien/Entwicklung/ http://www.baxi-innotech.de Viessmann Werke AG (D) Cogeneration – high Little work in this area in public do- www.hexis.com (D) temperature fuel cells main (UK1) www.cfcl.com.au (D) WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.4 Annex: Alternative and Innovative Gas Appliance (Per Persson)

Function/appliance Technical, economical, Link, report etc legislative and/or political pros and cons Discussed Discussed Not mentioned Commercial Prototype/ Field test Studied Alternative Innovative Cogeneration – other Development of ranking cycle tech- www.otag.de (D) x cycles nology being investigated at present (UK1) Gas distribution – piping P E pipework the norm (UK1) Gas distribution – con- Not aware (UK1) nectors Gas distribution – meter Plans are afoot to try and introduce x reading smart meters. It is an aim of the Government to introduce over the next few years. (UK1) Gas distribution – safety A few products being developed to x devices cut off gas when escape or CO A The Guardian The Guardian Co & detected. (UK1) RCV.ppt Gas Detection.ppt (2xUK1) Miscellaneous Miscellaneous – safety devices Miscellaneous – remote Remote control heating systems has control been investigated by controls manufacturers, mainly Honeywell. (UK1) WOC 5 Trienium 2006-2009 Study Group 5.2 Report

7.4 Annex: Alternative and Innovative Gas Appliance (Per Persson)

Function/appliance Technical, economical, Link, report etc legislative and/or political pros and cons Discussed Discussed Not mentioned Commercial Prototype/ Field test Studied Alternative Innovative Miscellaneous – appli- SEDBUk has been a big success in www.sedbuk.com (UK1) ance labelling (effi- the UK in driving manufacturer devel- ciency, handling etc) opment, customer awareness and minimum standards for boiler efficiency (UK1) Miscellaneous – Remote British Gas has developed a remote http://www.britishgasnews.co.uk/index.asp?PageID=19&Year=2001 x diagnostics diagnostic system for boilers to moni- &NewsID=372 (UK1) tor operation and predict faults, identify faults when they occur and monitor the atmosphere around the appliance for safety (gas/CO). Technical trail rolled out commercial trail starting shortly. (UK1) Questionnaire answered Name: Organisation: e-mail: by Answers

Return the questionnaire to: Mikael Näslund, [email protected] Danish Gas Technology Center, DGC Dr Neergaards vej 5B DK-2970 Hørsholm Denmark not later than July 31, 2007