Biopropane: Feedstocks, Feasibility and our Future Pathway Prepared for Liquid Gas UK September 2019 Release Date: September 2019 Authors: Lucy Hopwood Lead Consultant, Bioenergy & Anaerobic Digestion Edward Mitchell Consultant Sotirios Sourmelis Consultant Disclaimer While NNFCC considers that the information and opinions given in this work are sound, all parties must rely on their own skill and judgement when making use of it. NNFCC will not assume any liability to anyone for any loss or damage arising out of the provision of this report. NNFCC is a leading international consultancy with expertise on the conversion of biomass to bioenergy, biofuels and biobased products. NNFCC, Biocentre, Phone: +44 (0)1904 435182 York Science Park, Fax: +44 (0)1904 435345 Innovation Way, Email: [email protected] Heslington, Web: www.nnfcc.co.uk York, YO10 5NY Contents Executive Summary ...................................................................................................................................................................... 5 Glossary of key terms .................................................................................................................................................................. 6 1 Introduction .......................................................................................................................................................................... 7 2 Market Opportunities ....................................................................................................................................................... 9 2.1 Current LPG market overview................................................................................................................................... 9 2.2 Residential and Commercial Heating .................................................................................................................. 11 2.2.1 Relevant Policies .......................................................................................................................................................... 12 2.2.2 Opportunity ................................................................................................................................................................... 13 2.2.3 Impact Assessment ..................................................................................................................................................... 15 2.3 Residential and Commercial Cooking ................................................................................................................. 16 2.3.1 Relevant Policies .......................................................................................................................................................... 17 2.3.2 Opportunity ................................................................................................................................................................... 17 2.3.3 Impact assessment ..................................................................................................................................................... 18 2.4 Transport ........................................................................................................................................................................ 18 2.4.1 Shipping .......................................................................................................................................................................... 18 2.4.2 Aviation ........................................................................................................................................................................... 19 2.4.3 Road vehicles ................................................................................................................................................................ 19 2.4.4 Non-road vehicles ....................................................................................................................................................... 22 2.4.5 Impact assessment ..................................................................................................................................................... 22 2.5 Industrial Process Use and Chemicals ................................................................................................................. 22 2.5.1 Opportunity for biopropane ................................................................................................................................... 23 2.6 Biomethane spiking for grid injection ................................................................................................................ 24 3 Supply and Distribution Overview ............................................................................................................................. 26 4 Biopropane Supply Chain Review .............................................................................................................................. 30 4.1 Technology Review ..................................................................................................................................................... 31 4.1.1 Hydrotreated Vegetable Oil (HVO) ...................................................................................................................... 31 4.1.2 Gasification with Fisher-Tropsch synthesis ....................................................................................................... 33 4.1.3 Methanol to Gasoline (MTG) gasification .......................................................................................................... 34 4.1.4 Dimethylether (Bio-DME) as an intermediate of the MTG process ......................................................... 34 4.1.5 Dehydration of Glycerol to Biopropane ............................................................................................................. 35 4.1.6 Pyrolysis and Hydrogenation ................................................................................................................................. 35 4.1.7 Hydrothermal Liquefaction (HTL) ......................................................................................................................... 36 4.1.8 Aqueous phase reforming (APR) ........................................................................................................................... 37 4.1.9 Fermentation of sugars to isobutene .................................................................................................................. 38 5 Feedstock Overview ........................................................................................................................................................ 39 5.1 Feedstock requirements for active & planned developments .................................................................. 39 5.2 Feedstock supply risks............................................................................................................................................... 40 6 Deployment Potential ..................................................................................................................................................... 43 6.1 Biopropane production opportunities ................................................................................................................ 43 6.2 Impact assessment ..................................................................................................................................................... 44 6.2.1 Heat .................................................................................................................................................................................. 44 6.2.2 Transport ........................................................................................................................................................................ 46 6.3 Deployment pathway ................................................................................................................................................ 47 6.4 Action Plan ..................................................................................................................................................................... 49 6.5 Investment Opportunities ........................................................................................................................................ 49 6.5.1 SWOT analysis for investors .................................................................................................................................... 50 7 References ........................................................................................................................................................................... 51 Appendix 1: Technology Factsheets ................................................................................................................................... 54 Hydrotreated vegetable oil (HVO) ....................................................................................................................................... 54 Gasification and Fischer-Tropsch Synthesis ..................................................................................................................... 56 Methanol to Gasoline (MTG) gasification ......................................................................................................................... 58