UK Green Gas Day - the role of biopropane to decarbonise off-grid homes and businesses - Duncan Carter - Corporate Affairs Manager - CNG Services
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UK Green Gas Day - the role of biopropane to decarbonise
off-grid homes and businesses
Duncan Carter – Corporate Affairs Manager
9th September 2021
Decarbonising off-grid heat – meeting the challenge
Off-grid going first, but not the easiest:
• There are 2 million rural properties off-gas
grid. c4.6m people.
• They use a range of fuels: heating oil, solid
fuel, LPG and direct electric.
• More hard-to-treat homes: uninsulated
solid or stone-walls, poor connections to the
energy system
• A mixed technology approach with a range
of low-carbon choices should be adopted
Options are needed for these properties – we might
not need to “rip out” every home’s gas boiler
What is BioLPG? • A propane molecule (C3H8) derived from non LPG industry commitment to fossil sources 100% BioLPG by 2040 • Direct drop in replacement for LPG, no changes to boilers or delivery infrastructure • Currently a coproduct of biodiesel and SAF production (HVO) • Perfect partner with heat pump in hybrid system (HHGB vision paper launch event 6 October) • CCC and National Grid ESO 10/09/2021
Rural first? Government pursuing rural first approach to fossil fuel phase out starting 2026 off grid vs. 2040 (?) on grid BUT… Rural households won’t benefit from economies of scale and supply chain efficiencies from HP mass rollout Government support for green gas for heating on grid (biomethane, H2), but nothing for BioLPG Absence of consumer testing: Electrification of Heat Demonstration project excludes retrofit costs >£5k
Or ‘heat pump’ ready first?
Better? “start with the easiest not the hardest” to create the
volume (Greg @ Octopus)
A ‘heat pump ready’ first, not rural first will:
- Allow supply chain efficiencies and installer skill base to
increase before tackling harder, more expensive homes
- Be fairer on rural communities
- Increase the chance of 600k HPs by 2028 happening
Homes BioLPG could help – lowest technology cost
analysis
Mrs Smith lives in a detached home, with no major
renovations that was built pre-1918. She heats the home
with an old oil boiler that needs replacing.
Mrs Smith’s home is representative of the most common
archetype (16%) currently using heating oil in England.
Mrs Smith’s home is large, with a floor area of 198m2
Which typical energy efficiency It would cost an estimated £31,690 to make
improvements could be made to this Mrs all these improvements with a heat pump.
Smith’s homes?
1. Loft insulation
It could take more than 2-3 weeks of research,
2. Solid wall insulation supplier contact, preparation, installation and clean-up
time to install an ASHP and SWI in Mrs Smith’s home
3. Double-glazing
4. PVC door
*utilised English Housing Survey to develop over 50 rural housing archetypes
https://www.ecuity.com/wp-content/uploads/2020/12/Ecuity_Off-Grid-Heat-Decarbonisation-Pathways-compressed-1.pdfHeat pumps cost effective for the majority - 56% of oil
heated homes
But 59% of these
households may not be 44%
47%
able to afford the upfront
costs
9%
Current Oil Heated Homes – Consumer Cost Perspective
Hard to Treat Retrofit Candidates Suitable for Immediate ElectrificationRegulatory and policy support needed
• Industry commitment not currently met by regulatory
support from Government, which suppresses
innovation
• BioLPG must be included in SAP – industry working
group reporting back to BEIS is vital next step
• French and German regulation already recognises
BioLPG
• EU has recognised LPG alongside natural gas in the
Energy Taxation Directive acknowledging this
transition role
• LGUK has commissioned study into BioLPG incentive
mechanismsOff-grid heating should be targeted sector
for UK’s limited biomass stocks
Abatement Cost of Each Heating Option Compared to Oil
• Priority use of biomass should be used
where alternatives are high cost 350
294
300
• Some hard-to-treat homes, bioLPG can
250
produce significantly lower abatement
Abatement Cost (£/tCO2)
197
costs than alternative decarbonisation 200
technologies 150
144
106
100
• Synergy with SAF development as 54
aviation has limited decarbonisation
50
options; with bioLPG as a co-product 0
Heat pump without Heat pump with retrofit Direct Electric with BioLPG without retrofit Biomass without retrofit
retrofit retrofit
10/09/2021 │ Calor meeting with BEISUK: SAFs and BioLPG for rural heat – a perfect partnership
• UK has identified SAF production as a Year UK SAF BioLPG
Net Zero priority for aviation (Estimated Million ( SAF x 0.05)
Tonnes Mt)
• BioLPG is a co-product from current SAF (source: Sustainable
Aviation – Fuels Road-
production & can enhance bioresource map report -
2019Sustainable Aviation
and capex efficiencies – Fuels Road-map report –
2019)
• We are already proving this in our
partnership with SkyNRG. 2035 1.0Mt 50,000 tonnes
• Active R&D into additional high yield
pathways eg Aston University using 2040 1.6Mt 80,000 tonnes
butyric acid
2050 4.5Mt 225,000 tonnes
~ equivalent to current rural domestic
heating LPG market
10/09/2021rDME – new low carbon liquid fuel
SHV Energy & UGI Joint Venture; £1bn
global investment
6 production plants over 5 years
UK JV with Kew Technologies for FOAK
plant
• renewable and recycled carbon
feedstock
• 50 kilotonnes of rDME per year
10/09/2021 │ Presentation titleThe future of heat in off-gas grid UK
Diverse and decarbonised
BioLPG is not the single answer, but neither is electrification or any other technology.
Choice, not mandate
Options that are suitable for homeowners dependant on their situation (financial,
physical and property)
Affordable and achievable
To achieve conversion for all homes in 30 years needs financial support, available
equipment and a workforce to deliver – which needs a range of solutions.
Equal status
This is not a test bed to trial systems for the rest of the UK.
2 millions diverse homes are not “no regret” or “low hanging fruit” – we need to get them
right for the policy to work for everyone.Thank you.
dcarter@calor.co.ukYou can also read
