Jeff Reed, Southern California Gas Company The Promise of Renewable Gaseous Fuels June 24, 2015 DOE Bioenergy Summit
Jeff Reed, Southern California Gas Company
The Promise of Renewable Gaseous Fuels
June 24, 2015
DOE Bioenergy Summit
2 2
Southern California Gas Company
» The nation’s largest natural gas distribution utility 20.9 million consumers 5.8 million meters 500 communities
» Subsidiary of Sempra Energy (SRE)
» Affiliated with SDG&E
» Leader in customer satisfaction,
pipeline safety and environmental solutions
NOx is a Unique Challenge for SoCal
Over 80% of Southern California is in “Extreme” non-attainment areas for meeting federal ozone standards:
3
Source: US EPA Green Book, 8-Hour Ozone Nonattainment Areas (2008 Standard), published 7/31/2013.
1 Air Quality Management District (AQMD)
(1)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2015 2020 2025 2030 2035 2040 2045 2050
Rem
aini
ng E
mis
sion
s R
elat
ive
to 2
010
Need 80%+ Reductions in Both NOx and GHG
4
2050 California Air Resources Board Statewide GHG
Target Statewide GHG
80 ppb ozone standard (2)
75 ppb ozone standard (2)
Projected Statewide GHG reduction
SCAQMD co-benefit NOx reduction from statewide GHG program (1)
SCAQMD needed reduction to meet federal ozone standards (1)
1 South Coast Air Quality Management District (SCAQMD) 2 parts per billion (ppb)
Methane as a transportation fuel can address 2050 goals through total vehicle system improvements and RNG fuel blends
5
ADVANCED
AFTER-TREATMENT
Low-Pressure
Conformable Fuel Tanks
Pressure swirl atomization Pressure swirl atomization Pressure swirl atomization
Renewable Natural Gas
Renewable Natural Gas is a necessary part of the path to 2050
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Petroleum Fuels
Compressed Natural Gas & Liquefied Natural Gas
2050 Goal GH
G e
mis
sio
ns
(fro
m 1
99
0 le
vels
)
7
NGV Efficiency Improvements --Aerodynamics, Advanced Engines, and Hybridization
Renewable Natural Gas/ Hydrogen Blends
Natural Gas Vehicles (NGV)
Fuel economy improvement will be critical for all vehicle platforms -- Natural Gas platforms have similar fuel economy potential to diesel platforms
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Fuel Economy Contributor
Highway Urban Vocation
Engine 15% - 20% 15% - 20%
Hybridization 10% 30% - 35%
Aerodynamics 12% 0% - 6%
Transmission 7% 4%
Rolling Resistance 11% 2% - 3%
Weight 1% 1% - 4%
Breakdown of Energy Loss for Long Haul Sources of Fuel Economy Improvement
Source: National Petroleum Council Source: Department of Energy “Super Truck” program
Vehicle economics and fuel price have the potential to meet emissions goals without the need for long-term subsidies
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Long Haul Heavy Duty Truck Prices (2015$)
Total Vehicle Price
LNG + Compression Ignition (HPDI)
CNG + Spark Ignition
Diesel
Sources: NPC and GNA; internal estimates for NOx control
Renewable and zero-carbon pathways are key Natural Gas w/ CCUS Organics Conversion Power-to-Gas Artificial Photosynthesis
Anaerobic Digestion Thermo-chemical Electrolysis
Renewable Natural Gas Hydrogen
Reformation
Methanation CO2
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We Can Deliver Natural Gas Virtually Anywhere in SoCal
N
S
EW
LINE 235
LINE 335
LEGEND
NOT TO SCALE
RECIPROCATING COMPRESSOR STATION
CENTRIFUGAL COMPRESSOR STATION
PRESSURE LIMITING STATION
STORAGE FIELD
4/00
PACIFIC GAS & ELECTRIC
LINE 225
LINE 235
LINE 4000
ALISOCANYON
HONORRANCHO
KERN RIVERSTATION
WHEELERRIDGE
(680 MMCFD)
GOLETA
PLAYADEL REY
KERN/MOJAVE
ADELANTO
VENTURASTATION QUIGLEY
DANAPOINT
YORBA
KELSO
COLO
RADO
RIV
ER
LINE 235
LINE 3000
KERN
CALIFNEV
NORTHNEEDLES
(750 MMCFD)
TOPOCK(540 MMCFD)
MOJAVE
TRANSWESTERN
EL PASO
SAN DIEGO
DESERTCENTER
BLYTHE(1210 MMCFD)
ARIZONA
EL PASO
LINE 2001LINE 5000
LINE 1030
Southern California Gas Company Facilities
GREATER LOS ANGELESMETROPOLITAN AREA
MORENOSTATION
LIN
E 6
902
LIN
E 6
000
CHI NO
LINE 2000
LINES 3000, 3003, 3008, 1180, 1181, 1192
LINE 1185
LINE 4002
LINE 85
LINE 119
LINE 800
LINE 7000LINE 7039
LINE 7200
NEWBERRY
LIN
E 6
903
LINES 1003,1004,1005
LINE 1010
LINE 247
CACTUSCITY
LINES 404/406
LIN
E 6
900
LIN
E 1
028
LIN
E 1
027
LINE 2000
LINE 5000LINE 2001
TRANSMISSION BACKBONE
HECTOR RD.(50 MMCFD)
COASTAL SYSTEM(120 MMCFD)
VALLEY SYSTEM(150 MMCFD)
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Vast Storage Infrastructure – Months of Capacity
Southern California Storage Resources
Goleta
Playa Del Rey Honor Rancho
Aliso Canyon
Bio-derrived RNG is the low-cost pathway – energy crops offer further potential
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In-state resources only, 50% resource conversion, no energy crops
0 50 100 150 200 BCF/yr
2020 RNG Supply Potential Right side of the stack becomes wider and less expensive over time
52
47
35 (-33%)
17 (-63%)
0
10
20
30
40
50
60
70
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
NO
x Em
issi
on
s (t
pd
)
Ve
hic
le P
op
ula
tio
n
NZE NGV (0.02 g/hp-hr NOx)Conventional NGV (0.2 g/hp-hr NOx)DieselGasolineReference NOxRemaining NOx (Scenario)
Note: 1. Analysis includes T7 Drayage, T7 Single, T7 Solid Waste Collection Vehicle, T7 Tractor, T7 Tractor Construction, T7 Agriculture, T7 Single Construction, T7 Public, T7 Utility, T7 IS, T6 Instate Heavy, T6 Instate Small, T6 Utility, T6 Public, T6 TS, T6 Agriculture, T6 Instate Construction Heavy, T6 Instate Construction Small, LHDDT, and LHDGT. 2. Maximum incentives range from $15,500 - $35,000/Truck depending on the vehicle type and engine size 3. Assumed penetration rates after the incentive period ends remain at the 2023 level due to some mechanism 4. Incentive Program ends in 2023; post-2023, mechanism maintains new sales penetration of NZE NG trucks at 2023 levels
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Major Nox co-benefit potential