Natural gas and bio methane as fuel for transport r. strods

1. Bio/CNG off pipeline
solutions and economics
TEN-T Days 2015, Riga, Latvia

2. Scope regarding CNG:
 Appropriate number of CNG filling
points in urban/suburban and other
densly populated areas
 CNG filling point every 150 km along
the TEN-T core network corridors
Estimated Targets (Quantity):
 Example of well developed LPG fueling
infrastructure - 29 000 filling stations
for 6 M LPG vehicles
 NGV industry target - 15M NGVs by
2025, i.e. ~16 000 CNG stations
(Italian example: 900 NGVs per station)
 Expert Group of Future Transport fuels
- 10% of urban conventional stations &
25% of on-highway stations
Current CNG filling infrastructure
status: 3 200 CNG filling stations in EU
AFI Directive 2014/94/EU
TEN-T Days 2015, Riga. Presentation “Bio/CNG off pipeline solutions and economics”
Overlooked factor for consumer acceptance of CNG – Quality (Convenient Location)
Subject: Minimum requirements on alternative fuels infrastructure build up, to be implemented
through Member States’ national policy frameworks, EU common technical specifications and
Consumer information. *DIRECTIVE 2014/94/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the deployment of alternative fuels infrastructure

3. Leading EU CNG filling infrastructure countries
TEN-T Days 2015, Riga. Presentation “Bio/CNG off pipeline solutions and economics”
GERMANY
CNG filling stations infrastructure:
 No CNG stations on the highways and
motorways*
 In less densly populated areas the stations are
not located in the most convenient places, as
they are tied to existing gas distribution grid
Market Status:
 920 CNG filling stations
 98 000 NGVs
 Only ~110 NGVs per station
ITALY
CNG filling stations infrastructure:
 ~50 CNG stations located on the highways and
motorways
 Recent stations were deployed in the most
optimal locations from the traffic-related point
of view**
Market Status:
 990 CNG filling stations
 885 000 NGVs
 ~900 NGVs per station
Competitive Price + Convenient Location + Stablity.
Required combination for consumers to adopt CNG as mainstream alternative fuel.
*Michael Schaarschmidt, Erdgas-mobil GmbH
**Flavio Mariani (NGV Europe)
***NGVA Europe (vehicle and station statistical data)

4. Snapshot of TEN-T North Sea-Baltic corridor
TEN-T Days 2015, Riga. Presentation “Bio/CNG off pipeline solutions and economics”
For the deployment of appropriate CNG filling infrastructure (Quantity and Quality)
off-grid CNG solutions will play an important role and will be the part of the market opportunity
TEN-T ROAD NETWORK* GAS PIPELINE NETWORK &
LNG TERMINALS**
MAJOR BIOGAS PLANTS***
*http://ec.europa.eu/transport/themes/infrastructure **European network of transmission system operators for gas ***Latvian Biogas Association, Biogas plants with capacity >2 MW

5. Off-grid CNG filling infrastructure (Virtual Pipeline)
TEN-T Days 2015, Riga. Presentation “Bio/CNG off pipeline solutions and economics”
Gas Source > Compression > Transportation > Unloading > Compression/Filling
(Gas Sources: pipeline, biomethane plant, LNG vaporizer, synthetic gas)
Compression & Loading Transportation Unloading & Final ConsumerGas Source
1 2 3 4
*Regulatory implications of new developments in the gas supply chain, Final Report 2014 (Submitted by Kantor)

6. Off-grid LCNG filling infrastructure
TEN-T Days 2015, Riga. Presentation “Bio/CNG off pipeline solutions and economics”
LNG Source > Transportation > Unloading > Storing > Regasification
(Source: LNG import terminal, existing liquefaction plant or small scale NG/Bio liquefaction plant)
Compression & Loading Transportation Unloading & Final ConsumerGas Source
1 2 3 4
Existing LNG import terminal
Unloading facility
LNG Storage
Existing liquefaction plant
LNG train
LNG Storage
Small scale liquefaction
plantTransmission system
Stranded gas reserves
LNG Storage
*Regulatory implications of new developments in the gas supply chain, Final Report 2014 (Submitted by Kantor)

7. Compression & Loading Transportation Unloading & Final ConsumerGas Source
1 2 3 4
TEN-T Days 2015, Riga. Presentation “Bio/CNG off pipeline solutions and economics”
GasLiner – Multifunctional CNG off-grid solution
REGULAR OFF-GRID CNG SUPPLY CHAIN
Gas Source > GasLiner > CNG Filling Station
Cuts the regular CNG supply chain. Brings down CapEx significantly. Decreases OpEx.
CNG
filling station
GASLINER OFF-GRID CNG SUPPLY CHAIN

8. TEN-T Days 2015, Riga. Presentation “Bio/CNG off pipeline solutions and economics”
GasLiner – Tested and Proven in Pilot Project
VIDEO AVAILABLE ON: WWW.GASLINER.COM

9. Pilot Project: TEN-T, North Sea - Baltics, Latvia
TEN-T Days 2015, Riga. Presentation “Bio/CNG off pipeline solutions and economics”
8 CNG filling points will be deployed along TEN-T core corridor.
Remote CNG filling points ensures the convenient fueling locations for drivers.

10. Pilot Project: TEN-T, North Sea - Baltics, Latvia
TEN-T Days 2015, Riga. Presentation “Bio/CNG off pipeline solutions and economics”
Virtual pipeline CNG supply for remote CNG filling points.
Daily route = 4h. Filling time of each station storage = 30 min.

11. Pilot Project: Estimated Economics
TEN-T Days 2015, Riga. Presentation “Bio/CNG off pipeline solutions and economics”
C
Total off-grid CNG filling infrastructure cost per nm3 or kg along the TEN-T core corridors
with GasLiner as virtual pipeline solution is 0,30 EUR/nm3 or 0,42 EUR/kg.
CapEx: 70 000 EUR/y (10y amortization, financed by dept)
OpEx: Electricity exp. 88 000 EUR/y (0,35 kwh/m3)
Staff exp.: 45 000 EUR/y (9 man h/day)
Maintenance exp.: 34 000 EUR/y (5%from CapEx/y)
The cost of fuel: 19 000 EUR/y (300 km/day, DF)
Cost of debt capital: ~15 000 EUR/y (4%)
Operator Net Margin: ~ 90 000 EUR/y
Amount: 6400 nm3/day(15h compression, 8h transportation)
0,19 EUR/nm3 or 0,266 EUR/kg
CapEx: 8 000 EUR/y (10y amortization, financed by dept)
OpEx: Electricity exp. 800 EUR/y (0,025 kwh/m3)
Maintenance exp.: 4 000 EUR/y (5% from CapEx/y)
Cost of debt capital: 1 900 EUR/y (4%)
Operator Net Margin: 9 000 EUR/y
Amount: 800 nm3/day (fully utilized)
0,11 EUR/nm3 or 0,154 EUR/kg
CNG
filling station
CNG
filling station

12. Pilot Project: Estimated Economics
TEN-T Days 2015, Riga. Presentation “Bio/CNG off pipeline solutions and economics”
CCost breakdown of GasLiner virtual pipeline (compression, transportation, unloading)
and GasCharger CNG filling station module (storage and dispensing) per nm3 of CNG
0.039
0.020
0.015
0.008
0.029
0.007
0.035
0.038
Electricity
expenses
HR
expenses
Maintenan
cecosts
Transport
ationfuel
expenses
Debt
capital
Costof
debt
capital
GasLiner
PPUFee
NetCash
Flow(w/o
CT)
0.003
0.014
0.028 0.007
0.028
0.032
Electricity
expenses
Maintenance
costs
Debtcapital
Costofdebt
capital
GasLiner
PPUFee
NetCash
Flow(w/o
CT)
0,19EUR/nm3
0,11EUR/nm3

13. Sustainability: Conventional vs CNG vs BioCNG
TEN-T Days 2015, Riga. Presentation “Bio/CNG off pipeline solutions and economics”
Natural Gas cleans the air in the cities. Biomethane (renewable CH4) decarbonizes the Planet.
Off-grid CNG supply chain allows to switch from Natural Gas to Biomethane overnight.
Compared to Diesel:
 No PM Emissions
 60% reduction of NOx
Compared to Gasoline:
CO2 Emission Comparison:
*Regulatory implications of new developments in the gas supply chain, Final Report 2014 (Submitted by Kantor)

14. Off-grid CNG vs Diesel (price comparison)
TEN-T Days 2015, Riga. Presentation “Bio/CNG off pipeline solutions and economics”
The minimal economic value required for consumer to switch to CNG is 30%.
The usage of Biomethane leaves consumer without sufficient value for switching the fuels.
GAS SOURCE:
NATURAL GAS FROM PIPELINE
GAS SOURCE:
BIOMETHANE PLANT
1,200
0,440
0,190
0,110
0,100
0,176
EUR 0,00
EUR 0,20
EUR 0,40
EUR 0,60
EUR 0,80
EUR 1,00
EUR 1,20
Diesel BioMethane Virtual
pipeline
Filling
Station
Module
Excise Tax VAT
1,200
0,301
0,190
0,110
0,100
0,147
EUR 0,00
EUR 0,20
EUR 0,40
EUR 0,60
EUR 0,80
EUR 1,00
EUR 1,20
Diesel NG Virtual
pipeline
Filling
Station
Module
Excise
Tax
VAT
-30% -15%
*Latvian Biogas Association, Biogas plants with capacity >2 MW
*

15. Off-grid CNG vs Diesel (price comparison)
TEN-T Days 2015, Riga. Presentation “Bio/CNG off pipeline solutions and economics”
C
GAS SOURCE: BIOMETHANE PLANT (POLICY)
1,200
0,440
0,190
0,110
0,000 0,000
EUR 0,00
EUR 0,20
EUR 0,40
EUR 0,60
EUR 0,80
EUR 1,00
EUR 1,20
Diesel BioMethane Virtual pipeline Filling Station
Module
Excise Tax VAT
-35%
*Latvian Biogas Association, Biogas plants with capacity >2 MW
*

16. Off-grid CNG Technologies Roadmap
TEN-T Days 2015, Riga. Presentation “Bio/CNG off pipeline solutions and economics”
The kick-off should be supported by CapEx and Opex efficient, flexible,
versatile and fast to deploy off-grid CNG solutions that works in small scale.
• Large scale (Liquefaction
economically feasible)
• Uses established on-grid
and off-grid infrastructure
for Biomethane and
Synthetic gas distribution
to existing filling points
• Smaller scale
• CapEx efficiency
• Opex efficiency
• Fast to deploy
• Preferable usage of the cheapest
gas source – Natural Gas from the
pipeline
• Larger scale
• Convenience and synergy with
established LNG supply chain
(LCNG solutions for CNG deployment)
• Introducing Biomethane and Natural
Gas mix in appropriate scale. Piloting
Synthetic gas (power-to-gas).
2020 2025 2030Today
Natural Gas
Biomethane
Natural Gas & Biomethane mix

17. CONTACT INFO:
Robert Strods/Co-Founder/
E-mail: robert@gasliner.com
www.gasliner.com
Thank you