I just ran across British Columbia's new provincial natural gas strategy, which includes a specific strategy for expanding liquefied natural gas (LNG) production as a way to mitigate global climate change. That might sound odd to those who are worried--unnecessarily--that gas might be even worse than coal, emissions-wise, but the province seems to have a good grasp of the benefits of replacing coal combustion in Asia with cleaner fuels like natural gas. They've also come up with a unique selling point for their LNG, on the basis that it would be produced using low-emissions electricity and thus have an emissions edge over other LNG sources. Whether this will confer an advantage on B.C.'s LNG by enabling it to collect a premium or capture a larger share of rapidly growing global LNG trade remains to be seen.
This story caught my eye because it fit neatly with one theme of a webinar in which I recently participated at The Energy Collective. Although most greenhouse gas emissions from fossil fuels occur at the point of combustion in a car, truck, plane, train, ship or power plant, the upstream emissions aren't insignificant and can be reduced in some cases by employing renewable energy in their production. Examples I cited in the webinar included an enhanced oil recovery demonstration project in California that employs concentrated solar power to produce some of the steam used to extract oil from an old oil field, and another project to extract geothermal energy from hot fluids brought to the surface as part of the oil production process.
The case that B.C. makes for reducing greenhouse gas emissions from LNG production by relying on the province's bountiful hydro- and wind power resources is a different application of the same principles. That's because whether the energy for cooling billions of cubic feet per day of natural gas to its liquefaction temperature of -162ºC comes from a local electricity grid or from burning some of the gas in a dedicated cogeneration facility, in most locations this adds significantly to the lifecycle emissions of the LNG. One study that I found on the California Energy Commission's site, produced by PACE Consultants, indicates that liquefaction accounts for around 10% of the lifecycle emissions of LNG converted to electricity in an efficient gas turbine power plant. Eliminating those extra emissions by powering a liquefaction plant with green electricity would bring the emissions from LNG much closer to those from pipeline natural gas and increase its advantage versus coal.
So now what B.C.'s LNG projects need is customers in Asia who will put a premium on "cleaner LNG"--presumably in countries that have committed to large greenhouse gas emission cuts that they can't achieve with indigenous fuels. Japan comes to mind, but I'm sure there are others. These customers would also have to be willing to deal with the longer voyage times from Kitimat, northern B.C. to Asia, compared to competing projects in Australia. That extra 1,000 miles or so translates into higher freight costs and a larger tanker fleet, along with somewhat higher emissions from transportation--though not enough to negate the liquefaction advantage. With so many new and expanding LNG projects around the world competing for market share, I'll be very interested to see whether B.C.'s new strategy pays off.
British Columbia Aims to Sell Cleaner LNG
Authored by:
Geoffrey Styles
Geoffrey Styles is Managing Director of GSW Strategy Group, LLC, an energy and environmental strategy consulting firm. Since 2002 he has served as a consultant and advisor, helping organizations and executives address systems-level challenges. His industry experience includes 22 years at Texaco Inc., culminating in a senior position on Texaco's leadership team for strategy development, ...
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Jim Baird says:
Geoff, gas is better than coal is as weak an argument as it gets.
Alberta's oil sands have been described as Alchemy in reverse, turning a "clean" energy source, natural gas, into dirty oil.
Using hydro to produce LNG falls into the same category.
At a conference on Enhanced Ocean Upwelling last month, Gerard Nihous of the Hawaii Natural Energy Institute, University of Hawaii, ventured the maximum possible number of 100 MW OTEC power plants capable of being supported by our oceans is half a million. (this would be the sustainable equivalent of of 750 million barrels of oil per day or 55,000 Site C dams)
Conventional OTEC has been impeded by the size and cost of the pipes required and environmentally by the volume of water these pipes move.
These problems are overcome by BC developed technology that reduces the size of OTEC infrastructure by as much as 900% - 1 meter pipes compared to 10 meters, increases the thermodynamic efficiency of the process by transferring heat through phase changes rather than in fluids and maximizes energy potential while limiting environmental impact by recirculating heat in a closed system back to the surface rather than dumping it to the depths.
Deepwater Structures Inc of Houston, Texas offers a 100 MEGAWATT OTEC platform based on a heat pipe similar to GWMM OTEC at $450 million USD.
The projected cost of BC’s 900 megawatt Site C Dam is $8 billion or nearly twice as much as the state-of-the-art in OTEC technology. BC has the opportunity to meet the global demand for sustainable energy but its government is enthralled and supported by the status quo.
Geoffrey Styles says:
Jim,
Unfortunately we can't bottle up B.C. hydropower and ship it to Japan. However, just as burning abundant Canadian natural gas to extract liquid fuels from oil sands is more environmentally friendly than burning part of the bitumen to do the same thing--as is routinely done in heavy oil extraction when gas isn't available--leveraging LNG with clean electricity has real benefits, provided the generating capacity is available or any new capacity needed to backfill for other demand is as clean.
I also look forward to seeing OTEC pass its development hurdles and become mainstream, but until it does, I'm not sure I see how it's relevant to B.C.'s options for its gas exports.
Jim Baird says:
Geoff, BC has less than 5 weeks to secure the intellectual property rights to technology that makes OTEC both affordable as well as unlimited. The key is recovering the latent heat of condensation and returning it to the surface, the same way as a hurricane does. This makes the ocean’s energy potential boundless and thus BC could provide not only Japan’s needs but everyone else’s.
BP has said that consumption of wind power, solar electricity and biofuels will grow at a faster pace than demand for fossil fuels in the next 20 years as nations seek to meet rising energy needs without adding to carbon emissions and therefore the smart course of action for this province is to pursue the fastest growing energy sector as I pointed out in a recent Times Colonist OpEd.
And by the way, I doubt that the Haisla First Nation, who have been sold on LNG, are clear on the consequences of a BLEVE in either a tank farm, freighter or both or the likelihood of such and event in a highly prone earthquake area.
Scott Edward Anderson is a consultant, blogger, and media commentator who blogs at The Green Skeptic. More »
Christine Hertzog is a consultant, author, and a professional explainer focused on Smart Grid. More »
Gary Hunt Gary is an Executive-in-Residence at Deloitte Investments with extensive experience in the energy & utility industries. More »
Jesse Jenkins is a graduate student and researcher at MIT with expertise in energy technology, policy, and innovation. More »
Jim Pierobon is the former Chief Energy & Correspondent at the Houston Chronicle, a consultant and blogs at TheEnergyFix.com More »
Geoffrey Styles is Managing Director of GSW Strategy Group, LLC and an award-winning blogger. More »
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