The proposed project meets the scope objectives of Innovation Challenge 4 (heat) as a successful programme will significantly reduce gas network constraints (namely loss of energy in transport through process gas emissions) facilitating cost effective, low carbon heating solutions via a Net Zero National Transmission System (NTS). The project will take a selected technology through project design and delivery, leading to a proof-of-concept trial installation on a live NTS site under future SIF Alpha and Beta phases. Through a trial period, we would seek to understand the benefits, risks and challenges of operating process capture technology, ahead of a full network-wide roll out as business as usual (BAU).
The proposed team has the required experience and capability to deliver the project, comprising at Discovery stage of:
- National Grid Gas (NGG) (partner / lead organisation). NGG is a heat network infrastructure provider and is the only licensed gas Transmission Network Operator (TNO) in the UK. NGG is challenged with solving the identified constraints to facilitate a network capable of providing cost effective low carbon heating solutions. NGGT is uniquely placed to trial and prove a technology solution in a UK context with its range of assets, sites and operating experience.
- PESL (Sub-contractor). PESL (lead delivery partner for CH4RGE NIA) has specialist experience in rolling out cost effective environmental improvements on the NTS, which align with the Best Available Techniques (BAT), as a cost-benefit based technology selection approach.
- Mott McDonald (Subcontractor). Mott MacDonald is an approved design partner (service provider) with extensive experience of technology project delivery on live gas sites in a safe and sustainable manner.
After SIF Discovery phase, and following subsequent funding approval, we would involve at least one Original Equipment Manufacturer (OEM); a supplier with proven capability will be chosen to avoid any potential impact on network availability or security of supply. The primary user will be the gas transmission license holder; however, elements will also be widely applicable to gas distribution license holders. All potential users are faced with the same challenges of reducing process gas losses and preparing for a transitional hybrid network to facilitate the delivery of cost-effective low carbon heat. Secondary users include European and global gas TNOs, and related upstream and downstream sectors (including hydrogen producers, gas midstream partners, and interconnector operators).
VIDEO - https://www.youtube.com/watch?v=7DTv-9Hfic4&list=PLrMOhOrmeR6ktSag0RbT7zPNVn0p1P2f6&index=21
Problem Bring Solved
The UK gas network is about to undergo the most significant change since the discovery of North Sea natural gas in the 1960s. UK Net Zero objectives will require the gas National Transmission System (NTS) and local distribution networks to transition from methane-based to hydrogen-based systems; in the interim they will operate in a hybrid condition transporting methane-hydrogen gas blends. Methane emissions contribute directly to anthropogenic global warming, methane and hydrogen emissions represent a significant loss of energy in transport and are a key network system constraint, impacting the delivery of cost-effective low carbon heat networks. Releases of these process gases, although well controlled, are an inevitable part of any transmission or distribution system and occur for normal operational and maintenance reasons. Regulatory policy and Net Zero drivers have brought these emissions (currently methane) to the forefront of scientific and political concern, and a technical solution is required to solve the problem. We have an opportunity to investigate and prove a technology solution if SIF Discovery Funding is allocated to CH4RGE (Methane (CH4) Reduction from Gas Equipment).
Innovative technological solutions are becoming available for the first time which will allow these methane or hydrogen based process gas releases to be captured, dramatically reducing overall emissions and facilitating the first key step in a network transition that will take the NTS towards Net Zero. Early pilot, proof of concept and roll-out of these process gas capture technologies will deliver key reductions in methane losses for the current NTS, helping deliver progress to Net Zero ahead of the eventual transition to a wholly hydrogen-based system.
Under previous NIA projects*, National Grid Gas (NGG) has successfully delivered the initial feasibility phase of the CH4RGE project, demonstrating a clear environmental, financial, and political need case for process gas emission reduction technology in the UK. A pre-feasibility assessment has been conducted, identifying how these technologies play a key role in a future 'low loss' NTS. This is a fast-developing market with accelerating demand for technical solutions particularly from Europe and North American markets. Since the project inception, the political, corporate and regulatory direction now aligns even more closely to the CH4RGE objective of reducing methane emissions in the short term, particularly with the Net Zero Agenda and the RIIO-2 settlement. The project is now well placed for a Discovery Phase application under SIF to enable the project to move towards its goals.
* NIA_NGGT0164 and NIA_NGGT0174
Impacts and benefits
Potential net benefits
At application stage a number of potential benefits and impacts were envisaged. Throughout SIF Discovery, success against these have been considered and are reflected below:
Economic – network operators / energy customers: CH4RGE can deliver significant economic benefits for energy stakeholders. Consumers will gain through reduced Transmission Network Operator (TNO) costs, with opportunities to pass those benefits on through future price controls. Reduced consumer energy costs will arise from: lower transmission losses (shrinkage), reduced exposure to licence reverse incentives for vented gas and reduced exposure to carbon taxation. The CH4RGE NIA feasibility has identified network roll-out savings could be up to £7m per annum. The work completed within SIF Discovery has reaffirmed these economic objectives are achievable; capital equipment costs remain within the original estimates and the payback period for installation has been reduced by the increasing cost of carbon assigned to potential savings.
Economic – suppliers: The continuation of the project, beyond this SIF Discovery phase, will benefit UK based specialists in the technology supply chain; application of the technology as part of a network wide roll out would lead to investment on a UK regional UK site, supporting local suppliers.
Environmental: CH4RGE will bring significant, quantifiable environmental net gains through Global Warming Potential (GWP) reductions from avoided methane emissions. These benefits would accrue from pilot operation (SIF Beta), and on roll out could realise net reductions of 750,000 tCO2e by 2050. CH4RGE will increase the efficiency of usage of non-renewable fossil fuel resources in the short term, though increased transportation yield. The carbon foot printing exercise has demonstrated the payback period to be short and the similarity in refined vendor costs provide increasing confidence in the originally estimated project costs.
Regulatory: CH4RGE aligns with governmental Net Zero and transitional hydrogen energy network objectives. The recent global policy focus on reducing methane emissions is likely to be captured formally in UK in the short/medium term. The CH4RGE programme will create a UK centre of excellence in this technology area, with wide potential benefits, aligning with Government objectives on economic growth and positioning the UK globally as a Net Zero leader.
Future network resilience and efficiency. CH4RGE could support an efficient future hydrogen-based heat energy network, through more efficient transportation yield, increasing overall energy conversion efficiency in the hydrogen supply chain.
