Previously, I have been considering what groups of economic actors in what sectors could be influential in calling for the development of Renewable Gas – low net carbon emissions gases, used as energy fuels and chemical feedstocks, thermochemically or biologically synthesised from renewable electricity, water and biomass :-
I need to go back a little bit to add some extra thoughts, so these will be paragraphs marked with “Continued”.
1. The World of Chemical Engineering (Continued)
One key sector in the universe of molecule management is plastics, which are now so essential in trade, commerce and manufacturing. That there is so much ethane coming on-stream from the United States hydraulic fracturing oil rush in the form of high levels of NGLs (Natural Gas Liquids) is good news for petrochemical firms big in polymers. Yet, this bounty is unlikely to continue, so what should happen when fracking uncertainties start to mount ?
Will Big Chemistry start to ask for Renewable Gas ? And will they ask for Renewable Gas from themselves ? This would make sense, as the petrochemical industry will have need of a range of light organic and inorganic molecules, even if these are not being supplied as by-products from the mining and refining of fossil fuels.
Petrochemical plants need to to be able to ride changes in the composition of a barrel of oil, and the “balance of plant” in oil refineries. Here, there would be a huge sink for any Renewable Hydrogen that could be made by any sector. Hydrogen is necessary to synthesise a range of chemistry, for example the production of agricultural chemicals, such as ammonia. If the source of much of the world’s hydrogen continues to be fossil fuels, for example, through the gasification of coals and the steam reforming of the methane from Natural Gas, then Big Chemistry will live with increasing uncertainties about the guarantees of supply.
The agricultural sector could step in themselves and ask for Renewable Gas to underpin their supplies of fertiliser, pesticides and other chemicals feeding the world.
5. Car Manufacturers (Continued)
6. Utility Vehicle Manufacturers (Continued)
7. Freight Vehicle Manufacturers (Continued)
It is anticipated to take a considerable amount of time to replace the current global fleet of internal combustion engine drive (ICE) vehicles, whether car (automobile), light duty vans or heavy duty, heavy goods vehicle trucks/lorries.
Vehicle manufacturing companies have divergent strategies. Many of them have launched electric-only ranges. Some of those serving the freight/haulage markets have brought out gas drive options, intended to be run on CNG, Compressed Natural Gas; in advance of electric models, perhaps because of concerns about power-to-weight ratios, or levels of confidence in batteries. Some automakers have brought out hydrogen fuel cells models, but this only makes sense where there is hydrogen distribution network for fuelling stations. By contrast, power and Natural Gas are distributed widely.
There is a lot of advertising for electric or electric-hybrid vehicles, but this will only impact on the sales of new vehicles – a vast majority of the global “fleet” will remain fuelled by liquids. Whilst sales of electric models pick up, companies will still be selling new ICE cars, vans and so on. As demand for electric models rises, there will likely be situations where production and supply cannot keep up. These imbalances will lead to stress in highly competitive markets.
This dynamic could make the car companies seek to create a levelising factor, to gain back control of sales densities by appealing to oil refiners to bring the net carbon in fuels down. Then customers could have the option to buy combustion engine models, but use “alternative”, “advanced” fuels, which have far lower net carbon emissions.
From the point of view of the economists, this would be preferable : vehicles running on new low carbon fuels would be tested in the market, competing against models driven on electric drive (and hybridised). And in addition, hybrids could use the new fuels too, and become 100% low carbon.
Running two streams of low-to-zero carbon energy to vehicles will also help to document the relative efficiency of power versus low carbon liquid fuels in the whole system.
The theoretical well-to-wheels energy efficiency of electric drive vehicles is significantly better than liquid fuels combustion drive vehicles; however, there is a need to buffer the electricity – running power to filling stations is not optimal. The energy from the electricity should be stored first, awaiting filling demand.
Synthesised gas could act as the buffer to power. This low carbon gas would be stored centrally, and as required, run to the filling stations by pipeline network. Because the gas is packed in the line, it will not be wasted. Fuel cells at the filling stations would convert the gas back to power, as and when needed.
Whilst low mileage/kilometrage electric vehicles might be the right answer for urban environments, particularly from the point of view of air quality, the question of freight – the haulage of food, resources and goods – is one that may be answered by gas drive vehicles rather than electric vehicles. Having a tankable fuel eliminates range anxiety, and means that heavy batteries do not need to be carried along with the merchandise. Any light duty vehicle too that needs to run long distances might be better propelled by liquid or gas fuels – another possible market for Renewable Gas and the liquid fuels that can be synthesised from it.
Besides the carmakers, and the light and heavy goods vehicle manufacturers, the road hauliers as trade bodies might put up the ask for Renewable Gas in the form of Renewable Fuels; traditionally there have been strong trade associations between fuel refiners, fuel distributors, filling station networks and those who run haulage.
11. The Fossil Oil and Gas Producers
Strange as it may sound, the companies that produce crude petroleum oil and Natural Gas might themselves start to call for Renewable Gas. This would partly be because they are strongly vertically integrated enterprises, with refineries and they also often do distribution of fuels for sale.
Key oil majors have for some time been strategising about becoming gas majors – focussing their business plans on gas instead of oil. If it is true, that Peak Demand for Oil has been reached, oil majors, now gas majors, might begin to consider what would happen when there is a Peak in Demand for Gas, too; if consumers started to desert fossil hydrocarbons and head towards Renewable Electricity for their energy.
The ex-oil, now-gas majors would therefore need to have a plan to keep up their levels of income, and keep their shareholders happy. A good way to do that would be to enter into the field of providing energy services, and making and providing low carbon electricity – some companies such as Shell have been very overt about doing this.
If these companies go the next logical step and also get into energy storage, the wheel will have come full circle, as power storage is perhaps best as synthetic gas production and storage.
And so, Renewable Gas would be a strategy for ex-oil, now-gas majors to keep from contracting, to keep up sales of energy, whilst dropping the carbon from it.