What if Hydrogen (H2) and Renewable Natural Gas (RNG) replaced conventional Natural Gas (NG) for Combined Heat and Power (CHP) applications? What if Hydrogen and RNG are both produced in large enough quantities to fill most of the needs for operating CHP plants and microgrids? In this article, we’ll explore the different types of Hydrogen and RNG, their current market share, their future and market growth, and how it compares with natural gas, and see how much they could realistically shift natural gas consumption in the next few decades.
Hydrogen is almost always found as part of another compound, such as water (H2O) or methane (CH4), and it must be separated into pure hydrogen (H2) for use in combined heat and power applications such as Fuel Cells, Reciprocating engines and Gas Turbines.
Hydrogen can be produced from diverse, domestic resources, including fossil fuels, biomass, and water electrolysis with electricity. The environmental impact and energy efficiency of hydrogen depend on how it is produced.
There are several ways to produce hydrogen , the two most common and widely spread methods are:
The main component of natural gas is methane (CH4), using thermal processes like steam reformation, hydrogen can be produced from it. The below Figure shows a simplified diagram of hydrogen production process from NG reforming. Depending on the whether the CO2 emissions from the reforming process is captured or not, the produced hydrogen is either called Blue or Grey Hydrogen, respectively (Source: pubs.rsc.org).
Renewable natural gas (RNG) is a pipeline-quality gas that is fully interchangeable with conventional natural gas (NG). RNG is essentially biogas (the gaseous product of the decomposition of organic matter) that has been processed to purity standards. This processed biogas is then used as a replacement for conventional NG in combined heat and power applications.
Renewable Natural Gas is produced from various biomass sources through a biochemical process, such as anaerobic digestion. Anaerobic digestion is series of processes in which microorganisms break down biodegradable material in the absence of oxygen. The figure below describes the process of anaerobic digestion. With minor cleanup, RNG can be used to generate electricity and heat in combined heat and power applications.
There are three main sources of organic matter that produce RNG:
Other sources of Renewable Natural Gas include organic waste from industrial, institutional, and commercial entities, such as food manufacturing and wholesalers, supermarkets, restaurants, hospitals, and educational facilities (Source: energy.gov).
The short answer is that hydrogen and Renewable Natural Gas provide benefits in terms of fuel security, economic revenues or savings, local air quality and greenhouse gas emission reductions.
When it comes to CHP projects, the major deciders in the feasibility phase are:
Because of the abundance of NG reserves and the commodity prices that have made for high consumer expectations, it is the cheapest option for CHP projects supply.
On the down side, conventional NG has the highest GHG emissions as opposed to RNG and hydrogen. In some cases, using the utility provider electricity, has less carbon footprint impact than using CHP. This is where hydrogen and RNG as fuels come in.
For example, there are currently very affordable options of blending NG with RNG and/or hydrogen. For instance, if you are a developer, you can exercise the feasibility of your CHP project by using different percentages of RNG blend with Natural Gas.
The cost of RNG depends on the blend you choose. You can designate 5, 10, 25, 50 or 100 percent of the natural gas you use as RNG. You’ll also receive a credit on the BC carbon tax on your bill, depending on the blend you choose.
(Source: fortisbc.com).
Today, there aren’t any options for purchasing hydrogen through pipeline delivery from an independent provider as with RNG. But there are ongoing initiatives by the Department of Energy to:
The current solution for CHP applications is to account for hydrogen delivery and onsite storage, or onsite hydrogen production systems to fuel your CHP system. There are many hydrogen delivery and storage solutions suppliers, and commercially available onsite hydrogen production products that you can shop for.
Unfortunately, these options for hydrogen supply make for higher prices than RNG and natural gas and must be very carefully studied on a project-by-project basis. Federal and state incentives/funding for Hydrogen projects is also available which help with project financial feasibility.
In 2019, the supply of RNG and hydrogen is about 1.5% of the total global gas grid supply (Source: igu.org). But, according to a study lead by the RNG coalition related to the projections of Paris Agreement, RNG and hydrogen could share up 25% of the total global gas grid supply in 2050.
According to a series of studies to analyze RNG potential conducted by government research agencies and industry research departments, RNG can meet up to 20% of today’s United States natural gas demand.
(Source: duke.edu, Evaluating Market Conditions for Renewable Natural Gas and Clean Hydrogen)
RNG and hydrogen are important, and we need to do what we can to increase their adoption in CHP applications. RNG and hydrogen are bound to gradually take over a large portion of natural gas. Studies have shown the untapped potential of both Hydrogen and RNG.
The US has significant untapped RNG feedstock reserves capable of meeting nearly a quarter of annual natural gas demand. The clean hydrogen market is primed to rapidly expand over the next few years due to customer demand for decarbonization solutions and international efforts to scale up deployment.
RNG and hydrogen offer a more sustainable, environmentally-friendly option, and they’re becoming increasingly cost-competitive. Affordable options for blending RNG with Natural Gas are available now to help spur the CHP industry to the next level.
If you are interested in learning more about how RNG or hydrogen could feasibly work for your CHP project, you can reach out to us at info@jisenergy.com, or visit our products page to learn more about CogenSTM, a techno economic evaluation, modeling, simulation and design software tailored for Cogeneration projects.