Synthetic Natural Gas (SNG) - an optimal solution for backup systems in heat and electricity generation.

In 2022, the Council of the European Union formally approved a target to reduce gas demand by 15%. The regulation established a voluntary target for member states to reduce natural gas consumption by 15% annually by March 31, 2024, compared to the average consumption from April 1, 2017, to March 31, 2022.

This regulation did not apply to enterprises involved in the production of heat and electricity; however, it clearly indicated that in the event of further gas crises, restrictions may also arise for companies operating in the energy market.

The cost of energy security is significant. According to data from the Institute of Thermal Technology, the demand for gas for electricity production in Poland is projected to increase from the current 3.3 billion cubic meters to 5.9 billion cubic meters by 2030, up to 7.6 billion cubic meters by 2035, and then decrease to 6.8 billion cubic meters by 2040. The need for gas for heat and cogeneration production in Poland will rise from the current 1.9 billion cubic meters to 4.5 billion cubic meters by 2035, gradually decreasing to zero by 2050. After 2035, green gas (biomethane, hydrogen, biogas) will begin to replace natural gas. The total projected increase in natural gas consumption by 2035 to 7 billion cubic meters pertains only to electricity and cogeneration heat production.

As of today, heating oil remains a reserve fuel for gas power plants. However, this solution is inconsistent with the commitments made under the "Fit for 55" legislative package of the European Union, aimed at reducing greenhouse gas emissions in the European Union by 55% by 2030. Additionally, the use of heating oil is economically unviable due to its very high fuel cost over prolonged use. Alternative reserve fuels for power plants may include liquefied petroleum gas (LPG) or liquefied natural gas (LNG), but there are certain subtleties regarding their use, which will be discussed further.

The chart below illustrates the prices of various available energy sources for industrial consumers, taking into account transportation costs. Source: http://i-maximum.com

Liquefied Natural Gas (LNG) could offer a solution to the issue of backup energy sources, but the investment costs and logistical challenges of gas delivery undermine the attractiveness of this type of fuel.

«For example, to power a 30,000 kW gas burner steam boiler for 24 hours, 54 tons of LNG would be needed, equivalent to 2 LNG tanks with a capacity of 50,000 liters each. The cost of a comprehensive LNG delivery project "turnkey" with regasification terminal and installation will exceed 2 million euros. Similar equipment and implementation of the entire project on LPG will cost between 500 and 600 thousand euros, marking a winner in a natural gas vs LPG contest. A project using SNG could cost up to 1 million euros, depending on the type of SNG blender, air compressor, and Peak Shaving system selection.”

What is LPG gas in terms of cost-effectiveness? LPG represents an optimal solution from an ecological perspective and requires smaller installation investments, 2–4 times smaller than those needed for LNG. However, using propane (without air admixture) requires the replacement or adjustment of gas burners and compressor gas systems in internal combustion engines. SNG systems address issues related to reducing and replacing natural gas consumption. By blending propane with air (PROPAN+AIR), we resolve energy companies' challenges associated with the need to halt technological processes and replace gas burners in steam boilers, as well as adapting piston engines in gas power plants.

SNG, or Synthetic Natural Gas, is a gas obtained by blending air with LPG, which has the same calorific value as methane (natural gas). The SNG gas mixture can be used in burners as a direct substitute for natural gas without the need to change or replace the burners. SNG systems are widely used in Asia, South America, and North America. In some countries, the use of SNG systems is mandatory in natural gas pipeline projects to avoid potential emergency situations such as gas cutoffs, pressure drops, and gas calorific value reduction. In Europe, attention was first drawn to SNG during the sudden rise in natural gas prices in 2021-2022.

The components of the installation include:

1. Aboveground or underground LPG tanks.

2. LPG liquid pump ensuring stable pressure; it is recommended to use two pumps, one as a backup.

3. LPG vaporizer where the transformation from liquid LPG to gas occurs. Choosing an autonomous vaporizer that doesn't require electrical power, such as the KBV model, is recommended.

4. SNG mixer (SNG-blender) with an automatic mixing option – the main element of the system where LPG is mixed with air.

5. Air compressor with a tank.

6. SNG buffer tank if needed.

In the end, synthetic gas is delivered to the existing gas network.

In Poland, the first manufacturer of gas mixers has emerged - the company I-Maximum sp. z o.o. , which invites you to the presentation of its new SNG-blender production near Warsaw on April 26, 2024.

Details about the study visit: http//i-maximum.com/presentation2024

I-Maximum's mission is to accelerate the transformation of businesses to Synthetic Natural Gas (SNG) based on LPG and air, with plans to replace LPG with bioLPG in the future. Our company offers comprehensive services including design, sale of equipment, and installation of gas systems based on LPG and SNG for industrial and agricultural enterprises. Additionally, we custom-produce gas blenders (mixers) with operating pressures up to 40 bars, designed for various types of gases, including hydrogen, biogas, natural gas, LPG, and others.

Global natural gas prices have stabilized since the gas crisis of 2021-2022. However, the ongoing war in Ukraine and the threat of conflict in Europe make the energy market extremely delicate and unpredictable. The conclusion of the transit agreement between Ukraine and Russia at the end of 2024 is likely to cause significant changes in gas prices, although media speculate about possible alternative transit options with agreements made by European countries. Nevertheless, entrepreneurs and policymakers should remember that Russia does not always act in accordance with established rules, often causing energy crises.

Below is a chart based on TTF and Argus (daf Brest) quotations for the years 2021-2023.