Jeff Reed, Southern California Gas Company

SoCalGas Technology Perspectives – Meeting the Emissions Challenge in California

October 6, 2014

GloSho 2014 – LACI Global Showcase

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Southern California Gas Company

• The nation’s largest natural gas distribution utility – 20.9 million consumers – 5.8 million meters – 500 communities

• Subsidiary of Sempra Energy (SRE)

• Industry leader in customer satisfaction, safety and cost-effectiveness

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California’s Dual Emissions Challenge – 80% Reduction in NOx and GHG

Federal Clean Air Act (CAA) - requirements to meet ozone standards in Central and Southern California air basins will require a 75% to 90% reduction in combustion emissions over the next 20 years.

California Climate Change Initiatives - Assembly Bill 32 “Global Warming Solutions Act” (AB32) and Governor’s Executive Order 2050 – set goals of reducing greenhouse gas emission by over 80% by 2050.

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Technology Advances Key to Meeting the Emissions Challenge

• Continuing progress on increased efficiency for all end-uses addresses both NOx and GHG

• Optimized combustion / oxidation and after-treatment systems will meet the NOx challenge

• Carbon-neutral gaseous fuels (such as biogas and Power-to-Gas) and carbon capture will meet the GHG challenge

• High-potential emerging applications: Transportation, Distributed Gen, Power-to-Gas

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Natural Gas Vehicle Technology – 80% NOx and 50% GHG Reductions

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ADVANCED

AFTER-TREATMENT

Low-Pressure Conformable Fuel Tanks

• Growing activity in off-road applications – marine, rail, equipment

Pressure swirl atomization

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Engines with Advanced Controls and After Treatment

Turbines with low Nox Technology

Fuel Cells (Virtually Emission Free)

Natural Gas Distributed Gen – Near-zero NOx and 20% to 50% GHG Reduction*

* Relative to GTCC

A Variety of Renewable Gas Pathways Are Under Development

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WWTP Biogas Collection

Organic Matter

Landfill Biogas Collection

Gasification

Anaerobic Digester

Compression, Odorization,

Quality Control & Injection

Biogas Clean-up

Methanation

Renewable Power-to-Gas

Solar H2 Production

CO2

Dry / Woody

Wet Current cost range $10 - $40/ MMBtu + transportation

Carbon-neutral methane (Renewable Natural Gas)

H2

Hydrogen Blending

(Commercial)

(Commercial)

(Early Commercial)

(Early Commercial)

(R&D Stage)

Existing Infrastructure Can Serve Multiple H2 and CH4 Pathways

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Pipeline

Reformation Transportation

Generation / End Use

Renewable H2

Renewable NG

Hydrogen

Natural Gas

Methanation

Separation Blending

Gas Grid

Compress or Liquefy

Storage

CCUS

Gaseous Fuels Have Great Potential for Bulk Energy Storage

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Power-to-Gas Demonstration Projects in Europe Turning Excess Green Electricity into Hydrogen and Synthetic Methane

Audi’s Plant (Werlte, Germany)

Mainova AG (Frankfurt, Germany)

2% H2 Injection

Synthetic Methane

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Thank you.