the industrial and commercial energy market needs€¦ · • hydrogen flame is invisible. gas...
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The Industrial and Commercial Energy
Market Needs
Ross Anderson
Director 13.04.16
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Manufacturer’s Trade Association
What is ICOM?
42 members
(est. 1933)
Boiler (Ind. & Com.)
Burner (Ind. & Com.)
Controls & Water
Treatment
Radiant Heater
Air Heater
Water Heater
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Represent members:
UK Government Departments
The European Commission
National, European and International Standards
Professional Bodies
Other Trade Associations
What does ICOM do?
Give the industry a single voice and strength in numbers
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The Energy Market for Heating
Gas
O
il
Elec
tric
ity
The
current
fuel of
choice
What
role will
oil play
after
2020?
Green
electricity
2050?
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What are the proposals?
• No gas from 2030
• Heat Pumps – only option for 2050
• Developing ‘Heating & Cooling Strategy’
o Rural areas – Heat Pumps
o Urban areas – Heat network
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Industrial & Commercial heating requires:
- larger volume of heat for buildings
- higher temperature heat for process applications
- Steam
- Direct firing (gas or oil burner)
“Is it realistic to achieve these with Heat Pumps only?”
Heat Pumps?
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Higher temperatures = more hot flue gas wasted
Heat Recovery - reclaim ‘waste’ heat to be used
again.
Department of Energy and Climate Change (DECC) do not
accept this as Renewable Energy, therefore no incentives
Heat Recovery?
“Free
energy”
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• Biomass
• Heat Pumps
• Geothermal
• Biogas
• Solar
• Wind
All play a part in supplying energy.
Renewable Energy?
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A number of projects are producing biomethane
and other green gases.
Green gasses reduce:
- landfill
- effluent disposal
There are a growing number of “green gas” plants,
but how much “green gas” can be supplied?
How can we de-carbonise?
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Northern Gas Networks - feasibility project in Leeds to
determine use of Hydrogen through sections of the grid.
Production:
- Hydrolysis of water
- Steam Methane
Both could provide decarbonised gas supply to the grid.
Hydrogen?
Hydrolysis during over-supply from
wind/solar. Electrical energy stored
as hydrogen
Steam Methane Reforming
produces carbon which can be
captured and stored
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Some of the issues:
• Cost of developing new appliances.
• Hydrogen flame is invisible. Gas Cookers would
need extra safety
• Gas Fires would have to be different design and
may not even be suitable as a product.
Conversion issues:
• Difficult to convert existing appliances.
• Large replacement program (British Gas were a
monopoly during 1960s NG conversion)
• Cost of conversion.
Hydrogen issues?
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Existing products have almost reached maximum
efficiency due to limitations of Physics
Now buildings need to be more efficient
Energy Performance in Buildings Directive (EPBD)
has a requirement for Nearly Zero Energy to be
achieved by 2019 / 2021
Building Regulations will implement this in the UK.
Review not due till 2018
How can we save energy?
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There are three options:
1. Regulations
2. Incentives
3. Good will/market acceptance.
Current Government are against options 1 & 2.
Option 3 is almost impossible as costs come into
the decision.
Renewables and building changes cost money.
How do we make the changes?
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• Invest in novel appliances
• Invest in the production of cheaper renewable
products
• Invest in the preparation for hydrogen
“Why invest?”
How can manufacturers help?
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Manufacturers need clear policies for the future
in order to be comfortable with making
investments.
a. Are we going to have a Green Gas Grid?
b. Are we going to have a Green Electricity
Grid?
A or B, or both?
Where are we heading towards?
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• Many scenarios
• No clear policies to overcome the issues
• Volatile Governments over the next 35 years
Can we trust any new policies that come into
force?
The future?
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To invest in novel design and state of the art
production facilities, the industry needs:
• Reliable and stable policies
• Financial support
Otherwise, industry growth and innovation will be
restricted
What does the industry need?
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• Clear policies from Government.
• Funding for developing new “Green” products.
• A decision as to whether the gas and electricity
grids will be de-carbonised and how that will
funded.
Overall Industry needs certainty and continuity in
order to feel able to invest.
Summary