AvantiGas Engineering Manager Stephen Hallett is asked to assess the potential of LNG for UK industry: part two

In Part 2 below, Stephen shows how LNG can help both industry and Government to improve competitiveness and meet environmental decarbonisation targets.

At the start of this series, Stephen Hallett described what LNG is and its potential uses for off-gas grid businesses, and how the current oversupply in the market has brought down prices. For industrial applications which currently depend on oil or solid fuel, LNG represents a major opportunity to reduce emissions and costs at the same time.

LNG is best-suited to consistent demand throughout the year, so businesses which use it for process work all-year-round are particularly suitable. Typical industrial processes may involve generating steam or heat for specific applications, or for tasks such as cleaning, sterilising and cooking as well as for traditional space or water heating requirements.

Steve says: “The key is finding the right application. If you’re asking me ‘Would LNG work in a domestic property?’ the answer is typically no. In a high-use commercial property or industrial setting, it could be the preferred solution.

“Heavy industrial energy users have powerful incentives to look closely at LNG, not only because of energy cost pressures, but due to environmental pressures too. Business and industry account for around 25% of the UK’s total emissions, and around two-thirds of industrial emissions come from a small number of energy-intensive industries such as chemicals and steel, according to the Government’s recently-published Clean Growth Strategy.”

The strategy, announced by the Minister of State for Climate Change and Industry, Claire Perry MP, aims to limit the UK’s annual emissions to 57% below 1990 levels by the year 2032. With LNG, there’s an actual carbon reduction as methane (or CH4) has less carbon per hydrogen molecule than propane, butane, gasoline products or diesel.

The strategy launch is in line with decarbonisation roadmaps up to 2050 for several specific carbon-intensive industries including iron and steel, oil refining, cement, glass, ceramics, food and drink, chemicals, and paper and pulp. Each plan within the strategy contains voluntary commitments to reduce emissions while “maintaining international competitiveness.” Coupled with the Government’s Industrial Strategy to help businesses improve their productivity and competitiveness, this initiative aims to not only deliver carbon savings and make the UK more energy-efficient, but also to stimulate economic growth. Steve comments:

“With the current oversupply and consequently depressed price of LNG, the installation of an LNG solution to take advantage of both carbon benefits and cost reductions could be an enticing option for many UK industrial businesses. The commodity price tends to be cheaper, so although the infrastructure cost may be higher, it’s the low commodity price that makes it really attractive.”

To read part one and three please follow the links at the beginning of the article.

Read the article online at: https://www.lngindustry.com/special-reports/04122017/avantigas-engineering-manager-stephen-hallett-is-asked-to-assess-the-potential-of-lng-for-uk-industry-part-two/