London and Madrid, 30th September
Nedgia and CycleØ today announced the successful delivery and commissioning of the first private biomethane connection point on the Spanish gas grid. More importantly, the grid injection point is supplied by plants producing renewable natural gas in remote locations, which is then transported as CNG to the injection point to create a “virtual” gas pipeline.
This first private injection point, 100% equity funded by CycleØ, a global developer and operator of biomethane plants, is a pioneering solution to the Spanish biomethane industry’s key challenge – getting access to the grid for remote green gas producers. Nedgia, the natural gas distribution unit of Naturgy, operates over 55,000 km (34,175 miles) of pipes across Spain, with a clear ambition to deliver decarbonisation across the gas grid.
Biogas is created through the process of anaerobic digestion, a naturally occurring biological process that produces gas as it breaks down waste, and then upgraded to biomethane for use in the gas network, can have access to the distribution or transport network limited by several factors. These include the physical distance between plant and pipeline, the economic cost of a new interconnection or structural limitations in the case of saturation of the injection point. Where this occurs, the economic viability of a biogas plant can be now ensured through the use of a virtual pipeline.
This virtual pipeline is delivered by compressing the renewable gas to create bio-CNG (Bio-Compressed Natural Gas) which is then transported by road to the injection point by tube trailers (a mobile platform consisting of multiple individual cylinders connected in series, with a combined storage capacity of some 20,000 litres) before being safely decompressed and injected into the gas grid.
The high energy density of bio-CNG allows for more efficient transport and increases the economic feasibility of many remote biomethane projects.
This achievement is a concrete example of the progress being made towards decarbonisation and reflects a shared commitment from both companies to injecting biomethane into the Spanish gas grid, decarbonising it and supporting Negia’s target of carrying only renewable natural gas in its pipeline, including hydrogen, by 2050.
This new injection investment will supply over 70GWh annually of biomethane into the gas grid from existing and planned CycleØ plants in the Lleida region of Catalonia, which is enough to meet the consumption needs of more than 80,000 people.
Laurence Molke, CEO, CycleØ said: “We are very proud to have developed and invested in this first private gas grid injection point in Lleida, Spain, further proof that a virtual pipeline model can help to break down logistical barriers to remote biomethane production across the country”.
“Nedgia’s commissioning of the first virtual biogas pipeline in Spain illustrates the Naturgy group’s commitment to decarbonisation and further increases the potential for the domestic production of biomethane, a renewable gas crucial for advancing the energy transition in a credible, fair and balanced way,” explains Nedgia CEO Raúl Suárez.
Christopher Picotte, Partner at Ara Partners in Dublin, of whom CycleØ is a portfolio company said: “CycleØ’s successful development of a private biomethane connection shows how investments in new industrial decarbonization technologies can pave the way for a lower carbon economy. By connecting directly to the grid, CycleØ is accelerating the rollout of renewable natural gas and showcasing how its technology can work throughout the world”.