SNG for industry

The energy crisis, triggered by Russia at the turn of 2021 and 2022, exposed the weaknesses of European energy security. Natural gas prices hit record highs 345 EUR/MWh. European countries have started looking for new suppliers in a hurry, and a requirement has been introduced for EU countries to fill their warehouses before the winter season.

The effect of the crisis has also been to reduce the work of certain branches of European industry, especially energy-intensive industries (metallurgy, chemicals and food). In 2022, industrial production of products such as aluminum, steel and fertilizers fell by 8%. An important takeaway from the energy crisis seems to be a new dimension of risk management at plant level, i.e. diversification of energy sources. Many boards have realized that having a backup solution in case of interruptions in the supply of regulated energy carriers may be a necessity.

How to replace natural gas?

The answer to the natural gas supply constraints can be LPG blenders, which gained popularity in 2022. Initially used and designed as a reserve for the supply system, the companies quickly proved their business value, allowing to significantly reduce energy costs. LPG mixers can eliminate the risk of downtime and ensure continuity of production even in the event of administrative restrictions on natural gas supply. Several companies specializing in the distribution and installation of this type of equipment operate in Poland, among them members of the Polish Liquefied Gas Organization: FAS Poland, GOK Polska, I-Maximum and ITGAS.

Mixers and complete synthetic natural gas (SNG) systems can be used to supplement or completely replace pipeline natural gas to manage downtime, supply interruptions or to achieve price benefits between different fuel types. In today's time of challenges, this is absolutely crucial.

comments Piotr Urbanski, Branch Manager GOK Regler und Armaturen Polska sp. z o.o.

Properly designed installation of LPG mixers, meeting the highest standards, contributes to the reduction of gas consumption, while not reducing the efficiency of the entire installation. As a result, an investment in such an installation can quickly bring a return on the funds incurred.

The search for savings in industry is very important, but it cannot be done at the expense of the quality of production or its efficiency. The use of liquefied gas in industry significantly reduces costs, and thanks to the high-quality components used to make the gas installation, it is also possible to reduce gas consumption

adds Kamil Komornicki, co-owner of ITGAS Inter Tech Gas.

The use of LPG mixers in plants using natural gas to date requires additional installation. Taking into account the fact that the LPG gas phase formed in the evaporator is not physically and chemically identical to natural gas, it is necessary to produce a gas mixture with parameters specific to the system in question. This enables users to seamlessly switch from natural gas supplied from the distribution network to a liquefied gas based system. During the procedure of changing the power source, it is not necessary to make changes to the settings of the burners or boilers, which makes this solution convenient from the point of view of the operator.

How does the LPG mixer work?

LPG mixers allow the mixing of liquefied gas with air, thus forming a mixture called SNG (natural gas synthetic/synthetic natural gas). Basically, we distinguish two main types of mixers:

• LPG/SNG blenders based on the Venturi constrictor phenomenon;
• LPG/SNG blenders using an adjustable piston system.

Regardless of the technology used, the process of generating SNG gas is basically identical and involves mixing the gas phase of liquefied gas (LPG) with air. In the process of blending, a mixture is formed, which in terms of caloric content is identical to natural gas. Therefore, it can be used in installations as a direct replacement for natural gas, without the need for technological changes, reconfiguration or replacement of nozzles.

The LPG mixer itself is only part of a larger system, the other components of which are propane tanks (LPG), pump (single or double), liquefied gas evaporator, air tank, SNG gas tank (buffer) and compressor.

Application of technology in practice

Mixer technology itself is not new, entrepreneurs have been using it since the 1950s. During the energy crisis, due to the uncertain situation on the gas market, it is experiencing its renaissance.

Mixers can be used in various fields of industry, including:

• chemical industry,
• food industry,
• metallurgical industry,
• glass industry and many others.

Under what circumstances natural gas customers may need a plant to generate synthetic natural gas SNG explains Świętosław Kariuk, Sales Manager at I-Maximum sp. z o.o.:

‍First of all, it is used in case of natural gas pressure drops, exceeding consumption limits, lack of ordered supplies of natural gas or a decrease in calorific value (quality parameters). In the event of a gas supply outage, SNG can be used as an alternative energy source.

SNG mixers have found wide application, among others, in glass mills. In one example presented by suppliers, a company bound by contracts for long-term supply of natural gas at fixed prices decided to invest in an LPG/SNG mixer to increase flexibility and balance energy costs. The investor originally planned to use the LPG/SNG mixer as a backup installation, however, due to favorable price conditions and stability of supply, it was decided to use the mixer permanently and use fuel in the proportion of 50% SNG and 50% natural gas to fulfill the contract. By switching to an LPG/SNG mixer, the company has recorded significant savings. Before the investment, the company used 36 thousand dollars a month. MWh of natural gas, and its cost was about PLN 20.5 million. After the investment, using the mixer in 50% natural gas and 50% LPG mode, the monthly cost of liquefied gas amounted to PLN 4 million.

According to the German liquefied gas association DVFG, German demand for LPG in the industrial sector in 2022 increased by almost 30% compared to the previous year. The order portfolio for propane-air mixing systems, which allow users to fully or partially replace natural gas, has skyrocketed. The new group of LPG customers comes from various sectors, ranging from food, through glass factories, to metallurgical plants and manufacturers of hygiene products. One of the Polish glass mills declares that its investment in an LPG mixer from December 2022 paid off within three months — the company returns to natural gas when it becomes a cheaper option, but thanks to the infrastructure it already has, it can return to LPG within a day if necessary.

As he notes Konrad Kowalski, Business Development Manager FAS Poland:

Many customers are now wondering what would be the purpose of investing in this solution if the situation on the natural gas market is stable again? We draw the attention of our clients that the ability to anticipate and not respond to crises is the key to success. The current energy situation remains particularly risky for all operators without diversified energy sources.

summary

SNG mixers are a technology that allows to increase the potential of an enterprise by providing an alternative source of energy for production processes. In addition, they reduce the risk of downtime in production, and in the event of a natural gas supply interruption, they can act as a backup plant powering the entire technological process. They ensure continuity of operation, which is especially important for enterprises for which stopping production may involve permanent damage to their installations or large losses. Thanks to the freedom of choice of liquefied gas supplier, companies can negotiate competitive prices, which translates into significant financial savings in the long term. The investment itself in an LPG mixer can pay off under particularly favorable conditions even within three months. The fuel used by the mixers is subject to less price fluctuations than natural gas.

Synthetic natural gas (SNG) produced using LPG mixers is an attractive alternative for industry because:

• provides gas with equivalent physicochemical parameters to natural gas,
• the investment is associated with low risks and low costs,
• Synthetic natural gas (SNG) is a multifunctional energy source, easy to produce at the plant level.