SNG to the relief of industry

The energy crisis triggered by Russia in late 2021 and early 2022 has exposed the weaknesses of European energy security. Natural gas prices reached a record 345 EUR/MWh. European countries rushed to find new suppliers, and a requirement was introduced for EU countries to fill up storage facilities before the winter season.

The crisis also had the effect of reducing the work of some European industries, especially energy-intensive ones (metallurgical, chemical and food). In 2022, industrial production of products such as aluminum, steel and fertilizers fell by 8%. It seems that an important lesson from the energy crisis is a new dimension of risk management at the plant level, namely diversification of energy sources. Many managements 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?

LPG mixers (blenders), which gained popularity in 2022, may be the answer to natural gas supply constraints. Initially used and designed as a backup for a company's power system, they quickly proved their business value, allowing to significantly reduce energy costs. At the same time, LPG mixers can eliminate the risk of downtime and ensure production continuity even in the event of administrative restrictions on natural gas supplies. There are currently several companies in Poland specializing in the distribution and installation of such equipment, among them members of the Polish LPG Organization: FAS Poland, GOK Poland, 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 outages, supply interruptions or to gain pricing advantages between different fuel types. In today's challenging environment, this is absolutely critical.

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

A properly designed LPG mixer installation that meets the highest standards contributes to a reduction in gas consumption, while not compromising the efficiency of the entire plant. As a result, an investment in such an installation can quickly bring a return on the investment.

The search for savings in industry is very important, but this must not come at the expense of production quality or efficiency. The use of liquefied petroleum gas in industry allows you to significantly reduce costs, and thanks to the high-quality components used for the gas installation, you can also reduce gas consumption

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

The use of LPG mixers in plants using natural gas supply to date requires additional installation. Given that the LPG gas phase formed in the vaporizer is not physically and chemically identical to natural gas, it is necessary to produce a gas mixture with parameters specific to the system. This allows users to smoothly switch from supplying natural gas supplied from the distribution network to an LPG-based system. During the switching procedure, there is no need to make changes to the burner or boiler settings, making this solution convenient from the operator's point of view.

How does the LPG mixer work?

LPG mixers allow LPG to be mixed with air, thus creating a mixture called SNG(synthetic natural gas/syntheticnatural gas). There are basically two main types of mixers:

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

Regardless of the technology used, the process of producing SNG is, in principle, identical and involves blending the gas phase of liquefied petroleum gas (LPG) with air. The blending process produces a mixture that is identical to natural gas in terms of calorific value. Therefore, it can be used in installations as a direct substitute for natural gas, without the need for technological changes, reconfiguration or nozzle replacement.

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

Putting technology into practice

Mixer technology itself is not new, entrepreneurs have been using it since the 1950s. It is experiencing a renaissance during the energy crisis, due to the uncertain gas market.

Mixers can be used in a variety of industries, including:

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

Under what circumstances natural gas consumers may need a synthetic SNG plant explains Svetoslav Kariuk, Sales Manager at I-Maximum Ltd:

‍Firstof all, it is used in the event of natural gas pressure drops, consumption overruns, lack of ordered natural gas supplies 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 widespread use in glass factories, among others. In one of the examples presented by the 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 offset energy costs. The investor originally planned to use the LPG/SNG mixer as a back-up plant, but due to favorable pricing conditions and stability of supply, it was decided to use the mixer permanently and consume fuel in the ratio of 50% SNG and 50% natural gas to meet the contract. By switching to an LPG/SNG mixer, the company has seen significant savings. Before the investment, the company consumed 36,000 MWh of natural gas per month, at a cost of about PLN 20.5 million. After the investment, using the mixer in 50% natural gas and 50% LPG mode, the monthly cost of LPG was PLN 4 million.

According to the German liquefied petroleum gas association DVFG, German demand for LPG in the industrial sector in 2022 has increased by almost 30% over the previous year. The order book for propane-air blending systems, which allow users to fully or partially replace natural gas, has grown rapidly. The new group of LPG customers comes from a variety of sectors, ranging from food and beverage to glass factories and manufacturers of hygiene products. One Polish glass factory declares that its December 2022 investment in an LPG mixer paid for itself in three months - the company returns to natural gas when it becomes a cheaper option, but with the infrastructure it already has in place, it can return to LPG within 24 hours if needed.

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

Many customers are now wondering, what would be the point of investing in this solution when the natural gas market situation is stable again? We point out to our customers that the ability to anticipate rather than react to crises is the key to success. The current energy situation remains particularly risky for anyone without diversified energy sources.

Summary

SNG mixers are a technology that enables a company to increase its potential by providing an alternative energy source for production processes. In addition, they reduce the risk of production downtime, and in the event of a natural gas supply interruption, they can act as a backup plant to supply the entire process. They ensure continuity of operations, which is particularly important for companies for which a production stoppage may involve permanent damage to their installations or large losses. Thanks to the freedom of choice of LPG supplier, companies can negotiate competitive prices, which translates into significant financial savings in the long run. The investment in an LPG mixer alone can pay for itself in particularly favorable conditions in as little as three months. The fuel that mixers use is subject to less price fluctuation than natural gas.

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

• provides gas with equivalent physical and chemical parameters to natural gas,
• The investment involves low risk and low cost,
• Synthetic natural gas(SNG) is a multifunctional energy source that is easy to produce at the plant level.