First injection of Biomethane

RNS Number : 8696T

Pressure Technologies PLC

05 October 2010

 



First injection of Biomethane into UK National Grid

Pressure Technologies plc is pleased to announce that its subsidiary, Chesterfield BioGas ("CBG"), successfully completed its first biogas upgrading project when, earlier today,  injection of organically produced gas was made directly into the National Gas Grid (the "Grid") at Thames Water's site in Didcot, Oxfordshire.  This achievement is a first for the UK energy industry and the success of the Didcot site will be monitored closely.

The gas being injected to the Grid is produced from dirty biogas generated in the waste water treatment process at Didcot.  This gas is upgraded to 97% pure methane ("biomethane"), using equipment supplied and installed by CBG.

CBG has the UK licence to provide a proven biogas water scrubbing technology, developed over the past 20 years by Greenlane Biogas, based in New Zealand.  This technology is successfully being used in Japan, Korea, Germany, Spain, France and, predominantly, Sweden, which has pioneered the use of biomethane as a vehicle fuel and alternative to fossil fuel gas.

The gas produced by Thames Water is being injected in to the Grid, owned by Scotia Gas Network, and is being purchased by Centrica for sale to its domestic users.

Energy and Climate Change Secretary, Chris Huhne, said in a statement today:  "This is an historic day for the companies involved, for energy from waste technologies and for progress to increase the amount of renewable energy in the UK."

Research published by National Grid shows that if all potential sources of biogas were collected and processed using anaerobic digestion and biogas upgrading, it could fulfil almost 50% of the UK's domestic gas requirement.  This would contribute significantly to a reduction in greenhouse gases and guarantee security of supply by reducing the volume of imported gas usage.

Adoption of this type of technology in the UK has been hampered by the distortion of subsidies for electricity generation in Combined Heat and Power ("CHP") plants.  The introduction of the Renewable Heat Incentive ("RHI") in 2010 has gone someway to rebalancing this disparity.  A further review of the RHI, due to be published later this month, is expected to improve the balance further.  As a result of this and the successful project at Didcot, Pressure Technologies hopes to see significant growth in the CBG business, which supplies upgrading systems, biomethane to grid packages and compressed natural gas refuelling stations.

John Hayward, Chief Executive of Pressure Technologies, said:  "This is a defining moment for the UK energy market and I am tremendously proud of the role Pressure Technologies has played in the project.   The persistence and dedication of our biogas team was crucial to rapid completion of this project and to making Didcot the first successful biomethane gas to grid plant in the UK."

For further information, please contact:

Pressure Technologies plc John Hayward	Tel: [phone] [e-mail] www.pressuretechnologies.co.uk
Fairfax I.S. PLC Ewan Leggat/Simon Bennett/Laura Littley	Tel: [phone]
Rawlings Financial PR Limited Catriona Valentine	Tel: [phone] [e-mail] www.rawlingsfinancial.co.uk

Company description:

Pressure Technologies is the holding company for Chesterfield Special Cylinders Limited ("CSC"). CSC designs, manufactures and offers retesting and refurbishment services for a range of speciality high-pressure, seamless steel gas cylinders for global energy and defence markets. The business has been conducted under the "Chesterfield" brand which is a long established name in the cylinders and specialised pressure vessel market.

Chesterfield BioGas ("CBG"), an operating division of Pressure Technologies, formed in November 2008 following the signing of a co-operation agreement with Greenlane Biogas Limited, the world leader in biogas upgrading from raw biogas to vehicle quality fuel, gives Pressure Technologies exclusive rights to market Greenlane equipment in the UK and Eire.  Chesterfield BioGas will provide turnkey solutions for the cleaning, storage and dispensing of biomethane, produced from waste water treatment and anaerobic digestion of organic waste.

Al-Met Limited ("Al-Met"), which was acquired by the Group in February 2010, is a niche manufacturer of specialised, precision engineered valve wear parts used in the oil and gas industries, based in Pontyclun, near Cardiff.  Al-Met's products are used in high-pressure choke and flow control valves, designed to regulate flow volumes in extremely demanding applications in the subsea and surface oil and gas industries.  The business, established in 1985, has developed a leading edge capability in precision machining carbides and superalloy matrix materials.  The ability to combine high alloy steels with tungsten carbide inserts and specialised coatings gives Al-Met its niche position with its customers, global wellhead and subsea equipment OEMs.

 

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