Page 35 - SD_NG_BC

Copyright © 2014 by SDTC™ Sustainable Development Business Case 29

7 Needs Assessment

There are a number of barriers impeding rapid and sustained improvement in the efficient downstream use of natural gas. In order to achieve the industry vision, these barriers must be identified and overcome. The STAR™ process categorizes the barriers into technical and non-technical needs. They are interdependent and both need to be satisfied in order to achieve the industry vision.

7.1 Technical Needs

7.1.1 Residential

As discussed in the industry vision, space and water heating represent 99% of natural gas consumption in the residential sub-sector. Identified needs within the sub-sector mainly focused on technologies that reduce natural gas consumed for space and water heating, the exception being CHP which reduces upstream electricity generation.

• Small-scale (single family home) CHP units with reduced capital cost in order to encourage uptake in the residential market; • Lower capital cost ultra-high efficiency water heaters that improve user experience, integrate with low-flow appliances and meet footprint requirements;

• Technologies that improve the efficiency of residential heating and/or cooling for apartment buildings;

• Smart energy measurement and data management to better control natural gas consumption in residential buildings; • Integrated systems that combine a renewable energy source with natural gas to meet either heating or cooling demands.

7.1.2 Commercial

Similarly to residential, technologies are mainly focused on reducing natural gas use for space conditioning and water heating with the addition of CHP to reduce grid electricity generation. The main opportunity in space conditioning remains heating, but there is also a modest need for NG space cooling technologies:

• CHP systems with lower capital cost in order to increase technology penetration in the commercial sector; • Technologies that improve the efficiency of heating commercial buildings;

• Smart energy measurement and data management to better control natural gas consumption in commercial buildings; • Natural gas cooling systems;

• Integrated systems that combine a renewable energy source with natural gas to meet either heating or cooling demands.

7.1.3 Industrial

The scope of considered needs for the industrial sector was limited to technologies that consume natural gas and not to technologies that change industrial processes that result in decreased NG demand. It is understood that changes to processes can have the greatest potential for environmental benefit; however, these would be considered within SD Business Cases™ targeted at individual industries.

Technology needs identified include:

• Higher-efficiency industrial heating equipment (process and/or building) with reduced capital cost; • Smart energy measurement and data management for advanced heating process control;

• CHP units for applications that require less heat, or less continuous heat (e.g. increased electricity generation without sacrificing overall efficiency); • CO 2 capture systems from industrial natural gas combustion ;

• Less energy-intensive hydrogen production from natural gas / renewable natural gas; • NG storage solutions for remote locations;

• Smaller-scale economic LNG production to serve remote locations.