National Grid sign ground-breaking deal for greener heat to convert LNG into gas

29/03/2007

- Enhancing energy efficiency and reducing emissions by up to 350,000 tonnes a year
- Working together to combat climate change
- Supporting UK gas supplies


National Grid’s LNG importation business on the Isle of Grain in Kent has signed an agreement with neighbouring utility E.ON to use excess heat from the new 1275MW power station to warm liquid natural gas used to supply the national gas system.

At present National Grid uses natural gas as a fuel source to warm the Liquid Natural Gas at the importation terminal, but this new scheme will mean ‘waste’ heat from E.ON’s power station is used instead, providing both environmental and efficiency benefits.

National Grid have already met its “Kyoto” targets for reducing emissions and has committed to delivering a 60% reduction in greenhouse gas emissions ahead of 2050.  The agreement with E.ON will use combined heat and power (CHP) to provide more efficient heat energy for the Grain LNG terminal with less carbon dioxide emissions.

The project will involve the construction of a pipeline between the two sites which will transport warm water from the power station to the vaporisers at the National Grid importation terminal. The pipeline is expected to be laid throughout 2008/09 with the first heat transfer planned for early 2010.

National Grid Executive Director Edward Astle said “We have welcomed the recent draft climate change bill and are committed to minimising our impact on the environment and reducing emissions. We are delighted to be working with E.ON on this project and the heat from its new power station can significantly reduce the fuel usage and emissions at the Grain LNG importation terminal.”

LNG is unloaded at National Grid’s importation terminal from specialised ships and stored in cryogenic tanks at minus 162 degrees centigrade. When gas is needed, LNG is warmed into its gaseous form and delivered into the national transmission system to meet gas demand. The terminal is currently undergoing a £355m expansion which will triple the capacity and enable up to 12% of UK gas demand to be imported through the Grain LNG importation terminal by winter 2008.

ENDS 

For further information please contact:

National Grid
Louise Farrell  +44 (0)1926 655373 
Christine Riches +44 (0)7785 508661
National Grid photographs can be found at www.newscast.co.uk

 

Notes to Editors:


National Grid is one of the world's largest utilities, focused on delivering energy safely, reliably, efficiently and responsibly. Our principal interests are in the transmission and distribution of electricity and gas in the UK and US. 

We also have interests in related markets, including metering services, liquefied natural gas facilities and property in the UK, as well as electricity interconnectors in the UK and US.

National Grid Grain LNG is a wholly owned subsidiary of National Grid and until recently has been  the only modern LNG importation terminal in operation in the UK, playing an important role in securing UK gas supply. Commissioned in July 2005, the terminal is able to provide 3.3 million tonnes of capacity per annum on a 20-year contract with its customers BP and Sonatrach.

National Grid is currently expanding the existing facilities at the Isle of Grain to increase capacity three-fold to 9.8 million tonnes per annum, which equates to 12% of UK gas demand. This involves the construction of 3 new state of the art LNG storage tanks and associated facilities.