| Title | Techno-economic assessment of pathways for liquefied natural gas (LNG) to replace diesel in Canadian remote northern communities |
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| Author | McFarlan, A |
| Source | Sustainable Energy Technologies and Assessments vol. 42, 100821, 2020 p. 1-11, https://doi.org/10.1016/j.seta.2020.100821 |
| Image |  |
| Year | 2020 |
| Alt Series | Natural Resources Canada, Contribution Series 20200495 |
| Publisher | Elsevier Ltd. |
| Document | serial |
| Lang. | English |
| Media | paper; on-line; digital |
| File format | pdf; html |
| Province | Nunavut; Canada; British Columbia; Alberta; Saskatchewan; Manitoba; Ontario; Quebec; New Brunswick; Nova Scotia; Prince Edward Island; Newfoundland and Labrador; Northwest Territories; Yukon;
Nunavut |
| NTS | 1; 2; 3; 10; 11; 12; 13; 14; 15; 16; 20; 21; 22; 23; 24; 25; 26; 27; 28; 29; 30; 31; 32; 33; 34; 35; 36; 37; 38; 39; 40; 41; 42; 43; 44; 45; 46; 47; 48; 49; 52; 53; 54; 55; 56; 57; 58; 59; 62; 63; 64; 65;
66; 67; 68; 69; 72; 73; 74; 75; 76; 77; 78; 79; 82; 83; 84; 85; 86; 87; 88; 89; 92; 93; 94; 95; 96; 97; 98; 99; 102; 103; 104; 105; 106; 107; 114O; 114P; 115; 116; 117; 120; 340; 560 |
| Lat/Long WENS | -134.0000 -61.0000 83.0000 50.0000 |
| Lat/Long WENS | -141.0000 -50.0000 90.0000 41.7500 |
| Subjects | Science and Technology; fossil fuels; gas; diesel fuels; Bioenergy; Fuels |
| Illustrations | location maps; tables; graphs; diagrams |
| Released | 2020 10 01 |
| Abstract | This novel study assesses techno-economics of replacing diesel with liquefied natural gas (LNG) in remote Nunavut communities. The methodology uses an economic model to calculate delivered costs of LNG
for a supply chain comprising terminal costs, shipping costs, and annual onsite storage cost. CO2 reduction potential and upfront costs to implement LNG or renewable electricity projects are estimated for five remote Nunavut sites. The impact of
replacing diesel with LNG on electricity price is examined, as well as socioeconomic and environmental benefits. The study finds the most cost-effective LNG supply option utilizes arctic sealift/LNG resupply vessels that bunker LNG to ISO containers
for on-site storage. With leveraging of 75% of CAPEX, a delivered cost of $0.94/DLE LNG is attained, 13% lower than the price of fuel oil in the two cases studied. The impact of fuel switching to LNG on the incremental cost of electricity generation
is negligible. Also, fixed cost of avoided CO2 emissions to replace 100% of diesel with LNG falls within the same range as costs to install wind-diesel electricity generation systems at 25% renewable penetration, i.e., between $336-788/tonne CO2
avoided. Further reductions are possible by opting for higher renewable gas content in LNG. |
| Summary | (Plain Language Summary, not published)
This study focuses on the economic aspects of switching from diesel fuel to liquefied natural gas (LNG) in remote communities in Nunavut, Canada. The
researchers used an economic model to calculate the costs involved in delivering LNG, including terminal costs, shipping costs, and annual storage expenses. They also estimated the potential reduction in CO2 emissions and the initial costs of
implementing LNG or renewable electricity projects in five Nunavut communities.
The study found that the most cost-effective method of supplying LNG involves using arctic sealift and LNG resupply vessels that fill ISO containers for on-site
storage. With 75% of the capital expenditure (CAPEX) covered, the delivered cost of LNG is $0.94 per liter of diesel equivalent (DLE), which is 13% lower than the cost of fuel oil in the scenarios examined. The switch to LNG has a minimal impact on
the incremental cost of generating electricity. The study also found that the fixed cost of avoiding CO2 emissions by replacing all diesel with LNG falls within the same range as the costs of installing wind-diesel electricity generation systems at
25% renewable penetration.
The research highlights the potential economic and environmental benefits of transitioning from diesel to LNG in remote communities, helping reduce carbon emissions and overall energy costs. |
| GEOSCAN ID | 327406 |
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