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UBC Theses and Dissertations

Sustainable gaseous fuel futures of Canada : a planning framework for fuel supply chain configurations Kotagoda Hetti, Ravihari Kaumadi

Abstract

The increasing energy demand results in numerous environmental concerns. Despite the popularity gained by renewable energy, certain economic activities still require fossil fuels, with natural gas (NG) playing a critical role in Canada's energy security. However, NG supply chain operations emit significant greenhouse gas volumes. As low-carbon fuels, hydrogen and renewable natural gas (RNG) are considered strategies to decarbonize the NG supply chain. However, hardly any studies have been carried out to suggest integrated pathways for RNG and hydrogen inclusion in conventional gas grids. Therefore, the overall aim of this research is to develop a life cycle thinking-based decision support framework to decarbonize the natural gas supply chain through RNG and hydrogen integration. Multi-criteria decision-making methods were used to select the most suitable RNG and hydrogen production paths. Multi-objective optimization was employed to determine the optimum fuel generation mix and gaseous fuel portfolio that caters to key economic sectors. A dynamic modelling approach was used to evaluate investment decisions from a long-range perspective. Policy implications and recommendations were further proposed for successfully decarbonized gas grid planning and management. The study results indicate that integrating RNG and hydrogen into conventional gas grids can reduce emissions of up to 250 tons CO2eq/year and generate substantial carbon tax savings of up to $16,250/year. Furthermore, the long-range simulation indicated the potential to displace FNG 100% by 2045. Moreover, RNG and hydrogen selling prices can be reduced to 0.009 $/ MJ and 4.8 $/kg H₂ by 2050 with policy support. The deliverables of this research will aid in decision-making for pre-project planning and sustenance of a diversified gas supply chain with RNG and hydrogen. The developed decision support framework and the models will assist utility providers and investors in identifying the optimum fuel integration path and fuel portfolio allocation for key economic sectors. The deliverables are geared towards ensuring necessary technical support to ensure community energy security and achieve climate action goals. The study findings will contribute to the development of a diversified and decarbonized gas supply chain and an energy-independent community.

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Attribution-NonCommercial-NoDerivatives 4.0 International