GNV

Gas Natural Vehicules (GNV) has experimented considerable growth in 2019. The number of registrations has increased up to 22,814 vehicles, which means 60% growth. The weight represented by both lightweight and heavy transport vehicles in these figures is worth highlighting.

On the other hand, the compressed natural gas cars (CNG) registered in Madrid, require special mention. In 2019, this has reached 60% of all registered cars, reaching 74% in the case of CNG van registrations, and 57% in the case of truck registrations. These figures respond to the important refilling infrastructure existing in the Madrid Community, which this year has added two new CNG service stations (one public and the other private).

Companies, professionals, and private individuals find in CNG a very economically favourable alternative, with savings between 25% and 50% in fuel and an acquisition cost comparable to petrol or diesel vehicles.

Likewise, CNG vehicles are a less polluting alterative with all the benefits that the ECO label involves, being compatible with the use of biomethane (there are already successful experiences), which means that, in these cases, the car is really ZERO emissions.

SIf we link to all the above that today refilling CNG cars in companies or at home, is now possible thanks to the installation of slow charge compressors that are directly connected to the existing gas installation, it is therefore confirmed that these vehicles are a real alternative to the use of other more polluting fuels. In addition, they offer the users greater comfort, because they can refill directly at home.

BIOMETHANE

MRG continues participating in the different work groups including companies, associations, and public bodies with the aim of promoting the integration of renewable gas (biogas, synthetic gas, and renewable hydrogen) in the energy mix. This means trying to become a core pillar to achieve the objectives of our country according to European directives for the fight against climate change, improving air quality, penetration of renewable energies, and circular economy.

Before June 2021 Spain has the obligation of transposing the European Directive RED II, which commits Member states so that the contribution of advanced biofuels and biomethane, as part of the end energy consumption in the transport sector, or, at least of 0.2% in 2021, of 1% in 2025, and of 3.5% in 2030. In turn, the Draft Law on Climate Change and Energy Transition establishes among its requirements the implantation of a certification system that allows its supervision and control.

In this sense, an important regulatory development is necessary; specifically, the method for certifying origin guarantees to contribute to the launching of renewable gas in Europe, as already occurs in the rest of European countries.

The GET 25 (Temporary Specific Work Group) was created in April 2019, in which MRG has participated very actively. The objective is to prepare an UNE Specification about biomethane origin guarantees. These renewable guarantees of origin (GoO)could be commercialised and/or used for distribution, also being adequate for certifications.

It is expected that the UNE Specification is finalised during the first quarter of 2020. The Administration is responsible for designating the competent body for managing these certificates and for implementing a certificate registration platform about how to conduct the monitoring and traceability of these certificates.

MRG is in the position of being able to distribute biomethane by our distribution networks without the need of any other additional intervention or adaptation of existing infrastructures, because biomethane is interchangeable with conventional natural gas.

In Madrileña we are working, together with the Sedigas Renewable Gas Committee, in the design of a website that will be a reference for renewable gas in Spain, which offers quality information to all stakeholders in the value chain (producers, operators, end clients, public bodies). Its launch is expected for the end of 2020.

Likewise, in 2019 MRG has signed with the Canal de Isabel II water company an agreement of confidentiality that promotes the study of possible biogas injection originating from its waste water treatment plants in our distribution networks, adding value to the existing gas infrastructures. 

IDENTIFICATION AND EVALUATION OF ENVIRONMENTAL ASPECTS

Biodiversity protection

Human activities are reducing biological diversity in the whole planet. The extinction of animal and vegetable species is one of the most worrying consequences, not only because of being an irreversible process, but because biodiversity is the guarantee of balanced operation of ecosystems. Therefore, conserving biodiversity means sustainably managing the relationship with nature now and for future generations.

Respect for nature is, and must be, a priority for protecting and preserving the environment and its biodiversity. One of the main objectives that we propose in MRG is the protection and conservation of our natural heritage, assuming and promoting from the company that environmental commitment among the workers, based on small habits or practices related to the care and respect for the environment in which we operate, acting consciously and responsibly with the environment, because protection is the responsibility of everyone.

In 2019, a rare event occurred in the history of the company. A pair of storks installed their nest during the brooding period on the crown of one of our cryogenic LNG storage tanks. After analysing the potential implications of this event from different perspectives, to be able to act in accordance with that established in our environmental policy as to the protection of biodiversity, and to respect the current legislation of protected species, as well as protecting the safety of the installations, authorisation was requested to the competent authority for the removal of the nest, with the challenge of recovering the stork eggs. Therefore, experts were consulted about the subject, planning the procedure to be followed in detail. Under coordination by the health and safety department of the company and with the participation of the plant maintainer, with the surveillance of forestry agents, as well as with a specialised company in the removal of nests and the help of a large size crane, we managed to save the eggs that were in the nest, remaining under the temporary care of the forestry agents for transfer to the Madrid Community wild animal recovery centre. After some time, they gave us the happy news of the birth of the stork chicks, that, after a period of captivity, were released into freedom.

To protect both the birds and the MRG installations, different studies and technical proposals have been made aimed at preventing the making of future nests on the mentioned installations that could endanger the integrity of the birds and their chicks.

Environmental management

One of the MRG environmental management cornerstones is the operational control mechanisms. These are implemented by means of revising aspects of the environmental management activities, compliance with the construction and demolition waste management plans, and monitoring of the inerting water from the LPG tanks in the plants designated for decommissioning. Likewise, these on-site controls are complemented with documentary controls of the waste management records that must be included in the works’ dossiers.

On the other hand, the MRG environmental policy establishes among its principles the prevention and management of environmental incidents that could occur during the development of our activity. This year, a spill on the road due to a failure of one LPG cistern was managed.

Likewise, and because of new legislation related to the self-consumption of electricity production, during the last quarter of 2019 solar panels were installed on the roof of the MRG headquarters.

Another fundamental axis of MRG actions regarding the environment are the diverse assessments given both internally and to our supply chain regarding waste management, environmental risk control, and good environmental practices.

Additionally, the dialogue with the stakeholders and the interest groups has been reinforced during this year, being worth of special mention, for its significance and transcendency, the communication to the Madrid Community and to the SEDIGAS sectorial association of the information about fugitive emissions of methane from the distribution network. It is also worth to mention the participation in the environmental survey from the National Institute of Statistics, the environmental information report to the GRESB platform, the communication of the reports about closing contaminated ground to several town councils of Madrid Community municipalities because of the decommissioning of LPG plants.

The methodology for estimating fugitive emissions of methane from the gas distribution networks was revised during this year, after being agreed at sectorial level. This way, MRG is aligned with the methodologies by events being used by other EU countries. This method integrated field data to define methane emissions according to different typologies, which allows building a database to include all types of events that generate emissions, calculating with greater precision the characteristics of each one.

With the by events method, CH4 emissions are independent of the length of the tube (ancient lineal methodology). The results obtained with this method are based on annually updated data that reflects the best practices applied to the construction and maintenance of networks, derived from the safety and environment action plans conducted. That way, the method by events allows designing and applying improvement procedures that significantly contribute to reducing methane emissions.

To calculate by the events method the volume of gas emitted, the following emissions are considered:

• Intrinsic emissions: emissions by leaks due to holes or small cracks detected by tracking in networks and supply points, to Polyethylene permeation (PE) and to leaks detected in the periodical inspections of receiving installations.
• Incidental emissions: emissions due to leaks by damage to the network and/or supply points detected by our personnel, third parties, claims or incidents, as well as those leaks in common or individual receiving installations (IRC/IRI) corrected while servicing emergency requests.
• Operational emissions: emissions produced in events due to normal system operation. These occur during the commissioning of our networks or during the disconnection. Also, those motivated by maintenance of the existing networks and/or installations.

Evaluation of environmental aspects

The most significant environmental aspects to be considered by MRG when establishing our environmental policy objectives, are established by internal regulation by means of a methodology for the identification and evaluation of those aspects associated to processes, activities, services, work centres, and vehicle fleets. This way, we can define their real or potential impacts on the environment and establish operational control on them.

The matrix with the identification of impacts and direct, indirect, and potential MRG environmental aspects includes the description of the activities and processes associated with each area, operating conditions (normality, abnormality or emergency) and the time factor.
That way, the environmental aspects analysed are as follows:

• Generation of atmospheric and particle emissions; useless, deteriorated or obsolete electrical and electronic equipment waste; special and/or hazardous waste; solid urban and similar waste; construction and demolition waste; spills; discharges; and noise.
• Consumption of fuels, electricity, chemical products, and water.

Regarding the evaluation of direct environmental impacts, MRG considers toxicity, the receiving means or destiny, and the quantity. Referring to indirect environmental aspects, only toxicity, and the receiving or generating means are considered, and to evaluate the seriousness of potential environmental impacts, the frequency and severity of the event consequences are considered.

Lastly, it is essential for MRG to maintain a control panel of environmental indicators, the results of which serve for feedback for the identification and evaluation of environmental aspects, as well as for establishing management priorities of the environmental risks of our activities.

Contaminated ground

The change of use and contamination of the ground is a serious global environmental problem, with extremely costly and complicated solutions. But, above all, an unacceptable risk for protection of human health and the ecosystems, because any pollutant present in the ground is susceptible to entering into contact with any receiver with adverse consequences for our health and our environment, therefore the importance of preventing the contamination before it happens.

In Spain, ground contamination is regulated by Law 22/2011, of 28 July, concerning waste and contaminated ground and by Royal Decree 9/2005 of 14 January, and later developments, which establishes the list of potential ground activities and the criteria and standards for the declaration of contaminated ground.

Most LPG plants are included in the application scope of the current regulation regarding ground contamination. Madrileña Red de Gas is committed to presenting to the Madrid Autonomous Community the preliminary ground reports (PGR), the situation monitoring reports, and the detailed characterisation reports for the closing of the activity.

Within this framework we have defined a pluriannual work plan, applying a prioritisation criterion on those installations that because of their characteristics, represent greater risk of potential ground contamination.

The methodology for preparing these reports coincides with that established for the detailed investigation phase in the Ground Quality Investigation Guide, and the Risk Analysis Guide, both published by the Madrid Community in the Regional Action Plan concerning contaminated ground of the Madrid Community, as well as in the «Technical instructions for human health risk analysis», in the scope of Royal Decree 9/2005, of 14 January, in the Madrid Community (July 2011).

In the year 2019, MRG has presented 117 LPG plant reports to the competent authority and has received 107 resolutions, therefore it only needs to present the mandatory periodical status reports every seven or ten years, in the case of LNG plants and, every ten years in the case of LPG plants.

Likewise, 65 LPG decommissioned plants ground closing reports have been presented and until now 40 resolutions have been received from the competent authority.

Finally, and in the case that MRG detects signs of problems on the site, derived from the activity being carried out in the plants, it may be necessary to conduct a second phase of the reports aimed at the analytical characterisation of the ground, consisting in taking samples of the ground close to the potential contamination points to be analysed in laboratory. This action is being conducted ex officio in LPG plants of singular characteristics. If because of the analytical characterisation the general reference levels are exceeded, MRG will commit a third phase of risks identification and quantification. And in the case that the presence of unacceptable risks is detected, there will be a fourth phase for defining the quality objectives for ground recovery.

CARBON FOODPRINT

Any activity conducted by any company, organisation or human being produces a direct or indirect emission of greenhouse gases that affect global warming and planet sustainability.

The calculation and analysis of these greenhouse gas emissions (GHG) or «carbon footprint» allows identifying the main sources of emission throughout the life cycle of products or services offered by companies, giving support for the taking of eco-efficient decisions that allow developing strategies and projects to facilitate reducing and mitigating these emissions not only due to environmental causes, but also as an element that can affect competitiveness and sustainability of any company.

Therefore, the carbon footprint is the best indicator of the eco-efficiency of any company, and the first step to optimise its management, because emission reduction also means a reduction of energy consumption and, therefore, economic costs.

The Madrileña Red de Gas CF report 2019 (of scopes 1 and 2, not verified by external sources) has considered the methodological requirements established by public documentation, like the emission factors for the calculation of the emissions, prepared for the Carbon footprint record, compensation and absorption projects, created by Royal Decree 163/2014, of 14 March, which created «the carbon footprint record, compensation and carbon dioxide absorption projects», as well the methodology for quantifying methane emissions by events in gas distribution systems (SEDIGAS), contemplating the following scopes and limits:

• Central offices of Madrileña Red de Gas.
• Distribution network of natural gas and LPG.
• LNG and LPG plants belonging to MRG distribution network.
• Fleet vehicles.

All results are reported in CO₂, applying the warming potentials indicated in the IPCC Fourth Assessment Report and in Regulation (EU) 517/2014, of April 16, 2014, «on fluorinated greenhouse gases, which repeals Regulation (EC) 842/2006». The GHG included in the carbon footprint: CO₂, CH₄, N₂O, HFCs, PFCs and other fluorinated greenhouse gases.

Scope 1

Direct greenhouse gas emissions, these originating from sources owned or controlled by the company.

• Combustion in stationary sources (DHW boiler for offices and steam boilers for LNG and LPG plants)
• Fugitive emissions owing to gas losses (gas losses in pipelines, connections and network RMS and gas leaks owing to damages to third parties).
• Fugitive fluorinated greenhouse gas emissions in climatization.
• Combustion in mobile sources (owned or operated vehicles).

The emissions of combustion in fixed sources include the fossil fuels used.

The fugitive emissions due to losses in the network correspond with the total of intrinsic, incidental, and operational emissions from the network, consisting of the following:

• Intrinsic emissions: emissions by leaks due to holes or small cracks detected by tracking in networks and supply points, to Polyethylene permeation (PE) and to leaks detected in the periodical inspections of receiving installations.
• Incidental emissions are due to leaks that are not detected by tracking or periodical inspections. The causes are usually due to leaks by damage to the network detected by our personnel, third parties, claims or incidents, as well as those leaks in common or individual receiving installations (IRC/IRI) corrected during attention to emergency requests.
• Operational emissions are those produced in events due to the normal operation of the system during the putting into service of new networks or the disconnection, as well as those due to the maintenance of networks and of existing installations (LNG plants, RMS and valves, change and/or disconnection of meters).

Fugitive emissions of F-gases refer to the recharged quantities of coolants or other agents containing HFCs, PFCs and preparations formed by GHG mixtures, including the heating potential of the mixtures.

Regarding combustion emissions in mobile sources, a detailed methodological approach is considered that allows the calculation of CO₂ emissions, initially from fuel consumption. If only having data for kilometres travelled is available, the calculation is made on the basis of specific consumption factors (gcomb/km) by type of vehicle (car, truck, van) and applicable EURO standards by type of driving (urban or motorway) provided by COPERT. The CO₂ emissions derived from the “bio” part of the fuels are discounted. The rest of GHG (CH4 and N2O) is mainly calculated based on recompiled emission factors by kilometres (gGEI/km) in COPERT, equally considering the vehicle, the applicable EURO standard and type of driving. In the case of not having data for kilometres travelled, this is based on the fuel transformed at kilometres by means of the mentioned specific consumption factors. In the case of GHGs other than CO₂, no discount for biofuel is applied. This methodology is in accordance with the Tier 3 approach of the EMEP/EEA Air Pollutant Emission Inventory Guidebook. Technical Guidance to Prepare National Emission Inventories and to the IPCC Guidelines for National Greenhouse Gas Inventories.

Emission estimates are made using the EMEP/CORINEAIR methodology, which enables the amount of emissions from each source to be calculated from quantifiable activity data and emission factors. This methodology is consistent with the options listed in ISO 14064-1.

The emission factors applied come from reference sources, such as the 2006 IPCC Guidelines for national inventories of greenhouse gases, the National Inventory (Spain) of emissions to the atmosphere and the emission factors document from the carbon footprint, compensation and absorption projects registry.

Other factors applied, such as the case of fuel data related to LCV, HCV, density, discount percentage in biofuels) have been obtained from references like:

• LCV / HCV: National inventory of emissions to the atmosphere, 2006 IPCC guidelines for national greenhouse gas inventories and emission factors document from the carbon footprint, compensation, and absorption projects registry.
• Densities: R.D. 1088/2010, of September 3, which modifies R.D. 61/2006, of January 31, regarding the technical specifications of petrol, gas oil, use of biofuels and sulphur content of fuels for maritime use and emission factors document from the carbon footprint, compensation and absorption projects registry.
• Biofuels percentage: R. D. 1085/2015, of December 4, for the promotion of biofuels and the emission factors document from the carbon footprint, compensation, and absorption projects registry.
• Piping emission factors: Sedigas.

Scope 2

Indirect GHG emissions owing to the generation of energy that is acquired by the company for its own consumption and is not self-generated; includes acquired and consumed electricity. The calculation of the emissions is carried out by applying the emission factor (KgCO₂e/kWh) to the consumption (kWh) referring to the marketer used, provided by CNMC or the emission factor applicable to the mix of marketers without guarantee of origin, for each year of calculation. The confirmed consumptions with guaranteed renewable origin are considered with a zero emission factor. The calculations do not include the emissions caused by LPG vaporisation boiler plants.

Regarding the approach to the consolidation of GHG emissions data, Madrileña Red de Gas has included one hundred percent of the GHG emissions of the operations over which it has operational or financial control.

The uncertainty associated with the carbon footprint is determined by the following components:

• Scientific uncertainty regarding emission processes. Regarding factors used (emission factors, warming potentials, and other conversion factors such as density or LCV). This component is monitored in the carbon footprint average, in which it uses factors detailed in the IPCC reference documents (emission factors from the guidelines for the preparation of emissions inventories and warming potentials from the IPCC assessment reports) and, whenever available, factors published in the National Inventory of atmospheric emissions. In the case of indirect emissions, specific emission factors from each electricity supplier and reference life cycle analysis in the sectors are used.
• Uncertainty related to the estimation of emissions. Assured using activity data from supplier invoices and/or measuring instruments subject to metrology control to assure a controlled uncertainty range.

The qualitative evaluation of the uncertainty is a means for control and must not be understood at all for quantification purposes.

The graphs show the results of scope 1 and 2 GHG emissions and the global result. Because of the importance of GHG emissions of fugitive leaks through gas wastage in the global results, the results obtained are shown as an example without considering the mentioned component.