Petronet LNG, India’s biggest liquefied natural gas (LNG) importer, is carrying out feasibility studies on harnessing ‘cold energy’ for commercial usage by setting up power generation units, or specialised cold storage warehouses, at its LNG terminals. The concept, popular in Japan and China, is being experimented with in India, where the possibility to set up cold storages near LNG terminals has been explored.
A K Balyan, managing director and chief executive officer of Petronet, said the firm has conducted detailed feasibility studies on use of cold energy for power generation, besides looking at cold storage facilities. “Our board would consider if these projects are commercially viable,” he told FE.
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In an LNG terminal, the imported gas is received at cryogenic conditions (minus 1600 celsius). It is stored in specially designed storage tanks and re-gasified using various sources of heat. During re-gasification, there is a reasonable potential for recovery of ‘cold energy.’ A few possible ways could be an air separation unit to generate liquid industrial gases such as liquid nitrogen, oxygen and argon, cryogenic power, warehousing, production of dry ice and integration with adjacent power plants.
Balyan said that in case of power generation, cold energy gives additional efficiency of 5-10%. It could be integrated with a power plant in the vicinity of the terminal, or with a power station within the facility. But unless there is a long-term power purchase agreement (PPA), it may not be viable.
In addition, cold energy could be used for specialised cold storages. These are not normal warehouses — they require storage at cryogenic conditions and used to store drugs/vaccines, he explained.
The possibility of setting up cold storages near LNG terminals is one the energy conservation programmes discussed by PM Narendra Modi after taking charge. The implementation is monitored by the Cabinet Secretariat and the petroleum ministry.
The petroleum ministry is learnt to have advised Petronet to seek consultations with central and state departments and private operators, including foreign companies with expertise in utilising cold energy. A detailed actionplan is expected to be put in place by the end of December.
“In spite of such potential, only a small portion of cold energy is recovered during the regasification process. As LNG terminal integrated cold storage units exist in Japan and China, the technical feasibility of such projects already exists globally,” a senior government official told FE.