2020 Technology Development Annual Report - ONE Gas

2020

TECHNOLOGY DEVELOPMENT ANNUAL REPORT

Kansas Gas Service | Oklahoma Natural Gas | Texas Gas Service

Energy transformation is here and ONE Gas is committed to being part of a clean energy future.

Being good stewards of the environment isn’t just the right thing to do – it’s part of our responsibility for future generations. Innovation is key and will set the pace as we work together to achieve a lower carbon future.

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2020 Technology Development Annual Report

TECHNOLOGY DEVELOPMENT – BY THE NUMBERS

Oklahoma Natural Gas research and development investment through the GTI partnership since 2006:

Total contributions to technology development in 2020:

Total number of 2020 active technology development projects:

$10 million

$755,280

124

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TECHNOLOGY DEVELOPMENT – BY THE NUMBERS PROJECT BREAKDOWN: STRATEGIC AREAS OF FOCUS

7 2 2 Emission Reduction/Sustainability

14

Safety

124

24

projects

48

Other Distributed Energy Resources Hydrogen Carbon Capture RNG

27

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2020 Technology Development Annual Report

OUR PARTICIPATION IN TECHNOLOGY DEVELOPMENT GAS TECHNOLOGY INSTITUTE PARTNERSHIP Company: Oklahoma Natural Gas

Over the past 15 years, Oklahoma Natural Gas has partnered with Gas Technology Institute (GTI) on research and development of innovative natural gas technology solutions. This gives us an opportunity to stay abreast of and help drive the latest technology developments while providing safe, efficient and environmentally-friendly natural gas to our residential and business customers.

Emerging Technology Program

$25K

In 2020, Oklahoma Natural Gas contributed Utilization Technology Development

$250K

$675K

Operations Technology Development

$400K

$675,000 to the research and development programs at GTI.

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GTI PARTNERSHIP

Utilization Technology Development Projects focus on end-use equipment and appliances for the residential, commercial, industrial and transportation market segments. The goals of the projects are to: • Improve safety, reliability and resiliency of natural gas operations • Reduce end-use emissions • Integrate with renewable energy • Save energy • Save consumers money

TOP PROJECTS: High Hydrogen-Content Fuel in Combustion Equipment Leveraging high hydrogen blends of fuel in residential and commercial combustion equipment to help reduce or eliminate carbon emissions.

Integrated Combined Heat & Power System for Multi-Family Buildings Evaluating the Lochinvar XGRi25 micro combined heat and power unit in a multi-family building when paired with best-in-class electric heat pumps to fulfill residents’ heating and cooling needs. This would increase energy efficiency by more than 100% for heating, cooling and hot water loads and reduce greenhouse gas emissions.

Compressed Natural Gas (CNG) Station Methane Release and Measurement Investigations Assessing and quantifying methane emissions from CNG fueling stations, evaluating advanced compression technologies and helping to develop methods to monitor station leakage performance effectively and economically. This project allows us to identify cost-effective ways to reduce methane emissions with CNG fueling stations.

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2020 Technology Development Annual Report

UTILIZATION TECHNOLOGY DEVELOPMENT TOP PROJECTS: High-Efficiency Combi System Integrating Renewables Developing and demonstrating a hybrid residential combined HVAC and water heating (combi) system to integrate gas and electric systems with micro-CHP, energy storage and renewable energy. This project helps reduce operating costs, lower emissions, improve energy resilience and increase efficiency.

Mitigating Methane Emissions from Residential/Commercial End-Use Equipment

2020 Contribution:

$250,000

Quantifying methane emissions from residential furnaces to develop and publish representative methane emission factors, determine the conditions under which residential furnaces release unburned methane and suggest design changes to reduce methane emissions.

Funded Projects: Projects with a primary focus on reducing emissions

65

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GTI PARTNERSHIP

Operations Technology Development

TOP PROJECTS: Purging Natural Gas Pipes into Service Without Venting Gas to the Atmosphere Studying vacuum purging, an alternative method to purging natural gas pipes into service with zero to minimal natural gas vented to the atmosphere. The project

Develops, tests and implements new technology solutions related to natural gas operations and infrastructure. The projects improve the safety, reliability, operational efficiency and sustainability of natural gas systems.

also evaluates the economic, environmental and social impact of this practice and create safety guidelines.

Point and Shoot Methane Detection Technologies Testing and evaluating the effectiveness of laser-based “point and shoot” methane detection tools to identify leaks compared to standard handheld computergenerated imagery type sensors. This new technology could significantly reduce the time needed to identify and pinpoint leaks.

Validation of Remote Sensing Leak Detection Technologies Advancing unmanned aerial system mounted remote sensing technologies to identify the right-of-way integrity threats and detect natural gas leaks under operational conditions within natural gas transmission and distribution pipeline systems across urban to rural sites.

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2020 Technology Development Annual Report

OPERATIONS TECHNOLOGY DEVELOPMENT TOP PROJECTS: Effects of Hydrogen Blending in Natural Gas On Material Properties and Operational Safety Assessing the material integrity and operational compatibility of a bounded natural gas pipeline system for use with a 5% hydrogen-blended fuel. This project could help to decarbonize natural gas pipeline systems and reduce emissions.

Remote Gas Sensing and Monitoring Developing systems that allow leak surveyors to remotely monitor methane levels

2020 Contribution:

$400,000

at multiple points within a site via a tablet, phone or another connected device that can monitor the gas values in real-time. This technology could increase the safety of the public, as well as first responders and our employees.

Funded Projects: Projects with a primary focus on reducing emissions

37

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GTI PARTNERSHIP

Emerging Technology Program

TOP PROJECTS: Demand Recirculation Control Technology Assessment The assessment demonstrates and validates D’MAND KONTROLS, a pump control technology in multi-family and commercial motel sites. D’MAND KONTROLS is an on-demand recirculation control system that can be installed

Works to accelerate the commercialization and adoption of energyefficient technologies in the residential, commercial and industrial sectors.

on a water heating system to determine the potential natural gas savings. When installed, hot water is available on-demand and isn’t required to be recirculated 24 hours a day, which could potentially save energy and money. Five customer sites have been identified for field evaluations and we’re looking forward to starting the six-month field evaluations soon.

To learn more about the 2020 Contribution:

$25,000 10

2020 Technology Development Annual Report

Gas Technology Institute, visit: www.gti.energy

ADDITIONAL TECHNOLOGY DEVELOPMENT PROJECTS NORTH AMERICAN GAS HEAT PUMP COLLABORATIVE Company: Oklahoma Natural Gas – Energy Efficiency Program Developing advanced gas heat pump technology and incentive programs for water and space heating to help accelerate market adoption when they become widely available in 2022. Gas heat pumps are more energy-efficient and customers could save significantly on their energy bills while also reducing greenhouse gasses.

Investment: $80,280

H2@SCALE – HYDROGEN TECHNOLOGY DEVELOPMENT Company: Texas Gas Service Hydrogen is the most abundant element in the universe and a zero-carbon energy source. It will be a critical solution when it comes to emission reduction strategy development. Texas Gas Service has partnered with GTI to participate in the H2@Scale project, which will establish commercial hydrogen production, distribution, storage and consumption and create the first dedicated renewable hydrogen network to demonstrate infrastructure safety and reliability.

Projects with a primary focus on reducing emissions

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UPCOMING COMMITTED TECHNOLOGY DEVELOPMENT PROJECTS

ONE Gas has committed to participate in several additional projects, which are expected to commence during 2021-2022.

HYBLEND™ Company: ONE Gas Blending hydrogen into the existing natural gas infrastructure has national and regional benefits for energy storage, resiliency and emission reductions. The National Renewable Energy Laboratory (NREL) is leading a new collaborative research and development project known as HyBlend™ to address the technical barriers to blending hydrogen in natural gas pipelines. ONE Gas is excited to partner with NREL on this project.

The project will: • Evaluate hydrogen compatibility of piping and pipelines and the different materials used • Analyze the life-cycle emissions of technologies using hydrogen and natural gas blends • Quantify the costs and opportunities for hydrogen production and blending within the natural gas network

Projects with a primary focus on reducing emissions

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2020 Technology Development Annual Report

UPCOMING COMMITTED TECHNOLOGY DEVELOPMENT PROJECTS COMPRESSED NATURAL GAS (CNG) LOCOMOTIVE FIELD DEMONSTRATION Company: ONE Gas In 2018, Class 1 railroads purchased 4.3 billion gallons of diesel fuel to use in 25,000 locomotives in the United States with only 1,000 locomotives meeting Tier 4 emissions standards. However, railroad companies are hesitant to adopt new technology without field demonstrations of the technology. ONE Gas is partnering with GTI, the Department of Energy and OptiFuel to demonstrate the benefit of using a CNG engine in a locomotive from both an emissions reduction and fuel efficiency standpoint.

This field demonstration will show that a suite of commercially available products can be integrated to create a viable CNG hybrid system to power locomotives that meet the proposed tier 5 emissions standard, which includes near-zero NOx and particulate matter. For this project, we’ll be working with the California South Coast Air Basin of a Tier 5 natural gas hybrid line-haul locomotive and a 10,500-diesel gallon equivalent renewable natural gas fuel tender car.

To learn more about our company’s technology development initiatives, please email techdev@onegas.com

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Revised 06/21