When Low Carbon Means Low Cost. Stephen Salter, PEng President, Farallon Consultants Limited

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1 When Low Carbon Means Low Cost Stephen Salter, PEng President, Farallon Consultants Limited

2 Vancouver's North Shore Population of 200,000 and growing Mix of residential, commercial and industry

3 North Shore Study Purpose 1. Recover resources from wastewater 2. Recover resources from solid waste 3. Contribute to Provincial goals: Greenhouse gas reductions (80% by 2050) Conservation of water (33% by 2020)

4 North Shore Study Team Wm. P. Lucey RPBio: Ecology C. Barraclough RPBio: Ecology J. O'Riordan PhD: Policy & Governance C. Corps MRICS: Valuation D. Jackson PEng: Wastewater Infrastructure S. Salter PEng: Industrial Ecology, Energy

5 Markets for Resources Demand for heat Demand for reclaimed water Demand for low-carbon electricity Demand for compost

6 Sources of Waste Municipal wastewater Municipal & commercial solid waste Industrial waste heat

7 The Search for Opportunities Sources of waste Markets for reclaimed water Ageing infrastructure Space for facilities Markets for energy

8 Local Plants + District Energy

9 Central Plant + District Energy Central Wastewater Treatment Plant Solid Waste Energy Centre

10 Energy Transfer Station District Energy Client Building Heating Adsorption Chiller District Energy Client Building Cooling Heating Return Pipe, 50 C Reclaimed Water Pipe District Energy and Water System Heating Supply Pipe, 82 C Heat Pumps (Wastewater Treatment Plant) Heat Exchangers 68 C Heat Pumps 68 C Heat Exchangers Treated Wastewater (15 C) Industrial Stack Gases (>100 C) Industrial Cooling Water (35 C) Cogeneration Plant (>200 C)

11 Synergy - Multiple Energy Sources 82 C Heat Pumps Cogeneration Temperature 68 C or 15 C Quantity of Energy Delivered

12 Synergy - Multiple Energy Sources Temperature 82 C 68 C Cogeneration and Heat Pumps 22 C Quantity of energy delivered

13 Solid Waste Energy Plant Concept Food & Yard Waste Digester Biogas Scrubbing Electricity Dewatering Cogeneration Biosolids Digester Synthesis Gas Conditioning Heat Dewatering Drying Wood Waste Blending Gassifier Gassifier Wood Waste Ash Compost Blending Ash

14 Solid Waste Energy Plant Layout

15 Energy Delivered, by Source Energy Demand (MW) Load vs. Duration by Energy Source Peaking Boilers Municipal Wastewater via Heat Pumps Industrial Cooling Water via Heat Pumps Industrial Waste Heat Cogeneration Annual Hours

16 District Energy Pricing Cost of Energy ($/GJ) $30.00 $25.00 $20.00 $15.00 $ % Cost of Owning Operations & Maintenance Cost of Energy $5.00 $0.00 Heat Generated On Site 1 Heat Bought from DES

17 Market Pricing for Resources Low Chosen High District Heating ($/GJ) $21.83 $18.46 $24.94 Electricity Sold ($/MWh) $ $ $ Reclaimed Water ($/m 3 ) $0.25 $0.25 $0.65 Compost ($/tonne) $20.00 $20.64 $33.00 Carbon Credits ($/tonne) $15.00 $15.00 $20.00

18 Revenues, by Source 7% 2% 13% 20% 57% Heating Electricity Receiving Fees GHG Credits, Offsets Compost Reclaimed Water

19 Cases Modelled Case Resource: Liquid Waste No Yes Yes Yes Yes Organic Waste Diverted No No 70% 70% 90% Industrial Waste Heat No No No Yes Yes Resource Recovery Cases

20 Energy Delivered, by Source TJ/Year Case Gas Boilers Wastewater Industrial Heat Cogeneration Increasing Integration

21 Results - Initial Cost vs. Net Value Capital Cost ($millions) $700 $600 $500 $400 $300 $200 $100 $0 ($400) ($800) Net Value ($millions) $ Case Increasing Integration ($1,200)

22 Results - GHGs vs. Net Value $400 Total Net Value ($ millions) $0 ($400) ($800) Case 2 Case 5 Case 4 Case 3 Case 1 ($1,200) 0 100, , ,000 Greenhouse Gas Reductions (tonnes/year) Increasing Integration

23 Technical Lessons Learned In an integrated approach: 1. Context determines technology 2. Integration improves efficiency: Inputs from multiple sources Time shifting by source Cascading uses of energy & water

24 Social Lessons Learned In an integrated approach: 1. Energy expenditures "stay home" 2. Infrastructure can be almost invisible

25 Economic Lessons Learned In an integrated approach: 1. 'Economy of scope' improves revenues 2. Revenues can cover costs 3. Best ecological result is also the best value

26 The Bottom Line Integration: 1. Gives more value, jobs and green benefits 2. Is challenging, but not impossible

27 Thank You! Stephen Salter, PEng Farallon Consultants Limited