An Overview of Landfill Gas Energy in the U.S.

Transcription

1 An Overview of Landfill Gas Energy in the U.S. Rachel Goldstein U.S. Environmental Protection Agency Landfill Methane Outreach Program (LMOP) Texas Technology Showcase December 7, 2006

2 Agenda Background on Methane LMOP and LFG 101 Direct Use Projects and Trends Permitting/ Retrofits Project Examples LMOP Tools and Services 2

3 Why Does EPA Care About LFG? Methane is a potent heat-trapping gas. Landfills are the largest human-made source of methane in the US. There are many cost effective options for reducing methane emissions while generating energy. Projects reduce local air pollution. Projects create jobs, revenues, and cost savings. 3

4 EPA s s Landfill Methane Outreach Program Established in 1994 Voluntary program that creates alliances among states, energy users/providers, the landfill gas industry, and communities Mission: To reduce methane emissions by lowering barriers and promoting the development of cost-effective and environmentally beneficial landfill gas energy (LFGE) projects. 4

5 Targeting Methane Producing Measurable Results U.S. Methane Emissions 10% Below 1990 Level Changes in US Methane Emissions and Economic Growth MMTCE Billion $ Methane Emissions GDP Looking to likely emissions over the next half century, it is also the case that feasible reductions in emissions of methane and other non-co 2 gases can make a contribution to slowing global warming that is as large or even larger than similar reductions in CO 2 emissions. -- MIT,

6 LFG Energy 101 6

7 LFG Has Been Used to Help Produce Aquaculture (e.g., Tilapia) Biodiesel Biosolids (drying) Bricks and concrete Carpet Cars and trucks Chemicals Chocolate Consumer goods and containers Denim Electronics Fiberglass, nylon and paper Furthering space exploration Garden plants Green power Infrared heat LNG/CNG vehicle fuel Orange and apple juice Pharmaceuticals Pierogies and snack food Pottery and glass Soy-based products Steel Tomatoes (hydroponic) Taxpayer savings and increased sustainability! 7

8 Landfill Gas 101 Landfill gas (LFG) is a by-product of the decomposition of municipal solid waste (MSW). LFG: ~ 50% methane (CH 4 ). ~ 50% carbon dioxide (CO 2 ). <1% non-methane organic compounds (NMOCs). For every 1 million tons of MSW: ~ 1.0 MW of electricity ~ 550,000 cubic feet per day of landfill gas. If uncontrolled, LFG contributes to smog and global warming, and may cause health and safety concerns. 8

9 LFGE Projects Provide Dual Benefits Destroys methane and other organic compounds in LFG Each 1 MW of generation = planting ~12,000 acres of trees per year, removing the emissions of ~8,800 cars per year, or preventing the use of ~93,000 barrels of oil per year Offsets use of nonrenewable resources (coal, oil, gas) reducing emissions of: SO 2 contributes to acid rain NO x contributes to ozone formation and smog PM is a respiratory health concern CO 2 is a global warming gas 9

10 State of the National LFGE Industry (2/06) At least 415 operational projects in 40 states supplying: 9 billion kilowatt hours of electricity and 74 billion cubic feet of landfill gas to direct-use applications in 2005 Estimated Annual Environmental Benefits: Planting nearly 19,000,000 acres of forest, or Preventing the use of over 160,000,000 barrels of oil, or Removing emissions equivalent to over 13,000,000 vehicles, and Powering over 725,000 homes and heating nearly 1,200,000 homes. 10

11 State of the Texas LFGE Industry 19 TX landfills with operational projects -6 direct use projects -14 electricity projects 3 under construction electricity projects 63.3 MW generated by the 14 electricity projects mmscfd from the 6 direct use projects 175 MW potential or 96.9 mmscfd from 56 candidate sites 11

12 Status of LFGE Project Development and Candidate Landfills by State 12

13 Diversity of Project Types Direct Use of LFG Direct-use projects are growing! Boiler applications - replace natural gas, coal, fuel oil Combined heat & power (CHP) Direct thermal (dryers, kilns) Natural gas pipeline injection Medium and high-btu Greenhouse Leachate evaporation Vehicle fuel (LNG) Artist studios Hydroponics Aquaculture (fish farming) Pottery Studio Sugar Grove, NC Greenhouse Burlington, NJ 13 LFG-fired Boiler Ft. Wayne, IN

14 Natural Gas Prices Continue to Rise and Remain Volatile Daily price history of first-nearby NYMEX natural gas futures contract NYMEX natural gas futures strip (from 12/18/03) Apr-90 Apr-91 Apr-92 Apr-93 Apr-94 Apr-95 Apr-96 Apr-97 Apr-98 Apr-99 Apr-00 Apr-01 Apr-02 Apr-03 Apr-04 Apr-05 Mar-06 Mar-07 Mar-08 Feb-09 $/MMBtu (nominal) Source: NYMEX EEA Forecast of Natural Gas Price at Henry Hub $6 $5 $4 $3 Historical Forecast $2 $2003/MMBtu $1 $

15 Look Who s s Using Landfill Gas 15

16 Corporate Interest in LFG Energy Pipelines stretching Honeywell connected to WM landfill by 23- mile pipeline LFG a cheaper fuel source and long term hedge against energy price volatility General Motors just brought 5 th LFG project on line; announce $5 million savings/year from all projects BMW saving over $1 million/year, and looking to expand project based on success NASA saving more than $350,000/year Requests from over 20 large, national companies to identify landfill opportunities Requests for siting new facilities near landfills Multiple requests received in the last year to find appropriate sites for NEW brick plants, greenhouses, etc 16

17 Johnstown s selling points to business have included cheaper labor, outdoor recreation, and low crime. Now, another distinction will be added to that list: Discount natural gas. We think this is a tremendous opportunity that will not only allow us to save jobs, but create new ones. When you look at our balance sheet, after labor, gas is our secondgreatest expense. Gautier Steel annual natural-gas costs have increased from roughly $1 million in 1993 to $3.2 million in in This initiative could get us back down into the $1(million) to $1.5 million range. Johnstown Wire Technology 17

18 Diversity of Project Types Electricity Generation Internal Combustion Engine Gas Turbine Emerging Technologies Microturbine Organic Rankine Cycle Engine Stirling External Combustion Engine 18

19 Landfill Gas and Green Power A Winning Combination Dual benefit destroys methane and other organic compounds in LFG Offsets use of nonrenewable resources (coal, oil, gas) reducing emissions of SO 2, NO X, PM, and CO 2 LFGE is a recognized renewable energy resource Green-e, EPA Green Power Partnership, Sierra Club, NRDC LFG is generated 24/7 and projects have online reliability over 90% LFG can act as a long-term price and volatility hedge against fossil fuels 19

20 Emerging Technologies: LFG for Vehicle Fuel City of Denton, TX used its LFG to fuel a 3 million gal/yr biodiesel production facility Puente Hills Landfill uses LFG for compressed natural gas (CNG) to fuel landfill equipment Central Landfill in CA plans to use LFG to CNG to fuel Sonoma County Transit buses 20

21 Regulations that Affect LFGE LMOP State Partners helpful with permitting concerns (TCEQ a partner) LFGE projects are affected by a variety of federal, state, and local air quality regulations: NSPS; Title V; Maximum Achievable Control Technology (MACT); New Source Review (NSR); and Prevention of Significant Deterioration (PSD) 21

22 Regulations and Permitting Right of ways for pipelines If you cross or impede public property with a pipeline you will be subject to the federal requirements of: PART 192--TRANSPORTATION OF NATURAL AND OTHER GAS BY PIPELINE: MINIMUM FEDERAL SAFETY STANDARDS Are you a distribution line or transmission line? This will be determined by the local, state and federal requirements of your location and classification for the pipeline. 22

23 Boiler Retrofits for LFG Use Adjust air to fuel ratio to compensate for lower Btu content of fuel Modify valve orifices for fuel flow control Need to ensure flame monitoring devices are adequate maintain flame stability given lower Btu value and fluctuations in heating value O&M costs similar to natural gas Proven, safe, effective and reliable retrofits are readily available Currently used at 90 LFG-energy sites around the country 23

24 Emissions Trading of Landfill Gas Chicago Climate Exchange (CCX) is a voluntary GHG reduction and trading program Offers a credit of metric tons CO 2 per metric ton of methane combusted Applicable for LFG collection and combustion systems placed into service after 12/31/98 Prices range from $1 to $3.25 per metric ton Only landfills not required by federal law (e.g., NSPS) to combust LFG are eligible Landfill methane emission offsets brochure at 24

25 Federal Financial Incentives Section 45 Tax Credit Electricity generation cents/kwh Placed in service by 12/31/07 5- or 10-year window for credits depending on placed-inservice date Section 29 Tax Credit (re-designated as Section 45K) Both direct-use and electricity generation Effective for taxable years ending after 12/31/05 Renewable Energy Production Incentive (REPI) Local/state government or non-profit electric co-op facilities Online by 10/1/16 Payment for first 10 years of operation 25

26 State Incentives State energy offices, economic development offices LMOP Funding Guide PA example Guilford Mills Inc. - $100,000 to install a hot oil heater for direct use of landfill gas from Pine Grove landfill to displace the use of 300,000 gallons of fuel oil used in plant boilers annually. 26

27 Direct-Use Case Study Lanchester LF, Narvon, PA First LFGE project in PA to serve multiple customers will eventually provide LFG to 4 direct end users Battle won: not regulated by PUC as a public utility! 13-mile pipeline through 75 easements and 35 road crossings 2005 LMOP Award Winner 27

28 Direct-Use Case Study Lanchester LF, Narvon, PA (cont.) Two end users already using LFG in boilers, thermal oxidizers, & ovens LFG fuels transport of itself self-reliant project Estimated annual savings of $300,000 in avoided electricity costs Public and Private Partnerships Granger Energy, Chester County Solid Waste Authority, & PA DEP overcame economic & technical difficulties 28

29 Direct-Use Case Study City of Denton Landfill, TX and Biodiesel Industries One renewable fuel fuels another LFG from city landfill used in industrial process to convert renewable feedstock, vegetable oils, and animal fats into 3 million gal/yr of biodiesel City garbage trucks and other utility vehicles are fueled by 80% diesel/ 20% biodiesel (B20) Improves regional air quality Stimulates local economic development Reduces dependence on foreign oil 2005 LMOP Award Winne 29

30 CHP Case Study H 2 Gro Greenhouses Lewiston, NY Innovative Energy Systems Model City Energy Facility at the Modern Landfill went online June 1, MW capacity from 7 Caterpillar G3516 engine-generator sets Provides all electrical and heating requirements of H 2 Gro Greenhouses Excess electricity sold to grid H 2 Gro initially constructed a ½ acre hydroponic greenhouse test cell and yielded 180,000 lb/yr of tomatoes H 2 Gro has since expanded to 7½ acres and produces 10,000 lb/day or 3.5 million lb/yr of tomatoes 30

31 Direct Use Case Study Nucor Corporation Decatur, Alabama LFG Project started operation in September, 2004 Morgan County landfill supplies 650 scfm of LFG Equivalent to 450 mmbtu per day Fuels Nucor s tunnel furnaces Mixed with natural gas 1-mile pipeline Benefits Preventing the use of 180,000 bbls of oil Planting 22,000 acres of forest Positive public reaction 31

32 LMOP Reports/Services Project Assessment Landfill/End User Searches LFG Curves LFGcost Estimates 32

33 LMOP Locator Database tool that matches landfills to end users Can start with either the landfill or the end user Provide information about possible end user Name Address Distance to landfill 33

34 LMOP Locator Example End User Search Report 34

35 Analyze Landfill Resource Example Landfill LFG (for VA landfill) LFG (scfm) Current Year LFG Production scfm LFG Collection scfm Available Heat Rate mmbtu/hr Recovered LFG, Available Heat Rate (mmbtu/hr) LFG Production 100 LFG Recovery Year Available Heat Rate 35

36 Project Challenges for Using Landfill Gas Using full energy capacity GSFC Gas Demand LFG Supplemented with Natural Gas Landfill Gas Supply Seasonal Demand v. Supply Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Matching methane energy available scfm LFG Curve Recovery Generation

37 LFG Cost Excel based tool- assist in financial feasibility determination Works with gas curve information Landfill, unit price, and financial inputs Cost models for various project types Financial outputs- NPV, IRR, payback 37

38 LFGcost Model Example Inputs and Outputs 38

39 There Are Still Many Untapped LFG Resources Currently ~600 candidate landfills with a total gas generation potential of 725 million cubic feet per day or ~15,000 MMBtu/hr Total expected annual environmental benefits if all projects were developed/ producing power: Planting 15 million acres of forest, or Removing the emissions from over 10.5 million vehicles on the road, or Powering 900,000 homes per year 39

40 Methane to Markets Partnership Overview Advances recovery and use of methane as a valuable clean energy source Encourages development of cost-effective methane recovery and use opportunities in coal mines landfills oil and gas systems and agriculture (manure waste management) Private companies, multilateral development banks and other relevant organizations participate by joining the Project Network over 300 organizations now participating 18 Partner Countries Argentina Australia Brazil Canada Colombia China Ecuador Germany India Italy Japan Korea Mexico Nigeria Russia Ukraine United Kingdom United States 40

41 LMOP Partner Tools and Services Partnerships and networking (over 500) Newsletter and listserv Direct Project Assistance Feasibility studies, end user searches Technical Assistance Resource LFG Advocate PR/Ribbon Cuttings GM and Toro Energy Ribbon-Cutting Ceremony May

42 LMOP Partner Recruitment Tools and Services Project and Candidate Database Green Pricing Accreditation Involvement State Workshops/Conferences Working with State Partners and SWANA Peer Matching Web Site (e.g., publications, database) LMOP 10 th Annual Conference, Project Expo, and Partner Awards Baltimore, MD, January 23-24,

43 For More Information - LMOP Hotline: T2 North: Chris T3: Brian WA OR CA NV ID UT MT WY CO ND SD NE KS MN IA MO WI IL MI IN KY OH WV PA VA NY DE MD NJ NH VT RI CT ME MA T1: Rachel AK AZ NM OK TX AR LA MS TN AL GA SC FL NC VI PR T2 South: Victoria HI Brian Guzzone guzzone.brian@epa.gov, (202) Rachel Goldstein goldstein.rachel@epa.gov, (202) Chris Voell voell.christopher@epa.gov, (202) Victoria Ludwig ludwig.victoria@epa.gov, (202)