THE NEXT WAVE OF NORTH AMERICAN WASTE CONVERSION PROJECTS. Updated March 2012

Transcription

1 THE NEXT WAVE OF NORTH AMERICAN WASTE CONVERSION PROJECTS Updated March 2012

2 Waste Conversion Rising Up The Agenda It is not difficult to make a case for doing something more useful with municipal solid waste (MSW) than dumping it in landfill. For one, landfills are expensive for municipalities to maintain, and come with all sorts of nasty environmental impacts from methane emitted to the atmosphere, to toxins released to waterways. Diverting MSW to produce biofuels, electricity, or biochemicals potentially creates a number of positive outcomes at the same time. While cutting what municipalities pay in tipping fees and improving the environment, MSW conversion can also deliver useful end products, including cheaper energy for local residents. However, adoption of MSW conversion has been generally slow to happen. Around 80 communities in the US have waste-to-energy projects, according to the Solid Waste Association of North America (SWANA). But many other North American MSW-conversion projects have been beset by delays, and false-starts, during the past decade. Mainland Europe is generally thought to be much more advanced, especially in generating electricity. Several US states have been wary of adopting new technology, while landfill remains a safer alternative from taxpayers point of view. And others, such as California, have been turned off by earlier experiences with waste incinerators, which critics say produced noxious emissions. There was a concern that the air contamination associated with the incineration industry caused greater fear about the air quality than the perceived benefit of getting the power, says Rod Bryden, CEO of Ottawabased gasification-developer Plasco. But now there is a growing interest in finding something other than landfill, because the view is that landfills aren t as innocuous as has been concluded in the past. The effects of landfill are seen to be even less attractive than the effects of incineration. Indeed, it does seem now that MSW is finally about to have its day and not just for traditional thermal technologies, but more innovative ones like gasification and anaerobic digestion as well. Quietly, across the US and Canada, a handful of pioneering companies are about to deliver MSW conversion projects that may in time change our whole understanding of waste. From ground-breaking methane powered plants, to ethanol-producing thermal projects, MSW is becoming an increasingly sought-after commodity. Over the page is a snapshot of projects either just about to begin, or well-advanced on the drawing-board.

3 Eight Pioneering Projects Coming Online in North America 1 6 Undetermined Enerkem Location: Edmonton, Alberta, Canada Facility timeline: Methanol production to start in Q1 2013, ethanol production in first half of 2013 Owners: Enerkem - 71%, Waste Management of Canada Corporation %, EB Investments ULC % City of Edmonton and Alberta Innovates Energy and Environment Solutions contributed $20m. Waste Management and EB Investments invested $15m each. Operator: Enerkem Developer/ EPC: Not using EPC contractor Spokesperson: Marie-Hélène Labrie Our project is delivered by two teams that work side-by-side. The first team is responsible for the sourcing, procurement and delivery of all process modules company-wide. This team ensures that our prefabricated modules satisfy our technical specifications and quality standards and are delivered to the project site on schedule. The second team is our Edmonton project management team which acts as our in-house general contractor for the project. Output type and figure: Methanol and ethanol, 10m gallons per year 2 Fulcrum Bioenergy Location: McCarran, Nevada, USA Facility timeline: To begin production by the end of 2013 Owner: Fulcrum Sierra BioFuels, with equity investment from a Waste Management subsidiary (not disclosed in S-1 filing; company in quiet period ) Operator: Fulcrum Sierra BioFuels Developer/ EPC: Fluor Corporation Output type and figure: ethanol, 10 million gallons a year within three years 3 Fiberight Location: Blairstown, Iowa, USA Facility timeline: Due to start operation, early 2013 Owner: Fiberight Operator: Fiberight Developer/ EPC: AMEC Technology used: Anaerobic digestion Output type and figure: Cellulosic ethanol, 3.6m gallons per year expected 4 Columbia Biogas Location: Northeast Portland, Oregon, USA Facility timeline: Opens 2012 Owner: Columbia Biogas Operator: Veolia Water North America West LLC Developer/ EPC: Slayden Construction Group, Industrial Projects Consulting Technology used: Anaerobic digestion Output type and figure: Biogas, electricity (up to 5MW), and fertilizer 5 CR&R, Riverside County (California) Location: Perris, California, USA Facility timeline: Due to break ground July 2012, fully operational by 2014 Owner: Financed, owned by CR&R Operator: CR&R Developer/ EPC: In-house engineering team Technology used: Anearobic digestion Output type and figure: Biogas, enough to power heavy duty trucks 6 Clean Tech Biofuels Location: Undetermined. Currently raising capital to build first demonstration site in the US, to be located at a waste transfer station. Facility timeline: Hopes to break ground within days; production to start within 9 months. Owner: N/A Operator: N/A Developer/ EPC: N/A Technology used: Reaction vessel uses steam and pressure to clean and separate MSW into cellulosic biomass feedstock and recyclables Output type and figure: Commercial volumes of biomass for use by back-end conversion technologies 7 Plasco Location: Ottawa, Ontario, Canada Facility timeline: Full production expected mid-2014 Owner: Fully owned by Plasco Operator: Plasco Developer/ EPC: Not awarded. CEO Rod Bryden: in discussions with companies that would do that, and we expect we will select the EPC contractor before the end of April. Construction contactor will not be doing any of the design, though. Output type and figure: Electricity - 17MW gross, 12.5 net (Note: Plasco already has a demonstration plant at the same site) 8 FlexEnergy Location: Santiago Canyon Landfill, Orange County, California, USA Facility timeline: Scheduled for operation in 2012 Owner: FlexEnergy; has invested $9m Operator: Flex OC Renewables, a subsidiary of FlexEnergy Developer/ EPC: Installed by the company directly Technology used: Turbines convert methane gas to electricity Output type and figure: Electricity, estimated at 1.5-2MW (Note: Flex has an existing smaller demonstration plant at Fort Benning, Georgia).

4 What next? Why msw conversion is only likely to go more mainstream So, what does this impressive range of projects tell us about the future potential of MSW as an energy, fuels and chemicals resource? A recent report by the Solid Waste Association of North America (SWANA), which looked at the economic impact of existing waste-to-energy projects, concludes they reduce the cost that communities pay for disposal, compared to landfill; that such investment tends to accrue to local communities, while 90 percent of landfill investment ends up elsewhere; and that waste-to-energy facilities provide significant amounts of useful electricity that helps reduce grid prices. Waste-to-energy facilities are economically sound investments that provide multiple financial and environmental benefits to the communities that utilize them, says the report, The Economic Development Benefits of Waste-to-Energy Facilities. These facilities produce clean, renewable energy while reducing waste volume by 90 percent, making them a great option for communities seeking the most advanced technology to manage their waste. Developers of MSW-conversion technologies are convinced that municipalities will increasingly want alternatives to landfill although they concede they will have to work hard to make the first sale. I think for reasons both economic and environmental, municipalities would welcome an alternative other than landfill disposal, says Ed Hennessey, CEO of Clean Tech Biofuels, a St Louis-based company with a technology to produce cellulosic biomass feedstock. But it s going to have to be demonstrated at commercial scale to get the municipalities to advance those alternatives. They ve already got something that works now, so they are not going to give it up easily. Sometimes, landfills are barely working, however. And many are, well, wasteful. For example, in Orange County, California, the Santiago Canyon Landfill has been sitting idle since it closed in 1995, harming the local environment, and flaring off large amounts of methane gas. What I m seeing is an abundant of source of energy that is essentially being wasted, says Mike Levin, vice president of government affairs at FlexEnergy, talking about the large number of landfills that flare their gas. But thanks to our technology, we can generate electricity, with a minimal emissions footprint. Flex recently announced a deal to generate 2MW of electricity or enough for 2000 homes from the methane at the Santiago site. Uniquely, Flex s turbines can use methane even at low concentrations, such as disused landfill sites, producing electricity without the noxious releases from burning methane. We are turning [the municipality s] current source of frustration with the flared methane into a source of revenue, says Levin. The local government takes a share of the price paid by the utility for the output. We feel this is a model that can be repeated through California and beyond, particularly where air quality is a significant concern, and where methane is available with enough volume. Time will tell if Levin is right. But with increased concern about energy prices, energy security, and more awareness of the problems, and costs, posed by landfill, North America could be about to take to MSW conversion in a big way. If so, the next few years could be pretty interesting. 2nd Annual Waste Conversion Congress East Coast June 12-13, 2012, Philadelphia Dozens of waste conversion pioneers are speaking at the Waste Conversion Congress East Coast in Philadelphia on June 12-13, Experts from right across the industry will be presenting on all aspects of waste conversion technology development, and 150+ senior executives from across the North American waste industry will be in attendance. More information and opportunities to reserve places at this landmark event are available on: com/waste-conversion-east Exclusive ticket offer $100 Extra discount Exclusive ticket offer: As you have downloaded this report, just use discount code REPORT and receive an extra $100 discount off the current listed prices when you reserve your place at the conference through the event website:

5 Researched & Organized by: 2nD AnnUAL WAstE ConVERsion CongREss EAst CoAst JUnE , PHiLADELPHiA, UsA register EarLY... save MonEY Deliver the viable, scalable, CoMMerCial waste Conversion technology that will secure long term profitability for your Msw feedstock > INDEPENDENT TECHNOLOGY EVALUATION: Qualification of new and proven technologies, to find the right project for your feedstock now or in the future, without lengthy and expensive consultative processes. > PRACTICAL INFORMATION ON HOW TO STRUCTURE YOUR FINANCING: Reduce CAPEX and mitigate risk of waste conversion projects with expert analysis of financial structuring. > KEY DECISION MAKERS ON REGULATIONS: Utilise industry and governmental experience to fully understand legislative, regulatory and permitting requirements to produce an environmentally and commercially viable project. > MAXIMISE VALUE OF YOUR FEEDSTOCK: Draw on the experience of commercially successful facilities to efficiently handle heterogeneous waste-streams, deal with residuals and reduce OPEX by streamlining processing. top speakers Ted Michaels President, Energy Recovery Council Jesse Miller, Office of Solid Waste and Emergency, US EPA Ivan Henderson, Commissioner, Cleveland Public Power Denis Arguin, VP, Energem 3 KEy REAsons WHy you CAnnot AFFoRD to miss the WAstE ConVERsion CongREss EAst CoAst 1. This is the only place for an open appraisal of new and proven waste conversion technologies. 2. Meet the people that make it possible to secure public-private partnerships 3. In depth regulation and legislation analysis from U.S decision makers. SPeakerS: Who are you going to meet? Public Works Directors Directors of Waste Management Companies Expert Consultants Technology Providers Project Developers Large County Representatives Executives of EPCs Jim Schubert, General Supervisor, Advanced Energy Research Facility, City of Edmonton Mark Riedy, Partner, Mintz Levin Harvey Gershman, President, GBB This is a great conference to get the scoop on what's new in waste conversion technologies and planned projects. City of Edmonton Visit