27 th October 2014 North Coast Energy Forum MASTERCLASS 1A Leveraging the North Coast s Natural Bioenergy Advantage

Transcription

1 27 th October 2014 North Coast Energy Forum MASTERCLASS 1A Leveraging the North Coast s Natural Bioenergy Advantage Presented by Fiona Waterhouse CEO, U8litas Pty Ltd

2 Overview & Goal Brief overview of bioenergy technologies Focus on biogas from anaerobic diges8on Biogas Plant fundamentals The biogas opportunity Case studies Challenges and risks Investable projects Biogas opportuni8es for North Coast Community Scale Farm & Facility Scale Investment Community Energy Coy

3 What is Bioenergy? The energy stored in biomass (organic maeer) is called bioenergy This energy has generally been produced through photosynthesis or is an organic by- product from a waste stream Bioenergy can be used to provide heat, refrigera8on, fuels, and generate electricity The major technologies are mature, proven and widely deployed in other parts of the world Cape Byron Power s 30MWe Condong Power Sta8on (source: bioenergy Australia hep:// how- it- works.html)

4 Biomass conversion technologies From of Bio energy in Australia h5p:// IN AUSTRALIA Rev 1.pdf )

5 Q&A North Coast as Australia s bioenergy powerhouse: What do you like about the idea? What don t you like about the idea?

6 Biogas Plant fundamentals

7 Biomethane Potential of Organic Waste

8 Sources of Substrates! Water Authori8es (sewage)! Waste Managers (municipal & industrial organics)! Piggeries! Poultries! Dairies! Feedlots! Fruit & Veg Producers! Milk Processors! Food Processors! Beverage Manufacturers! AbaEoirs! Algae bio- refiners

9 Biogas Technologies Solid Waste " CSTR " Plug flow Wastewater " Lagoon " UASB " Fixed Film Mixture of Both " CSTR " UASB + Paques UASB System Source: Aquatec Maxcon

10 CSTR Overview " Main units in System - In feed, digester tank, mixing system, gas collec8on, gas u8lisa8on, digestate u8lisa8on " Feed - Source segregated organic material, less than 10% solids " Output - Biogas with 55-70% methane, Digestate with organic fer8liser value " Advantages - Reduc8on of Gate fees/disposal cost, Energy genera8on, organic fer8liser, minimise GHG emission and odour issues

11 Lagoon Overview Covered Lagoon/High Rate Anaerobic lagoon " Main units in System- In feed, lagoon, mixing system( op8onal), gas collec8on, gas u8lisa8on " Feed With low level of solids " Output- Biogas with 55-70% methane, " Advantages- Low CAPEX/OPEX, minimise GHG emission and odour issues " Disadvantages: Solids build up in lagoon, less efficiency in terms of organic reduc8on and biogas genera8on

12 UASB Overview " Main units in System- In feed, digester tank, gas collec8on, gas u8lisa8on " Advantages: Less area required Less power required Genera8on of biogas- fuel/electricity Reduced disposal cost to sewer Less sludge genera8on " Disadvantages Longer start up as compared to aerobic Further treatment required for disposal

13 Steps to build a plant 1. BMP Tes8ng " How much gas does your waste generate? " What is the chemical make- up of the waste " How can it be manipulated to generate the most gas 2. Desktop Analysis and Basic Design " Basic design " Evalua8on of BMP results " Economic evalua8on " Recommenda8on on ac8ons moving forward 3. Feasibility Analysis " Detailed design " Site analysis " Full economic analysis " Feasibility assessment 4. Build Biogas Plant " Pilot Plant design and implementa8on (As necessary) " Fully specified detailed design " Procurement Management " Construc8on Management " Commissioning and Handover

14 Q&A North Coast as Australia s bioenergy powerhouse: What is your experience of biogas technology? Are there any technology or process specific ques8ons?

15 Biogas Drivers Source: Australian Government ProducLvity Commission, Electricity Network RegulaLon Enquiry, Since 2007 electricity prices in Australia have increased by 70%. Wholesale gas prices are set to double Securing long term gas contracts is becoming difficult with priority on LNG export Using your organic waste to cap exposure to energy costs and supply risks is really star8ng to make sense

16 Australia s Organic Energy Potential We have mapped 1000MWe of available organic energy in Australia This is enough to:! Power 1.4 million homes! Create 5000 new skilled jobs! Create a new energy industry worth >$6billion

17 The Organic Energy Opportunity! Displace the cost of retail grid power, diesel genera8on and exis8ng boiler/burner fuel or upgrade for transport fuel! Control the costs and risks of storage and disposal of solid organics and wastewater! Support Clean and Green product branding, community engagement and regulatory compliance! Poten8al for new income streams from Australian Carbon Credit Units (ACCUs) and Large Genera8on Cer8ficates (LGCs)! Displace onsite fer8liser costs by producing a new local product for use on site or sale

18 Context Investment in Biogas Germany: 3000MW of installed organic energy capacity Australia 8700 projects (enough for 4million homes) 49MW of installed organic energy capacity 29 projects (enough for 50,000 homes) Homes assumplons: using for example Ergon website for household demand eslmalons of 17kWh/d x 365 = 6205kwh/a

19 Q&A North Coast as Australia s bioenergy powerhouse: What elements of the opportunity resonate with you? What is your experience of the drivers for biogas?

20 Case Example: Piggery 1989 Loca2on: Victoria Opera2ons: Pig manure & confec8onary waste Wastewater: CSTR Technology Achievements: Onsite power produced 180kWe 15000SPU facility ~2% solids 70% reduc8on in water use Elimina8on of odour New fer8liser distribu8on business SAVES: $435,000 / YEAR

21 Case Example: Municipal Co- digestion Linköping, Sweden, pop 150,000 biogas plant 7.7m m3/year biogas 5 km pipeline to bus terminal Upgrading to vehicle quality (97% methane, 250 bar) All 64 city busses, 125 other vehicles 12 public filling sta8ons Gas price in rela8on to petrol and diesel price 100% BIOGAS FOR URBAN TRANSPORT

22 Case Example: Community Energy JV Feldheim, Germany pop. 150 Decentralised self- sufficiency Local entrepreneur installed first wind turbine Community teamed up with renewable energy company Energiequelle GmbH 43 wind turbines 74MWe Est. JV Feldheim Energie GmbH & Co new company built a biogas plant conver8ng pig manure and waste corn into heat and electricity. Supplies en8re community with hea8ng saving over 160,000 litres of hea8ng oil each year Also 400kWe wood chip furnace fuelled by forestry by- products Had problems with the large u8lity coy so 150 residents contributed $4000 each so they could built their own smart grid Feldheim has installed a plug and play EV charging sta8on in the town centre and plans to install a 10MWe baeery for load balancing Town has own mini- grid

23 Case Example: Loca2on: New South Wales Opera2ons: Source segregated food waste Solid Waste: CSTR Technology Inputs: Meat & fish, bakery, grocery, dairy, confec8onary, perishables and smallgoods Outputs: Genera8on of about 3.5MWe 6MWt 8000 t/y granular Fer8liser Lower gate fees for source segregated food waste

24 Our Construction Projects 200kWe biogas plant a piggery undergoing commissioning 1.6MWe project in an industrial facility undergoing detailed design

25 Q&A North Coast as Australia s bioenergy powerhouse: What local opportuni8es are there for community scale projects? What local opportuni8es are there for farm and facility scale projects?

26 Challenges Faced Nascent Market Since 2010 we have carried out: 100 site visits across all five market segments 85 biogas project feasibility analysis Designed seven biogas projects Received approval for three biogas projects Nego8ated network connec8on arrangements for two biogas projects

27 Challenges faced Leveraging Nutrient Value There are three primary op8ons: Drying and pelle8sing e.g. 3MWe Biogas Plant Earthpower, NSW owned by Veolia & Transpacific Adding addi8onal carbon and nutrient to the solid phase digestate to produce a soil condi8oner e.g. Berrybank Piggery, Victoria Concentrate digestate to produce high value liquid nutrient products that can compete with tradi8onal chemical fer8lisers in mainstream broad acre & hor8culture markets e.g. U8litas & Hortus Technical Services R&D

28 Biogas Project Risks Design Feedstock Network connec8ons Approvals Community Licence to Operate Technology Construc8on O&M Off- takes Financing

29 Q&A North Coast as Australia s bioenergy powerhouse: What challenges do you see for the development of local projects?

30 Investable Project Reliable project returns Anchor tenant Land Baseload Substrate PPA Quality counterpar8es Network connec8on Planning Approvals Project Prospectus

31 Benchmark LCOE *LCOE provides a measure of the overall compellveness of different power generalng technologies InternaLonally compellve LCOE = Comparable energy costs in market from tradilonal sources - Biogas is a sub- set of biomass

32 Q&A North Coast as Australia s bioenergy powerhouse: What would we need to do to get some local projects investment ready?

33 Thank you U8litas is a specialist biogas project development company, we create partnerships with clients under pressure from energy costs and supply risks to recycle fuel, heat, cooling and electricity from their organic waste and wastewater streams. U8litas Pty Ltd Suite 12, The London Offices 30 Florence Street Teneriffe, QLD 4005 Tel: