Got Organic Waste? You ve got gas potential which can be beneficially used

Transcription

1 Got Organic Waste? You ve got gas potential which can be beneficially used 2012 Works Blazing New Trails in Sustainability Dodge City, Kansas March Speaker: Dennis Fenn, SVP Co Author: Mike Michels, VP Cornerstone Environmental Group LLC

2 BioGas to Renewable Energy Outline Biogas basics Common biogas to energy (BGTE) technologies BGTE project feasibility key issues to consider Financial pro forma for two BGTE plants

3 BioGas Basics

4 Sources of Biogas Agriculture waste digesters Landfill gas systems Wastewater treatment plant digesters Organic/food waste digesters

5 The Anaerobic Decomposition Process Organic Matter Waste Acid Forming Bacteria Organic Acids (Acetic Acid) CH 3 COOH Methane Forming Bacteria CH 4 + CO 2 + Heat 50 to 65% 35 to 50%

6 Benefits of BioGas 24 x7 availability Reduces America s dependency on foreign oil Less expensive than natural gas Reduces use of coal fired power plants and their emissions Inexpensive greenhouse gas emission reductions Promotes better long term care of our environment

7 Typical BioGas Properties Carbon Dioxide N 2 & O 2 VOCs Methane

8 Biogas Constituents LFG Biogas from Dry Fermenters CH 4 50 to 60% CH 4 56 to 60% CO 2 40 to 50% CO 2 40 to 44% O 2 0 to 1.5% O 2 0 to 1% N to 5% N 2 0 to 2% H 2 S Up to 1,500 ppbv H 2 S 300 to 400 ppm Siloxane Up to 1,500 ppbv Siloxane < 10 ppb Trace Others <1% Water 0.40% Product BioCNG Fuel CH 4 88 to 96% CO to 1.0 % O to 1.0% N 2 0 to 10 % H 2 S Non Detect Siloxane Non Detect H 2 O Per CNG Requirements

9 Biogas Constituents, cont d All Biogas sources have similar constituents Biogas treatment technologies can be applied to biogas from different sources

10 Typical Anaerobic Digester Figures per 1000 dairy cows CH 4 (60%) CO 2 (35%) BioGas 75 ft 3 /minute Common BGTE conversions Manure Farm manure management operations Anaerobic digester system Effluent Manure Spreader Nutrient rich liquid spread on crops Solid fertilizer and/or bedding

11 Map of Operational Farm Digesters (176) Source: U.S. Environmental Protection Agency's AgSTAR Program As of December 2011, AgSTAR estimates that there are 176 anaerobic digester systems operating at commercial livestock farms in the United States.

12 Typical Landfill Average figures for 500 tons/day of MSW for 1 year CH 4 (55%) CO 2 (40%) BioGas Common BGTE technology 70 ft 3 /minute effluent Anaerobic Landfill MSW collection 500 TPD

13 Landfill Gas Reserve Modeling Typically using EPA LandGEM Model Must have understanding of Fundamental inputs Underlying assumptions Potential inaccuracies Used to predict the amount of landfill gas (both quantity and quality) produced and collected

14 Biogas Modeling Challenges Organic inflow rates vary Organic quantity and composition varies Ambient temperature varies Moisture content varies Many others

15 EPA s LandGEM Model

16 Potential Landfill Gas Reserve Modeling Pitfalls The landfill s size and capacity The landfill s expansion potential Types of waste received historically and in the future (i.e. degradable waste types versus nondegradable) Historic and future waste receipts Landfill gas collection system coverage and efficiency both in the present and future Landfill gas quality

17 Permit Capacity Project Impact Potential Expansion Permitted Additional 5 CAT 3520 Engines 4 CAT 3520 Engines

18 LFG System Construction

19 Operational LFG to Energy Plants (558)

20 Common BGTE Technologies

21 Technologies Available to Beneficially Utilize BioGas Proven Technologies/ potentially economically feasible o Engines and turbines o Boilers o Greenhouses o Soil remediation o Liquid evaporators o Conversion to high BTU fuel o Vehicle fuel (CNG) Developing Technologies/ economically challenged o o o o Fuel cell LNG CO 2 purification Methanol production

22 CO 2 removal Gas Cleanup Technologies Water scrubbing Solvent scrubbing Carbon molecular sieves Membranes/PSA CO 2 condensation (refrigeration) Hydrogen sulfide removal Iron, carbon, biological, water scrubbing, NaOH scrubbing VOCs, Siloxanes and halogenated hydrocarbons Carbon, chilling, CO 2 condensation, polymers

23 Engine Gensets ENGINE GENSETS

24 Turbine Gensets

25 Biogas Heat Recovery Hospital Boiler Asphalt Plant

26 Landfill Leachate Evaporator and Flare

27 Engine Gensets Exhaust Heat Recovery to Microturbines and Greenhouses Waste heat is also available

28 Vehicle Fuel From Biogas

29 Chiller and control panel H 2 S removal unit Compressor to 4500 psig CNG storage vessels Fueling dispenser BioCNG gas cleanup skid St Landry Parish, LA BioCNG 50 February, 2012

30 BioCNG equipment and microturbines in building Gas storage low pressure ANGI fueling compressor WWTP digester Biogas chiller Gas storage high pressure Fueling dispenser Janesville, WI WWTP BioCNG 50 System, February, 2012

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32 What Next? Ford 2011 F350 CNG / Gasoline Pickup Truck Delivered to Dane County January, 2012

33 Dane County Park Department NGV Vehicles, March 8, 2012

34 Example Companies Using Biogas

35 BGTE Project Feasibility Key Issues to Consider

36 Key Issues Biogas availability/proximity to source Biogas quantity/quality Proximity to utilities Power lines and inter connect issues/costs NG pipeline Local energy market Power sales Power company Private energy user On site energy use NG sales to pipeline Direct sale of MBTU gas CNG vehicle fuel

37 Key Issues Technology selection Gas collection Gas conditioning/cleanup Energy conversion Power/reciprocal engines/turbines MBTU/direct use in boilers HBTU/pipeline quality HBTU/CNG vehicle fuel Other Permitting Local planning Air Solid waste Wastewater Fire Department

38 Agreements Biogas purchase, power/gas/fuel sale Contracts Equipment procurement, construction/installation, O&M, ownership, financing Location, Location, Location Economics Capx, O&M financing grants/incentives Key Issues

39 So Many Left to Develop ~510 landfills have a gas collection system but no energy project Potential of 300,000 MMBtu/day or 1,070 MW ~110 landfills have an energy project and excess LFG available Potential of 78,000 MMBtu/day or 280 MW ~950 landfills do not have a gas collection system Potential of 220,000 MMBtu/day or 800 MW

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41 Financial Pro Forma for Two Landfill Gas to Energy Plants BioCNG Electric Generation

42 LFG Economics 101 Capital cost O&M and interest Income/savings Tax credits or federal/state subsidies Other opportunities: heat recovery, GHG, etc.

43 System Sizing System Size Biogas Inlet Flow (scfm) Fuel Production (GGE/day) Fuel Production (GGE/year) Approx. BioCNG ,000 BioCNG ,000 BioCNG ,000

44 System Sizing System Size Biogas Inlet Flow (scfm) Fuel Production (GGE/day) Fleet Size Per Unit Small Trucks Large Trucks BioCNG BioCNG BioCNG

45 Economic Considerations Biogas quality (>52% CH 4 and < 5% N 2 desired) Local demand for CNG fuel your vehicles or others Alternative fuel tax credits, incentives, and grants

46 Example CapX for BioCNG 200 Cap X $ Notes BioCNG 200 $792,000 Gas compression, gas cleanup, etc. Winterization of the BioCNG system $105,000 Fast filling station $364,000 Site design, installation, permitting, startup, training $182,000 Total = $1.4 Million Includes compressor, dehy, 2 fuel dispensers, and 100 GGE of usable storage tanks. Note: 40% KS tax credit up to $100K may be available on total cost of fueling station. w/ks/5171

47 O&M for BioCNG 200 Cost Item GGE Operating Costs Media and equipment replacements $0.32 Parasitic electric load for both the gas cleanup and the fueling station $0.25 O&M Total (per GGE) $0.57 Assumes electric power purchased at $7 cents/kwh from the grid.

48 BioCNG 200 Financial Proforma Summary Cost to Operate and Maintain BioCNG and Fueling Station = $ 0.57 per GGE Cost to Finance = $0.60 per GGE (includes, finance charge, cap X, and services) Subtotal $1.17 per GGE (during the finance period) Federal Excise Tax $ 0.18 per GGE State Road/Excise Tax $0.23 per GGE Cost to Purchase Raw Biogas $ per GGE Value of RIN's $(0.69) per GGE Total $0.88 per GGE (during the finance period)

49 BioCNG Economics Lessons Learned BioCNG can be cost competitive with other vehicle fuels (gasoline, diesel and CNG) BioCNG production $0.60 to $0.98 / GGE depending on biogas quality and quantity Financing charges and RINs not included Potential for vehicle fuel credits RIN (Renewable Identification Number) Renewable fuel credit Created by the EPA as part of the Renewable Fuel Standard (RFS) to track progress toward reaching the energy independence goals established by the U.S. Congress Currency used by obligated parties to certify compliance they are meeting mandated renewable fuel volumes RINs The exact amount will depend on the project specific operating scenario and can be up to $1/GGE.

50 Electric Generation Financials Assumptions base case 2 CAT 3516A+ engines generating 925 kw each for 11 years Muni LF owner self develops with 10 year, 5% bond financing $3.0 million capital cost Section 45 tax credit not available Online 95% of time O&M 1.8 cents/kwh

51 Electric Generation Financials Assumptions Base case (continued) O&M escalates at 2% per year PPA escalates at 2% per year 7% of all electricity generated is used for plant parasitic load Enough LFG exists (at least 620 scfm ) to operate engines at capacity for 10 years

52 Electric Generation Financials PPA of 4.2 cents/kwh in year 1 results in: Breakeven in 11 years with: $7.2 million revenue $3.4 million in O&M $3.8 million in principal and interest PPA of 7.2 cents/kwh in year 1 results in: $5.3 million profit in 11 years with: $12.5 million revenue $3.4 million in O&M $3.8 million in principal and interest

53 Electric Generation Financials Sensitivity analysis Scenario Sensitivity Analysis Best Case Base Case Worst Case Capital Cost ($ MILLIONS) st year electric purchase price (cents per kwh) Online time 98.0% 95.0% 95.0% 1st year O&M cost (cents per gross kwh) RESULTS Profit after 11 operating years $6 million Break even ($700,000)

54 Steps to Biogas To Energy Projects Determine LFG quantity Conduct financial modeling Obtain energy/fuel purchase agreements Obtain permits Design/construct Operate

55 Key Services Feasibility studies Permitting Engineering and design Air quality Biogas systems Construction management Operations and maintenance

56 Thank You! Contacts for more information Dennis Fenn (office) (cell)