EVALUATING ANAEROBIC DIGESTION PROJECTS

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1 EVALUATING ANAEROBIC DIGESTION PROJECTS Norma McDonald

2 DESIGN AND CONSTRUCTION OF AD PLANTS 34 FULL-SCALE PLANTS ON: - FOOD/BIOWASTE: 14 DRANCO PLANTS (S/U 1992) - RESIDUAL/MIXED WASTE: 10 DRANCO PLANTS (S/U 1997) - ENERGY CROPS: 1 DRANCO-FARM PLANT (S/U 2006) - ENERGY CROPS/FOOD WASTE/MANURE: 9 WETAD PLANTS (S/U 2005) Five sites under construction 2

3 INNOVATORS IN USE OF BIOGAS, ENERGY AND DIGESTATE Biogas -> Electricity + District Heat + Wood Drying + Dog Chew Toys + High Tunnel Agriculture First interconnected biogas plant in many locations First US dairy biogas to pipeline insertion (75 scfm) First Quad-Generation Biogas Plant First US dairy biogas to RCNG (775 GDE/day) World s largest AD biogas to RNG (at the time) Digestate -> Bedding -> Compost -> Fertilizer Pellets -> RDF fuel

4 SUCCESS SS STORIES S Reference plants in 14 different countries, treating sourceseparated and mixed-household waste, industrial and commercial waste organics, as well as energy crops. Senior plant has demonstrated % in-service, active digestion time over the last 20 years! Managed/advised >150 plants we did not build

5 FEEDSTOCKS QUANTITY QUALITY CONSISTENCY/ SEASONALITY SECURITY/CONTROL PROCESS FLEXIBILITY COMPLEXITY RELIABILITY SITE FOOTPRINT RESTRICTIONS HEIGHT RESTRICTIONS REGULATORY/PERMITS INTERCONNECTION TECHNICAL MERIT EQUIPMENT INSTALLATION OPERATIONS/ MAINTENANCE VENDORS/SUPPLIERS RELEVANT EXPERIENCE EXPERIENCED PERSONNEL ON YOUR PROJECT ABILITY TO BACK PERFORMANCE WARRANTY, REMAIN IN BUSINESS

6 ECONOMIC MERIT COSTS AMOUNT BENEFITS - AND AMOUNT AND PREDICTABILITY PREDICTABILITY FEEDSTOCK COST PROCESSING COST SITE ACQUISITION/ PREPARATION PERMITTING PROCESS EQUIPMENT INITIAL PURCHASE REPAIRS REPLACEMENT GRANTS PRODUCTIVITY ON-SITE SAVINGS OFF-SITE REVENUES FUNDING SOURCES AMOUNT AVAILABLE CONDITIONS FINANCING COST

7 DEFINITION OF SUCCESSFUL PROJECT Project works technically most of the time, within narrow process window Can make payments/cover costs Project technology adapts to changing conditions o MarketROR Lower rates for community

8 COMPOSITION OF INCOMING WASTE WELL UNDERSTOOD MADISON, WISCONSIN SSOW Distribution of sorted waste (fresh weight): inner ring: 1 st sample outer ring: 2 nd sample

9 KEY ELEMENTS OF SUCCESSFUL PROJECTS High Feedstock Security and Predictability Which is more important? Cost/tipping fee per ton Quantity per week or year Composition

10 DRANCO 35-55% dry matter APPROPRIATE DIGESTER DESIGN OWS, n.v Complete Mix Digester % dry matter Scenic View Dairy, Fennville, MI. Photo courtesy of Phase 3 Renewables Horizontal plug flow 15-30% dry matter OWS, n.v

11 FACTOR WET DIGESTION BATCH TUNNEL DRY CONTINUOUS PARTICLE SIZE PUMPING COMPACTION PUMPING MIXING, FLOATING, SETTLING RATE OF DIGESTION POROSITY, PERCOLATION ZONES WITHIN PILE RATE OF DIGESTION DEWATERING RATE OF DIGESTION LIGHT FRACTION FLOATING LAYER PERCOLATION, POROSITY BIOGAS/TON BIOGAS/TON BIOGAS/TON HEAVY FRACTION SEDIMENTATION COMPACTION, PERCOLATION BIOGAS/TON BIOGAS/TON BIOGAS/TON SOLIDS CONTENT 8 13% 45% 55% 25% 50%

12 KEY ELEMENTS OF SUCCESSFUL PROJECTS Technology and Equipment Provider Remains a Positive Factor On time, on budget Sufficient support for startup, performance test, t ongoing operations Quickly addresses issues or new conditions Financial strength to back warranties

13 Why have projects failed technically, economically or both? DESIGN-RELATED: INAPPROPRIATE DESIGN FLAWED DESIGN FEEDSTOCK-RELATED QUANTITY SHRINKS CHARACTERISTICS CHANGE (impacting material handling, energy potential) MANAGEMENT-RELATED INSUFFICIENT FUNDS IMPROPER OPERATION INSUFFICIENT MAINTENANCE

14 BARNS PUMP PUMP PUMP AGIT -DISTANCE -ELEVATION -PRESSURE DROP -GPM/GPD NEEDS -SOIL BEARING -MONITORING -STORAGE -REDUNDANCY -UTILITY INFRASTRUCTURE GENSET/BOILER CONTROLS STORAGE DIGESTER FLARE INADEQUATE SITE PLANNING -Location of existing and proposed facilities, energy use -Determine process flow and footprint

15 COMPOSITION OF INCOMING WASTE CHANGES, DESIGN DOES NOT

16 CATESTROPHIC EVENTS

17 Flame Arrestor Flame Arrestor Flame Arrestor Flame Flame Trap Arrestor with Thermal Shut-Off Flame Trap with Thermal Shut-Off Flame Trap with Thermal Shut-Off Flame Check Waste Gas Burner or Flare

18 TROUBLES COME NOT AS SINGLE SPIES, BUT IN BATTALLIONS - Shakespeare All it took is 5 years and $150,000,000, from 215 shareholders to see (EPGRQ.PK) going bust. The reason is very simple - debt. If you think that Crude Oil will reach over $144 a barrel in a short time then their financials will get better (margins increase) and it can change everything but as you see at current oil prices they can't turnaprofit - $46.5M in debt with $4.7M in yearly revenues.

19 DEFINITION OF SUCCESSFUL PROJECT Project works technically most of the time, within narrow process window Can make payments/cover costs Project technology adapts to changing conditions o MarketROR Lower rates for community

20 RECOMMENDATIONS Run risk-adjusted pro-formas Run failure mode analysis early in engineering process Obtain reasonable assurances Place appropriate value on track record

21 THANK YOU! QUESTIONS? Norma McDonald