Green is Seen in Fertilizers Municipal Solid Waste Management. Carrie Farberow Kevin Bailey University of Oklahoma May 1, 2007

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1 Green is Seen in Fertilizers Municipal Solid Waste Management Carrie Farberow Kevin Bailey University of Oklahoma May 1, 007

2 MSW Overview EPA 005 Facts and Figures U.S. Waste Produced = 45.7 million ton

3 Municipal Solid Waste Composition is highly variable Poor quality fuel Low heating value High moisture content Difficult to handle and feed to process equipment

4 Landfilling Waste is deposited and buried Produces leachate Groundwater pollutant Greenhouse gas emissions Methane and CO Costs cities $10 to $70 per ton Reduces nearby land property value 005: Landfill Waste million tons

5 Municipal solid waste has steadily increased throughout the past 45 years. The number of landfills has steadily decreased throughout the past 17 years.

6 Incineration Waste is completely combusted Minimizes land required by landfills Reduces weight by up to 90% Waste-to-energy Pollutants Greenhouse gases Toxic ash High operation costs 005: Waste combusted with energy recovery 33.4 million tons

7 Pyrolysis/Gasification Partial combustion Limited (less than stoichiometric) amount of oxygen Thermally self-sustaining Combust a small portion of the feed to generate heat for pyrolytic reactions C C C O H CO O CO CO CO + H H H H = 406MJ / kmol = 131MJ = 173MJ / kmol / kmol

8 Benefits of Pyrolysis/Gasification Potential to be profitable Produce fuel or chemicals Reduce quantity and improve quality of solid discards Remedy municipal solid waste management problems

9 Pyrolysis Mass Balance

10 Pretreatment Processing Shredding to reduce MSW particle size Air/density separator Heavy fraction exits bottom 90% of ferrous removed in magnetic separator 66% of aluminum removed in eddy current aluminum separator Light fraction, mostly organic, exits the top Cyclone removes particulates

11 Pyrolysis/Gasification Exothermic reactions in oxidative zone High temperature endothermic reactions in the reduction zone In the absence of oxygen Produces two products synthetic gas slag

12 Synthesis Gas Molar composition Carbon monoxide 40% Hydrogen 4% Carbon dioxide 4% Other gases 1% Typically produced from coal or hydrocarbons Syngas composition can be altered depending on desired end product

13 Product Options

14 Product Selection Criteria Profitability based on NPW and IRR Varied MSW capacity Current and Future Market Estimated using information in literature and current journals Total Capital Investment Product Price Operating Cost

15 Economic Assumptions Total Capital Investment C New = Operating Cost and TCI scaled up using cost indices Product Price Most Current Available Prices Neglected C Old R 0.65 Front End Processing Waste Revenue Taxes, Depreciation, Inflation

16 Economic Model: Acetic Acid Production Total Capital Investment $130,563,377 Acetic Acid Production 177,94,150 lbs/year 0.00% Inflation 3/7/007 1:53 Tax Rate 0% Acetic Acid Price $0.31/lb 0.00% Inflation Main Display Discount Rate 10% Operating Cost $36,199,558/year 0.00% Inflation Acetic Acid Net Total Yearly Annual Profit 10% Capital Production Price Gross Product After Annual Cumulative Discounted Year Investment (lbs) ($/lb) Revenue Cost Taxes Depreciation Cash Flow Cash Flow Cash Flow 0 $130,563,377 0 $0 $0 $0 $0 -$130,563,377 -$130,563,377 -$130,563, ,94,150 $0 $54,961,186 $36,199,558 $18,761,68 $0 $18,761,68 -$111,801,749 $17,056, ,94,150 $0 $54,961,186 $36,199,558 $18,761,68 $0 $18,761,68 -$93,040,10 $15,505, ,94,150 $0 $54,961,186 $36,199,558 $18,761,68 $0 $18,761,68 -$74,78,49 $14,095, ,94,150 $0 $54,961,186 $36,199,558 $18,761,68 $0 $18,761,68 -$55,516,864 $1,814, ,94,150 $0 $54,961,186 $36,199,558 $18,761,68 $0 $18,761,68 -$36,755,35 $11,649, ,94,150 $0 $54,961,186 $36,199,558 $18,761,68 $0 $18,761,68 -$17,993,607 $10,590, ,94,150 $0 $54,961,186 $36,199,558 $18,761,68 $0 $18,761,68 $768,01 $9,67, ,94,150 $0 $54,961,186 $36,199,558 $18,761,68 $0 $18,761,68 $19,59,650 $8,75, ,94,150 $0 $54,961,186 $36,199,558 $18,761,68 $0 $18,761,68 $38,91,78 $7,956, ,94,150 $0 $54,961,186 $36,199,558 $18,761,68 $0 $18,761,68 $57,05,907 $7,33,40 S v $0 0 $0 $0 $0 $0 $0 $57,05,907 $0 Total: 1,77,941,497 $549,611,864 $361,995,580 $187,616,84 $0 $57,05,907 $57,05,907 -$15,81,93 Economics Summary Net Present Worth Table: Economics Information: 0% $57,05,907 40% ($85,80,856) Payout Time: 6.96years 5% $14,308,944 50% ($93,690,831) Rate of Return: 7.0% 8% ($4,671,34) 60% ($99,578,390) Return on Investment: % ($15,81,93) 70% ($103,893,999) Disc. Return on Investment: % ($36,403,105) 80% ($107,177,05) 0% ($51,905,774) 90% ($109,751,14) 30% ($7,561,06) 100% ($111,80,071)

17 Product Comparison 1500 TPD Product Production Price Operating Cost Net Revenue Total Capital Investment Net Present Worth (unit/day) ($/unit) ($/year) ($/year) $ $ Methanol (gal) 39,1 $1.0 $8,973,769 $5,555,679 $84,530,800 ($49,545,577) Acetic Acid (lb) 485,737 $0.31 $36,199,558 $18,761,68 $141,194,77 ($30,53,96) Formaldehyde (lb) 4,909 $0.1 $11,88,176 $6,736,810 $90,784,183 ($51,045,195) Ammonia (ton) 77 $75 $7,04,301 $0,60,95 $107,435,351 $17,016,49 Urea (ton) 489 $3 $9,381,341 $30,437,687 $140,975,657 $4,61,195 Hydrogen (m 3 ) 549,73 $0.08 $4,013,046 $11,877,158 $130,76,86 ($60,701,493) Synthetic Fuel $5,07,041 $11,565,43 $93,765,169 ($,701,754) Diesel (gal) 16,31 $1.98 Naphtha (gal) 8,341 $1.63

18 Product NPW vs. MSW Capacity $500 Net Present Worth ($MM) $400 $300 $00 $100 $0 ($100) Urea Ammonia Acetic Acid Hydrogen Formaldehyde Synthetic Fuel DME Methanol Capacity (tons MSW/day)

19 Product IRR vs. MSW Capacity

20 Future Urea Market U.S. fertilizer usage to increase 10-15% in 008 Dependent on Crops Corn 41% of usage U.S. Urea Demand D e m a n d (M M to n s ) Year

21 Urea Production Reactions O H CONH NH COONH NH CO NH Synthesis Urea NH N H Synthesis Ammonia H CO O H CO Shift Gas Water

22 Syngas to Ammonia

23 Ammonia to Urea Ammonia 1.09 x 10 6 moles/unit time From Ammonia Production Unit Ammonia and Carbamate Recycle Carbon Dioxide 3.11 x 10 5 moles/unit time From Ammonia Production Unit P-13 Urea Reactor Decomposition and Recirculation Finishing Evaporation Urea 5.44 x 10 5 moles/unit time Wastewater

24 Direct Cost Utilities Operating Cost $/ton of Urea steam ( kpa), m cooling water, m Labor, personnel shift ($8/h) 5.7 Supervision 0.86 Catalyst cost.31 Maintenance and Repairs 14.9 Operating Supplies.4 Laboratory Charges 0.86 Fixed Cost Insurance 3.48 Property Taxes 9.95 Overhead 1.90 General Cost Administrative Costs 4.30 Distribution and Marketing Costs 5.4 Total Operating Cost 89.74

25 Plant Location: New York City Generates about 5,000 TPD waste Contains no landfills, incinerators or resource recovery facilities All MSW is transferred out of the city About 70% is sent to out-of-state landfills Costs up to $70/ton Growing population

26 Waste Disposal Contracts Waste dropped at transfer station, then transported to landfills or incineration facilities 3 year contracts Option for two 1 year extensions Available TPD from Expiring Contracts Year Available Capacity (TPD) Average Standard Deviation Annual Expansion Opportunity 48TPD 599TPD 1800TPD

27 *Current Urea Demand: 11.6 MMtons/year

28 Urea Economics

29

30 Urea Profitability Sensitivity

31 Urea Regret Analysis Prices 006 average = $3/ton average = $11/ton 006 August Spot Price = $67/ton 005 Urea Market 1.4% (100 TPD) 4.0% (3500 TPD) 6.8% (6000 TPD)

32 Regret Analysis NPW Design $11 $3 $67 Average 1 (100 tpd) ($57,374,39) $819,99 $5,93,361-10,10,367 (3500 tpd) ($9,58,310) $160,05,15 $33,43,470 18,033,48 3 (6000 tpd) $86,003,977 $376,975,580 $50,49,74 31,84,100 Regret Design $11 $3 $67 Max 1 (100 tpd) 143,378, ,155, ,569, ,569,381 (3500 tpd) 95,53,87 16,770,455 69,069,7 69,069,7 3 (6000 tpd) Min 0 Optimum Capacity = 6000 TPD MSW

33 Economic Model: Urea Production 3/7/007 1:44 Total Capital Investment $417,978,064 Urea Production 1,957 tons/day Fixed Capital Investment $355,46,11 Urea Price $3 /ton 0.00% Inflation Working Capital $6,731,95 Municipal Solid Waste 6,000 tons/day MSW Charge $40 /ton Tax Rate 35% Main Display Discount Rate 10% Operating Cost $85 /ton Urea 0.00% Inflation Urea MSW Net Total Yearly Yearly Annual Profit 10% Capital Production Price Take Charge Gross Product After Annual Cumulative Discounted Year Investment (tons) ($/ton) (tons) ($/ton) Revenue Cost Taxes Cash Flow Cash Flow Cash Flow 0 $417,978,064 -$417,978,064 -$417,978,064 -$417,978, ,73 $3 657,000 $40 $74,06,879 $3,064,136 $35,014,070 $35,014,070 -$38,963,994 $31,830, ,546 $3 1,314,000 $40 $148,15,758 $39,949,318 $74,044,460 $74,044,460 -$308,919,534 $61,193, ,818 $3 1,971,000 $40 $,188,414 $55,457,781 $114,591,718 $114,591,718 -$194,37,815 $86,094, ,43 $3,190,000 $40 $46,876,114 $60,441,455 $17,399,335 $17,399,335 -$66,98,480 $87,015, ,43 $3,190,000 $40 $46,876,114 $60,441,455 $17,399,335 $17,399,335 $60,470,855 $79,104, ,43 $3,190,000 $40 $46,876,114 $60,441,455 $17,399,335 $17,399,335 $187,870,190 $71,913, ,43 $3,190,000 $40 $46,876,114 $60,441,455 $17,399,335 $17,399,335 $315,69,55 $65,376, ,43 $3,190,000 $40 $46,876,114 $60,441,455 $17,399,335 $17,399,335 $44,668,860 $59,43, ,43 $3,190,000 $40 $46,876,114 $60,441,455 $17,399,335 $17,399,335 $570,068,195 $54,09, ,43 $3,190,000 $40 $46,876,114 $60,441,455 $17,399,335 $17,399,335 $697,467,530 $49,117,959 S v $53,86,917 $53,86,917 $0 $34,636,496 $34,636,496 $73,104,06 $1,139,881 Total: 6,85,336 $,5,796,764 $541,561,40 $1,150,08,090 $73,104,06 $73,104,06 $39,71,486 Economics Summary Net Present Worth Table: Economics Information: 0% $73,104,06 40% ($07,514,6) Payout Time: 4.53 years 5% $438,57,96 50% ($56,95,863) Rate of Return: % 8% $310,84,67 60% ($89,089,50) Return on Investment: % $39,71,486 70% ($31,193,777) Disc. Return on Investment: % $99,754,4 80% ($39,109,814) 0% ($649,784) 90% ($341,895,34) 30% ($130,651,434) 100% ($351,818,533)

34 Economic Conclusion Plant Size = 6,000 tons MSW/day TCI = $418,000,000 NPW = 10% discount IRR = 0% Urea Break-even Price = $65/ton

35 Questions?

36 Pyrolysis Reactor Vertical shaft reactor Solid waste enters through the top Purified oxygen from air separator fed through the bottom Solid waste dried by upward flowing gases at top of reactor Exiting gas therefore cooled to between 93 C and 315 C Pyrolysis occurs in the middle zone at temperatures above 1500 C Combustion of char in oxidative zone at the bottom of the reactor produces the heat necessary for the pyrolytic reactions Operates between 100 and 00psia

37 Gas Cleaning Syngas flows through spraying water scrubber Electrostatic precipitator removes particulates and pyrolytic oils These components are recycled back to the reactor Water removed in a shell and tube condenser

38 Operating Cost Utilities, labor and catalyst costs estimated from data in the Encyclopedia of Chemical Technology Other operating costs estimated from reasonable percentages in Plant Design and Economics for Chemical Engineers Supervision: 15% of labor Maintenance and repairs: 3% of FCI Operating supplies: 15% of maintenance and repairs Laboratory charges: 15% of labor Insurance: 0.7% of FCI Property taxes: % of FCI Overhead: 60% of labor, supervision, and maintenance and repair costs Distribution and marketing: 6% of total operating cost

39 Carbon Dioxide Process produces 4,305 tons/day Urea synthesis requires 3.5:1 ratio of ammonia to urea in the reactor feed Process uses 80 tons/day carbon dioxide Net carbon dioxide production: 3,485 tons/day Implementation of $5/ton carbon tax would increase operating cost by $45/ton urea CO sequestration estimated at $35/ton would increase operating cost by $6/ton urea Reduces project profitability but does not change project results

40 Methanol Reactant Ratio : H + CO CH OH 3 3 H + CO CH OH + H O 3 H CO + 3CO = Low Temperatures and High Pressures favor Methanol formation Methanol can be sold as a product or used as an intermediate to produce alternative products 1

41 Ammonia Reactant Ratio: 3H + N NH H N = Used in fertilizers and refrigeration Reaction occurs at high temperature and pressure 3 3

42 Synthetic Fuel Reactant Ratio: Fischer-Tropsch synthesis H + CO -CH - + H O H = CO Converts H and CO into straight chain hydrocarbons using metal catalysts Diesel and naphtha

43 Hydrogen (1) Reactant Ratio: H O CH H CO ( ) H O + CO H + CO H O CO + CH = Steam reformation (1) is used to convert methane into CO and H 4 Water gas shift reaction () is used to produce additional H Main fuel source for Hydrogen fuel cells 1

44 Economic Model: Urea Production Total Capital Investment $169,751,84 Urea Production 489 tons/day Fixed Capital Investment $144,74,753 Urea Price $3 /ton 0.00% Inflation Working Capital $5,477,089 Municipal Solid Waste 1500 tons/day MSW Charge $40 /ton Tax Rate 35% Main Display Discount Rate 10% Operating Cost $11 /ton Urea 0.00% Inflation 3/6/007 Urea MSW Net Total Yearly Yearly Annual Profit 10% Capital Production Price Take Charge Gross Product After Annual Cumulative Discounted Year Investment (tons) ($/ton) (tons) ($/ton) Revenue Cost Taxes Cash Flow Cash Flow Cash Flow 0 $169,751,84 -$169,751,84 -$169,751,84 -$169,751, ,561 $3 547,500 $40 $61,719,08 $0,007,634 $9,637,14 $9,637,14 -$140,114,68 $6,94, ,561 $3 547,500 $40 $61,719,08 $0,007,634 $9,637,14 $9,637,14 -$110,477,414 $4,493, ,561 $3 547,500 $40 $61,719,08 $0,007,634 $9,637,14 $9,637,14 -$80,840,199 $,66, ,561 $3 547,500 $40 $61,719,08 $0,007,634 $9,637,14 $9,637,14 -$51,0,985 $0,4, ,561 $3 547,500 $40 $61,719,08 $0,007,634 $9,637,14 $9,637,14 -$1,565,771 $18,40, ,561 $3 547,500 $40 $61,719,08 $0,007,634 $9,637,14 $9,637,14 $8,071,443 $16,79, ,561 $3 547,500 $40 $61,719,08 $0,007,634 $9,637,14 $9,637,14 $37,708,658 $15,08, ,561 $3 547,500 $40 $61,719,08 $0,007,634 $9,637,14 $9,637,14 $67,345,87 $13,85, ,561 $3 547,500 $40 $61,719,08 $0,007,634 $9,637,14 $9,637,14 $96,983,086 $1,569, ,561 $3 547,500 $40 $61,719,08 $0,007,634 $9,637,14 $9,637,14 $16,60,300 $11,46,49 S v $1,641,13 $1,641,13 $0 $14,066,788 $14,066,788 $140,687,089 $4,930,34 Total: 1,785,607 $638,831,497 $00,076,345 $310,438,931 $140,687,089 $140,687,089 $17,86,333 Economics Summary Net Present Worth Table: Economics Information: 0% $140,687,089 40% ($97,87,957) Payout Time: 5.73 years 5% $67,33,430 50% ($111,34,696) Rate of Return: 1.4 % 8% $35,149,8 60% ($10,75,773) Return on Investment: % $17,86,333 70% ($17,581,935) Disc. Return on Investment: % ($17,985,960) 80% ($13,787,195) 0% ($43,605,48) 90% ($136,863,39) 30% ($77,34,317) 100% ($140,136,70)