Handout - Item 4. B) EFW-WMAC September 28, The Regional Municipality of Durham s Organic Management Strategy

Transcription

1 Handout - Item 4. B) EFW-WMAC September 28, 2017 The Regional Municipality of Durham s Organic Management Strategy

2 Introduction GHD and EY completed three studies in June 2017: 1. Background Research, Technical and Options Analysis Report 2. Preliminary Business Case Financial Analysis 3. Preliminary Service Delivery Model Assessment 2

3 The Need for an Organics Strategy in Durham Why does the Region need Pre-Sort & Organic processing? Why does the Region need it in the present timeframe? 2

4 Why 2018 as the Benchmark Year? 2018 is a year of change Organics processing contract expiring Transfer and haulage contracts expiring Can the Region Continue with Business-as-Usual? Drivers 2018 Status Quo Waste-Free Ontario Act (organics strategy) Climate Change and Low- Carbon Economy Act Growth (multi-residential) DYEC Capacity NO NO NO NO 70% Diversion Target NO 3

5 Regulatory Issues The waste management system must continue to adapt to meet future needs and opportunities effectively and efficiently Bill 151 The Waste-Free Ontario Act Resource Recovery and Circular Economy Act Waste Diversion Transition Act Organics ban and further blue box opportunities Bill The Climate Change Mitigation and Low Carbon Economy Act Establishes Ontario s cap and trade emissions trading program Received Royal Assent on May 18, 2016, effective January 1, 2017 Potential for cap and trade funding of AD and carbon credits

6 MOECC Organics Strategy Proposed legislation supports moving forward with pre-sort/ad through incentives to: o introduce a renewable content requirement for natural gas o the ability to generate carbon offsets o develop viable markets for end-products created (compost/digestate) Anticipate implementation of organics ban by 2022 Other large Municipalities have commenced the procurement process to implement AD (Peel, Hamilton, Toronto, York.) 6

7 Province Recognize the need to increase organics management capacity Supports development of infrastructure: particularly Anaerobic Digestion AD technology has been proven in the water pollution plants and the same operating principles apply to waste management systems. Six food waste AD facilities currently operating in Ontario 7

8 Province Legislation is evolving quickly. Discussion Paper released and consultation due July 30, 2017 MOECC has committed to an organic ban to landfill/efw which includes regulatory tools to enforce compliance (source separation and disposal) Municipalities will need to take action in order to be compliant 8

9 Current Material Flows 55% Diversion Does not meet diversion goal Does not meet growth needs Does not meet Provincial objectives Does not manage DYEC capacity Does not maximise opportunities Does not best manage long-term financial investment Does not meet circular economy goals 28,000 tpy LYW (cost) 28,000 tpy SSO (cost) 50,000 tpy (revenue) 114,000 tpy (revenue)

10 Proposed Pre-Sort and Organics Processing Material Flows 65-75% Diversion Meets diversion goal Meets growth needs Meets Provincial objectives Avoids DYEC expansion Maximizes opportunities Best manages long-term financial investments Meets circular economy goals 28,000 tpy LYW 50,000 tpy 114,000 tpy Pre-Sort 28,000 tpy SSO 2,000 tpy 76,000 tpy 36,000 tpy

11 Horsham Facility West Sussex 300,000 tonnes 11

12 Typical Mixed Waste Processing Facility Mixed Waste Bag Ripping Hand Sort 100 mm Trommel >100 mm Magnet Air Separati on Heavies Residue to Landfill <100 mm Lights OCC HHW WEEE Magnet Ferrous Metals 2D/3D Separation 3D Eddy Current Nonferrous Metals Eddy Current Nonferrous Metals 2D Fibre & Film Plastic Optical Sorting Residue to Landfill Organic Products - Digestate - Fertilizer - Compost Organics Processing Fibre Film Plastic Hand Sort Plastics Residue to Landfill Recyclables Market Recovery of organics, ferrous metals, non-ferrous metals, and plastics Fibres re-directed to organics processing Majority of Organic Fraction Mixed Waste (OFMW) in <100mm fraction Manual sort for OCC and Hazards removal

13 Organics Processing Compost Aerobic (air) No biogas production Contaminants in compost No further processing Large footprint Large process air volume Less expensive Anaerobic Digestion Anaerobic (no air) Biogas produced (Control of GHG Emission ) Clean final digestate Digestate processing required Compact footprint No process air, less odour Depends on energy pricing Guelph Facility Toronto Disco Road Facility

14 Introduction to Anaerobic Digestion It is a natural process where in a controlled oxygen-poor environment, bacteria break down organic material into methane, carbon dioxide and water. Organic Waste Anaerobic Digestion CH 4 & CO 2 + New cells 9

15 Anaerobic Digestion Facility Inputs Outputs RNG Organics from Mixed Waste Processing Biogas Food Waste (SSO) AD Facility Wastewater Digestate Yard Waste AD Facility Residue 5

16 Process Flow

17 Process of Anaerobic Digesters Airtight tank Wet High water demand to create pulp (can be obtained from digestate and residuals dewatering) Extensive removal of contaminants prior to digestion Dry Airtight, solid floor structure Lower water demand Greater tolerance for contaminants in feedstock Includes screening of contaminants from digestate Guelph Facility

18 Drivers and Options Analysis Drivers/Options Status Quo Pre-Sort Pre-Sort Pre-Sort In-Vessel Merchant AD Capacity Waste-Free NO YES YES YES Ontario Act Climate Change Carbon Economy Act NO Possibly Possibly YES 70% Diversion NO YES YES YES Target DYEC Capacity NO YES YES YES Growth NO YES Possibly YES 7

19 Status Quo Organics Management (Why Status quo is not sustainable) The existing organics management system (Status Quo) is at capacity and may not meet the requirements of the anticipated Provincial Organics Action Plan (OAP). Does not allow for additional processing of organics in light of the rapid population growth within the Region because it is at capacity; Does not allow any increase to the Region s diversion rate; Does not have the capacity or ability to accept an expanded suite of organic waste materials or organics of any kind from multi-residential buildings; Does not extend the existing capacity of the DYEC. 19

20 Business Case Options Financial analysis considered preliminary costing and potential Regional waste system impacts compared to Status Quo, including: Implementation of mixed waste processing/pre-sort and green bin processing through construction of a two-stream processing facility using either: o Wet or dry anaerobic digestion; or, o In-vessel facility composting (e.g. the current Green Bin organics processing technology) Implementation of a service contract (merchant capacity) for the treatment of mixed organics and green bin waste. 20

21 Business Opportunities All options for organic management will involve a significant capital expense and increased operating costs There are many potential cost mitigations available to the Region: Share cost risks with a partner Implement energy solutions that maximize revenues (offset diesel in collection trucks) Service delivery (merchant capacity) to lower or remove capital costs Obtain grants from Government sources Cap and Trade credits Phase in project. Technology is easily scalable 21

22 Additional Funding Opportunities Ontario Centers of Excellence: one application window has passed and was fully subscribed under the Target GHG Fund Energy partner Carbon trading market: switching to anaerobic digestion enables production of offsets Sustainable Development Technologies Canada P3 Canada Fund: private financing with contribution from P3 Canada was used for City of Surrey digestion project 13

23 Considerations Revenues from energy need to be further explored in the analysis Current market for Renewable Natural Gas has expanded Low-Carbon Fuel standards are pushing upwards pricing Excess capacity sales may not materialize The cost of private sector options or merchant capacity The net benefits and costs of entering the carbon market are currently not completely understood Greenhouse gas reduction credits are viable for the Region if they switch from composting to anaerobic digestion Synergies with other Regional activities needs to be considered 23

24 Next Steps In order to ensure that discussions with potential partners are part of an open, accountable, and transparent process, it is recommended that a Request for Information (RFI) process be undertaken. Update Preliminary Business Case Explore Funding Opportunities 24

25 Thank You