Small-scale Gasification for Biomass and Waste-to-Energy for Military and Commercial CHP Applications

Transcription

1 Small-scale Gasification for Biomass and Waste-to-Energy for Military and Commercial CHP Applications October 13, 2015 Richard L. Fosgitt, P.E. Vice President Engineering & Technology Cirque Energy, Inc. 1

2 Disclaimer This document may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of These statements are based on the Company's current expectations as to future events. However, the forward-looking events and circumstances discussed here might not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements. OTC QB: CRQE 2

3 Cirque Energy Inc. 1. Energy Services Company (ESCO) and IPP Developer Focused on delivery of Clean Energy generation solutions, including: Combined Heat and Power (CHP) Projects; Industrial Cogeneration IPP Biomass power plants Diverse client base: Industrial and Commercial; MUSH Market; Municipalities, Universities, Schools, Hospitals; Local, State and Federal Government; Utilities 2. Proprietary Small scale Gasification Technology Technology for waste to energy CHP systems in 100 3,000 kw market 3. Corporate Headquarters in Midland, Michigan Public Company on OTC: CRQE 3

4 The Military Fuel Supply and Waste Stream Problem 4

5 Operational Energy Demand The US Army uses: 20 gallons of fuel per soldier per day 5 Source: ACORE and DLA

6 Complex Logistics Delivered diesel fuel cost: $400+ per gallon at FOB point of use 6 Source: DLA

7 The High Cost 7 Source: ACORE and DLA

8 Waste Disposal Waste is: Burned Buried Backhauled A significant logistics and environmental problem!!! 8

9 Typical Battalion Camp Energy 2,200 gallons fuel per day 1.0 MW average demand Low energy efficiency Waste Over 2 tons per day Food, paper, plastic, cardboard, dunnage, human waste Cost Up to $80M per year in theater per 550 man module 9 Source: Army RDECOM

10 The DGU Solution 10

11 Our Partner Cirque Energy (previously working as a subcontractor) created a conceptual DGU on behalf of Northrop Grumman. These units utilize Cirque Energy's gasification and syngas conditioning technology, coupled with conventional reciprocating engine generator technology. Northrop Grumman has exclusive right to military and federal government sales Cirque Energy has exclusive right to all commercial and industrial sales 11

12 Motivating criteria: Mobility is key Two 20 ISO containers PLS transportable CH 47 and cargo planes Operational simplicity Startup <2 hours No additional personnel Use JP 8 (diesel) when solid fuel is not available Seamless transition from diesel to syngas, and back No special preparation of solid fuel required 12

13 How does it work? Gasification is incomplete combustion of carbon based fuel in a starved air environment, producing combustible gases (syngas): Carbon monoxide (CO), Hydrogen (H2) and Methane (CH4) Syngas is cooled and conditioned for use in internal combustion diesel generator IC generator uses a mixture of up to 70 80% syngas, with balance diesel 13

14 Cirque Gasifier 14

15 System Benefits True fuel flexibility Not limited to just woody biomass like other systems Capable of using any mixed waste stream: MSW, biomass, agriculture waste No fuel pre processing required, i.e. no sorting, special handling, or pelletizing Scalable solution tons waste per day, resulting in kw electric plus thermal energy High efficiency of over 80% when using available waste heat in CHP mode Multiple units for higher capacities Redundant and capable of using fossil fuels Provide 100% of their design capacity on traditional fossil fuels (diesel or natural gas) when not operated in gasifier mode. High reliability and uptime for end users, regardless of the fuel situation. 15

16 DGU military economics For 550 person deployed operation: 2.5 tons/day waste used 260 gallons per day fuel savings 2,400 kwh electric generation 260 gallons x $100 fuel cost = $26,000 per day savings $9.5 MM per year! 16

17 Commercial Applications 17

18 Opportunity Approximately 20% of the world population does not have access to electricity, with electric growth forecasts of 50% by 2040 About 650 GW of diesel generators produce 5% of global baseload energy Solid waste generation is increasing faster than any other pollutant 18

19 Commercial Market Commercial user or industry with a constant electric demand of at least 200 kw, thermal demand, and waste stream MUSH market municipalities, universities, schools, and hospitals. Industrial CHP Casinos, resorts Developing countries and island nations A commercial DGU can provide: Energy Security and Independence Cost savings and a buffer from constantly rising utility rates Reduce or eliminate waste disposal costs Renewable energy! 19

20 Caribbean Islands Limited or no landfills Solid waste disposal is primarily incineration Large amount of landscape wastes, which is also burned Diesel generation is primary source of electric power Electric prices ~$0.80/kWh 20

21 What about Solar? 21

22 Sample Economics Baseline situation: 500 kw electric at $0.12 per kwh = $1,440 CHP 2.5 MMBtu/hr at $10 per MMBtu = $600 8 tons/day $40/ton = $320 TOTAL = $2,360 per day Annual Costs = $861,400 per year With Gasification: 500 kw electric at $0 per kwh = $0 CHP 2.5 MMBtu/hr at $0 per MMBtu = $0 Additional natural gas at $6 per MMBtu = $500 1 tons/day $40/ton = $40 TOTAL = $540 per day Annual Costs = $197,100 per year 75% savings Total Annual Cost Savings Simple Investment Payback = $664,300 per year < 3 years 22

23 System Availability Testing and Certification Full scale military and commercial systems built Extended duration testing and third party certification Air emissions testing and certification Military demonstrations and shakedowns Project delivery options include PPA or Energy Services Contract Cirque committed for most of 2016; availability late

24 Thank you! Richard L. Fosgitt, P.E. energy.com Cirque Energy, Inc. 414 West Wackerly Street Midland, MI energy.com 24