The Kern Dairy Biogas Cluster: A Case Study of the Emerging Dairy Methane Initiatives in California. October 12, 2017 AWMA Technical Conference

Transcription

1 The Kern Dairy Biogas Cluster: A Case Study of the Emerging Dairy Methane Initiatives in California October 12, 2017 AWMA Technical Conference

2 California Dairy Industry Key Statistics Produce 20% of America s milk 1.7M milk cows, 1,400 dairies Dairy methane potential: MW base load (850 MW peaking) cows electricity for 1 home/year - 170M diesel gallon equivalents of fuel - 1 cow CNG to drive across country 50% of CA methane emissions, 25% from manure lagoon GHG-CH4: 40% reduction x active + 3 digesters being built; electricity (1 noncommerical CNG)

3 Geo-Coded Dairy Data: 40% from 15%

4 Dairy Digesters are Cost Effective* April 2016 Report * Based on 100 yr GWP

5 About California Bioenergy LLC ( CalBio ) Founded Focus on dairy biogas in California Built 3, completing 3, designing 25 more Partner with the dairy farmer Our goals - Produce renewable energy - Reduce dairy methane emissions - Protect local air quality - Enhance groundwater protection - Add to the local economy and create jobs Areas of work - - Development, operations, finance, energy sales, and policy

6 Kern County Dairy Biogas Cluster 15 modern, large dairies 1 built digester; 2 completing construction Support CDFA, CEC, USDA Finalist Sustainable Freight Action Plan Methane potential: - 12 MW base load (30 peaking) - 5M diesel gallon equivalents Combination and Migration from Electricity to Fuels

7 Kern Cluster Map

8 Old River Dairy Biogas Old River Dairy The largest dairy digester in California and the first project in cluster. Began delivering electricity in 2013 and provides reliable base load renewable power, with delivery concentrated in peak hours. Quick Facts 2 MW of community scale, renewable electricity capacity Generation ~12,000 MWh per year Largest dairy digester in California US Treasury 1603 funding 2-cell structure, co-digestion Future R-CNG transportation fuel

9 Separator, sand lane, octagon, digester

10 Digester in operation (Bakersfield)

11 Double-lined digester

12 Inflated digester with storage

13 Lakeview Farms Dairy Biogas (ABEC #3) Lakeview Farms Dairy The project is located in a cluster of dairies outside of Bakersfield. It is designed to serve as a mini-hub for electrical generation and a spoke for gas production. It was the first project to propose dual electricity and fuel generation. QUICK FACTS In development, CDFA and CEC funding 1 MW renewable electricity base load capacity. Electricity generation ~6,500 MWh/Yr Future phase contribution to R-CNG transportation fuel 13

14 Lakeview Farms 1MW Gen. + Fuels

15 Carlos Echeverria & Sons Biogas CE&S Dairy The project is located across the road from the Old River Dairy in the Kern County cluster. It will serve as a demonstration facility utilizing waste heat from the engines to cool milk and advance project economics. It was also serve as a spoke for R-CGN production QUICK FACTS In development, CEC and CDFA funding 1 MW Generation of ~6-7,000 MWh per year Waste heat harnessed through an absorption chiller to cool milk Contribution to R-CNG transportation fuel 15

16 CE&S Dairy 1MW Generator + Fuels

17 Digester in Construction (Buttonwillow)

18 From Independent to Hub & Spoke

19 Next Phase: Fuel Based Seven new digester projects Belonave, Maple, T&W, Trilogy dairies Western Sky, BV, Newhouse dairies State support: Sustainable Freight Action Plan, CEC funding, and applying for CDFA grants 4 Components - Dairy based digester - Gas gathering line: from dairies to central facility - Gas upgrading facility: from biogas to pipeline methane - Pipeline interconnection Permitting: County, Air District, Water Board

20 Electricity versus Fuel (R-CNG) Electricity 1. Good Price: $25/MMBTU incl. credits 2. Bank financeable: 20 Year BioMAT PPAs 3. Emissions: NOx from exhaust Fuel (R-CNG) 1. Great Price: $40-80/MMBTU (LCFS & RINs) 2. Not bank financeable: Market based volatile pricing 3. Significant Environ. Benefits: NOx and other pollution reductions

21 BioMAT Electricity Feed in Tariff

22 LCFS Dairy Carbon Intensity * California Bioenergy LLC: California Dairy Digester Biogas to CNG GREET 2.0, LCFS FP: CNG056, CI:

23 Dairy Biomethane for Fuel Reduces NOx * Heavy-duty diesel engine at 0.2 g/bhp-hr NOx. Heavy-duty NZ NG engine at 0.02 g/bhp-hr Nox. Electric gen. at 0.15 g/bhp-hr BACT

24 Dairy Biomethane Fuel Pollution Benefits Pollution benefits from one dairy digester RNG project installed on a large CA dairy (5,000 milk cows)

25 Government Incentive Programs Construction incentives AB 2313 pipeline and gathering line incentives SB 1383 pipeline and gathering line incentives and LCFS support CDFA grants (GGRF funding) 2017: $29 to $36M. 2018: $76M Revenue incentives Low Carbon Fuel Standard critical importance Federal program RINs - D-3 status 25

26 CalBio Contact Information Neil Black (President) Ross Buckenham (CEO)