Latest Technologies for Processing Organics Northeast Recycling Council Fall Organics Recycling Conference October 29, 2013 Presented by: Wayne Davis VP Community & Government Affairs Harvest Power, Inc.
Agenda The New Vision of Organics Processing The AD Project Development Puzzle New Technology Models and Examples Financing Options Putting the Pieces Together 2
Food Distribution Synthetic Fertilizer Crop Production Food Consumption Food Disposal Traditional Approach: Synthetic Fertilizer & Landfills
Food Distribution Synthetic Fertilizer Crop Production Food Consumption Food Disposal Traditional Approach: Synthetic Fertilizer & Landfills
Food Distribution Synthetic Fertilizer Crop Production Food Consumption Food Disposal New Approach: Recycling, Organic Fertilizer, Renewable Energy Organic Fertilizer Mulch/Soil Food Recycling Biogas Energy
Harvest s Integrated View Biogas & Energy Organics Processing Soils, Mulches and Fertilizer Harvest generates revenue from all three segments of the wheel, which we expect will create the lowest costs in all three markets 6
Harvest harnesses the maximum value from organic materials through the production of renewable energy and soils, mulches and natural fertilizers. Corporate Profile Lead organics processing industry, managing more than 2 million tons/year, one of largest composters of yard waste & food waste in North America Operate 30 processing facilities in North America with more than 500 employees, >$150mm of revenue Recently commissioned two of North America s largest commercial anaerobic digestion facilities. Third facility starting up in 2013 Committed to high levels of engagement and support with communities, customers and key stakeholders wherever we operate About Harvest 7
The AD Project Development Puzzle Location Feedstock Energy Off-Take Technology Co-Products 8
Harvest Energy Garden Richmond, BC Harvest s Richmond Energy Garden uses high solids anaerobic digestion technology to turn up to 40,000 tonnes per year of mixed food scraps and yard trimmings into electricity and compost. The site, which serves the Metro Vancouver region s 2.3 million residents, represents a model for managing organics in an urban environment. Copyright 2012 Harvest Power, Inc. 9
Recycling Biogas Food Waste Organic Fertilizer
Harvest Energy Garden Richmond, BC First load entering Pre-treatment In the tunnel 11
Harvest Energy Garden Ontario Harvest s 65,000 tpa Low Solids Anaerobic Digester in London, ON processes food scraps into electricity and granular fertilizer. 12
Harvest Energy Garden Ontario 13
Harvest Energy Garden Florida Harvest s Energy Garden will co-digest food wastes from local tourist and resort locations with biosolids from the adjacent, publicly-owned waste water treatment plant (WWTP) to produce baseload renewable energy, fertilizer and soil amendments. Start-Up: Late 2013 Capacity: 130,000 tons /yr. ICI (Institutional, Commercial, Industrial) and biosolids organics Energy Output: 5 MW combined heat-and-power Product Output: 6,000 tons /yr. granular fertilizer Customers: Located at WWTP and co-digesting biosolids with ICI food wastes 14
HPO Facility Process Overview 15
Construction Progress Photos Digester (CSTR) Tanks Concrete Food Waste Receiving Pit Chemical Storage RCES Electrical Ductbank 16
AD Technology Choices Technology choice is driven by the markets for feedstocks and end products. Batch High Solids Continuous High Solids Low Solids Solids Content 25-50% 18-40% 5-15% Possible Feedstocks Food scraps (50-60%) Yard trimmings (40-50%) Food scraps FOG Dewatered biosolids MRF residuals Food scraps FOG Waste water sludges Manure Possible End Products Contamination Tolerance Quantity of Liquid Effluent Compost Liquid fertilizer* Compost or dry fertilizer High Medium Lower De minimus Medium High Liquid fertilizer* Compost or dry fertilizer * Limited market for liquid fertilizer in New England. 17
Options for Financing Grants? Subsidized Loans? All Equity Equity 70-100% Project Debt Loans 60-70% Equity 25-30% Grants? 0-10% 18
Site control Permitting certainty Project Financials o Secured feedstock 70-100% committed o Signed Power Purchase Agreement long term What Do Project Lenders Look For? o Clear marketing plan and demonstrated ability to sell co-products Fixed price, turnkey construction contract with performance guarantees Proven technology Qualified management team
Public-Private Partnerships A New Model? Conventional Municipal Procurement Muni pays; muni owns Muni operates or outsources Pure public utility model (feedstock taker ) Most risks stay with muni P3 Procurement Private sector finances, builds, & operates. Either may own Muni provides long-term contracts Feedstock Operating Energy Off-take Operator takes merchant risk for added feedstock and output Most risks shifted to supplier(s) 20
Putting the Pieces Together Each project unique to its market But replication of modules critical to cost control, operating efficiency, and long-term success Conclusions Balance of revenue & profit can vary among three streams But ignore one at your peril There is tremendous interest across North America Projects coming on-stream in next two years will need to prove out unit economics and technology
Dedicated to Maximizing the Production and Use of Biogas from Organic Waste 22
There s a better path for organics help us get there. Wayne Davis, VP Community & Govt. Affairs Harvest Power, Inc. Waltham, MA 02453 781-314-9504 wdavis@harvestpower.com 23