biogas metrics studybiogasassociation.ca/images/uploads/documents/2014/biogas_study… · canadian...

Canadian Biogas Study: Quantifying the Energy, Environmental

and Economic Benefits of Biogas in

Canada

Maria Kelleher,

Kelleher Environmental

27th November, 2013

1

Presentation Outline

Biogas sources

Energy potential, environmental and economic benefits of each source

Advantages of biogas as an energy source

2

Canadian Biogas Study

Objectives

Biogas Association is a member driven association which represents all aspects of the biogas sector.

In May, 2013, commissioned a study to quantify the potential benefits of increasing biogas energy across Canada ◦ Energy

◦ Environmental

◦ Social/Community

◦ Economic

Summary Document will be released November, 2013 Technical Document will be released December, 2013

3

What is Biogas?

Mixture of methane (natural gas) (50% to 55%)

and CO2 produced when organic waste is broken down in the absence of oxygen

VERSATILITY is a big advantage of biogas compared to other renewable energy sources: ◦ Burned directly to produce energy through:

Burning directly (heat)

Producing electricity

Producing heat and electricity (co-generation)

◦ Upgraded to biomethane (RNG) and used to: Inject into the natural gas pipeline as renewable natural gas

(RNG)/biomethane

Produce vehicle fuel

4

Integration of Biogas

5

Five Sources of Biogas in

Canadian Biogas Study Agricultural digesters

Landfill gas

Anaerobic digestion of residential Green Bin waste

Anaerobic digestion of commercial organic/biodegradable waste

Wastewater treatment plants

6

Potential Energy From Five

Biogas Sources

7

Agriculture 68%

Landfill Gas 12%

SSO Res 6%

SSO Com 7%

Wastewater 7%

Agricultural Digesters

8

Agricultural Digesters

Can digest animal manures, crop residues, off-farm waste

Ontario allows 50% off-farm waste

30 farm digesters in Ontario because of Feed-in-Tariff

Energy crops digested in Europe; not in Canada so far

OFA study has identified potential to generate 400MW in Ontario from energy crops

9

Agricultural Digesters – Energy

and Environmental Benefits Assumed that 50% of animal manures and 50%

of crop residues across Canada could be digested on farm

Potential to build 400 farm digesters across Ontario at 500kW capacity

Up to 200MW electricity; 630 Mm3/year RNG

Reliable, distributed electricity base load for rural areas

GHG reduction benefit of up to 9 Million tonnes eCO2/year - equivalent to taking 1.9 million cars off the road

10

Agricultural Digesters –

Economic Benefits 400 farm digesters across Ontario could

produce 200 MW

Capital investment $2.7 billion

Economic spin-off $8 billion

3,800 construction jobs for one year

500 on-going operational jobs

Helps to sustain/expand over 80 companies in Ontario

11

12

13

Other Benefits of Agricultural

Digesters Rural economic development – ◦ Diversify farm income and provide direct and indirect

jobs in rural areas

Provides on-farm energy requirements ◦ Heat for greenhouses, other farm requirements (crop

drying etc)

Environmental Benefits of Digestion ◦ Reduces pathogens up to 99%

◦ Improved nutrient management

◦ Digestate provides fertilizer input and carbon structure to soil

◦ Digestate can be dried and used as animal bedding

14

Landfill Gas

15

Landfill Gas – Environmental

Benefits

66 landfill gas recovery projects across Canada now

7 million tonnes eCO2 reduction

Equivalent of taking 1.5 million cars off the road

16

Captured

Flared

10,000 landfills across Canada; 800 active

Third largest source of methane emissions in Canada

3% of Canada’s GHG emissions

Landfill Gas - Opportunity

Largest GHG source over which municipalities have control

New regulations require capture to reduce GHG emissions ◦ utilization rather than flaring depends on

economics

Environment Canada study – 41 projects across Canada have net positive economics

For Ontario, GHG reduction up to 1.7 million tonnes; 350,000 cars off the road

17

Landfill Gas – Energy and

Economic Benefits Potential to economically capture 110 up

to Mm3/year RNG; 36MW

Capital cost $120 million

Economic spin-off $360 million

Net revenue $22 million/year

770 construction jobs for one year

50 on-going operational jobs

18

Green Bin - Residential Source

Separated Organics (SSO)

19

Residential SSO

3.2 million tonnes of municipal solid waste disposed each year from residential sources in Ontario ◦ 0.9 million tonnes is food/organic waste

Green bin programs are in place across Ontario to meet waste diversion targets ◦ Typically divert 20% of municipal residential waste

stream Most currently compost green bin waste with no

energy recovery Toronto only city using AD so far; Surrey BC initiating

biofuels project (with RNG used for truck fleet) 12 municipal AD facilities in planning stages in

Quebec

20

Toronto Dufferin AD Plant

Organics Arriving At Dufferin AD

Organic Material Processing

Residential SSO – Background

AD has been slow to take off in Canadian and US municipalities

Significant AD capacity in Europe (> 4 million tonnes/year)

Drivers different to Canada: ◦ EU Landfill Directive ◦ High Feed In Tariffs for renewable energy ◦ Very high tipping fees for other options

In past, costs of AD were higher than composting, but gap is narrowing; similar costs at 60,000 t/year with FIT contract

24

Residential SSO – Environmental

Benefits

AD has much smaller footprint than

composting ◦ Allowed Toronto to build processing within City

borders ◦ Dufferin and Disco Digesters

Source of GHG reduction credits and green power for municipalities

Source of RNG for municipal fleets Surrey; Simcoe; Ottawa, etc. moving to CNG

trucks Each truck conversion from diesel to CNG

equivalent to taking 474 cars off the road

25

Commercial Source Separated

Organics (SSO)

26

AD of Commercial/Industrial

SSO A number of private AD facilities already

at industrial food processing facilities to deal with high strength wastes

Two private, commercial “merchant” AD facilities just opening in London, Ontario and Richmond, BC

Potential ~ 15 AD facilities at 60,000 tonnes/year for Ontario

22MW or 60Mm3/year of biomethane

27

Commercial AD Opportunity in

Ontario Capital investment $650 million

Indirect economic spin-off $2 billion

700 construction jobs for one year

170 on-going operational jobs

28

Wastewater Treatment Plants

29

AD At Wastewater Treatment

Plants 4,000 wastewater treatment plants produce

660,000 dry tonnes of biosolids across Canada

Of 50 largest wastewater treatment plants in Canada, about 55% digest biosolids

Large facilities already have digesters ◦ Most use biogas for heating; flare in summer

◦ Some facilities have co-generation

◦ Woodward Ave Hamilton first wastewater treatmet plant in Canada to produce RNG and inject into NG grid

Potential to capture 70 Mm3/year of biomethane (23MW)

30

Wastewater Treatment Plants –

Economic Benefits Direct capital investment $230 million in

Ontario Economic spin-off $700 million 400 construction jobs 100 on-going operational jobs A lot of equipment already on-site; project

costs lower. Trained staff already on site Other capital projects get higher priority at

budget time Need an internal champion to push projects

31

CANADIAN BIOGAS STUDY SUMMARY STATISTICS

32

Energy Potential of Biogas Projects in

Canada

33

Agriculture Landfill

Gas

SSO Res SSO Com Waste-

water

Total

Electricity (MW) 550 95 48 54 60 807

RNG (Mm3/year) 1,650 290 140 160 180 2420

% of Canada’s

Electricity Demand 0.87% 0.15% 0.08% 0.09% 0.10% 1.28%

% of Canada’s

Natural Gas

Demand

2.06% 0.36% 0.18% 0.20% 0.23% 3.03%

Environmental Benefits of Biogas

Projects In Canada

34

Agriculture Landfill

Gas

SSO Res SSO Com Waste-

water

Total

GHG Reduction

(mT eCO2/year) 25.5 4.5 2.2 2.5 2.8 37.0

Cars Off the Road

5,100,000 900,000 433,000 490,000 560,000 7,500,000

Economic Impacts of Biogas

Projects in Canada

35

Agriculture Landfill

Gas

SSO Res SSO Com Waste-

water

Total

Construction jobs

(for one year)

10,200 2,000 1,800 1,700 1,000 16,700

On-going

operating jobs

1,320 120 500 460 250 2,650

Capital investment

($Billions)

$3 $0.3 $1.7 $1.3 $0.6 $7.0

Indirect economic

spinoff ($Billions)

$9.3 $1.0 $5.1 $4.0 $1.7 $21.0

Benefits of Biogas

Unique features of biogas as a renewable energy

source: ◦ Reliable, flexible, distributed renewable energy, 24/7,

regardless of weather; can be stored; can be used for heat, electricity or fuel, more flexibility than other renewables

Environmental Benefits ◦ GHG reduction ◦ Significant reduction in pathogens ◦ Closed loop waste management

Economic and Community Benefits ◦ Local jobs and investment ◦ Income for farmers; keeps additional family member

on farm

36

Conclusions

Solution for agriculture ◦ Economic, environmental, community benefits

Solution for sustainability ◦ Major GHG, air and water quality benefits

Waste management solution ◦ Captures energy from waste, diverts from

landfill, reduces odour, can fuel waste trucks

Renewable energy solution ◦ Can produce 3% of our natural gas demand or

810 MW of reliable, clean, green electricity

Should be a part of all energy portfolios

37

Questions

Maria Kelleher, Principal, Kelleher Environmental

maria@kellenv.com

38