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Building a Sustainable Pelletized Biosolids Marketing Program Manuel Irujo, VP of Operations MWEA Biosolids Conference 2014

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Page 1: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Building a Sustainable Pelletized Biosolids Marketing Program

Manuel Irujo, VP of Operations

MWEA Biosolids Conference 2014

Page 3: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

• NEFCO History & Background

• Dried Biosolids

Page 4: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

NEFCO History & Background NEFCO was formed in 1986 as part of The

O’Connell Companies, a 134 year old company

Market leader in biosolids drying facility design, construction, permitting, and operations

Company designed and operates five facilities: MWRA in Quincy, MA - 1991

MCES in Shakopee, MN - 2000

GLSD in North Andover, MA - 2003

SWA in West Palm Beach, FL - 2009

Cumberland, MD - 2009

DWSD in Detroit, MI - 2015

Page 5: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Dried Biosolids Dried biosolids

commercial fertilizer available since 1925

Market trends

Drying process technology relevant

Biosolids benefits better understood

Value growing

Page 6: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

• Drying Facilities • Indirect Drying • Rotary Drum Drying

Page 7: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Winston-Salem, NC

Philadelphia, PA

U.S. Biosolids Dryer Facilities Milwaukee, WI

Philadelphia, PA

Hillsborough County, FL

Tampa, FL

Chicago, IL

Sacramento, CA

St. Petersburg, FL

Winston-Salem, NC

Honolulu, HI

Green Bay, WI

Camden, NJ

Stamford, CT

Page 8: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Indirect Drying - Screw

http://www.therma-flite.com/bioscru.php

Page 9: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Indirect Drying - Tray

http://www.gec.jp/JSIM_DATA/WASTE/WASTE_5/html/Doc_491_1.html

Page 10: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Indirect Drying Product Quality

Larger particle size

May require additional processing

Page 11: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Rotary Drum Drying Direct hot air contact

Process consists of:

Dewatering

Dryer/furnace

Pellet processing

Conveyance

Air treatment

Silo storage

Page 12: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Dewatering Centrifuges

Page 13: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Dryer Furnaces

Page 14: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Rotary Dryer Drums

Page 15: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Material Conveyance

Page 16: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Air Treatment – Process Exhaust

Page 17: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Air Treatment – Building Exhaust

Page 18: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Silo Storage

Page 19: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Direct Drying Process – Solids System

Page 20: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Direct Drying Process - Air System

Page 21: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

• Biosolids Types

• Public Perception & Acceptance

• Developing Relationships

Page 22: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Types of Biosolids

Class B

Class A

EQ

Page 23: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Public Perception: Biosolids = Sludge!?

http://www.prwatch.org/news/2014/01/12359/whole-foods-agrees-stop-selling-produce-grown-sewage-sludge

Page 24: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Perception = Reality “The way in which something is regarded,

understood, or interpreted” Oxford Dictionary Online

Differing perceptions Generators – waste management, diversity

Users – benefits, recycling, cost savings

Public – odor, health, environment

What is your perception? Defend safe use, or

Celebrate and advertise benefits

Page 25: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Public & Customer Perception Metals

Microconstituents

Is it safe? What are benefits?

Understand customer well

Biosolids are not a waste to

be managed but a product we make with intent

Page 26: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Developing Relationships Understand customer needs

Strive for synergy

Address and acknowledge concerns

Educate and involve

Page 27: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

• End Uses

• Product Quality

• Biosolids Benefits

• Revenue Trends

• NEFCO’s Product Marketing Evolution

• Critical Success Factors

• Michigan Market

Page 28: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Product Marketing

End Uses

Page 29: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Land Application Food crops

Feed crops

Turf farms

Tree farms

Golf courses

Landscaping

Soil Blending

Page 30: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Land Reclamation Projects

Granite Links Golf Club – Quincy, MA

Page 31: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Fertilizer Blending Turf formulas

High value add

Nutrient-rich filler

Slow release N

Particle size needs

Minimal contamination

Specialty agricultural formulas

Page 32: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Alternative Fuels

Renewable fuel

Cement kilns

Heating value

Ash incorporated into cement

Power generation

Page 33: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Lower cost alternative to coal

BTU value 6,300 – 7,600 BTU/lb

Chemistry similar to coal

Steady volumes for generator and customer

Helps users achieve “Green Energy” initiatives

Class A EQ biosolids safe and acceptable to workers and public

Dried Biosolids as Fuel

Page 34: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Product Marketing

Product Quality

Page 35: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Product Quality Class A EQ

Analysis

Particle size

Density

Dust control

Foreign Matter

Minimal odor

Hot product

ANALYSIS AVERAGE GUARANTEED

Total Nitrogen 4.6% 4.0%

3.7% Water Insoluble Nitrogen

0.3% Water Soluble Nitrogen

Avai lable Phosphorus (as P2O5) 3.5% 2.0%

Potass ium (as K2O) 0% 0%

Iron 3.0% 2.0%

Nutrients Derived from Treated Municipal Biosol ids

Quincy, MA Product Analysis

Page 36: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Particle Size Granular pellet

Free-flowing

Traditional spreading

Page 37: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Particle Size Digested

sludge

1-3 mm for blending

Page 38: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Particle Size Undigested

sludge

Page 39: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Dust Control Friability

Dust suppressants

Complex hydrocarbon mix

Crude glycerin

Vegetable oils

Page 40: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Hot Product

Page 41: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Product Marketing

Biosolids Benefits

Page 42: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Benefits of Land Application High organic content Increased soil carbon storage

Slow release nutrients

Natural micronutrients

Faster plant establishment

Repeated application leads to: Better root development

Increased water retention

Reduced potential for leaching

Page 43: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Manuel’s House – 4/27/13

Page 44: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Higher Crop Yields

http://www.kingcounty.gov/environment/wastewater/Biosolids/Research.aspx

Winter Wheat

Page 45: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Product Marketing

Revenue Trends

Page 46: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Value of Biosolids Pellets “Black Gold”

Business model

Profit center vs. cost center

Cost to farmer

Must be lower than chemical fertilizers

Savvy farmer may pay for biosolids benefits

Fertilizer blender value

Page 47: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Product Marketing

NEFCO’s Evolution

Page 48: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

NEFCO Product Marketing History Started in 1991

Experience in 26 states

Biosolids demand increasing

Page 49: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

NEFCO 2013 Product Diversity

Page 50: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Product Marketing Considerations

Plant size and location

Seasonal demand variations

Customers of multiple plants

Use of product marketing brokers

Value of alternative fuel outlet

Page 51: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Product Marketing

Critical Success Factors

Page 52: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Critical Success Factors Diversified customer base

Maintain backup plans

View biosolids as product, not waste

Supply chain approach

Inventory management

Know customer’s needs

Use product marketing brokers

Understand permitting & regulations

Page 53: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Diversified Customer Base Variety of end uses

Geographical diversification

Seasonality

Land application demand

Winter diversity

Transportation costs

Page 54: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Inventory Management Supply chain approach

Raw material trending

Finished goods demand

Silo storage

Days of storage is function of client specification

Product heating

Product segregation

Page 55: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Raw Material Trending

90

95

100

105

110

115

120

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Dry Tons per Day '06-'12

Page 56: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Understand Regulations EPA 503

State-by-state regulations

Know the laws!

Transportation

Spill response

Environmental compliance calendar Annual reports

Permit renewals

Page 57: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Product Marketing

Michigan Market

Page 58: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

City of Detroit

Page 59: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

DWSD Biosolids Drying Facility DBO project $143 million capital 200 to 420 dry tons

per day 8 centrifuges and 4

direct rotary dryers 8 days or 800 dry

tons per silo of storage capacity

Construction commenced November 2013

Page 60: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

DWSD Biosolids Drying Facility

Page 61: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Facility Layout

Page 62: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

DWSD Biosolids Product

Available August 2014

100,000 dry tons per year

Undigested sludge

Nutrient value

Particle size

Density

Page 63: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Future MI Customers

High agricultural demand predicted

Use of marketing brokers

Importing MA product

Crops – corn, wheat, soy, hay

Agriculture blending TBD

Cement kilns located favorably

Some export to IN, OH, etc.

Page 64: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Biosolids drying adds value

Page 65: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Conclusions Growth in product availability

Growth in product demand

Biosolids = Resource

Successful biosolids marketing programs take this into account

Page 66: Building a Sustainable Pelletized Biosolids Marketing Program - Building a Sustainable... · Manuel Irujo, VP of Operations ... DWSD in Detroit, MI - 2015 . Dried Biosolids ... Supply

Questions?

Manuel Irujo, VP Operations

617-851-6297

[email protected]