community scale patrick thompson, energy works
TRANSCRIPT
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Gettysburg Energy & Nutrient Recovery Facility
Lessons from the Front Lines ofManure‐to‐Energy Project Development
Presented by Patrick Thompson
President & CEO, EnergyWorks Groupwww.energyworks.com
Hunt Valley, MarylandSeptember 8, 2011
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Discussion Outline
• The Farm Host• Business As Usual• Gettysburg ENRF Highlights• The Development Odyssey
– Long‐Term ELM Supply Agreement– Technology Selection & Tests– Nutrient Credit Generator Certification– Permitting– Off‐take Agreements– Financing
• Lessons Learned• Policy Recommendations
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The Farm Host
Layer Site 2
Feed Mill
Pullet Site 1
Layer Site 3
Layer Site 5
GENRF
Layer Site 1
Pullet Site 2
• Pennsylvania’s largest egg laying complex• Currently expanding to 5 million layer hens• State‐of‐the art facilities• Owned & operated by Hillandale Farms
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Typical Manure Storage Barn
240 tons of egg layer manure collected from storage barns daily
The Farm Host
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Business As Usual
PA Lower W. Susquehanna
MD Upper Potomac
PA Upper Potomac
MD Upper W. Shore
MD Patapsco/Back
MD Patuxent
MD Lower E. Shore
Manure is currently exported to tributary basins in Pennsylvania & Maryland for land application
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Gettysburg ENRF HighlightsFully enclosed process, LEED Certified, 30‐year design life
• 3.24 MWe Generator Output• 35 Tons/Day Mineral Product• Over 1 Million Nitrogen Credits/year• Over 53 Thousand Phosphorus Credits/year• Begin Commercial Operation in October 2012
• Water for Process Use is Recovered from ELM Dehumidification
• Zero Liquid Discharge
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Nutrient Credit Generation• Eliminates non‐point source releases• Real‐time monitoring and
management of nutrient mass flows
Exhaust
BiomassDelivery 1
Plant S
tack
MineralProducts
Credit Documentation
Energy & Nutrient Recovery Process
3
Environmental Credit Data Management System
Recycle
2
4
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ELM Supply Agreement
• Exclusive long‐term Buy/Sell Agreement• EnergyWorks is obligated to take the entire amount of manure produced by the Farm Host
• Parties are aligned through shared benefits• EnergyWorks develops, finances, builds, owns and operates the facility
• Time required for parties to reach signed term sheet: 18 months
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Technology Selection & Tests
• Demonstrated sustained gasification of ELM without adding secondary biomass
• Feedstock conditioning is critical to effective control of gasification process
• Obtained data for design, permitting and nutrient credit process certification
• Identified essential technical features for successful energy & nutrient recovery
• NTCs and Mineral Products found to have greater economic potential than energy (Energy is the byproduct!)
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Permitting
• Township amended its zoning ordinance to specify requirements for an Energy & Nutrient Recovery Facility
• The project obtained Pennsylvania’s first Air Quality Plan Approval for a gasification facility using manure as feedstock
• The project has experienced enthusiastic private and public support throughout the development process
• Total time from submittal first permit application to approvals: 12 months
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Nutrient Credit Generator Certification
• Largest amount of annual credits for a single generator certified in Pennsylvania to date
• Certification is to be renewed every 5 years over the life of the facility
• The Pennsylvania Department of Environmental Protection used an innovative “Watershed Segment Mass Balance” approach to aggregate the regional water quality benefits
• Credits are certified for trading in both Susquehanna and Potomac Watersheds
• Time from submittal of application to receipt of Credit Generator Certification: 9 months
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Off‐Take Agreements • NTC Sales
– Market slow to develop; limited demand, price uncertainty– EnergyWorks recently announced an introductory offer sell one fourth of its
annual credits for three years at $1.99/credit‐year
• Mineral Product Sales– Signed Letters of Intent obtained from several buyers– GRAS/FDA testing set to be completed in time for start of commercial ops.
• REC Sales
• GHG Credit Sales
• Electricity Sales– The facility will connect to a private distribution network owned by the Host– Facility will supply Farm Host and export excess power to the grid– Utility rules and jurisdictional boundaries have been an impediment
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Grid Access Challenges
Layer Site 2
Feed Mill
Pullet Site 1
Layer Site 3
Layer Site 5
GENRF
Layer Site 1
Pullet Site 2
Net MeteringInterconnection
Met‐Edison Co. Adams Electric
• Both utilities prohibit the ENRF from providing service to both sides of the jurisdictional divide
• A diesel generator was added to eliminate concern over backfeed of power across the divide
• As a rural co‐op, Adams is exempt from the state’s net metering rules
• Met‐Ed has agreed that the generation facility can qualify as a Customer Generator, even though it is located outside its service area
• Time to obtain interconnection agreement: TBD
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Financing• Pennsylvania Energy Development Authority (PEDA) Grant
(Awarded October 2007)
• Commonwealth Financing Authority (CFA) loan under the Alternative Clean Energy (ACE) Program (Closed April 2011)
• Pennsylvania Infrastructure Investment Authority (PENNVEST) loan (Close scheduled for mid‐October)
• Commercial Bank bridge loan secured by Section 1603 ARRA Grant in lieu of tax credit (Close concurrent with PENNVEST)
• Equity investments by partners
• Time from start of development to financial close: 56 months
• Time from financial close to project completion: 12 months
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Lessons Learned• Ecosystems infrastructure solutions are cost effective and can provide
predictable, long‐term and verifiable benefits
• The absence of a viable regional nutrient trading market is the greatest barrier to creation of technology‐based nutrient credit generators (ARRA funding fills the gap partly)
• Long‐term, low interest debt financing through a public agency such as PENNVEST is effective means to promote private ecosystem investments
• Community scale projects enable economies of scale and professional management necessary to ensure consistent performance
• A community scale project creates significant social and economic benefit through jobs, investment and environmental improvement
• A new framework is needed to quantify environmental benefits from community scale infrastructure solutions (Farm BMPs are not adequate)
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Policy Recommendations• Establish uniform regional standards for certification of
infrastructure‐based nutrient credit generators
• Establish public sources of long‐term, low interest debt financing for certified nutrient credit generator projects
• Establish uniform regional standards and rules for grid interconnection by nutrient generator facilities
• Provide support and incentives for nutrient recycling
• Initiate state or regional competitive solicitations for long‐term supply of certified nutrient credits
• Project Review Committee• Aggregation models• Measurement & Verification
• 10 year certifications• Credit banking• Credit reserves