elimanure discussion midwest manure summit · ecocom is uniquely positioned to take advantage of...
TRANSCRIPT
Click to edit Master title styleCSIRO SUSTAINABLE
ECOSYSTEMSEcoCombustion
Energy Systems
Environmental Solutions for Sustainable Agriculture
ElimanureTM
Discussion
Midwest Manure Summit
Discussion Objectives
• Overview of EcoCombustion Energy Systems
• Overview of the ElimanureTM process
Environmental Solutions for Sustainable AgricultureEcoCom2
Disruption of Balance = Opportunity
Agriculture ---- farms are getting bigger and bigger
Alternative Energy --- how do we decouple from fossil fuel energy?
Environmental Solutions for Sustainable AgricultureEcoCom3
EcoCom is uniquely positioned to take advantage of both of these disruptive trends…
EcoCombustion Energy Systems Corp (EcoCom)
• Founded 2004 --- Office in Kaukauna, WI, USA(originally Skill Associates)
• Mission is “Environmental Solutions for Sustainable Agriculture”
• Principle Product is ElimanureTM --- a waste to energy product
Environmental Solutions for Sustainable AgricultureEcoCom4
Principle Product is Elimanure a waste to energy product
• First sale (Prototype) to Wiese Brothers’ Farm - startup 2006
• Technology Development 2007/08– FPPC Grant --- new burner technology developed– Permitting finalized with DNR/EPA
2009 Focus--- gear up for commercial expansion!
ElimanureTM Overview
Animal Manure ElimanureTM Green Electricityor
Environmental Solutions for Sustainable AgricultureEcoCom5
Processor
Green Steam
… Elimanure converts waste to energy
Manure Challenges facing Animal Agriculture
LAND conservation:• More land required for manure than for feeding cows• Manure storage & removal• Erosion control• Soil nutrient management
EPA mandated rules for large farms:
Environmental Solutions for Sustainable AgricultureEcoCom6
EPA mandated rules for large farms:• Reduce phosphorus in/on land• Pressure to eliminate pathogens, e.g. E coli• Reduce pollution of ground water, streams and lakes• Reduce green house gas - Methane 20x more potent than CO2
ODOR • Conflicts with urban expansion
What goes in & out of a cow?
Feed 55+ #/day
Drinking Water 25+ gal/dayWash Water 10+ gal/day
Environmental Solutions for Sustainable AgricultureEcoCom7
Manure
~30 g/d1. Data taken from various sources and is approximate for a high output
adult Holstein cow
2. Gas output does not take into account respiration
Milk~11 g/d
Wash Water 10+ gal/day
Ratio 1 : 3
ElimanureTM
Bio-Energy & Nutrient Management Process
Fuel Steam ElectricityManure
Bio-Dryer Combustor & Turbine/
How does it work?
Environmental Solutions for Sustainable AgricultureEcoCom8
Bio-Dryer Bio-Steam Generator
Dry It Use ItBurn It
One patent issued, several pending
ElimanureTM
Bio-Energy & Nutrient Management Process
Liquid Manure
Evaporated H2O
Dry Fuel
Customer Alternative Option AUtilize “Dry” Bio-Mass (<70% moisture)
Environmental Solutions for Sustainable AgricultureEcoCom9
Forced Hot Air
Step 1 Dry the liquid manure
Make dry fuel
Customer Alternative Option BHarvest “manure water” for irrigation
ElimanureTM
Bio-Energy & Nutrient Management Process
SteamDry Fuel
Combustion Products
Environmental Solutions for Sustainable AgricultureEcoCom10
Condensate
Ash
y
Step 2 Combust (Burn) Manure
& Make Steam
ElimanureTM
Bio-Energy & Nutrient Management Process
ElectricitySteam
Step 3 AlternativeUtilize steam for another process
Environmental Solutions for Sustainable AgricultureEcoCom11
Condensate
Step 3 Utilize steam to make electricity
Ut e stea o a ot e p ocess
ElimanureTM
Bio-Energy & Nutrient Management Process
Steam
Combustion Products
LiquidManure
Evaporated H2O
Dry Fuel Electricity
Environmental Solutions for Sustainable AgricultureEcoCom12
Condensate
Ash
Step 2 Combust (Burn) Manure &
Make Steam
Forced Hot Air
Step 1 Dry the liquid manure
Make dry fuel
Alternate --- other dry BioMass
--- irrigation
Step 3 Utilize steam to Make electricity
Alternate --- utilize steam directly
ElimanureTM Design Principles
• Modular system– Standardized modules– Standardized construction approach– Flexible adaptation to individual farms– Water utilization a big variable (evaporate vs. irrigate)
Environmental Solutions for Sustainable AgricultureEcoCom13
Water utilization a big variable (evaporate vs. irrigate)• Accommodate site specific revenue/cost savings opportunities• Process Principles
– Simple to Operate 24/7– Maximize BTU utilization
• Cost effective/Fast ROI
Dairy Cows & Milking
Manure Lagoons
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ElimanureTM Beta Unit (prototype)Wiese Brother’s Farm -- Greenleaf, WI
3,700 Animal Units (~2,000 Milking Cows) = 600 kW… …enough for 600 homes
Applications for ElimanureTM
Large Farms --- make manure go awayConcentrated Animal Feeding Operations (CAFO)
Large Farms/Small Industry ---- “green” electricity
Environmental Solutions for Sustainable AgricultureEcoCom15
Small Process Industry --- “green” steamOffset natural gas usageBio-Fuels (Ethanol or Bio Diesel) --- good candidates
often located close to animal feed lots
Strong Interest in ElimanureTM
prior to any marketing activity…..
• Over 100 tours• Inquires from 150 qualified prospective customers
C t i t t f d i f d l t th l h
Environmental Solutions for Sustainable AgricultureEcoCom16
• Customer interest from dairy, feed lots, ethanol, hog• International inquiries from Australia, Austria, Bulgaria, China,
France, Germany, Holland, Japan, Korea and U.K• WI Farm 2008 Technology Days tours in July 2008
The interest is real, the need is tremendous
ElimanureTM BenefitsSelf sustaining Bio-Energy: converts large animal waste to Green energy
Provides cost effective, significant and quick ROI for customers
Eliminates manure hauling
Prevents formation of methane (21x environmental impact vs. CO2)
Environmental Solutions for Sustainable AgricultureEcoCom17
Improves land conservation & eliminates environmental pollutants
Improves farm operational efficiency & flexibility
Significant financial incentives from a broad range of support improves financial payback
Elimanure Grant & Tax Supported
Customer Eligible GrantsMaximums
• USDA – EQIP NRCS Grant: $100,000• USDA / EPA - Renewable Energy Systems $500,000
Energy Efficiency Improvements Program (9006 grant)
USDA V l dd d d G t $150 000
Environmental Solutions for Sustainable AgricultureEcoCom18
• USDA – Value added producer Grant $150,000
Customer Eligible Tax Credits
• Federal Renewable Energy Tax Credit $80k/yr$0.019/KWh produced
• Ag Modernization & Expansion Tax Credit $50k/yr10% of the investment for 10 yrs on each project
EcoCom Broadly SupportedRenewable Energy:
– Focus on Energy– CleanTech Partners (CTP -- $300,000 debt financing)
Agriculture:– Chair U.S. House Ag. Committee visit– Under Secretary of Ag visit– Farm Pilot Project Corp (FPPC --- $400,000 grant & Congressional Video)– USDA -- $485,000 Grant
NRCS
Environmental Solutions for Sustainable AgricultureEcoCom19
– NRCS Others:
– WI Dept of Commerce and Consumer Protection• Agricultural Development and Diversification Grant Program• NE WI Development Program• WI Entrepreneur Network (WEN)
– WI Public Service Utility– Public Service Commission of WI– Michael Best & Associates– WI Dept of Natural Resources– Brown County Planning Commission– Glacierland Resource Conservation and Development Inc.
Discussion
• What are your objectives for Manure Management?– What problems do you have?– Neighbors?– Nutrient Management Plan?– Other?
Environmental Solutions for Sustainable AgricultureEcoCom20
Other?
• How many animals?– What types/ages
• Layout?– All on one site?– Multiple sites?
• How is manure handled now?
Next Steps
Typical Process:1. General Summary of your needs and objectives2. ElimanureTM Proposal for Your Specific Needs
• Lab testing of manure• Precise summary of existing animals flows layouts etc
Environmental Solutions for Sustainable AgricultureEcoCom21
• Precise summary of existing animals, flows, layouts, etc.• Collaborative process with your input• Formal ElimanureTM Proposal:
Customer Benefit Estimate (can be done collaboratively with financing source)Cost Estimate (including some optional equipment to include/exclude)TimelineDetailed scope of supply and project execution plan Layout & 3D View ---key connections with existing layouts & processes
3. Proceed with Project when authorized
Discussion Break
If time allows
Environmental Solutions for Sustainable AgricultureEcoCom22
If time allows……….following slides outline the problems
and the solution in more details
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Bio DryerEnvironmental Solutions for Sustainable AgricultureEcoCom
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Bio Dryer Feed Tank
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Bio Dryer Bin
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Feed tank and mixer
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Bio Dryer Auger and Tram used to mix the dried manure
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Auger System
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Bio Dryer Feed Tank With Liquid Manure
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Bio Dryer Tank With Safety Rails
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Mixing wet manure and dry manureEnvironmental Solutions for Sustainable AgricultureEcoCom
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Bio Dryer in Operation
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Moisture From Bio Dryer Mechanism
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Supply Air at 180 Degrees Drying Manure
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Bio Dryer HarvesterEnvironmental Solutions for Sustainable AgricultureEcoCom
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Bio Dryer Harvesting 40% Dried Manure/Fuel
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Boiler and Combustor Building
Environmental Solutions for Sustainable AgricultureEcoCom38
Feed Bin and Conveyor to Boiler
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Conveyor to Bio-Mass Burner HopperEnvironmental Solutions for Sustainable AgricultureEcoCom
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Boiler and Bio-Mass Burner
Environmental Solutions for Sustainable AgricultureEcoCom41
Turbine/Generator Set used to create ElectricityEnvironmental Solutions for Sustainable AgricultureEcoCom
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Measuring Amount of Green Energy Generated and Sold to Power Company
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Steam Heat Exchanger Diverting Heat to Bio-Dryer
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Excess Heat Diverted to Bio-Dryer
What is Manure?
Gal/Dayinc. Solids &
Liquid)/Animal Solids %
Solids/DayDry
#'s/Animal
Gal's/Day of Water/ Animal
Water Added in Process
Raw Manure Composition (Adult Holstein Milker)
Environmental Solutions for Sustainable AgricultureEcoCom45
CIP Water
Flushing Water
15.3 13% 16.0 13.4
0.910.0
26.2 8% 16.0 24.3
25.051.2 4% 16.0 49.3
85.0111.2 2% 16.0 109.3
Parlor Wash Water
From COW
Scrape Dairy
Flush Dairy
Pounds of Water compared to 1 Pound of Solid Manure
20
25
30
+ W
ater
> 50% Solids= Good for Combustion
Dry Pack ~25%Dry Cow ~15%Milking Cow ~13%Scrape Dairy ~8-10%Flush Dairy ~2-6%
Feedlots range from ~25% to 50% Solids
Environmental Solutions for Sustainable AgricultureEcoCom46
0
5
10
15
% Solids
Tota
l # S
olid
s +
# Water 49.0 19.0 11.5 9.0 7.0 6.3 4.0 3.0 1.5 1.2 1.0 0.7 0.3 0.2# Solids 1 1 1 1 1 1 1 1 1 1 1 1 1 1
2% 5% 8% 10% 13% 14% 20% 25% 40% 45% 50% 60% 75% 85%
Alternative Pro’s Con’sContinue Land Spreading
Current Practice Not an option
Anaerobic Digester(methane)
Electrical Generation • Expensive• Need to land spread 90% of incoming manure volume
Manure Handling Alternatives
Environmental Solutions for Sustainable AgricultureEcoCom47
(methane) • Process Reliability
ElimanureTM No other technology meets requirements Key advantage is eliminating the volume of manure
Anaerobic Digesters• Concept has been around for a long time
– 40-50 years running in U.S. on farms (est.)– Currently has support because of lack of alternatives
• Biological processB <5% f d t th d th
Environmental Solutions for Sustainable AgricultureEcoCom48
– Bugs consume <5% of manure and excrete methane and other gases– Bugs only access 40% of carbon vs. 100% in combustion– Gas is burned in diesel engine which turns a generator (less efficient than
turbine)– 95% of volume remains for disposal
• Cost/cow higher, payback much longer than for Elimanure
H 2 O/ CO 2
5%
5% Gas
(CH4 H2S)
95% Waste
AD & Elimanure® Comparisons
Volumetric Reduction Efficiency
Anaerobic DigestorManure Collection
typical thermodynamic efficiency diesel/generator set: 25-35%
typical problem --- corrosion from H 2 S (Hydrogen Sulfide) in supply gas
(ability to turn gas BTU to electricity)
100% of Volume 100% of Volume
95% of Volume Remains
With High Moisture Content & Nutrients (P)
Gen/SetDiesel
Engine
Environmental Solutions for Sustainable AgricultureEcoCom49
98.5%Evap Water / CO 2
98.5% 0%
typical problems - noneInspection/Maintenance at 3yr. Intervals
Volumetric Reduction Efficiency
(ability to turn steam BTU to electricity)
typical thermodynamic efficiency turbine/generator set: 75-90%
100% of Volume 100% of VolumeManure Collection Elimanure®
1.5% Ashw/Commercial Value (P)
Gen/Set
SteamLoop
Turb
Carbon Credits
• “Carbon Credit” equivalent to 1 tonne/yr CO2 offset
• U.S. non-signatory of the Kyoto accords, no mandatory CO2 caps
U S b dit t d d th Chi Cli t E h
Environmental Solutions for Sustainable AgricultureEcoCom50
• U.S. carbon credits traded on the Chicago Climate Exchange (CCX)
• CCX part of a global trading network
• U.S. prices tend to be significantly lower than global prices
Carbon Credits
Environmental Solutions for Sustainable AgricultureEcoCom51
Locations of principal global carbon exchanges
Upside Benefit Potential – Carbon Credits
• U.S. trading price reached a high of $7 in July 2008
• U.S. Market tanked shortly thereafter
• U.S. currently trading at ~USD 2/credit(vs. Europe at ~USD 20/credit)
Environmental Solutions for Sustainable AgricultureEcoCom52
( p )
• Estimated 6 credits/year/cow with ElimanureTM
(by Environmental Credit Corp)
• Future U.S. Price? Will we sign the Kyoto accords?
Not counted in Elimanure Payback (yet!)
Customer Benefits
• Cash-flow positive year 1+ Cost Savings (manure management)+ Revenue (electricity)– Capital & Operating Costs
Other Significant Benefits (c stomer specific)
Environmental Solutions for Sustainable AgricultureEcoCom53
• Other Significant Benefits (customer specific)+ Land and operational flexibility (~$150/cow/year if rented land)+ Environmental (phosphorus & nitrogen benefits)+ Carbon Credits+ Ash sales (or internal use)+ Bedding+ Hot Water+ Grants & Tax Credits
Business Plan39 Units
Upper MW Dairy
400 Target Size Farmsin Upper MW17,600 Target Size Farms500,000,000 Tons/Yr“Accessible” Ag Residue
1,000,000,000 Tons/YrAccessible Bio-Mass
500 000 000 T /Y… and selling fewer than 40 systems achieves
Environmental Solutions for Sustainable AgricultureEcoCom54
Upper MW DairyBusiness Plan
39 Units400 TargetSize Farms
39
500,000,000 Tons/Yr “Accessible” Ag Residue
Business Plantargets 0.003% of total
U.S. Bio-Mass
g y
the EcoCom business plan and 5 year pro-forma’s
EcoCom Competitive Position
1. EcoCom has the technology that can deliver all of the benefits
2. EcoCom has developed the know-how and trade secrets to burn manure in large quantities
Environmental Solutions for Sustainable AgricultureEcoCom55
3. EcoCom has patented the Bio-Dryer and several pending
4. EcoCom has experience in agriculture
EcoCom poised to exploit untapped market opportunity
EcoCom Resource Model
• Establish leadership and core internal resources
• Leverage virtual company model
Environmental Solutions for Sustainable AgricultureEcoCom56
• Outsource key elements to strategic suppliers
EcoCom Strategic Resources…..
Excellence in Execution
OEM Suppliers
EcoCom
Engineering/Construction
Environmental Solutions for Sustainable AgricultureEcoCom57
EcoCom
Professional
EcoCom LeadershipPaul Schneider - President• Director Level Manager Capital Equipment
• 30 years experience in Paper Industry in key management positions
• Agricultural family background & Ag Supplier
• B.S. Marketing Management/Associate degrees Chemistry/Biology
Environmental Solutions for Sustainable AgricultureEcoCom58
Chief Operating Officer --- Dan Clarahan
• Fortune 100 Company Officer– $300 million P&L management– Product & Technology Development
• 29 years of management & process industry experience @ Procter & Gamble and Kimberly-Clark
• B.S. Chemical Engineering ----- University of Illinois• Kellogg School of Management ---- Advanced Exec Program