got organic waste? - cornerstone environmental group€¦ · o per cng requirements ... fast...
TRANSCRIPT
Got Organic Waste?You’ve got gas potential – which can be
beneficially used
Speaker:Dennis Fenn, SVPCo‐Author:Mike Michels, VPCornerstone Environmental Group LLC
2012 Works – Blazing New Trails in SustainabilityDodge City, KansasMarch 28 2012
BioGas to Renewable EnergyOutline
• Biogas basics
• Common biogas‐to‐energy (BGTE) technologies
• BGTE project feasibility ─ key issues to consider
• Financial pro forma for two BGTE plants
BioGas Basics
Sources of Biogas
• Agriculture waste digesters
• Landfill gas systems
• Wastewater treatment plant digesters
• Organic/food waste digesters
The Anaerobic Decomposition Process
CH4 + CO2 + Heat
Organic Acids (Acetic Acid)
CH3COOH
Methane Forming Bacteria
Acid Forming Bacteria
Organic Matter
“Waste”
50 to 65% 35 to 50%
Benefits of BioGas
• 24 x7 availability• Reduces America’s dependency
on foreign oil• Less expensive than natural gas• Reduces use of coal fired power
plants and their emissions• Inexpensive greenhouse gas
emission reductions• Promotes better long‐term care
of our environment
Typical BioGas Properties
Methane
Carbon DioxideN2 & O2
VOCs
LFG Biogas from Dry FermentersCH4 50 to 60% CH4 56 to 60%CO2 40 to 50% CO2 40 to 44%O2 0 to 1.5% O2 0 to 1%N2 0.5 to 5% N2 0 to 2%H2S Up to 1,500 ppbv H2S 300 to 400 ppm
Siloxane Up to 1,500 ppbv Siloxane < 10 ppbTrace Others <1%
Water 0.40%
Product BioCNG FuelCH4 88 to 96%CO2 0.2 to 1.0 %O2 0.0 to 1.0%N2 0 to 10 %H2S Non DetectSiloxane Non DetectH2O Per CNG Requirements
Biogas Constituents
• All Biogas sources have similar constituents
• Biogas treatment technologies can be applied to biogas from different sources
Biogas Constituents, cont’d
Typical Anaerobic Digester
BioGas
Solid fertilizer and/or bedding
Figures per 1000 dairy cows
Anaerobic digester system
Farm manure management operations
Manure
CH4(60%)
Nutrient‐rich liquid spread on crops
Manure Spreader
CO2(35%)
75 ft3/minute
Effluent
Common BGTE conversions
Map of Operational Farm Digesters (176)
Source: U.S. Environmental Protection Agency's AgSTAR Program As of December 2011, AgSTAR estimates that there are 176 anaerobic digester systems operating at commercial livestock farms in the United States.
Typical Landfill
BioGas
Average figures for 500 tons/day of MSW for 1 year
Anaerobic Landfill
MSW collection 500 TPD
CH4(55%)
CO2(40%)
effluent
Common BGTE technology
70 ft3/minute
Landfill Gas Reserve Modeling
• Typically using EPA LandGEM Model• Must have understanding of
– Fundamental inputs– Underlying assumptions– Potential inaccuracies
• Used to predict the amount of landfill gas (both quantity and quality) produced and collected
Biogas Modeling Challenges
• Organic inflow rates vary
• Organic quantity and composition varies
• Ambient temperature varies
• Moisture content varies
• Many others
EPA’s LandGEMModel
Potential Landfill Gas Reserve Modeling Pitfalls
• The landfill’s size and capacity• The landfill’s expansion potential• Types of waste received historically and in the future (i.e. degradable waste types versus non‐degradable)
• Historic and future waste receipts• Landfill gas collection system coverage and efficiency both in the present and future
• Landfill gas quality
Permit Capacity – Project Impact
4 CAT 3520
Engines
Additional 5 CAT 3520 Engines
Potential Expansion
Permitted
LFG System Construction
Operational LFG‐to‐Energy Plants (558)
Common BGTE Technologies
Technologies Available to Beneficially Utilize BioGas
• Proven Technologies/ potentially economically feasibleo Engines and turbineso Boilerso Greenhouseso Soil remediationo Liquid evaporatorso Conversion to high BTU fuelo Vehicle fuel (CNG)
• Developing Technologies/ economically challenged
o Fuel cello LNGo CO2 purificationo Methanol production
Gas Cleanup Technologies• CO2 removal
– Water scrubbing– Solvent scrubbing– Carbon molecular sieves– Membranes/PSA– CO2 condensation (refrigeration)
• Hydrogen sulfide removal– Iron, carbon, biological, water scrubbing, NaOH scrubbing
• VOCs, Siloxanes and halogenated hydrocarbons– Carbon, chilling, CO2 condensation, polymers
ENGINE GENSETS
Engine Gensets
Turbine Gensets
Biogas Heat RecoveryHospital Boiler
Asphalt Plant
Landfill Leachate Evaporator and Flare
Waste heat is also available
Engine GensetsExhaust Heat Recovery to Microturbines and Greenhouses
Vehicle Fuel From Biogas
St Landry Parish, LA BioCNG 50 February, 2012
BioCNG gas cleanup skid
H2S removal unit
Fueling dispenser
Chiller and control panel
CNG storage vessels
Compressor to 4500 psig
Janesville, WI ─ WWTP BioCNG 50 System, February , 2012
Fueling dispenser
Gas storage ‐ low pressure
WWTP digester
BioCNG equipment and microturbines in building
Gas storage ‐ high pressure
ANGI fueling compressor
Biogas chiller
What Next?
Ford 2011 F350 CNG / Gasoline Pickup TruckDelivered to Dane County January, 2012
Dane County Park Department NGV Vehicles, March 8, 2012
Example Companies Using Biogas
BGTE Project Feasibility‐ Key Issues to Consider
Key Issues• Biogas availability/proximity to source• Biogas quantity/quality• Proximity to utilities
Power lines and inter‐connect issues/costsNG pipeline
• Local energy marketPower sales Power company Private energy user On‐site energy useNG sales to pipelineDirect sale of MBTU gasCNG vehicle fuel
Key Issues• Technology selection• Gas collection
Gas conditioning/cleanupEnergy conversionPower/reciprocal engines/turbines MBTU/direct use in boilersHBTU/pipeline qualityHBTU/CNG vehicle fuelOther
• Permitting – Local planning– Air– Solid waste– Wastewater– Fire Department
Key Issues• Agreements
– Biogas purchase,– power/gas/fuel sale
• Contracts– Equipment procurement,– construction/installation, – O&M, – ownership, – financing
• Location, Location, Location• Economics
– Capx, – O&M– financing– grants/incentives
So Many Left to Develop
• ~510 landfills have a gas collection system but no energy project
• Potential of 300,000 MMBtu/day or 1,070 MW
• ~110 landfills have an energy project and excess LFG available
• Potential of 78,000 MMBtu/day or 280 MW
• ~950 landfills do not have a gas collection system • Potential of 220,000 MMBtu/day or 800 MW
Financial Pro Forma for TwoLandfill Gas to Energy Plants
• BioCNG• Electric Generation
LFG Economics 101
• Capital cost
• O&M and interest
• Income/savings
• Tax credits or federal/state subsidies
• Other opportunities: heat recovery, GHG, etc.
System Sizing
System Size Biogas Inlet Flow (scfm)
Fuel Production(GGE/day)
Fuel Production(GGE/year)Approx.
BioCNG 50 50 200‐275 80,000
BioCNG 100 100 375‐550 160,000
BioCNG 200 200 775‐1100 320,000
System Sizing
System SizeBiogas Inlet Flow (scfm)
Fuel Production (GGE/day)
Fleet Size Per Unit
Small Trucks
Large Trucks
BioCNG 50 50 200 ‐ 275 20 – 27 2 ‐ 4
BioCNG 100 100 375 ‐ 550 38 – 55 5 – 8
BioCNG 200 200 775 ‐ 1100 77 – 110 11 ‐ 17
Economic Considerations
• Biogas quality (>52% CH4 and < 5% N2 desired)
• Local demand for CNG fuel – your vehicles or others
• Alternative fuel tax credits, incentives, and grants
Example CapX for BioCNG 200
Cap X $ NotesBioCNG 200 $792,000 Gas compression, gas cleanup, etc.Winterization of the BioCNGsystem $105,000
Fast filling station $364,000
Includes compressor, dehy, 2 fuel dispensers, and 100 GGE of usable storage tanks. Note: 40% KS tax creditup to $100K may be available on total cost of fueling station. http://www.afdc.energy.gov/afdc/laws/law/KS/5171
Site design, installation, permitting, startup, training $182,000
Total = $1.4 Million
O&M for BioCNG 200
Cost Item GGE Operating Costs
Media and equipment replacements $0.32
Parasitic electric load for both the gas cleanup and the fueling station $0.25
O&M Total (per GGE) $0.57
Assumes electric power purchased at $7 cents/kWh from the grid.
BioCNG 200 Financial ProformaSummaryCost to Operate and Maintain BioCNG and Fueling Station = $ 0.57 per GGE
Cost to Finance = $0.60 per GGE (includes, finance charge, cap X, and services)
Subtotal $1.17 per GGE (during the finance period)
Federal Excise Tax $ 0.18 per GGE
State Road/Excise Tax $0.23 per GGE
Cost to Purchase Raw Biogas $ ‐ per GGE
Value of RIN's $(0.69) per GGE
Total $0.88 per GGE (during the finance period)
• BioCNG can be cost competitive with other vehicle fuels (gasoline, diesel and CNG)
• BioCNG production $0.60 to $0.98 / GGE depending on biogas quality and quantity– Financing charges and RINs not included
• Potential for vehicle fuel credits– RIN (Renewable Identification Number)
• Renewable fuel credit• Created by the EPA as part of the Renewable Fuel Standard (RFS) to track progress toward reaching the energy independence goals established by the U.S. Congress
• Currency used by obligated parties to certify compliance they are meeting mandated renewable fuel volumes
– RINs ‐ The exact amount will depend on the project specific operating scenario and can be up to $1/GGE.
BioCNG Economics Lessons Learned
Electric Generation Financials
• Assumptions – base case• 2 CAT 3516A+ engines generating 925 kW each for 11 years
• Muni LF owner self‐develops with 10 year,5% bond financing
• $3.0 million capital cost• Section 45 tax credit not available• Online 95% of time• O&M 1.8 cents/kWh
Electric Generation Financials
• Assumptions – Base case (continued)• O&M escalates at 2% per year• PPA escalates at 2% per year• 7% of all electricity generated is used for plant parasitic load
• Enough LFG exists (at least 620 scfm ) to operate engines at capacity for 10 years
Electric Generation Financials• PPA of 4.2 cents/kWh in year 1 results in:
– Breakeven in 11 years with:• $7.2 million revenue• $3.4 million in O&M• $3.8 million in principal and interest
• PPA of 7.2 cents/kWh in year 1 results in:– $5.3 million profit in 11 years with:
• $12.5 million revenue• $3.4 million in O&M• $3.8 million in principal and interest
Electric Generation Financials
Sensitivity analysis
Scenario 1 2 3Sensitivity Analysis Best Case Base Case Worst Case
Capital Cost ($ MILLIONS) 2.8 3.0 3.41st year electric purchase price (cents per kWh) 7.20 4.20 4.20
Online time 98.0% 95.0% 95.0%1st year O&M cost (cents per gross kWh) 1.70 1.80 2.00
RESULTSProfit after 11 operating years $6 million Break even ($700,000)
Steps to Biogas To Energy Projects
• Determine LFG quantity• Conduct financial modeling• Obtain energy/fuel purchase agreements• Obtain permits• Design/construct• Operate
• Feasibility studies• Permitting• Engineering and design• Air quality• Biogas systems• Construction management• Operations and maintenance
Key Services
Thank You!
• Contacts for more informationDennis Fenn630‐633‐5800 (office)312‐925‐8961 (cell)