waste to energy guide for local authorities reports/2005...waste to energy: a guide for local...

WASTE TO ENERGY A Guide for Local Authorities

WASTE TO ENERGY:A GUIDE FOR LOCALAUTHORITIES

ISBN 0-9756076-6-9

May 2005

Australian Business Council for Sustainable Energy3rd Floor, 60 Leicester Street, Carlton Victoria 3053Tel. +61 3 9349 3077 Fax. +61 3 9349 3049Email: [email protected]: www.bcse.org.au

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FOREWORD

Local Authorities often have access to or are responsible for waste streams that can beused to produce renewable energy. Australian and State Government policy and programsupport for renewable energy as part of its greenhouse reduction commitment, togetherwith energy market reform, have created opportunities for Local Authorities to convert anenvironmental problem and financial burden into a resource base for the production ofrenewable energy.

This Guide has been developed to provide senior management in Local Authorities withan overview of the opportunities and risks associated with waste-to-energy conversion.The Australian energy market and the relevant policies and regulations are complex. TheGuide outlines the issues that should be understood before the organisation makesprogress in developing waste-to-energy solutions. A number of international case studiesare also provided.

The Guide has been developed by the Australian Business Council for Sustainable Energy(BCSE). Australian Government funding through the Australian Greenhouse Office in theDepartment of Environment and Heritage supports this project. The BCSE acknowledgesthe assistance of a number of its members and other stakeholders in providing input forthis Guide. It also acknowledges the assistance and support of staff at the AustralianGreenhouse Office and consultants Energy Futures Australia and Stephen Schuck &Associates.

About the Australian Business Council for Sustainable Energy

The Australian Business Council for Sustainable Energy (BCSE) is the leading advocate forsustainable energy in Australia. It has more than 270 organisations as members, rangingfrom installers and designers of renewable energy systems to large project developers andequipment manufacturers. Members also include both energy retailers and generatorcompanies.

The BCSE undertakes activities and programs which support the development of theindustry’s capability, addressing impediments and promoting the benefits to potentialcustomers. With regard to distributed power generation, the BCSE provides the followingservices to its members:• publishes a large number of generation project profiles and case studies dealing with a

range of sustainable fuels and technologies• distributes regular energy bulletins and updates on energy market issues affecting the

development and implementation of sustainable energy projects• provides information to members on commercial and regulatory issues that impact on

the development of sustainable energy projects • project-manages the cogeneration support program under the Australian Greenhouse

Office-administered Greenhouse Gas Abatement Program, with $10 million of fundingavailable for small gas-fired cogeneration projects.

For further informationplease contact:Australian BusinessCouncil for SustainableEnergyLevel 360 Leicester StCarlton Victoria 3053Tel: (03) 9349 3077Fax: (03) 9349 3049Website: www.bcse.org.auABN: 47 072 245 928

Department ofEnvironment and HeritageAustralian GreenhouseOfficeGPO Box 787Canberra ACT Australia 2601Tel (02) 6274 1888Fax: (02) 6274 1390Website:www.greenhouse.gov.au


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Disclaimer

The Australian Business Council for Sustainable Energy (‘the Providers’) provides thisWaste-to-Energy: A Guide for Local Authorities on the following basis:

The Guide is not intended to be final or definitive but rather a fairly vigorous preliminaryassessment of a structured way in which to assess and evaluate waste-to-energyopportunities and to facilitate the implementation of cost effective projects either now orplanning for the future.

The Guide is not intended to be used as the tool for basing final investment decisionsupon, and in all cases the user must conduct sufficient additional analyses and obtainappropriate professional advice before proceeding with any investment decisions.

The Providers do not and cannot in any way supervise, edit or control the content of anyinformation or data accessed through the contact details provided in the Guide and shallnot be held responsible in any way for any content or information accessed.

The Providers, along with their servants and agents, are released from and indemnifiedagainst all actions, claims and demands which may be instituted against the Providersarising out of use of this Guide or of any other person for whose acts or omissions theuser of the Guide is vicariously liable.

The views expressed in this publication are those of the authors at the time of writing andare not attributable to the Australian Government.

Accuracy

Whilst considerable care has been taken to ensure the accuracy of the Guide, theAustralian Business Council for Sustainable Energy would be pleased to hear of any errorsor omissions, together with the source of the information.

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TABLE OF CONTENTS

Foreword iii

1 Introduction 11.1 The Guide 1

2 Setting the scene 22.1 The waste resource 22.2 The social environment 32.3 Waste-to-energy applications 7

3 New and emerging opportunities and support for waste-to-energy 83.1 Greenhouse initiatives providing indirect support 93.2 Policy measures providing financial support 12

4 Waste-to-energy technologies 18

5 Economics of waste-to-energy 22

6 Business risk considerations 256.1 Waste treatment – the environmental sustainability issue 256.2 Issues surrounding waste-to-energy projects 266.3 Financing routes 27

7 Making it happen 317.1 Project fundamentals 337.2 Stakeholder considerations 347.3 Risk management 36

8 The regulatory environment 378.1 National Electricity Market 378.2 Registration and power sale options under the NEM 378.3 Connection to the distribution network 398.4 Environmental and planning approvals 39

Appendix 1 Glossary, abbreviations and acronyms 41Appendix 2 List of useful organisations, support programs and references 44

Attachment 1 Waste-to-energy primary conversion technologies 46Attachment 2 Contractual arrangements for stand-alone waste-to-energy development 51Attachment 3 Existing waste-to-energy projects in Australia 54

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1. INTRODUCTION

1.1 The Guide

INTENDED AUDIENCE

This Guide is principally aimed at the senior management of Local Authorities, includingwaste management companies acting as agents for the Local Authorities and waste waterauthorities. Local Authorities are constantly under pressure to increase efficiency andreduce the environmental impacts of their activities. Waste-to-energy represents anopportunity for Local Authorities to potentially manage risks and/or costs whilst improvingenvironmental outcomes at the same time.

AIMS AND SCOPE

The main aim of this Guide is to facilitate the development of waste-to-energy projects inthe short term if economically and technically feasible, and to allow Local Authorities toplan for future development of potential which may require medium- to longer-termstrategic focus. The Guide is intended to give a variety of readers (for example, executive,strategic and operational management) an understanding of the opportunities, issues andrisks involved in implementing cost-effective waste-to-energy projects. The Guide assistsin providing some of the necessary tools to allow readers to assess and evaluateopportunities, facilitate the implementation of cost effective projects or to developstrategic plans that will enable the resources to be developed later as existing facilities(water treatment, waste disposal or landfills) are expanded or replaced. The Guide is notintended to be a full technical document.

To ensure the appropriateness of content, format and style, this Guide was developedthrough a process of extensive consultation and review with stakeholders including BCSEmembers, relevant local government representative bodies, and a number of localgovernments, government agencies and non-BCSE industry members. This processinvolved questionnaires, interviews and stakeholder review of all drafts of the Guide. Theprocess also included presentation and feedback at a number of conferences including:Waste to Energy Conference 2003, Enviro 2004 and Bioenergy Australia 2004.

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2. SETTING THE SCENE

In Australia, and also worldwide, Local Authorities are under increasing pressure from thecommunity and from governments to incorporate ecological, social and economicconsiderations into their day-to-day operations. Sustainability is rapidly becoming aguiding principle underpinning all decision-making.

Local Authorities with responsibility for waste streams are seeing costs escalate,traditional options diminish and social and budgetary pressures mount. Decision-makersand planners can no longer assume that past practices will reliably guide them into thefuture. Senior Management now face complex strategic issues regarding theimplementation of new or proven waste management technologies, whilst minimisingeconomic and environmental risks to the organisation and coping with increasing socialaccountability.

Local Authorities can view the waste-to-energy opportunity in a number of ways rangingfrom indifference to proactive enthusiasm. Three possible approaches have beenidentified.1 Is energy production simply a by-product of a solution to a critical waste problem? In

this case the organisation may give energy matters a lower weighting in its decision-making, focussing instead on the waste handling and disposal features of proposedapplications.

2 Does energy from waste provide the organisation with opportunities to satisfy socialand environmental expectations and obligations regarding sustainability, with wastestream considerations being only one part of the overall issue? In this case theorganisation would benefit from a comprehensive local energy strategy so that allstakeholders can clearly understand the significance of the project.

3 Is the organisation seeking to expand operational options, which may include adding amajor new business venture to its operations? In this case the organisation will needto invest additional resources into acquiring a greater understanding of the energy andrenewables market and the technology options and risks.

Subsequent sections of this document provide background to the options raised above,outlining the issues that should be understood by the organisation and providing guidancefor further progression.

2.1 The waste resource

Throughout Australia, waste streams that various Local Authorities have responsibility for,or may have access to, can take many forms. Typically these include landfill gas anddigester gas from sewage treatment plants, with fifty-four such waste-to-energy projectscurrently operating. Other waste streams may include ‘dry’ agricultural waste such as ricehusks, macadamia shells, bagasse from sugar cane and timber mill residues; ‘wet’ wastesuch as animal slurries, waste vegetable oil and human sewage; and municipal wasteincluding construction and demolition material, green waste, commercial and industrialwaste, and household refuse. These waste streams may be suitable as renewable (suchas biomass or sewage) or non-renewable fuels (such as fossil fuel waste streams fromindustry) for energy production. Figures 2.1 and 2.2 show the composition of municipalsolid waste, the recovered fuel composition and its carbon content.

2. SETTING THE SCENE 3

Waste resources can offer a number of benefits when used to produce energy, other thanmitigation of greenhouse gas emissions.• The cost of the ‘fuel’ to a power generation facility is usually low due to the pre-

existing need to collect and manage waste. Costs may even be negative.• The current cost of disposing of waste is increasing (for example, ‘full cost’ landfill

pricing is now being considered more widely by governments as a policy measure)and can be associated with environmental problems.

• Local energy production results in reduced electricity network losses, and can improveenergy security and reliability for the local area.

• Such projects create regional employment opportunities.

However, it must be emphasised that in the Australian context, appreciation of many ofthese benefits has yet to become mainstream.

Source: Golder Associates (1999), Waste Profile Study of Victorian Landfills

2.2 The social environment

Concerns about the environment have required governments and communities to addressthe concept of Ecologically Sustainable Development (ESD) to reduce our detrimentalenvironmental impacts and to conserve scarce resources, biodiversity and ecologicalprocesses. International covenants underlie ESD principles by emphasising conservationof the natural environment, intergenerational equity and the precautionary principle. TheKyoto Protocol has been specifically developed to mitigate greenhouse gas emissions.Targets have been set in developed countries for reductions of greenhouse gas emissions,which are mainly linked to the use of fossil fuels from stationary energy production andtransport.

The management of wastes generated in domestic, commercial, industrial and ruralsectors is a major sustainability issue in all countries. This arises from environmentalimpacts such the release of methane (a potent greenhouse gas) from landfills and lagoonscontaining organic wastes, release of odours and pathogens from the land application ofmanure, smoke from the uncontrolled burning of various wastes for disposal, groundwater contamination by leachate from landfills and water run-off from stored waste, acidgas emissions, as well as the depletion of non-renewable natural resources (fossil fuelsand materials).

FIGURE 2.1

Composition of municipal solid waste by tonnage

FIGURE 2.2

Composition of municipal solid waste by volume

Paper/Cardboard 10%

Food/KitchenWaste39%

Green Waste 18%

Wood/Timber 6%

Other Organic 3%

Glass 7%

Plastic 3%

Other Plastic 4%Metals 7%

Other 3% Paper/Cardboard 15%

Food/KitchenWaste22%

Green Waste 25%

Wood/Timber 5%

Other Organic 6%

Glass 3%

Plastic 7%

Other Plastic 10%

Metals 4%Other 3%

For waste management, the ‘waste management hierarchy’ (see Figure 2.3) is widelyaccepted. This promotes avoiding the generation of waste in the first place, followed bymaximising the use of existing materials by their reuse, reprocessing and recycling intoalternative products, including recovery of their inherent energy content, in preference tocommitting the material to disposal.

There is a range of waste-to-energy options that fit within the waste managementhierarchy. At least in theory, practical energy from waste options should be employedwhen the waste stream contains no further practical value for reuse, recycling orreprocessing as a resource. Section 6.2 addresses the difficulties of practical applicationof this theory.

FIGURE 2.3

Waste management hierarchy


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A seminar held by theAustralian CooperativeResearch Centre forRenewable Energy (ACRE)Energy Policy Group andBioenergy Australia (2001)identified many of thefeatures of sustainability thatare pertinent to waste-to-energy developments:• Sustainability involves

multiple humandimensions which are notfully independent and mayinvolve concepts ofcommunity at household,local community, state,national or global levels.

• Economic sustainabilityinvolves the concepts ofproductive, allocative anddynamic efficiency.

• Environmentalsustainability includesspecific issues rangingfrom local to regional toglobal and alsoencompasses themaintenance of entireecosystems.

• Social sustainabilityinvolves the ideas ofhuman knowledge andingenuity, quality of life,equity and the social skillswhich serve to create ormaintain a society.

• Technical sustainabilityinvolves using ‘bestpractice’ products,services, work practicesand institutionalarrangements, as well asfostering appropriateinnovation in hardware,software and theinstitutional framework.

• Achieving ‘perfect’sustainability is unlikely asis consensus between allstakeholders and thereforetrade-offs must be madethat allow communities toimprove all aspects ofsustainability over time.

SUSTAINABILITY CONTEXT


However, tighter environmental laws and regulations are continuing to be applied for airand water emissions. Burning and landfill of wastes for disposal are being discouraged bysuch regulations. Even the best-designed landfills still have significant fugitive emissionsof methane, a potent greenhouse gas, to the atmosphere. Figure 2.4 shows the fugitiveemissions from waste streams in the year 2002. Leachate from landfill and inappropriatedisposal of organic waste streams, such as animal litter to agricultural land, can alsocause significant environmental pollution in the ground water, and give rise to odours.Nonetheless, significant quantities of urban wastes continue to be disposed of in landfill,largely due to its current low cost and ready availability.

From an energy perspective there are also other issues of interest in addition toconsiderations of sustainable development and climate change mitigation. There isincreasing interest in the concept of having smaller, more modular generating plantgeographically distributed around the power system rather than large, centralisedfacilities. With such distributed or embedded generation, the system is by its nature moresecure, that is, more robust against blackouts as demand on the system is rapidlyincreasing and less vulnerable in terms of national security. To varying extents distributedgeneration is supported by opening power systems up to competition from companiesoffering smaller, distributed power solutions, including energy from waste power plants.This provides a good synergy between the distributed nature of waste generation and thegeographic location of electrical loads.

FIGURE 2.4

Fugitive emissions from waste for 2002

CO2 – e emissions (Gg) Waste Stream Methane Nitrous oxides Carbon dioxide Total

Solid waste disposal on land 15.66 — — 15.66

Wastewater handling 1.36 0.56 — 1.91

Waste incineration NA — 0.02 0.02

TOTAL 17.59

Source: Australian Greenhouse Office (2004), National Greenhouse Gas Inventory, 2002

The broader benefits of waste-to-energy projects may not be apparent in policy and canprovide some leverage in the political process. Both national and regional economicbenefits can be demonstrated to policy makers and the community for investments inwaste-to-energy plants. Such benefits include:• capital investment and employment in Australia• expenditure on fuel sourcing and operations and maintenance• creation of Australian jobs by local manufacture of equipment and its installation• investment in regional and rural Australia, and potential for deferral or elimination of

the need for major infrastructure and power distribution networks• sustaining and developing of regional communities• creation of Australian jobs by local manufacture of equipment and its installation• provision of opportunities for other recycling innovations.

WASTEWATER BIOGASSewage wastewater caneither be processedaerobically (in the presenceof oxygen) or anaerobically(oxygen excluded). Theanaerobic process producesmethane, which in thisproject is collected and usedto generate renewablepower. If not collected andused for power productionthe methane would either beflared or vented toatmosphere with adverseenvironmental impacts.

WERRIBEE SEWAGEPLANTThe Werribee Sewage Planthas been transformed froman open lagoon treatmentplant to an anaerobic plant.Portions of the lagoonreceiving raw sewagewastewater are covered,oxygen is excluded, ananaerobic reaction isproduced and methane isgenerated. In 1995 two0.63 MW engines wereinstalled. AGL has nowinstalled two additional 1.25MW reciprocating enginegenerating sets. Sections ofthe lagoons remainuncovered and pumpsagitate these sections tointroduce oxygen, furtherprocessing the wastewater,which is eventuallydischarged into Port PhillipBay. The plant treats about500mL of sewage per day.

POWER GENERATIONAND SALESThere are two powersupplies to the site, andeach generator is connectedto an incoming supply.

Power is generated at 415volt and stepped up to22,000 volts for connectionto the Powercor distributionnetwork. The power plantoperates in base load modeand all power is sold toMelbourne Water.

GAS RETICULATION The site is large, andextensive reticulation wasrequired to deliver gas to thegenerating plant. Blowersare used to deliver thebiogas at a low positivepressure. AGL has beenresponsible for the total sitedevelopment and control ofgas delivery to the plant.

SITEThe power generators arecontainerised and the gasprocessing plant includingscrubbers and gasconditioning are contained ina central compound.

ENVIRONMENTAL IMPACTAt full capacity, Werribeeproduces around 25,000MWh of green electricity perannum, which reducesgreenhouse gas emissions by20,000 tonnes per annum.In addition the capture ofmethane significantlyreduces odours from the sitefamiliar to Melbourne-to-Geelong travellers.

Host: Melbourne WaterOwner: AGLCapacity: 3.8 MW Location: Werribee

Sewage Treatment Plantabout 30 kms south-west of Melbourne

Operational: June 2001Operator: AGL Energy

ServicesPower purchase arrangements: 100%

to Melbourne WaterManufacturer: DuetzPackager: SE Power

EquipmentConstruction contractors:

AGL Energy ServicesPrimary fuel: Biogas from

anaerobic digestion ofsewage sludge

Supplementary fuel: None

For more information:AGLBill McLaughlin,Group ManagerCorporate AffairsTel: 02 9922 8349

MELBOURNE WATERChristine/ Gibbs, MangerCorporate & CommunityRelationsMelbourne WaterCorporationTel: 03 9235 7172

CASE STUDY

Melbourne Water Werribee Biogas facilityWerribee, Victoria


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2.3 Waste-to-energy applications

Wastes have a diversity of physical and chemical properties and therefore a wastebioenergy resource needs to be matched with the appropriate energy conversiontechnology. For example, landfill gas projects will utilise reciprocating gas engines that arecapable of being installed in a modular form and can accommodate some fluctuation infuel quality. The waste materials covered in this Guide range from dry agriculturalresidues through to wet wastes, and the various urban wastes. The settings, scale ofplants, energy conversion technologies and key participants will differ for each of theseand consequently so will the viability parameters of different projects and the economicconsiderations and implications.

When talking about waste-to-energy applications, it is common to refer to a primaryenergy conversion process, an energy carrier and secondary energy conversion.

Primary energy conversion of wastes of high calorific value generally occurs via one ofcombustion, gasification or pyrolysis. These are all thermal conversion processes, with theessential difference being the amount of atmospheric oxygen used in the process. Thebiochemical processes of fermentation and anaerobic digestion are generally chosen forprimary energy conversion of wetter waste or mixed waste streams. These two processesutilise naturally occurring microbes and biochemical pathways to convert waste intoenergy carriers such as methane-rich biogas and ethanol. Refer to Section 4: Waste-to-energy technologies for more detailed information.

The energy carrier (steam, gasified waste, biogas, pyrolysis bio-oil) produced during theprimary waste conversion process of combustion, gasification, pyrolysis, anaerobicdigestion or fermentation is required to be converted into a usable form of energy, such aselectricity and/or process heat, in a secondary energy conversion step. There are severalmature and emerging secondary energy technologies.

Wastes such as vegetable oil and tallow may be converted via esterification to biodiesel,which in turn may be used as a transport or stationary energy fuel. Similarly ethanol maybe used as a fuel or as a fuel additive.

The Australian BusinessCouncil for SustainableEnergy has identified onehundred and two waste-to-energy projects that wereoperating in Australia atthe end of 2004, with atotal capacity of 917 MW.Of these, 115 MW can beclassified as renewablewaste-to-energy, 473 MWas renewable waste-to-energy cogeneration, 172MW as fossil fuel waste-to-energy and 156 MW asfossil fuel waste-to-energycogeneration. Details ofrenewable waste-to-energyprojects are presented inAppendix 2.

3. NEW AND EMERGING OPPORTUNITIES AND SUPPORTFOR WASTE-TO-ENERGY

Climate change is now recognised as being real and immediate and requiring urgentaction. Analysis undertaken by the Australian Government concludes that ‘Australia isvulnerable to changes in temperature and precipitation. Australia’s vulnerability to climatechange is intensified by already being a generally dry continent and experiencing highnatural climate variability from year to year.’ [Saddler, H., Diesendorf, M. & Dennis R.(2004) A Clean Energy Future for Australia, WWF Australia.]

Scientists now agree that climate change is due to the enormous amounts of fossil fuelsthat we burn: the coal we burn to generate electricity and the oil that we use in our cars.Reducing the greenhouse emissions from the fossil fuels that we use to meet our energyneeds is thus an important priority for governments at both the state and national level.

FIGURE 3.1

Greenhouse gas emissions by sector in 2002

Source: Australian Greenhouse Office (2004), National Greenhouse Gas Inventory 2002

Australia is one of the world’s worst greenhouse polluters on a per capita basis. Figure3.1 summarises Australia’s greenhouse gas emissions by sector. Electricity generation isboth the largest contributor to growing greenhouse emissions, accounting for nearly 35per cent of total emissions, and the fastest growing sector. Coal, the fuel with the highestgreenhouse emissions, currently accounts for 80 per cent of our power generation.Importantly for Local Authorities, greenhouse emissions from waste, an area over whichthey have control and influence, accounts for nearly 20 million tonnes or 3 per cent oftotal emissions.

A critical way to address climate change is to firstly reduce our consumption of energyand then to ensure that the energy that we do consume is produced from lowergreenhouse intensive sources. In this regard expanding the use of renewable energy thatproduces no greenhouse gas emissions is critical.

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3. NEW AND EMERGINGOPPORTUNITIES AND SUPPORTFOR WASTE-TO-ENERGY

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Importantly, producing power from waste sources not only displaces the production ofelectricity from fossil fuels but also reduces emissions of the more greenhouse-intensivemethane gas, increasing the environmental gain. The other important issue for LocalAuthorities is that the employment leverage from renewable energy is greater than fromconventional energy. As a result, expanding renewable energy production from waste willlead to increased employment, particularly in regional and rural communities.

In Australia, major new commercial opportunities for waste-to-energy projects areemerging out of greenhouse gas emission reduction measures. These measures mayprovide general support or financial benefits to waste-to-energy projects.

3.1 Greenhouse initiatives providing indirect support

There are a number of initiatives that may provide indirect support to Local Authorities forreducing greenhouse gas emission. These include:• the Australian Government Greenhouse Challenge program• the Cities for Climate Protection program.

AUSTRALIAN GOVERNMENT – GREENHOUSE CHALLENGE PLUS PROGRAMME

Greenhouse Challenge Plus, launched in March 2005, is a joint industry and AustralianGovernment initiative to: • Reduce greenhouse gas emissions; • Accelerate the uptake of energy efficiency; • Integrate greenhouse issues into business decision-making; and • Provide more consistent reporting of greenhouse gas emissions levels.

Greenhouse Challenge Plus builds on the success of the Greenhouse Challengeprogramme and encourages participants to demonstrate corporate greenhouseperformance through emissions inventory reporting and the development andimplementation of action plans to achieve cost effective abatement.

It also recognises products and/or services with zero net emissions through GreenhouseFriendly™ certification and provides for collaboration between Government and industryto identify technical best practice for reducing greenhouse emissions in key sectors suchas through the Generator Efficiency Standards (GES).

New aspects of the Greenhouse Challenge Plus include:• a new category of membership for those companies who are, amongst other

undertakings, willing to publicly disclose more about their greenhouse managementactivities – Greenhouse Challenge Plus Leaders

• an online reporting functionality for all participants; and• an undertaking to work towards establishing a Greenhouse Challenge Plus abatement

register for participating companies to record their abatement actions.

For the majority of participants, the decision to join Greenhouse Challenge Plus isvoluntary. However from 1 July 2006, participation in Greenhouse Challenge Plus will bea requirement for Australian companies receiving fuel excise credits of more than $3million.

Proponents of large energy resource development projects will also be required toparticipate in the programme.

By requiring participation in Greenhouse Challenge Plus, the Australian Governmentensures that these companies, like all those who have voluntarily joined the programme,effectively monitor and manage their greenhouse gas emissions.


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The Department of the Environment and Heritage, Australian Greenhouse Officeadministers Greenhouse Challenge Plus. The support provided by the AGO to programmeparticipants can be useful to organisations implementing a waste-to-energy project aspart of a broader greenhouse gas emissions abatement programme.

For further information on the Greenhouse Challenge Plus, visitwww.greenhouse.gov.au/challenge, call: 02 6274 1229 or e-mail:[email protected]

THE SITEThe project is located at theSwanbank Landfill,Queensland, approximately40 kilometres south-west ofBrisbane. Thiess Servicesoperates the landfill which isa former coal mine.

FUEL SOURCEAND SUPPLYFuel is supplied from alandfill gas extraction systeminstalled within the landfill,and also from specificallyengineered bio-cells installedon site. Waste is placedwithin the bio-cells andundertakes a rapiddecomposition process toenhance the timeframewithin which the gas isgenerated. This gas isextracted and combined withgas from the landfill. Adedicated pipeline has beeninstalled over 1.5 kilometresto supply the gas to theadjacent CS EnergySwanbank B Coal FiredPower Station, where it isutilised to displace fossilfuel.

PLANT EQUIPMENTAND OPERATIONThe plant consists of a state-of-the-art Gas ConditioningPlant which dries, conditionsand delivers the gas.

The plant operates 24 hoursper day, and is computercontrolled from a remotelocation using a specificallydesigned softwareapplication.

ENERGY PURCHASE ANDSUPPLYGas is supplied at lowpressure to the coal-firedpower station. The project isa renewable energygenerator under theRenewable Energy(Electricity) Act and iseligible to produceRenewable EnergyCertificates (RECs). TheRECs are shared betweenthe Joint Venture and CSEnergy.

ENVIRONMENTAL IMPACTThe total energy andenvironmental benefits ofthis project in its first year of

operation include thegeneration of approximately15,000 MWh of renewableenergy, enough to power3000 homes, and thereduction of 77,500 tonnesof carbon dioxide equivalentgreenhouse gas emissions.This is equivalent, perannum, to the removal of18,300 cars from the roador the planting of 7900hectares of trees.

OUTSIDE SUPPORTThe ReOrganic Energyproject at Swanbank is theresult of a successfulapplication by the partnersto the Australian GreenhouseOffi ce under the RenewableEnergy CommercialisationProgram (Round 3), whichhas seen funding assistanceof $1 million.

Owner: Joint Venture(Thiess Services, LMS,New Hope Energy)

Nominal capacity: 7–10 MW

Location: Ipswich,Queensland

Commissioned: 18 February 2002

Capital cost: $4.5 million

Construction contractors: LMSOperator: LMSFuel source: Bio gas

and landfi ll gasGas purchase arrangements: CS

Energy purchases gasfrom the site

Equipment manufacturer: LMSType: Gas conditioning/

extraction plant

For more information:Mr John FalzonManaging DirectorTel: 08 8363 0100Fax: 08 8363 7700Email: [email protected]

CASE STUDY

ReOrganic EnergyIpswich, Queensland


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CITIES FOR CLIMATE PROTECTION PROGRAM

Cities for Climate Protection (CCP™) is an innovative program that helps local governmentand their communities to reduce greenhouse gas emissions and their impact on theenvironment. It is an International Council for Local Government Initiatives (ICLEI)campaign, delivered in Australia in collaboration with the Australian government throughthe Australian Greenhouse Office. CCP™ Australia is the largest local governmentgreenhouse program in the world, with over 200 local councils now participating.

CCP™ empowers local governments to reduce greenhouse gas emissions. It provides localgovernments with a strategic milestone framework that helps them to identify theemissions from their councils and communities, set reduction goals and develop andimplement an action plan to reach the targets .

A range of support is available for member organisations of CCP™, including:• CCP™ software and other appropriate tools for calculating emissions• direct support in assessing emissions and understanding what they mean• training workshops• workbooks, relevant case study material and fact sheets• access to expertise and networks of local council peers to exchange ideas and

solutions• advice on funding opportunities and some funding support from the Australian

Greenhouse Office.

The support offered by CCP™ could also be useful to an organisation which isimplementing a waste-to-energy project as part of a broader greenhouse gas emissionabatement initiative.

The Essent Energy plantgasifies demolition woodand injects the combustiblegas into the adjacent 900MW coal-fired boiler of theAmer Centraal power stationin the Netherlands, wherethis renewable fuel offsetscoal use. Steam energy fromthe gasifier plant alsoprovides renewable energyinto the host power stationenergy system. Theadvantage of this system isthat a separate waste woodgasification plant keepscontaminants out of themain power plant, therebyallowing better control ofemissions.

CASE STUDY

Essent Energy plant Amer Centraal power station, Netherlands

3.2 Policy measures providing financial support

Greenhouse gas emission reduction measures which may provide specific financialsupport to waste-to-energy projects include:• the Australian Government Renewable Energy Development Initiative (REDI)• funding from various State Government programs• the Australian Government Mandatory Renewable Energy Target (MRET)• the NSW Greenhouse Gas Abatement Scheme• the national Green Power initiative.

RENEWABLE ENERGY DEVELOPMENT INITIATIVE (REDI)

REDI was announced by the Australian Government in June 2004 with the release of theEnergy White Paper Securing Australia’s Energy Future. The initiative comprises $100million over seven years and will be allocated to promote strategic development ofrenewable energy technologies, systems and processes that have strong commercialpotential.

The program will be administered by AusIndustry, which is part of the Department ofTourism, Industry and Resources. AusIndustry are currently in the process of developingguidelines for the initiative. Refer to www.Ausindustry.gov.au

According to Ausindustry, REDI will be a competitive grants program designed to givesmaller scale renewable projects a ‘leg up’ to commercialisation. REDI will providesupport through the innovation spectrum, helping projects move from proof-of-concept tocommercialisation and then on to business collaborations. The program will supportcompanies in developing and deployment of renewable energy technologies, while alsoproviding assistance for a wider range of renewable energy activities including trainingprograms; setting of industry standards; technology diffusion; and industry collaboration.It is envisaged REDI grants will average $500,000 with a cap of around $5 million perproject.


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STATE GOVERNMENT SUSTAINABLE ENERGY FUNDING PROGRAMS

Several State Governments in Australia offer funding to support sustainable energyprojects. Such funding is often offered through dedicated State Government agencies suchas the Department of Energy, Utilities and Sustainability (DEUS) in NSW, the SustainableEnergy Authority of Victoria (SEAV) and the Sustainable Energy Development Office inWestern Australia.

Each of these funding programs has its own eligibility criteria. Waste-to-energy projectsmay be eligible for funding under most of these programs.

VIC RENEWABLE ENERGY SUPPORT FUND (RESF)

RESF is a key initiative of the Victorian Greenhouse Strategy and is administered bySEAV. The initiative will provide $8 million to support and encourage innovativeapplications of medium-scale proven renewable energy technologies in Victoria includingwaste-to-energy. The fund will provide up to 20 per cent of the capital cost of acceptedprojects.

For a comprehensivedescription of the bioenergyresources (includingwastes) and markets inNSW, the reader is directedto the DEUS NSWBioenergy Handbook.

CASE STUDY

Kristianstad Biogas PlantKristianstad, Sweden

Built in 1996, theKristianstad biogas plant inSweden processeshousehold, industrial andagricultural waste andproduces biogas for thelocal district heating plant,with plans to fuel the fleetof waste transport vehicles.Of the 73,000 tonnes oforganic waste delivered tothe plant each year,household waste andmiscellaneous waste makeup about 5 per cent eachwith the remaindercomprising both animalmanures and agriculturalprocessing wastes. Theequivalent of 20,000 MWhof biogas is recoveredannually, 17,900 MWh issent to the district heatingplant and the remainder isused on-site.

AUSTRALIAN GOVERNMENT MANDATORY RENEWABLE ENERGY TARGET (MRET)

With effect from 1 April 2001, the Australian Government introduced a trading schemefor electricity generated from renewable energy sources, the Mandatory Renewable EnergyTarget (MRET). MRET places a legal liability on wholesale purchasers of electricity toproportionately contribute towards the generation of an additional 9500 GWh per year ofelectricity generated from renewable sources by 2010. The target applies nationally until2020, with all electricity retailers and other wholesale electricity purchasers on liablegrids in all states and territories contributing proportionately to the achievement of thetarget. To ensure that there will be consistent progress toward achieving the 9,500 GWhtarget by 2010, the measure will be phased-in by specifying a number of interim targetsover the period 2001–2020.

Wholesale electricity purchasers are proportionately liable for meeting their share of thetarget. For example, if a liable party purchases 10 per cent of the liable electricity inAustralia, they will need to meet 10 per cent of the interim target level for that year.Wholesale electricity purchasers meet their share of the target each year by surrenderingrenewable energy certificates (RECs).

RECs are created by accredited renewable energy generators which deliver renewableelectricity to a grid, end-user or directly to a retailer or wholesale buyer. Waste-to-energyprojects may be classified as renewable energy generators for the purpose of MRET ifthey use one or more of the following fuels:• bagasse• black liquor• wood waste• crop waste• food and agricultural wet waste• landfill gas• municipal solid waste• sewage gas.

Provided a waste-to-energy project using an eligible fuel commenced commercialoperation on or after 1 January 1997, it may be able to earn RECs for all electricityprovided to the appropriate measurement point. A waste-to-energy project which was incommercial operation prior to 1 January 1997 is only eligible to earn RECs from existinggeneration assets where there is an increase in output from the assets as compared witha 1997 baseline.

Once registered, each REC is equal to one megawatt-hour of renewable generationavailable at an agreed measurement point. Wholesale electricity purchasers are requiredto surrender RECs equivalent to their total liability in that year. The penalty for non-compliance has been set at $40 per megawatthour.

RECs remain valid until surrendered (that is, certificates can be banked for use in futureperiods). Liable parties may either construct their own renewable energy generationfacilities or purchase RECs directly from generators or third parties that trade in RECs.

RECs may be traded in financial markets that are separate from the physical NationalElectricity Market (NEM), so that there is no interference with the operations of the NEM.Owners of renewable energy generation assets hold RECs in the first instance, untiltraded among liable or third parties. In the first years of the MRET scheme, RECs havegenerally been traded at a moderate discount to the $40 penalty.


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The MRET scheme enables waste-to-energy projects to generate a revenue stream fromthe trading of RECs which is additional to the revenue from the sale of electricity. Thisprovides a strong incentive for the implementation of waste-to-energy projects.

FIGURE 3.2

RECs created during 2003 by waste-to-energy generators.

Source: Australian Business Council for Sustainable Energy, Sustainable Energy Report 2004

NSW GREENHOUSE GAS ABATEMENT SCHEME

The New South Wales Government has set a state-wide benchmark of reducinggreenhouse gas emissions to 7.27 tonnes of carbon dioxide equivalent per capita by2007. This is 5 per cent below the per capita emissions in the Kyoto Protocol baselineyear of 1989/90. To ensure continual progress towards this end target, progressivelytighter targets have been set year-on-year, commencing with a target of 8.65 tonnes percapita in 2003 and leading to the final benchmark level of 7.27 tonnes per capita in2007. The level of 7.27 tonnes per capita will then be maintained until at least 2012.

Under the New South Wales Greenhouse Gas Abatement Scheme, parties who arerequired to meet targets for greenhouse gas emissions are called benchmark participants.Each year, the Scheme sets individual benchmark reductions of greenhouse gas emissionsfor each benchmark participant based on their contribution to the supply of electricity inNew South Wales. Each benchmark participant then has to reduce the average emissionsof greenhouse gases from the electricity they supply or consume to the pre-set individualbenchmark level.

Benchmark participants comprise:• electricity retailers• electricity customers taking supply directly from the National Electricity Market• electricity generators with contracts to supply electricity directly to customers• certain other parties who consume large volumes of electricity in NSW and who elect

to participate directly in the Scheme, rather than have their electricity retailer managethe emission reduction obligation in relation to the electricity they consume.

If a benchmark participant does not reduce the average emissions of greenhouse gasesfrom electricity they supply or consume to their pre-set individual benchmark level, theypay a penalty of $10.50 per tonne of carbon dioxide equivalent for all emissions abovetheir benchmark.

Fuel Type RECs created

Bagasse cogeneration 174,344

Black liquor 108,243

Crop waste 0

Food & agricultural wet waste 0

Fuel Type RECs created

Landfill gas 246,463

Municipal solid waste combustion 641

Sewage gas 27,520

Wood waste 120,031

FIGURE 3.3

NGACs registered during 2003 by waste-to-energy generators

Source: Passey, MacGill, Nolles & Outhred (2005)

To achieve the required reduction in greenhouse gas emissions, benchmark participantspurchase and surrender certificates called NSW Greenhouse Abatement Certificates(NGACs). One NGAC represents one tonne of carbon dioxide equivalent that wouldotherwise have been released into the atmosphere in generating electricity. NGACs aretransferable certificates that may be freely traded between any parties. It is expected thatNGACs will generally be traded at a moderate discount to the $10.50 penalty.

NGACs may be created by eligible electricity generators that reduce the averagegreenhouse intensity of electricity generation. To be eligible, generators must beconnected to the main transmission networks of the National Electricity Market, or todistribution systems currently connected to those networks in NSW, the ACT, Queensland,Victoria and South Australia. It is expected that when the Basslink connection betweenTasmania and the mainland is operational, generators in Tasmania will also becomeeligible to create NGACs.

Most waste-to-energy projects connected to the specified electricity networks will reducethe average greenhouse intensity of electricity generation and will therefore be eligible tocreate NGACs. Provided a waste-to-energy project commenced commercial operation onor after 1 January 2002, the project proponent will be able to create NGACs for thegreenhouse gas abatement achieved by the project from 1 January 2003. Abatement isdefined as the reduction in greenhouse gas emissions resulting from electricity generationby the project as compared with the average level of emissions for electricity generationin NSW.

Similarly to the MRET scheme, the NSW Greenhouse Gas Abatement Scheme enableswaste-to-energy projects connected to the specified electricity networks to generate arevenue stream from the trading of NGACs which is additional to the revenue from thesale of electricity. However, NGACs cannot be created for renewable electricity for whichMRET RECs have been created. Because RECs are traded at a significantly higher pricethan NGACs, and the emissions reduction and renewable energy generation of one REC isroughly equivalent to one NGAC,1 the proponent of a waste-to-energy project whichgenerates renewable electricity is likely to prefer to create RECs rather than NGACs.

However, for waste-to-energy projects which use fuels containing methane (for example,landfill gas or sewage gas), the project proponent may create NGACs in addition to anyRECs which have been created for the project. The number of NGACs which may becreated in addition to RECs is calculated based on the global warming potential ofmethane relative to that of carbon dioxide. Methane has a global warming potentialtwenty-one times that of carbon dioxide.

1. On average, generating one megawatt-hour of electricity from black coal releases slightly lessthan one tonne of carbon dioxide.

Fuel Type NGACs registered

Landfill gas 1,979,899

Sewage gas 59,381

Bagasse 10,895

TOTAL 2,050,175


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NATIONAL GREEN POWER INITIATIVE

The purpose of a Green Power program is to increase the quantity of electricity generatedfrom renewable energy sources and therefore to drive investment in new renewableenergy generators.

Under a Green Power program, electricity retailers provide a ‘green’ tariff option tocustomers that is at a premium to regular tariffs. The retailer commits to ensuring that anequivalent amount of electricity to the amount of Green Power energy purchased by acustomer is produced from renewable energy sources by approved electricity generators.The additional cost to the retailer of purchases from these generators is covered by thehigher tariff charged to customers who purchase Green Power.

In Australia, electricity retailers offer Green Power products throughout the country.Depending on the details of the individual retailers’ program, customers are offered anopportunity to purchase a proportion or the whole of the electricity they use as GreenPower at prices which are usually between 20 per cent and 40 per cent above thenormal price. Around 125,000 customers across Australia have chosen Green Powerproducts, including close to 6000 businesses.

Retailers purchase sufficient electricity to meet their Green Power commitments fromapproved Green Power generators. Broadly defined, these are generators whosegeneration of electricity is based primarily on renewable energy sources and results ingreenhouse gas emission reductions and net environmental benefits. Generators are giventhe final Green Power tick of approval if they comply with specific eligibility guidelines.All generation projects are assessed individually against strict criteria and require supportfrom consumer and environmental stakeholders. Renewable energy generation cannot becounted toward both Green Power and MRET liabilities. This avoids double dipping.

Waste-to-energy projects may qualify as Green Power generators if they use landfill gas,municipal solid waste, agricultural wastes, or wood wastes from existing sustainablymanaged forestry plantations and clearing of specified noxious weeds. Approval as aGreen Power generator will enable the electricity generated by the waste-to-energy projectto be sold at a premium price to an energy retailer.

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4. WASTE-TO-ENERGY TECHNOLOGIES

As noted in Section 2.3, wastes have a diversity of physical and chemical propertiesrequiring matching energy conversion technologies. Moisture content and contaminationlevels are particularly important. Drier forms of waste are usually converted through thethermal energy conversion paths, while wet wastes may be processed throughbiochemical pathways. Other wastes may be converted through esterification. Thediagram below illustrates the variety of pathways through which waste sources can beconverted to energy and energy related products. Also illustrated is the range of‘secondary’ energy technologies to produce the end-use energy. The technologies are thenoutlined briefly. For further detail refer to Attachment 1.

• Steam turbines• Steam engines• Stirling engines• Gas turbines

• Internal combustion engines• Fuel cells• Micro-turbines

Members of the AustralianBusiness Council forSustainable Energy canprovide guidance aboutappropriate technologiesfor different waste-to-energy applications. Seewww.bcse.org.au.

Waste materials

Thermal processing

Heat and power Chemical feedstocks Ethanol Biodiesel

Biochemical Chemical

Combustion Gasification Fermentation EsterificationPyrolisis Anaerobicdigestion

4. WASTE-TO-ENERGYTECHNOLOGIES

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The MAV anaerobictreatment plant in Ghent,Belgium, is equipped tohandle and treat sewagesludge, organic wastes, pre-sorted food waste, fatsludge and abattoir residuesto produce biogas and highquality fertiliser. The planthas a capacity of 200,000tonnes per year, which issupplied under contract byindustry and farms in thesurrounding area. Totalfermentation capacity is12,000 litres, dividedbetween four digesters.

Carbon Partners areestablishing a similarfacility, with StateGovernment support in theMelbourne metropolitanarea. The plant will havethe capacity to process100,000 tonnes of organicwaste per annum,generating 40,000MWh ofelectricity and 15,000tonnes of high qualityfertiliser.

PHOTOS: CARBON PARTNERS

CASE STUDY

MAV Anaerobic Treatment Plant Ghent, Belgium

GBU Ghent biogas plant Belgium

Green power production

Fertiliser product Digesters and Gas Holder

Thermal energy conversion

The three principal means of thermal energy conversion are combustion, gasification andpyrolysis, with the essential difference between these paths being the amount ofatmospheric oxygen involved in the process.

Biochemical energy conversion

These technologies use naturally occurring microbes to convert waste organic materialinto energy carriers such as methane-rich biogas and ethanol. A variety of technologiesbased on this biological treatment are available and include anaerobic digestion,fermentation and esterification.

Secondary energy conversion technologies

The energy carrier (steam, gasified waste, biogas, pyrolysis bio-oil) produced during theprimary waste conversion process of combustion, gasification, pyrolysis, anaerobicdigestion and fermentation is required to be converted into a usable form of energy, suchas electricity and process heat, in a secondary energy conversion step. There are severalmature technologies. Those technologies generally used are limited to the following well-proven and commercially sensible generators.

STEAM TURBINES

Steam turbines are technically mature and are commonly used in large-scale coal-firedpower stations. Water is heated, evaporated and superheated in a boiler. The steam isthen expanded through the steam turbine, which is connected to an electric generator.The steam exhausted from the turbine is usually condensed back into water, before beingheated, evaporated and superheated again to continue the cycle. Where there is a needfor the combination of heat and power, process steam may be extracted directly from theboiler, or by extracting partially expanded steam from a turbine stage, or by using exhauststeam. These options reduce the amount of electricity available, although the overallenergy efficiency of the energy system may be much higher: 50–80 per cent beingcommon for such a cogeneration configuration. Steam turbines are most appropriate inlarge-scale power plants operating near full load. At smaller sizes and under partial loads,the energy conversion efficiency falls away dramatically.

STEAM ENGINES

Steam engines are a proven technology, available in smaller sizes ranging from 8 to 1400kW electrical output. Steam engines are relatively expensive in terms of $/kW capacity.They have one advantage over steam turbines: they can operate with ‘wet steam’. Moststeam engines are double acting, in that steam expands during the forward and backwardstroke of the piston. This results in steam engines being lighter and smaller than internalcombustion engines of the same power. Steam engines are proven, rugged technology,and can have reasonably good energy conversion efficiencies.


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214. WASTE-TO-ENERGYTECHNOLOGIES

INTERNAL COMBUSTION ENGINES

Internal combustion engines are widely used for powering small to medium scaleelectricity generators. Spark ignition engines use combustible fuels such as methane-richbiogas, or producer gas, while compression ignition engines use fuels such as biodiesel.Large, modern compression ignition engines can have efficiencies up to 30 per cent. Dualfuel operation of diesel engines with biogas or producer gas involves supplying the waste-derived gas into the engine’s combustion air intake.

GAS TURBINES

Gas turbines are well proven commercially for operation with natural gas. The operationwith hot gases from the combustion of wastes, or biogas and producer gas derived fromwaste- and biomass-derived fuels, using modified gas turbines, has been demonstrated inseveral countries for outputs up to 8 MW electrical output. Gas turbines may be eitherindirectly fired or directly fired. With indirectly fired gas turbines, the combustion chamberis replaced by a heat exchanger heated by an external heat source from the combustionof the waste fuel. With directly fired gas turbines, cleaned, hot combustible gases from apressurised gasifier are fed directly into the gas turbine. Methane-rich biogas, such aslandfill gas, is a commercially mature technology.

Emerging technologies

MICRO-TURBINES

Micro-turbines are derivatives of gas turbines, except most designs include a recuperatorto recover part of the exhaust heat for preheating the incoming combustion air, to providehigher energy conversion efficiencies in the range 20–30 per cent. Micro-turbines arecommercially available for use with biogas in the range 25 to 250 kWe.

STIRLING ENGINES

Stirling engines are external combustion engines, which operate on the principle of heatexpanding a gas, usually helium, within a sealed unit, which drives a piston, linked to anelectrical generator. There is no contact between the moving parts of the Stirling engineand the waste generated heat or gas. Stirling engines are commercially available in smallsizes of 300 W to 150 kWe.

FUEL CELLS

Fuel cells are electro-chemical devices similar to batteries. They comprise two porouselectrodes separated by an electrolyte. A fuel is supplied continuously over the anode andoxygen over the cathode and a chemical reaction directly produces electricity. Theydirectly convert the chemical energy in the fuel into electricity, overcoming thethermodynamic limitation of ‘heat engines’, and efficiencies of 50–60 per cent in simplecycle and over 80 per cent in combined cycle/cogeneration are achievable.

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5. ECONOMICS OF WASTE-TO-ENERGY

In considering the economics of waste-to-energy projects, thought must be given to therevenue streams that are available to the project and the costs that will be incurred insecuring the waste and in building, operating and maintaining the plant. The settings,scale of plants, energy conversion technologies and other factors will influence the projecteconomics as will the consistency and volume of wastes available. Supply as well as thephysical and calorific nature of the waste can add operational costs that are unable to besustained, or are unacceptable to operating licence conditions.

Revenue streams

Revenue in a waste-to-energy project will generally come from the sale of electricitygenerated or through the gate fees for processing waste. Possible revenue streams caninclude:• avoided waste disposal and/or processing costs, such as avoided tip fees• sales of electricity. This is typically through a power purchase agreement with an

electricity retailer. The electricity generated may also offset the power that wouldotherwise be consumed in the case where cogeneration is adopted

• avoided network costs where local generation reduces or delays the need for networkexpenditure

• sale of NGACs, Green Power or Renewable Energy Certificates (RECs) under theMRET scheme

• sales of other products from the energy conversion process such as steam in the caseof cogeneration or organic residues that can be used as fertiliser

• heat sales (or displaced purchases of heating fuel)• ash or fertiliser sales.

Costs

In broad terms the financial costs of establishing and operating a waste-to-energy projectwould include the project development costs, capital cost of the plant, operating, trainingand maintenance costs, and costs of transporting or obtaining long-term feedstockarrangements.

PROJECT DEVELOPMENT COSTS

These could include:• resource assessment studies• pre-feasibility and detailed feasibility studies• technical, legal and planning consultants’ fees• time and costs of obtaining regulatory approval (for example, environmental agencies)• consultancy costs of any audits required and Environmental Impact Statements• costs of contracts for both input streams and power and other product off-take

arrangements• costs of licences (for incoming waste, water, disposal of any residues)• electrical connection (if required).

5. ECONOMICS OF WASTE-TO-ENERGY

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CAPITAL COST OF THE PLANT

Plant items could include:• waste/feedstock acquisition, processing, storage plant• the energy conversion plant, digester or reactor• gas clean-up systems• generator system• effluent or ash disposal works• cooling systems (if required)• electrical plant and equipment• storage (for biodiesel/biogas)• emissions treatment (for example, scrubbing systems).

OPERATING AND MAINTENANCE COSTS

Ongoing costs could include:• transport costs for the feedstock, if not delivered to or on-site already• insurance• annual fees for licences and emission compliance• labour and contractor costs• operating material and plant maintenance costs• audits.

Cogeneration, where use can be made ofthe waste heat produced by the generationof electricity, can provide a financiallyattractive development option. Availablefrom the BCSE, the Cogeneration ReadyReckoner is a software package thatconducts a simple analysis of acogeneration opportunity. A benchmarkcase is established for the heat and

electricity requirements of the organisationwithout cogeneration, and includes loadgrowth, O&M costs, capital costs, paymentsfor fuel and electricity. A cogeneration caseis then developed which selects appropriateplant and looks at the relevant costs. NPVand IRR are then calculated for thedifference between the cash flows of thetwo approaches.

FEEDSTOCK COSTS

Those disposing of a waste may pay for its processing. Alternatively the waste feedstockmay be purchased for processing to a value added product (as is typically the case for abiodiesel plant).

THE SITEWoongoolba continues to bea thriving sugar-growingarea, with 6500 hectares ofland under sugar cane andgrowers looking to expandinto adjoining Shires, inparticular Beaudesert. Themill is the largest grower,producing 55,000 tonnesper annum. The Rocky PointSugar Mill is the only mill inAustralia to produce organiccertifi ed sugar and has itsown distillery (alcoholfactory) on site to convertmolasses into alcohol, inparticular fuel alcohol. Thisprovides another use formolasses, which was onceonly used as a stockfeed forcattle.

TECHNOLOGYCogeneration occursprimarily during sugar millcrush where a major part ofboiler output is supplied assteam to the sugar mill forheat to evaporate water fromsugar juice. The plant wasdesigned to be part of aregional, tertiary-treated, effluent reuse scheme. All waterused in the plant (some 3-4ML/day) is sourced from theBeenleigh Water reclamationfacility (sewage treatmentplant).

ENERGY PURCHASE ANDSUPPLYThe generator is registeredas unscheduled and is anaccredited generator underthe Green Power scheme.The plant is expected toproduce 140 GWh ofelectricity per annum and isconnected to the Energex

local electricity network.Power generated from theproject is sold to Energexunder long-term agreement.The generator operates 24hours a day forapproximately 300 days ayear.

FUEL SOURCEFuel for the plant is suppliedfrom the sugar mill and fromcontracts between Stanwelland various councils,including Gold Coast CityCouncil. Biomass consistingof bagasse from adjoiningsugar mill in the mill crushwith the non-crush fuelbeing predominatelygreenwaste from Council andwoodwaste from nearbyWood Mulching Industries inCannon Hill. Green wastefrom across south-eastQueensland is collected andsorted at the newlyestablished green waste

handling facilities at RockyPoint. Major transportationfirms also benefit fromcontracts to transport thebiomass to the site. Theproblem of a glut of biomassat Council refuse dumps andlandfi lls throughout theregion will be solved formany years by thecommissioning of the RockyPoint Project.

ENVIRONMENTAL IMPACTThe project is expected tosave 130,000 tonnes perannum of greenhouse gasemissions. The new planthas replaced previously highemission boilers with moreeffi cient high pressureboilers resulting in improvedparticulate emissions (<250mg/Nm3 down from over800). In addition, the plantreuses tertiary treated waterfrom the local council.

Owner: StanwellCapacity: 30 MWLocation: Woongoolba,

55 km southeast ofBrisbane

Commissioned: August2002

Capital cost: $50 millionDeveloper: Stanwell and

The Heck GroupConstruction contractor:

Alstom PowerOperator: StanwellFuel source: Biomass

consisting of bagasse,municipal greenwasteand woodwaste

Boiler: ABB VU40 GrateBoiler

Boiler Capacity: 130t/hour

Steam Conditions: 70 Bar(absolute) and 510° C

Turbine: ABB ATPIndustrial SteamTurbine, Axial Flow,single casingconstruction, withreaction blading.

Generator: 11 kV three-phase A.C. synchronousalternator

For more information:Stanwell CorporationTel: 07 3335 7444

CASE STUDY

Rocky Point Cogeneration PlantWoongoolba, Queensland


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View from top of boiler house looking down on dearator(right) and stack, with spray-water cooling pond andbiomass stockpile in backgroundCREDIT:DOUG STELEY STANWELL CORPORATION

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6. BUSINESS RISK CONSIDERATIONS

Like any organisation, Local Authorities face a number of business and operating risksthat they need to manage in providing services to their constituents. Progressing waste-to-energy projects will entail some risk to the organisation, particularly where this is anew activity. It is, however, important to note that the ‘do nothing’ approach also ofteninvolves considerable risk, as the authority will be exposed to future greenhouse emissionconstraints, as well as tightening environmental controls on waste disposal, odour andvisual amenity.

Many waste-to-energy technologies and applications are well established and well proven,and in many countries (with similar conditions to Australia) have been providing effectiveservice to local constituents. This fact is not well known, and there remains a perceptionthat the technologies and applications are not technically proven. As at 31 December2004, there were ninety-seven waste-to-energy projects either operating or underconstruction with a combined electricity generation capacity of 772.51 MW (refer toAttachment 3).

There are also emerging waste-to-energy technologies being developed that have thepotential to expand the range of opportunities available to productively utilise wastestreams.

6.1 Waste treatment – the environmental sustainability issue

Most countries aim to reduce their dependence on the use of landfills for municipal solidwaste (MSW). European Union countries in particular have set ambitious targets forreduction of the biodegradable component of MSW consigned to landfill and aconsequent increase in MSW subjected to recycling and recovery operations. SomeEuropean countries – for example, Sweden, Germany and the Netherlands – have alreadycommitted to banning the biodegradable component from landfills in the coming years,and incineration of agricultural wastes has been banned in some countries for manyyears. Many governments have established targets to divert organic wastes from landfill.For example, in the European Union the Landfill Directive (1999/31/EC), as well as manynational regulations, will reduce the amount of biodegradable materials going to landfillby 65 per cent by 2016 compared to the 1995 level.

In Australia air and water emissions are subject to ever-tighter regulations, and althoughsignificant quantities of urban wastes continue to be disposed of in landfills (largely dueto their historically low costs and availability), waste incineration and landfill are nowbeing more widely discouraged with regulations being introduced to ensure bettermanagement of wastes. The NSW Department of Conservation and Environment isdeveloping a Protection of the Environment Policy on waste that will emphasise wasteavoidance and the waste management hierarchy, thus reducing the amount of wastegoing to disposal or being used primarily for energy production. The Victorian Governmentlaunched a Green Waste Action Plan which aims to reduce the amount of green waste(food organics, garden organics and timber) going to landfills by 50 per cent by2010/2011. Composting facilities are being expanded and a facility to processcommercial food wastes has been established.


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A common misconception with waste-to-energy technology is that within the acceptedhierarchy of waste handling options (refer to Section 2.2), energy recovery is actually nohigher than disposal as currently practised. This perception arises as a consequence ofthe following potential concerns in the Australian community:• The community tends to equate combustion, even in modern facilities, with ‘burning’.

This may mean that the community is more receptive to biological processes for wastetreatment than combustion because of poor past experience with municipal solidwaste incinerators and their emissions.

• Energy supply has historically been relatively inexpensive and not been constrained asAustralia has abundant supplies of coal.

• Some view investment in a plant as providing a ‘hungry mouth’ for the waste stream,encouraging unsustainable waste producing practices rather than promotinginnovation. It can compete for resources and contribute to unsustainable practicesrather than promote innovation.

• Waste-to-energy technology may reduce participation in and hence cost-effectivenessof kerbside recycling, which has an accepted social value and is already significantlysubsidised.

What is also not well understood by the community is that the consumption andgeneration of electricity leads to significant production of harmful greenhouse gasemissions. Waste-to-energy conversion not only reduces greenhouse gas emissions frompower generation, but also reduces the more potent waste methane emissions. The globalwarming potential of methane is twenty-one times that of carbon dioxide. Waste-to-energy projects can also lead to other local environmental benefits such as reduced odourand more effective land use. Again, these benefits are not well understood or recognised.

6.2 Issues surrounding waste-to-energy projects

The development issues associated with waste-to-energy projects can range from beingquite straightforward, such as land fill gas and sewage gas projects, to complex andprotracted, especially where multiple parties (for example, fuel suppliers) are involved.There are some fifty waste-to-energy projects already operating in Australia. A number ofsuccessful business models have been utilised in implementing these projects.

Other technologies and applications such as municipal waste projects, while noteffectively implemented in Australia to date, have been successfully implementedoverseas.

While waste-to-energy projects can deliver a number of benefits to Local Authorities,including financial benefits, they typically do not produce windfall gains. It is important torealise that such expectations are not likely to be achieved, for example:• A high rate of return, equivalent to a payback period less than three years, is unlikely

to be delivered unless current and projected local waste disposal costs are high.• A high market price for electricity generated by the plant, even if government support

measures are applicable, may not be forthcoming in the foreseeable future. (However,the substitution of purchased retail electricity could be significant for the organisation.)

• Many waste-to-energy projects, whilst potentially delivering substantialenvironmentally sustainable outcomes, are expensive compared to many currentdisposal practices.

The Waste ManagementAssociation of Australia hasdeveloped a frameworktool to help guide energy-from-wastedecision-making byproviding an agreed basisfor evaluation of options fordealing with urban wastestreams, a starting pointfor community involvementand a template for projectdesign, development andimplementation. For furtherinformation, the reader isdirected to the tworesource documents, ASustainability Guide forEnergy from WasteProjects and An Energyfrom Waste Industry Codeof Practice. Seewww.wmaa.asn.au

FRAMEWORK TOOL

6. BUSINESS RISKCONSIDERATIONS

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It should not be automatically assumed that policy support will be forthcoming forprojects that may seem sensible and viable. For example, the environmentally sustainableor ‘green’ credentials of municipal waste ‘mass burn’ technologies, co-firing with fossilfuels, and the use of manure from battery chickens can be politically sensitive and maybe questioned irrespective of any net environmental benefits. The planning and approvalprocess for these types of projects may also be difficult and the benefits may not be wellunderstood by the local community. For these types of projects, the importance ofeffective consultation and community engagement cannot be overestimated.

Even at the design and early discussion phase, considerable effort should be made todemonstrate that the highest value uses will be achieved from the waste stream. Aseemingly simple proposal may evolve into a proposal for a total system perspective thatconsiders multiple outputs and co-location of business activities in eco-industrial parks inorder to obtain support for the project.

It is important to:• clearly understand the waste resources available now and in the future• nurture relationships with both stakeholders and future service providers from an early

stage• develop strategies that minimise the organisation’s exposure to risks• make corporate decisions about the scale of involvement that might be appropriate for

the organisation• prepare the community for energy-from-waste concepts• ensure EPA requirements are clear and the process and criteria for acceptance of the

proposal is objective.

6.3 Financing routes

The type of ownership or financing structure that a Local Authority is prepared or able toaccept may dictate the whole approach to developing a waste-to-energy project, andestablish the options that are realistically available. Considerable time and effort can bewasted if these parameters are not assessed early in the development process. Forexample, an organisation may be constrained by legislation or corporate strategyregarding borrowings, and have a fixed amount of capital available for investment. If thisresults in a small plant being developed, it may be too expensive for the waste reductionbenefits it provides, or alternatively it may provide a low-risk demonstration that attractslarger players in the future.

Typically the criteria used when considering the finance structure include:• appropriate use of an organisation’s capital resources (focus on core business

requirements)• best use of the organisation’s management resources• maintenance of appropriate debt/equity ratios• potential to generate profit• risks associated with any income stream• regulatory or other constraints.

Several possible ownership and financing options exist, each with its own merits and riskallocations. Each model provides for balancing the relative risks and rewards, dependingon the developer’s requirements and acceptable levels of risk.

A Victorian example ofanaerobic digestiontechnology is the 160 kWcogeneration plant at the1500 sow (15,000 animal)Berrybank piggery nearBallarat, Victoria. This facilityuses a two-stage digestionprocess to ensure completedigestion of the solids. Adaily average of 210,000litres of slurry is produced,having an organic content of1.7 per cent. The plant hasan output of 3500 kWhelectricity and 27,000 MJ ofthermal energy.

The electricity is producedusing spark ignition engines.The farm uses 65 per cent ofthe electricity produced, theplant 25 per cent and about10 per cent is sold into thegrid. A benefit of the plant isthat it now produces anodourless organic fertiliser asan end product. The initialinvestment of this plant was$2 million. An overall benefitof $300,000 p.a. is claimed.

Source: IEA CADDET

CASE STUDY

Berrybank cogeneration plant Ballarat, Victoria

OWNER FINANCING – EPC OR TURNKEY

In an Engineer, Procure and Construct (EPC) or turnkey project, a contractor carries outthe design and construction of the facilities on behalf of the client (or financier).Operation and maintenance is by the client or contracted to the contractor or a thirdparty, and the client retains all the revenues.

PARTNERSHIP OR JOINT VENTURING

In this arrangement a developer and the client enter into a joint venture agreement for thedesign, construction, operation and maintenance of the plant with revenues shared by theowner and the developer.

BOO/BOOT

For build–own–operate (BOO) or build–own–operate–transfer (BOOT) arrangements, theproject is assigned to a developer. The developer finances the project in full, and designsand constructs the plant. With BOO the operation and maintenance of the plant is by thedeveloper or contracted to a third party. Usually the developer would pay a lease and/orroyalty to the Local Authority. The BOOT arrangement is similar to the BOO option,except that ownership of the development passes to the Local Authority after a pre-specified period of time.

PROJECT COMPANIES

For projects of significant size, special purpose companies are often set up and fundedthrough a mixture of debt and equity. This allows large amounts of funding to be raisedand the risk to be shared amongst several partners. Set-up costs tend to be high and thefinanciers have first call on all cash returns.


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6. BUSINESS RISKCONSIDERATIONS

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Project finance refers to lending funds to a project strictly on the merits of the project’sown commercial performance, without recourse to the project’s owners for a guarantee ofdebt repayment. To underpin such a non-recourse loan, the project’s services must beable to be dedicated on contract to a few credit worthy customers. The credit is builtupon the basis of a series of commercial contracts which envelop the project and strictlydefine its life. These would generally include;• a long-term revenue contract for the services of the project (waste processing)• a long-term Operations and Maintenance contract with an entity who will operate the

facility for a predictable fee• a turnkey Engineering, Procurement and Construction (EPC) contract with a major

engineering company that will build and guarantee the performance of the plant• an Offtake agreement for the sales of electricity and other products (such as fertiliser).

The duration of the various contracts should match and align with the financing.

EQUITY FINANCE. This expands the capital base of the developer through a share issueor selling an equity stake in the project itself to a financier who may wish to take anactive part in running the business.

DEBT OR LOAN FINANCE. There are two types of loans: those secured against thedeveloper’s existing assets (on-balance sheet financing) and limited recourse financing(secured against future cash flows from the project). It is unlikely that a lendinginstitution will finance 100 per cent of the project’s requirement. A lender will wish to seesome contribution from the developer, usually between 20 and 40 per cent, to establishcommitment from the developer.

Traditional investors may not recognise the environmental benefits and sustainability ofvarious waste-to-energy routes, as there is generally no market and hence cash flowattributable to these benefits. Therefore investors may view the project using the samecriteria applied to any other commercial projects, demanding high security and highreturns on invested capital. Socially Responsible Investment (SRI) or ethical funds arenow beginning to appear. These tend to take a more sympathetic view of sustainableenergy projects in general, and may be willing to invest with less onerous terms. Inaddition, electricity retailers seeking Renewable Energy Certificates or equipment suppliersseeking orders may also be willing to invest in worthy projects. Soft finance and grantsmay also be available from government agencies in support of National and Stategreenhouse gas and industry development policies and programs.

THE SITERegionally based SuncoastGold Macadamias(SGM)processing siteproduces about 5000 tonnesof waste macadamia nutshells each year.The shellspreviously were sent tolandfill, garden mulch orburned to produce heat.Theplant will now utilise theshells as fuel forcogeneration,therebyincreasing the energy efficiency of the site.

TECHNOLOGYThe 6 MW,high pressuresteam boiler produces ninetonnes of steam per hour,which is used in the nutprocess and to generateelectricity.The process steamis passed through a plateheat exchanger to create hotwater.This is used to dry thenuts in their shells in storagesilos. The remaining steamis passed through a 1.5 MWsteam turbine. During anyhour of operation the plantcan convert 1680 kg ofwaste shell into 1.5 MW ofelectricity. The plant is

connected to the local(Energex)11 kV grid via a 2MVA transformer.

ENERGY PURCHASEAND SUPPLYThe plant is registered as anon-scheduled generator inthe National ElectricityMarket (NEM).The plantworks in season from Aprilto end November - five to sixdays a week to productionrequirements.The steamturbine generates about 9.5GWh per annum ofelectricity, of which 1.4GWh is consumed onsite.The remaining 80 per centis exported to the grid.Underthe third party powerarrangement,the host gainssteam and electricity withoutcharge in return forsupplying the fuel sourceand plant site. The powerplant is eligible to createRenewable Energy Certificates under the MandatedRenewable EnergyTarget,which Ergon Energyhas rights to under long-termagreement.

FUTUREBy 2005 it is expected thatthe facility will double itspower output.More than150 growers throughoutQueensland and northernNew South Wales couldsupply up to 10,000 tonnesof macadamia nutshells.Investigations are alsounder-way into utilising thereject nut-in-shells that werepreviously burnt as waste.

Owner: Ergon EnergyCapacity: 1.5 MWLocation: Gympie,

160 km north ofBrisbane

Commissioned: September 2003

Capital Cost: $3 millionDeveloper: Ergon EnergyConstruction contractor:

SE Power Equipment,Queensland Boilers Operator: Ergon EnergyFuel Source: Food process

waste, macadamia nutshells

Boiler: Water tube steamboiler.

Boiler capacity: 6 MW,9 t/hour

Steam conditions: 41 bar,350° Celsius

Turbine: Tuthill Nadrowskimultistage steam turbine

Generator: Stamford 2bearing brushlessalternator

For more information:Shane HarkinProject ManagerErgon EnergyTel: 07 3228 8240

CASE STUDY

Macadamia Nut Power PlantGympie, Queensland


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7. MAKING IT HAPPEN

The Local Authority would be prudent to understand and develop information on anumber of factors, irrespective of whether the organisational strategy is to be an active orpassive participant in a waste-to-energy development:• the waste resource – calorific and physical properties of the fuel; seasonality, quantity

and long-term availability of the fuel; fuel handling options; implications of alternativestrategies

• energy supply matters – interconnection requirements of the local electricitydistributor; security of supply benefits; arrangements for electricity generated (own useor export to the grid); energy options other than electricity (for example, biogas) andtheir markets.

• technical feasibility (study usually by a specialist consultant)• economic analyses to produce a simple payback period or IRR• a screening analysis to test sensitivities• detailed engineering evaluation• project specification and investigation of models for owning and financing projects.

There are a number of business models that have been successfully adopted in Australiaover the last five or so years. A review of waste-to-energy projects completed over thistime provides us with the spectrum of options and opportunities to develop andimplement projects: The BCSE has profiled several waste-to-energy projects and these aresummarised in Figure 7.1. For further project details refer to the BCSE’s web site atwww.bcse.org.au and follow these links: About->Renewable Energy Page->RenewableEnergy Project Profiles


32

FIGURE 7.1

Summary of some existing waste-to-energy projects

Project Fuel Commissioned Size Capital cost Generator Power Sale Developertype Arrangements

Rocky Point Bagasse 2002 30 MW $50 million Market, Long-term Stanwell Cogeneration Plant, Qld non-scheduled agreement Corporation

Tableland Mill Bagasse 1998 7 MW Non-market, N/A Bundaberg Cogeneration Plant, Qld non-scheduled Sugar

Visy Pulp & Paper Mill, NSW Black 2001 20 MW N/A N/A Visyliquor

Belconnen Project, ACT LFG 1999 1 MW Non-market, Long-term EDLnon-scheduled agreement

Brooklyn Project, VIC LFG 2002 1 MW Market, Long-term EDLnon-scheduled agreement

Eastern Creek, NSW LFG 2002 2.5 MW Market, Long-term EDLnon-scheduled agreement

Ipswich Renewable LFG 2004 1 MW Market, Long-term LMSEnergy Facility, Qld non-scheduled agreement

Jacks Gully, NSW LFG 2001 1 MW Market, Long-term EDLnon-scheduled agreement

Kelvin Road Facility, WA LFG 2003 2.1 MW N/A Long-term LMS agreement

Millar Road Power LFG 2003 1.7 MW N/A Long-term LMSGeneration Facility, WA agreement

Lucas Heights II Plant, NSW LFG 1998 13 MW Non-market, Long-term EDLnon-scheduled agreement

Mugga Lane, ACT LFG 1999 1 MW Non-market, Long-term EDLnon-scheduled agreement

ReOrganic Energy, LFG 2002 7–10 MW $4.5 million Market, Scheduled LMSSwanbank, Qld

Shoalhaven Project, NSW LFG 2002 1 MW $2 million N/A Long-term AGL agreement Energy Services

Suntown Plant, Qld LFG 2002 1 MW $3 million N/A Ten-year Energy Impactagreement

Stapylton Green Wood 2004 5 MW $12 million Market, Long-term power Green Pacific Waste to Energy Plant, Qld waste non-scheduled, purchase agreement Energy

Cronulla Sewage Treatment Sewage 2001 485kW N/A N/A Sydney WaterBiogas Plant, NSW gas

Malabar Cogeneration Sewage 1999 3 MW $5 million N/A 100 per cent Sydney WaterFacility, NSW gas consumed on site

Melbourne Water Biogas Sewage 2000 2.5 MW Market, Sold to Melbourne AGL Energy Facility, VIC gas non-scheduled Water Services

Townsville Citiwater Biogas Sewage 2000 332kW $535,000 N/A 100 per cent Stanwell Project, Qld gas used on site Corporation

Macadamia Nut Project, Qld Process 2003 1.5 MW $3 million Market, Long-term Ergonwaste non-scheduled agreement

7. MAKING IT HAPPEN 33

7.1 Project fundamentals

There are effectively two key models and then some derivatives of each of these. The firstis for the Local Authority to undertake the project on its own books. It will develop theproject and fund the investment through internally derived funding sources or throughspecified financing – but the key thing is that the Local Authority owns the energyconversion project. The other option (or extreme) is for the Local Authority to merelysupply the fuel, or host the facility on its land. In this case the development andinvestment capital is provided by a project developer.

Biogas projects in sewage treatment plants undertaken to date in Australia tend to havebeen undertaken directly by the local water authority. This model has tended to befollowed where the project is reasonably integrated with other activities at the site.Interestingly, however, recent projects such as at Werribee and in Townsville have tendedto be undertaken by third party developers who own and operate the facility.

In the case of landfill gas projects, the model has been for the complete outsourcing ofthe project by the waste authority, with third party developers effectively providing the site(and fuel). The project proponent in this case would typically pay the authority a monthlylease or rental for use of the landfill.

The role that the Local Authority in these cases typically plays is that of fuel provider. Inthe case of the Werribee and Townsville projects, the Local Authority provided a wastewater or methane stream. In the case of a landfill project, the project proponent istypically provided with the exclusive use of the site for a defined period of time for aspecified monthly rental.

Sewage gas and landfill projects are typically several MW of capacity or less. The averagesize of all landfill gas projects amounts to just less than 3 MW with an average capitalcost of $3–5 million. Sewage gas projects average capacity of 2.1 MW with an averagecapital cost of around $2–3 million. These projects typically utilise reciprocating engines,which are a readily available technology and can be built in modular form. As anexample, Energy Developments has implemented twenty-one landfill gas projects, with aninstalled capacity of 51.8 MW and has installed 1 MW reciprocating engines in modularform. This approach reduces risk and complexity.

MSW projects, agricultural waste projects, wood waste or bagasse projects tend to beimplanted through the utilisation of steam turbines and are typically much larger, withhigher capital costs.

Hobart City Council soughtout a third party developerfor cogeneration at one ofits waste water treatmentplants. Despite the rate ofreturn being relativelyattractive, the scale of theproject was considered toosmall (0.14 MW) to beworth the effort, followingan assessment by the thirdparty at the council’sexpense. The council hasproceeded with andfinanced the project itself.

The Gold Coast CityCouncil has an Agreementwith Energex at itsStapylton, Suntown,Molendinar and ReedyCreek sites. Greenelectricity is produced atthe first three sites whilstthe gas at Reedy Creek isflared.


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7.2 Stakeholder considerations

The success of any waste-to-energy strategy or project will depend on identifying keystakeholders early in the process, and addressing their concerns and interests. While theprinciple is similar to many other developments, waste-to-energy does create strong viewsin the community – misguided and otherwise. Although many jurisdictions do requirepublic consultation as part of the permitting process,2 engaging with the community andmeeting their expectations through an approach described as social impact assessmentshould be encouraged for potentially controversial developments. Social impactassessment has been defined as ‘the process of analysing and managing the intendedand unintended consequences of planned interventions on people so as to bring about amore sustainable biophysical and human environment’ (Dr Frank Vanclay, Charles SturtUniversity).

Ideally the process should be employed at all key stages of a waste-to-energydevelopment – planning, design and evaluation of options; construction andimplementation; and operation – and would encompass the following actions. Stakeholdergroups need to be identified, and could include neighbours, nearby landholders, localgroups (including indigenous interests), environmental groups (local and umbrellaorganisations), other non-government organisations, suppliers and consumers,shareholders, unions and media. A public involvement program for all key stakeholderswould be developed, as would a social/economic profile of the area.

The range of issues and concerns of each stakeholder group would be identified, andimportant social impact categories would be developed (such as employment, propertyvalues, conservation and so on). The probability, magnitude and extent of effects of theproject – positive and negative – would be determined, together with strategies formitigating potential adverse social effects arising from lack of understanding. Lastly,monitoring of progress and reporting to the stakeholders are very important.

It should be noted that even with the best of intentions, mutual trust and rigorousprocedures in place, consensus decision-making may not produce an outcome, and therecould be a role for other options such as third party certification.

The Australian Cooperative Research Centre for Renewable Energy (ACRE) carried outRoundtables in Western Australia during June 2001 with the broad aim of soliciting theviews of environmentalists and key community members regarding local energydevelopments such as waste-to-energy. It is interesting to highlight some of the questionsand views that were raised in local communities, as these could be expected in all partsof Australia:• Energy: why generate more electricity when energy efficiency measures have yet to be

strongly promoted? Poor grid supply in rural areas, resulting in power fluctuations andblackouts, is a real concern. The lack of grid supply in some areas also needs to bebetter addressed.

• More understandable information is needed on the economic, social andenvironmental implications of transport of fuels to a proposed plant.

• What are the implications of combustion compared to decomposition in landfills?• What is the nature of the economic benefits to the region (local training, employment

and revenue generation)?

2. It is expected that the reader will have considerable knowledge of the planning approvalprocess.

USE/HOSTHeat is recovered from a hotwater heat exchanger. Thewaste heat is used for heatingraw sewage sludge feed todigesters. Digested sludge isde-watered and used foragricultural biosolids.

ENERGY PURCHASEAND SUPPLYDigester gas is combusted inthe engines and heatrecovered from thecogeneration facility is used toheat raw sewage sludge beforegoing to the digester. Theelectricity produced is treatedas “green power” under ascheme accredited by theSustainable EnergyDevelopment Authority of NewSouth Wales and is consumedonsite for the sewagetreatment plant. The plantoperates in base-load modesubject to the availability ofdigester gas.

ENVIRONMENTAL IMPACTElectricity produced by theplant is designated asrenewable energy and theplant effectively produces nonet greenhouse emissions.

Owner: Sydney WaterCapacity: 3 MWLocation: The plant is

located at MalabarSewage Treatment Plantat Malabar, New SouthWales.

Commissioned: April1999

Capital cost: $AUS 5 million

Developer: AGLConstruction: SE PowerOperator: Sydney Water

CASE STUDY

Malabar Sewage Treatment Plant Malabar, New South Wales

7. MAKING IT HAPPEN 35

• Efficiency of the processes: waste heat should be utilised as a direct source of heat forother processes, as is done in other countries.

• How much fuel is needed to make electricity production viable?• Production of liquid biofuels is interesting, but is it more efficient than other

approaches to energy production?• There can be strong opposition to the use of native timber residues, whether forest or

plantation in origin – conservation rather than resource management.• Pilot or demonstration projects are encouraged, as is the development of a

comprehensive sustainable energy policy at the local level.


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7.3 Risk management

Any new venture brings with it elements of risk. Waste-to-energy projects are not yetregarded as a standard part of the Australian waste management environment and theproject risks are commensurate with this. However, the waste management environmenteverywhere is changing fast – and the do-nothing approach carries its own risks.

The organisation’s plan may aim to reduce the magnitude of the project risks outlinedbelow and elsewhere, through small-scale demonstration, experience and capacity-building, with further developments promoted as the benefit-to-risk ratio continues toincrease.

The common elements of project risk that are discussed in relation to a plant such as awaste-to-energy development are outlined below. Other risks, such as technology risk andmarket risk, have been outlined in other sections of the document. Each can be allocatedand managed in different ways.

OPERATIONS RISK

Planned and unplanned outages of the plant will require contingency plans – particularlyimportant if the plant is being relied upon for waste disposal. Contracted supply of powerfrom the plant will need to be covered in the event of outages. Waste fuel supply to theplant will need to be carefully managed. Some technologies must be run continuouslyand cannot easily be shut down.

ENERGY PRICE RISK

If the plant is relatively large, the price paid to the organisation for power exported to thewholesale electricity market is important. However, electricity pool prices are low, and itis likely to remain a ‘buyer’s market’ for some time (this applies to buyers such aselectricity retailers or individual customers). The availability of RECs, NGACs or similarcould make or break a project under current conditions. Even if the plant is not usually anexporter of electricity, charges for connection to the network could be significant. Theremay be some potential, depending on location, to negotiate favourable terms with anelectricity network business if export from the plant can be guaranteed at times ofnetwork stress.

REGULATORY RISK

A plethora of diverse regulatory bodies throughout Australia may have an interest in awaste-to-energy development. These include planning and environmental agencies, state-based electricity regulators, National Electricity Market bodies and the AustralianCompetition and Consumer Commission.

A risk-averse corporate strategy approach in the near-term would be to develop a waste-to-energy plan for the organisation, preferably as part of both a more comprehensive localenergy strategy and a regional development strategy. The Local Authority will play animportant role in promoting these approaches to the community, and government supportcould be expected to assist these ventures.

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8. THE REGULATORY ENVIRONMENT

In becoming a renewable generator, the power generation facility must:• register as a generator in the National Electricity Market if it has a capacity above

5 MW and exports more than 20 MW per year, or wants to sell power through thewholesale market;

• connect to the local distribution network; and• meet particular state-specific planning and environment regulations

The BCSE has published two documents that comprehensively set out the issues andprocesses that generation project proponents need to be aware of in connecting to thelocal distribution networks and to the National Electricity Market (NEM). These are theGuide for the Connection of Embedded Generation in the National Electricity Marketand the Technical Guide for Connection of Renewable Generators to the Local ElectricityNetwork. These Guides are aimed to provide the reader with a general understanding ofthe NEM and the issues that affect the design, cost of connections and network accessfor renewable embedded generators. This section will give a brief overview and readersare directed to these reports for further information. Both of these Guides are availableunder ‘Publications’ on the BCSE’s website at www.bcse.org.au .

8.1 National Electricity Market

Since 1998, there has been a competitive market in electricity generation and retailing inplace in the NEM, operating under the National Electricity Rules. The retail marketenables industrial, commercial and domestic electricity users to contract with any one ofa number of competing electricity retailers for their electricity supply in those jurisdictionsthat have introduced full retail contestability. The retailers are responsible for customerrelationships including meter reading (other than for Market Participants) and billing.There is also a wholesale electricity market in which retailers and other customers buyelectricity in bulk from competing electricity generators. The transmission and distributionof electricity networks are owned and operated by revenue-capped monopoly businessesrespectively called Transmission Network Service Providers (TNSPs) and DistributionNetwork Service Providers (DNSPs). Fees for network use are incorporated into theelectricity prices paid by end-users.

8.2 Registration and power sale options under the NEM

Generators who wish to participate in the NEM need to register with the NationalElectricity Market Management Company (NEMMCO). A registration fee applies.

Embedded generators that participate in the NEM sell their power through the wholesalemarket at the prevailing market price and can also enter into hedge contracts withretailers as appropriate. If another retailer purchases the electricity through a hedgecontract, the physical sale of electricity is settled through the NEM.


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Alternatively, embedded generators may choose not to participate in the NEM andinstead:• sell all their power to the local retailer under a power purchase agreement.• sell all their power to a customer sharing the same connection point under a power

purchase agreement.

In practice, proponents of embedded generation projects generally choose to enter intolonger term power purchase agreements which have a defined price with retailers.Contracting in this way is easier for the generator, who is also able to achieve a morecertain revenue stream that will in turn assist the effective financing of the project.

As part of the registration process (assuming the proponent is required, or chooses, toregister) the proponent must classify its generator as:• either a scheduled generating unit or a non-scheduled generating unit• either a market generating unit or a non-market generating unit.

Generators that produce above 30 MW are generally required to register as a scheduledgenerator. Others may apply to be classified under this status. Scheduled generators mustparticipate in NEMMCO’s centralised dispatch process. These generators will bedispatched in accordance with their submitted price bids. Non-scheduled generators arenot required to participate in the dispatch process. These generators will produceelectricity as they see fit or as their resources warrant, and receive the prevailingwholesale market price.

A generator will be deemed a market generator unless the entire generator’s output ispurchased by the local retailer or by a customer located at that same connection pointthrough a power purchase agreement. A market generator must also sell all sent-outelectricity through the spot market and accept payments from NEMMCO for sent-outelectricity at the spot prices applicable to its connection point.

A non-market generator is a generator who elects not to participate in the NEM. Instead,it sells its power to the local retailer or customer at the same connection point through apower purchase agreement. Non-market generators are not entitled to receive paymentfrom NEMMCO for any electricity sent out.

In addition to the existence of the NEM, each state and territory has legislation in placethat covers the electricity industry as it operates in its state or territory. Generator licencerequirements also exist and an embedded generator may be required to register. Forexample, a generator that wishes to operate in Victoria is required to register with theEssential Service Commission. For embedded generators, these requirements generallytend to be administrative and do not tend to impose onerous conditions or obligations onthe generator.

For further information on the registration requirements for each state and territory in theNEM, refer to the following websites:

Victoria Essential Services Commission www.esc.vic.gov.auQueensland Queensland Competition Council www.qca.qld.gov.auNSW IPART www.ipart.nsw.gov.auSA Essential Services Commission www.ecosa.sa.gov.auACT Independent Competition & Regulatory Commission www.icrc.act.gov.auTasmania Office of the Tasmanian Energy Regulator www.energyregulator.tas.gov.au

8. THE REGULATORYENVIRONMENT

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8.3 Connection to the distribution network

To connect to the local distribution network, the project proponent must make aconnection application to the Distribution Network Service Provider (DNSP), who areresponsible for the planning and development of the network and for engineering newconnections. This application includes the provision of certain technical information.

The developer must also enter into a connection agreement with the DNSP. This sets outthe terms and conditions under which the DNSP will provide a connection to their systemand the rights and obligations of each party. Additional agreements may also be required,for example to cover the safety, technical requirements and operational arrangements foroperating and maintaining the connection. An embedded generator cannot beginoperation until all agreements have been negotiated and signed and any requiredconnection infrastructure has been installed, tested, inspected, signed off andcommissioned.

Connection costs can have a major impact on the financial viability of embeddedgeneration projects. These costs are project specific, depending on various characteristicsof the generation scheme and the local distribution network, and are a matter fornegotiation between the proponent and the network service provider.

Building a connection can be time consuming, with time scales dependent on project-specific factors. Major issues involved with the construction of the connectioninfrastructure are the times required to obtain planning and environmental approvals aswell as the associated lead times for materials and items of plant that need to be orderedand timescales for installation and commissioning. Generally speaking, low-voltagesystems take less time than high-voltage systems. High-voltage connections tend to takefour to eight months and low-voltage systems two to five months.

STATUTORY AND LICENSING REQUIREMENTS FOR GENERATORS

Developers must satisfy a number of statutory obligations relating to connection ofgenerators to a DNSP’s network. These obligations are specified in various statutes ineach state. The obligations include provisions relating to:• licensing requirements for generators• obligations and conditions for generators connecting to a network• the design and technical requirements for generators• provision of information to the DNSP• requirement to negotiate in good faith• resolution procedures for disputes.

8.4 Environmental and planning approvals

The approval requirements for power generation projects throughout Australia varyaccording to the state or territory where the project is to be located. Generally speaking,the two main areas of approval are environmental impact (often a state approval process)and land use/development (local or state). These approval processes are often combined.Another relevant approvals process is environmental licensing under pollution controllegislation.


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Much of the information relating to approvals, such as legislation, guidance notes,procedures and forms, is available on the Internet sites of the relevant Australian andState Government departments.

Approval requirements will depend on factors such as size (which determinesenvironmental impact) and location (which determines development approvalrequirements). Location issues that will impact on approval requirements include currentzoning of the area (which determines the permitted purposes) and any special areas thatwill be impacted (crown land, areas of environmental significance). For more informationon development and environmental approvals on a state-by-state basis, refer to the Guidefor the Connection of Embedded Generation in the NEM.

Australian Government approvals may also need to be sought under the EnvironmentProtection and Biodiversity Conservation Act 1999 if the project has, will have or islikely to have a significant impact on a matter protected that may include:• the values of a World Heritage property• the values of a National Heritage place• the ecological character of internationally important (Ramsar) Wetlands• nationally listed threatened species and ecological communities• listed migratory species.

An action that may be located on, or otherwise may have a significant impact on, the‘environment’ of Commonwealth land may also need to be referred.

For further information see www.deh.gov.au/epbc or call the Referrals Section in theDepartment of Environment and Heritage on (02) 6274 1111.

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APPENDIX 1 GLOSSARY, ABBREVIATIONS AND ACRONYMS

ACCC – Australian Competition and Consumer Commission.Aerobic process – A process requiring the presence of oxygen.ACRE – Australian Cooperative Research Centre for Renewable Energy. Some of the activities

previously carried out by ACRE are now undertaken by the Research Institute forSustainable Energy (RISE) based at Murdoch University.

Anaerobic digestion – Digestion of organic matter by bacteria in the absence of air.BCSE – Australian Business Council for Sustainable EnergyBOO/BOOT – Build–own–operate/Build–own–operate–transfer arrangements.Biodegradable component – Component that has the ability to breakdown safely by biological means into its raw

materials of nature and disappear.Biofuels – Fuels made from biomass resources. These include wood, waste and alcohol.Biogas – A combustible gas derived from the anaerobic decomposition of organic matter.

Composed primarily of methane, carbon dioxide and hydrogen sulfide.Biomass – Can refer to the total mass of living organisms in a given area, but when talking about

energy it refers to plant materials and animal wastes used as fuel.CADDET – An information centre sponsored by twelve member countries committed to the sharing of

information regarding renewable energy and energy efficiency activities and developmentsworldwide. The program concluded in March 2005.

Calorific Value – The heat liberated by the combustion of a unit quantity of a fuel under specificconditions; measured in calories.

CCPTM – Cities for Climate Protection.CO2-e – Carbon dioxide equivalent. This is the concentration of carbon dioxide that would cause

the same amount of radiative forcing as a given mixture of carbon dioxide and othergreenhouse gases.

Cogeneration – (Also known as combined heat and power or CHP.) The simultaneous production ofelectrical energy and another form of useful thermal energy (such as heat or steam) fromthe same fuel source, often used for industrial, commercial, heating or cooling purposes.

Combustion – Burning. The transformation of biomass fuel into heat, chemicals and gases throughchemical combination of hydrogen and carbon in the fuel with oxygen in the air.

DNSP – Distribution Network Service ProviderDistributed generation – (Also known as embedded generation.) Electricity generation that occurs at or near the

site of ultimate consumption as opposed to most electricity which is generated at aremote site and transported by long-distance transmission lines to the consumer.

Emissions trading – (Also known as carbon trading.) A market-based mechanism aimed at reducinggreenhouse gas emissions. An emissions trading system allows countries that havecommitted to emissions reduction targets to ‘buy’ or ‘sell’ emissions permits amongthemselves. It provides participating parties with the opportunity to reduce emissionswhere it is most cost-effective to do so

EPC contract – Engineering, Procurement and Construction contractESD – Ecologically sustainable development (also known as sustainable development). Defined

in the National Strategy for ESD as ‘Using, conserving and enhancing the community’sresources so that ecological processes, on which life depends, are maintained and thetotal quality of life – now and in the future – can be increased’.

Feedstocks – The raw organic material/biomass fed into the energy conversion process.Fuel – Any material that can be burned to produce energy.Fuel cell – An electrochemical device that continuously changes the chemical energy of a fuel

(hydrogen) and oxidant (oxygen) directly to electrical energy and heat, withoutcombustion.

Gasification – Process in which waste is heated to produce a combustible gas that can be burned inexcess air to generate heat.

GJ – Gigajoule. 1GJ = 1,000,000,000 J. 1 MWh = 3.6GJ


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Global warming potential – Essentially the warming potential of a gas. The instantaneous radiative forcing that resultsfrom the addition of 1 kg of a gas to the atmosphere, relative to that of 1 kg of carbondioxide. The measure allows for equal comparison of the various greenhouse gases’contributions to global warming.

Green Power – Electricity generated from approved generators under accredited Green Power products.Green waste – Urban wood waste such as tree loppings and garden waste.IEA – International Energy Agency.IRR – Internal Rate of Return.Integrated waste – The use of a variety of techniques to handle municipal solid waste safely and effectively, management including source reduction, recycling, composting, combustion and land filling.

Kyoto Protocol – An international agreement reached in 1997 at the Third Conference of the Parties to theUN Framework Convention on Climate Change. The Protocol established specific targetsand timetables for reductions in greenhouse gas emissions to be achieved by theframework’s signatories. The protocol became legally binding for those countries whohave ratified on 16 February, 2005. The Australian Government has chosen not to ratifythe protocol.

kW or MW – Kilowatt or Megawatt.kWh or MWh or GWh – Kilowatt hour; megawatt hour; gigawatt hour.Landfill gas – Gas generated by the natural degrading and decomposition of municipal solid waste by

anaerobic micro-organisms in sanitary landfills. Comprised of 50 to 60 per cent methane,40 to 50 per cent carbon dioxide, and less than 1 per cent hydrogen, oxygen, nitrogenand other trace gases.

Leachate – A liquid generated in landfills. It is the result of water seeping into and through thewastes. As the water contacts the waste materials, it dissolves part of the organic andinorganic matter contained in the landfill. If this leachate is allowed to exit the bottom ofthe landfill, it will carry contaminants to the groundwater and/or adjoining surface water.

Limited recourse financing – Security for the project debt is underpinned by the cash flows of the project itself, withlimited recourse to the capital of the proponent

Liquidated damages – The damages a party suffers as a result of the breach of a contract by the other party.MJ/Nm3 and MJ/kg – Mega joules per normal cubic metre; mega joules per kilogramML – Mega litre.MRET – Mandatory Renewable Energy Target.MSW – Municipal solid waste.Mt/a – Mega tonnes per annumm3/d – Metres cubed per daym3/kg – Metres cubed per kilogramNEM – National Electricity Market.NEMMCO) – National Electricity Marketing Management Company.NGACs – New South Wales Greenhouse Abatement Certificates.NGO – Non-governmental organisation.Nm3 – Normal cubic metre. Volume of gas at 0°C and one atmosphere pressure.NPV – Net present value.Offtake – Agreement entered into with the organisation to whom you sell outputs of the project

such as electricity or steam.O&M – Operations and Maintenance.Organic waste – technically, waste containing carbon, including paper, plastics, wood, food wastes and

green waste. The term is often used in a more restricted sense to mean material that isdirectly derived from plant or animal sources, and which can generally be decomposed bymicro-organisms

Power Purchase Agreement – Agreement entered into with the electricity purchaser for supply of electricity generatedfrom project.

Pyrolysis – The thermal decomposition of organic material through the application of heat in theabsence of oxygen.

RECs – Renewable Energy Certificates.

APPENDIX 1. GLOSSARY,ABBREVIATIONS ANDACRONYMS

43

Recyclables – Products or materials that can be collected, separated and processed to be used as rawmaterials (inputs) in the manufacture of new products.

Renewable energy – Energy from sources that cannot be exhausted.Reuse – Practices which find alternate uses or alternate avenues for use of an item rather than

expending energy to dispose of it or alter its form by recycling.Social impact assessment – ‘The process of analysing and managing the intended and unintended consequences of

planned interventions on people so as to bring about a more sustainable biophysical andhuman environment’ (Dr Frank Vanclay, Charles Sturt University).

SEAV – Sustainable Energy Authority Victoria.SEDA – Sustainable Energy Development Authority (NSW).SEDO – Sustainable Energy Development Office (WA).SRI – Socially Responsible Investment.TNSP – Transmission Network Service ProviderWMAA – Waste Management Association of Australia.

44

APPENDIX 2 LIST OF USEFUL ORGANISATIONS, SUPPORT PROGRAMS AND REFERENCES

Useful organisations

Australian Greenhouse Office (AGO)Department of Environment & Heritage Tel. (02) 6274 1888GPO BOX 787 www.greenhouse.gov.auCanberra, ACT 2601Australian Business Council for Sustainable Energy (BCSE)Suite 304, Level 3 Tel. (03) 9349 307760 Leicester Street Fax. (03) 9349 3049Carlton, VIC 3053 www.bcse.org.auBioenergy Australia7 Grassmere Road Tel./Fax. (02) 9416 9246Killara, NSW 2071 www.bioenergyaustralia.orgDepartment of Energy, Utilities & Sustainability (DEUS)Level 17 Tel. (02) 8281 7777227 Elizabeth Street Fax. (02) 8281 7799Sydney, NSW 2000 www.deus.nsw.gov.auSustainable Energy Authority Victoria (SEAV)Ground Floor Tel. (03) 9655 3232215 Spring Street Fax. (03) 9655 3255Melbourne, VIC 3000 www.seav.vic.gov.auWaste Management Association of Australia (WMAA)PO Box 994 Tel. (02) 9599 7511Rockdale, NSW 2216 Fax. (02) 9599 6032

www.wmaa.asn.au

Support Programs

Cities for Climate Protection Programwww.iclei.org/ccp-auAustralian Government Greenhouse Challenge Programwww.greenhouse.gov.au/challenge/Australian Government Mandatory Renewable Energy Targetwww.orer.gov.auNational Green Power Initiativewww.greenpower.com.auNSW Greenhouse Gas Abatement Schemewww.greenhousegas.nsw.gov.auState Government Sustainable Energy Funding Programs

NSW – www.deus.nsw.gov.auVIC – www.seav.vic.gov.au/renewable_energy/support_fund.html

QLD – www.env.qld.gov.au/environmental_management/sustainability/energy/ energy_innovation_fund_qseif

SA – www.senrac.sa.gov.auWA – www1.sedo.energy.wa.gov.au/pages/grants.asp

APPENDIX 2.LIST OF USEFUL ORGANISATIONS,SUPPORT PROGRAMS ANDREFERENCES

45

Articles and books

• The Handbook of Biogas Utilization, Environmental Treatment Systems Inc., Atlanta,Georgia, for the US Department of Energy, July 1996.

• Small scale biomass fired electricity production systems – present and future,Gigler, J., Sims, R., & Adams, J., Centre for Energy Research, Massey University,Palmerston North, New Zealand, September 2001.

• ‘Meeting Community Expectations and Long-term Sustainability’, paper by MaxineCooper of Offor Sharp & Associates, Melbourne.

• Profiting from Cogeneration, Commonwealth of Australia, 1997.• NSW Bioenergy Handbook, Rutovitz, J., & Passey, R., NSW Department of Energy,

Utilities and Sustainability (DEUS), 2004.

References

• Australian Greenhouse Office (2004), National Greenhouse Gas Inventory 2002,Commonwealth of Australia, Canberra.

• Golder Associates (1999), Waste Profile of Victorian Landfills, EnvironmentProtection Authority Victoria, Melbourne.

• Passey, R., MacGill, I., Nolles, K. & Outhred, H. (2005), The NSW Greenhouse GasAbatement Scheme: An analysis of the NGAC Registry for the 2003 CompliancePeriod, Draft Discussion Paper, Centre for Energy and Environmental Markets,University of New South Wales, Sydney.

46

ATTACHMENT 1 WASTE-TO-ENERGY PRIMARY CONVERSION TECHNOLOGIES

Thermal energy conversion technologies

COMBUSTION

Direct combustion is a mature and well-established technology with numerous operatingplants around the world. In combustion, the waste fuel is burnt in excess air in acontrolled manner to produce heat. Flue gases from efficient combustion are mainlycarbon dioxide and water vapour, with small amounts of other air emissions, dependingon the nature of the waste fuel. The flue gases are cleaned using flue gas scrubbers, bagfilters and electrostatic precipitators, and if required further chemical processing to reduceemission of oxides of nitrogen (NOx) and other pollutants. Up to 60 per cent of the costof a municipal solid waste-to-energy plant can be in the air emission control plant. Thecombustion heat is used to raise steam in a boiler. The steam is expanded through aturbine connected to a generator, thereby producing electricity.

FIGURE A.1

Flow chart of a conventional direct combustion waste-to-energy plant

If there is a requirement for heat adjacent to the power plant, the energy plant can beconfigured as a cogeneration plant to simultaneously generate electricity and provide heatto nearby industries or other applications such as district heating. This is done extensivelyin the Australian sugar industry, where bagasse (crushed sugar cane residue) is used asfuel for providing the energy needs of the sugar mill.

Waste fuels may also be co-combusted with fossil fuels in existing power stations andcement kilns. This usually entails feeding relatively small quantities of waste fuels(generally under 5 per cent of the total fuel) into the plant with the conventional fuel,without disturbing the operation of the plant.

CLEANED FLUE GASES

ASH POWER AND/OR HEAT

Gas cleaning

Fuel preparation

Combustion STEAM Engine or turbineHOTGASES

FUEL

Boiler

EXCESS AIR

ATTACHMENT 1. WASTE-TO-ENERGY PRIMARYCONVERSION TECHNOLOGIES

47

GASIFICATION

Gasification is the conversion of a carbon-rich waste feedstock into a combustible gas, atelevated temperatures, up to 1300°C, in a restricted atmosphere of air or oxygen. Fororganic-based feedstocks, such as most wastes, the resultant gas is typically a mixture ofcarbon monoxide, carbon dioxide, hydrogen, methane, water and small amounts of higherhydrocarbons. If air is used, the gas is sometimes called ‘producer gas’ and is diluted byatmospheric nitrogen. Producer gas has a relatively low calorific value of 4–6 MJ/Nm3,compared with the calorific value of natural gas which is about 39 MJ/Nm3. Producergas can be used as a fuel in boilers, internal combustion engines or gas turbines. Its lowcalorific value requires using greater volumes of gas to achieve the same energy outputcompared with using natural gas.

In some sophisticated applications oxygen-enriched air or oxygen or even steam may beused as the gasification medium. The resulting gas, usually called ‘syngas’, will have ahigher calorific value in the range 10–15 MJ/Nm3 due to the absence of dilutingnitrogen.

The combustible gas produced from most waste sources will contain varying amounts oftars and particulate matter, which may need to be removed prior to its use in a boiler,engine or turbine. The degree of the contamination and purification required will dependon the gasification technology and application of the fuel gas.

Gasification of coal is a proven technology, having been used to produce ‘town gas’ sincethe early 1800s. In more recent times gasification has been adopted and applied tovarious waste streams. A variety of gasification technologies have been developed, or arecurrently under development. These range from smaller scale fixed bed reactors, up to1 MW electrical output, to larger scale fluidised bed gasifiers. The produced fuel gas mayalso be used in cogeneration or combined cycle plant configurations, to allow high overallenergy conversion efficiencies.

FIGURE A.2

Flow chart of the gasification process

FLUE OR EXHAUST GAS

ASH AND CHAR POWER AND/OR HEAT

Fuel preparation

Gasifier CLEANEDGAS

Boiler, engineor turbineGAS

FUEL

Gas cleaning

LIMITED AIROR OXYGEN

PYROLYSIS

Pyrolysis is thermal transformation of a material in the complete absence of air or oxygen,typically at temperatures in the range 400–800°C, to form a mix of gases, vapours,liquids, oils, solid char and ash. The composition and proportions of these productsdepends on input composition, pre-treatment, temperatures and reaction rates. Attemperatures around 500°C and short reaction times (under two seconds), pyrolysis oilsare produced, with up to 80 per cent of the feedstock being transformed into pyrolysisbio-oil. At higher temperatures of 700-800°C, pyrolysis reactions produce a much higherproportion of gas, with correspondingly fewer liquid and solid products. The gas has acalorific value of 15–20 MJ/Nm3, about half that of natural gas, and may be used to fuelengines and gas turbines without modification. Pyrolysis bio-oil has a heating value ofabout 17 MJ/kg, or about 60 per cent that of diesel on a volume basis. A significantfeature of producing pyrolysis bio-oil is that it can be produced at a separate location towhere it is eventually used, using transportation and storage infrastructure similar toconventional liquid fuels.

Pyrolysis bio-oil has been successfully trialled as a boiler fuel, and several pilot and near-commercial projects have been conducted in Europe and North America. Bio-oil has beensuccessfully fired in several diesel test engines, where it behaves similarly to diesel interms of engine parameters, performance and emissions. A number of pyrolysis plants arein operation, mainly concentrating on processing uniform waste streams such as plasticsand biosolids.

FIGURE A.3

Flow chart of the pyrolysis process


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EXHAUST GAS

POWER AND/OR HEAT

Boiler,gas turbineor engine

ASH AND CHAR

HEAT

Fuelpreparation Reactor CLEANED

BIO-OILStorage/transportBIO-OILFUEL

Bio-oilprocessing

ATTACHMENT 1. WASTE-TO-ENERGY PRIMARYCONVERSION TECHNOLOGIES

49

Biochemical energy conversion technologies

ANAEROBIC DIGESTION

Anaerobic digestion is a biochemical process in which a consortium of bacteriaparticipates in the decomposition of organic matter in the absence of oxygen to produce abiogas consisting of approximately 55–75 per cent methane and 45–25 per cent carbondioxide plus some trace gases, depending on the waste stream and system design.Anaerobic digestion is a versatile process and can be applied to a wide variety of wastebiomass feedstocks including municipal solid waste, industrial waste, livestock and foodprocessing wastes, and human sewage.

The liquid fraction of the remaining digested feedstock from several wastes, such as farmand food processing wastes, can be returned to the land as a fertiliser and the solid fibrecan be used as a soil conditioner.

The familiar form of anaerobic digestion occurs in landfills, where anaerobic digestionoccurs over decades. A variant on landfills are bioreactor cells, where the biologicalprocess of breaking down the waste, and thus producing biogas, is sped up by optimisingthe process. There is a whole spectrum of anaerobic digesters customised to the variouswet waste streams. These include covered lagoons, contact digesters, plug flow reactors,completely mixed digesters, fixed-film/packed-bed sludge blanket, hybrid fixed-film/sludgeblanket, landfills. The flow chart for a generic anaerobic digester is shown below.

FIGURE A.4

Flow chart of the anaerobic digestion process

EXHAUST GAS

POWER/HEAT/TRANSPORT

Boiler,gas turbineor engine

HEAT

Feedstockpre-treatment

Anaerobicdigester

LIQUOR FIBRE(COMPOST)

Separator

CLEANEDBIOGAS StorageBIOGASFEED Biogas

cleaning

FERMENTATION

Organic wastes can be converted to ethanol through fermentation. This is where bacteriaconvert carbohydrates in the feedstock to ethanol, the alcohol found in beverages. Wherethe feedstock is in the form of starch, it must be converted to sugars prior tofermentation. Feedstocks to date have included agricultural wastes such as molasses orwaste starch, with recent developments focusing on municipal organics including foodand sewage sludge. The production of ethanol from cellulose components such as corncobs and rice straw is under development.

ESTERIFICATION

Biodiesel can be produced from waste vegetable oils and tallow through a trans-esterification process. This process involves combining the oil with an alcohol (usuallymethanol) in the presence of a catalyst (usually caustic soda). A by-product is glycerine,which is itself a chemical feedstock. Biodiesel is a less toxic and more biodegradable fuelthan petroleum diesel and is often blended with petroleum diesel to provide a renewableenergy component in the fuel.

New South Wales now hastwo operating 40 ML peryear biodiesel plants basedon waste vegetable oil andtallow.


50

51

ATTACHMENT 2 CONTRACTUAL ARRANGEMENTS FOR STAND-ALONE WASTE-TO-ENERGY DEVELOPMENT

Stand alone project financing

A typical project structure for a stand-alone waste-to-energy development using a residualwaste stream illustrates the nature of the contractual arrangements that will need to beconsidered. The terms are discussed in the text following the diagram, and financingmatters are considered in more detail in Section 6.3.

A fundamental of developing the financial side of a project is the identification andquantification of the various major categories of risk in the project, and assigning theserisks, through contracts, to project partners who are best able and qualified to acceptthem. In this way the lender of the finance is not asked to bear, for instance, ‘technology’risk, which he is not qualified or compensated to take. The project is structured to rely onparties who:• contractually agree to accept such risks• are qualified to accept these risks• are financially capable of bearing allocated risks.

• Guarantees• Penalties/• bonuses

Equity

Wasteprovider

EPC

Offtake

DebtO&M

Project

• Guarantees/• liquidated• damages

• Non recourse/ limited recourse

• In excess of 40% of capital requirement

• Term (typically over 10 years)• Put-or-pay• Min price/volumes

Members of the AustralianBusiness Council forSustainable Energy canprovide guidance aboutwaste-to-energy projectdevelopment for all waste-to-energy applications.


52

The roles of the various contracts and contracting parties are:

Waste processing revenue contract

Assuming the waste provider would otherwise incur expenditure, including capitalexpenditure for new works, to treat the waste stream, the waste-to-energy path providesan alternative mechanism. The revenue contract for treating the waste mitigates the‘market risk’ by ensuring that the project has revenues for waste management. From aproject integrity point of view, the waste provider needs to be creditworthy and capable ofpaying the fees that the project would charge for waste processing. This should not bedifficult, since the entity would currently be paying for disposal or some otherconventional solution, or is looking at a major capital expenditure to perform this function.

From the project’s perspective, the service contract needs to be for a long term (say tenyears) so as to allow the project to amortise its debt. It needs to guarantee delivery to theproject of a fixed or minimum volume of material at a fixed or minimum fee per tonne,even on a ‘put-or-pay’ basis, such that the gross revenues produced from this service andthe offtake contract (see below) cover the project’s operating costs and debt servicing.

Lenders will typically look for cash flow to cover debt service (principal plus interest) bytwo times, and most environmental projects should exceed this, due to their perceivedrisks. The excess over actual debt service is the return to the company and any otherpartners it may have brought in to provide equity to the project. In turn, the projectundertakes to treat the waste according to agreed specifications and promises to beavailable to accept the volumes anticipated (except for scheduled downtimes). Theseguarantees are backed contractually by the EPC and O&M contractors.

Offtake Contract

Revenues from the sale of electricity, heat, Renewable Energy Certificates (for therenewable energy component of the project), Green Power (for compliant feedstocks) andco-products such as fertiliser or nutrient-rich effluent would add to the revenue base ofthe project. These revenues may be considered the revenue foundation of the project.

Engineering, procurement and construction (EPC) contract

The EPC contract mitigates the ‘technology risk’ by ensuring that the adopted technologywill function to specification. Invariably the EPC contractor will be a large, well-knownengineering and construction company, qualified and experienced with several provensimilar projects. The EPC contractor would enter into a turnkey project to build theproject for a fixed price. The contractor guarantees that the plant will be completed by acertain date and that it will perform in accordance with a specification. The EPCcontractor agrees to remedies known as ‘liquidated damages’ in the contract if the agreedtimes and performance objectives are not met. Liquidated damages are predeterminedamounts to cover under- or non-performance of the plant. For example, if the plantperforms at substantially reduced capacity (and cannot be fixed), and the resultingreduction in revenues jeopardises the ability of the project to amortise its debt, then theEPC contractor must make a payment to re-establish the economic viability of the projectat its lesser capacity. In any event, the EPC contractor is released after the plant has beenrun through acceptance tests which assess its performance.

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Operations and maintenance contract

An appropriately qualified organisation is contracted to operate and maintain the waste-to-energy plant for the duration of the revenue and offtake contracts, following take-overafter the acceptance test. This mitigates the ‘operational risk’. If something goes wrongand the plant suffers unplanned downtime, the O&M contractor pays the penalties. Bythe same token, the O&M contractor is usually entitled to performance bonuses forexceeding planned performance.

Project-specific companies would generally expect to see all risks mitigated prior tocommitting the project to construction. Larger corporate investors might be prepared toaccept that certain material risks will be resolved after project construction and operationhave started. Involvement in a project by an electricity company may mean that a powerpurchase agreement is not needed, simplifying the contractual arrangements.

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ATTACHMENT 3 EXISTING RENEWABLE WASTE-TO-ENERGY PROJECTS IN AUSTRALIA

WASTE-TO-ENERGY PROJECTSPOWER PLANTS OPERATING AND UNDER CONSTRUCTION AS AT 31 DEC 04Listed by primary fuelEquipment Types: RCP: Reciprocating engine

ST: Steam turbineOwner Location Status Equip. Configuration Size Year Where Industry

type No. x MW MW thermal hostBAGASSE COGENERATION

NSWNSW Sugar Milling Co-op Broadwater Operating ST 1 x 8.0 8.00 1996 NSW Sugar Milling Co-op SugarNSW Sugar Milling Co-op Condong Operating ST 1 x 3.0 3.00 1981 NSW Sugar Milling Co-op SugarNSW Sugar Milling Co-op Harwood Operating ST 2 x 0.75, 1 x 3.0 4.50 1964–1982 NSW Sugar Milling Co-op Sugar

NSW Subtotal 15.50 3 Projects/sitesQLDBundaberg Sugar Nambour (Moreton Mill) Operating ST 1 x 2.0, 1 x 0.75 2.75 1970 Moreton Sugar Mill SugarBundaberg Sugar Bingera Operating ST 1 x 1.5, 1 x 3.5 5.00 1969 Bingera Sugar Mill SugarBundaberg Sugar Fairymead Operating ST 1 x 5.5, 1 x 2.67, 1 x 1.25 9.42 1970 Fairymead Sugar Mill SugarBundaberg Sugar Mourilyan Operating ST 1 x 1.75, 2 x 1.5, 1 x 1, 1 x 0.5 6.25 1970 Mourilyan Sugar Mill SugarBundaberg Sugar Arriga (Tableland Mill) Operating ST 1 x 7.0 7.00 1998 Tableland Mill SugarBundaberg Sugar Babinda Operating ST 1 x 6.0 6.00 1971 Babinda Sugar Mill SugarBundaberg Sugar South Johnstone Operating ST 1 x 2.0, 1 x 9.5, 1 x 7.8 19.30 1970–1997 South Johnstone Mill SugarBundaberg Sugar Millaquin Operating ST 1 x 2, 1 x 1.75, 1 x 1.25 5.00 1970 Millaquin Sugar Mill & Refinery SugarCSR Sugar Kalamia Operating ST 1 x 9.0 9.00 1976 CSR Kalamia Sugar Mill SugarCSR Sugar Pioneer Operating ST 1 x 2.5, 1 x 1.2, 1 x 3.5 7.20 1958–1976 CSR Pioneer Mill SugarCSR Sugar Plane Creek Operating ST 2 x 2, 1 x 4, 1 x 10 23.00 1970–1997 CSR Plane Creek Mill SugarCSR Sugar Victoria Operating ST 1 x 3.2, 1 x 3.6, 1 x 5.0 11.80 1965–1976 CSR Victoria Mill SugarCSR Sugar Inkerman Operating ST 1 x 2.0, 1 x 10.0 12.00 1963–1976 CSR Inkerman Mill SugarCSR Sugar Invicta Operating ST 1 x 9, 1 x 2.5, 1 x 38.5 50.00 1976–1996 CSR Invicta Sugar Mill SugarCSR Sugar Macknade Operating ST 1 x 3.0, 1 x 5 8.00 1965 CSR Macknade Mill SugarCSR Sugar Pioneer II Construction ST 2 x 30 63.00 2005 Nth Qld Mill SugarErgon Isis II Construction ST 25.00 2006 Isis Central Sugar Mill SugarErgon Tully II Construction ST 25.00 2006 Tully Sugar Mill SugarIndependent (Sugar North) Mulgrave Operating ST 1 x 5.0, 1 x 3.0, 1 x 1.0, 1 x 1.5 10.50 1970 Mulgrave Sugar Mill Sugar

WASTE TO ENERGYA GUIDE FOR LOCALAUTHORITIES

55


ST: Steam turbineOwner Location Status Equip. Configuration Size Year Where Industry

type No. x MW MW thermal hostBAGASSE COGENERATION (continued)

QLD (continued)Independent Maryborough Maryborough Operating ST 1 x 0.75, 2 x 2.0 4.75 1970 Maryborough Sugar Factory SugarIsis Central Sugar Mill Isis Operating ST 1 x 1.5, 1 x 2.7, 1 x 6.5, 1 x 0.8 RCP 11.50 1965–1975 Isis Central Sugar Mill SugarMackay Sugar Cooperative Farleigh Operating ST 1 x 1.5, 1 x 3.0, 1 x 3.5, 1 x 5.0 13.00 1956–1983 Mackay Sugar Farleigh Mill SugarAssociationMackay Sugar Cooperative Marian Operating ST 1 x 3, 1 x 10, 1 x 5 18.00 1967–1978 Mackay Sugar Marian Mill SugarAssociationMackay Sugar Cooperative Pleystowe Operating ST 1 x 3.1, 1 x 7.0 10.10 1966–1975 Mackay Sugar Pleystowe Mill SugarAssociationMackay Sugar Cooperative Racecourse Operating ST 1 x 3.5, 1 x 7.0 13.80 1968–1982 Mackay Sugar Racecourse Mill SugarAssociationMossman Sugar Mill Mossman Operating ST 2 x 1, 1 x 3, 1 x 0.85, 1 x 6 11.85 1954–1995 Mossman Sugar Mill SugarProserpine Sugar Mill Proserpine Operating ST 1 x 10, 1 x 6, 2 x 2 20.00 1974–1999 Proserpine Sugar Mill SugarStanwell Corporation Rocky Point Operating ST 1 x 30 30.00 2001 Rocky Point SugarTully Sugar Tully Operating ST 2 x 2.25, 1 x 5.3, 1 x 10.0, 1 x 1.6 21.40 1965–1997 Tully Sugar Mill Sugar

RCPQLD Subtotal 459.62 29 Projects/sites

WACJ Ord River Sugar Kununurra Operating ST 1 x 6.0 6.00 1995 Ord Sugar Mill Sugar

WA Subtotal 6.00 1 Project/siteBAGASSE COGENERATION Subtotal 481.12 33 Projects/sites

BLACK LIQUOR

NSWVisy Paper Tumut Operating ST 1 x 20 20.00 2001 Visy Paper Paper

NSW Subtotal 20.00 1 Project/siteQLDVisy Paper Gisbon Island, Brisbane Operating ST 1 x 2.0 2.00 1997 Visy Paper Paper

QLD Subtotal 2.00 1 Project/site

ATTACHMENT 3. EXISTINGRENEWABLE WASTE-TO-ENERGY PROJECTSIN AUSTRALIA

56


ST: Steam turbineGT: Gas turbine

Owner Location Status Equip. Configuration Size Year Where Industrytype No. x MW MW thermal host

BLACK LIQUOR (continued)

VICPaperlinx Maryvale Operating ST 3 x 12, 1 x 18.5 54.50 1976–1989 Australian Paper–Maryvale Mill Paper

VIC Subtotal 54.50 1 Project/siteBLACK LIQUOR Subtotal 76.50 3 Projects/sites

CROP WASTE

QLDErgon Energy Gympie Operating ST 1 x 1.5 1.50 2003 Sungold Macadamias Food processing

QLD Subtotal 1.50 1 Project/siteCROP WASTE Subtotal 1.50 1 Project/site

FOOD AND AGRICULTURAL WET WASTE

NSWEarth Power Camellia, Parramatta Operating RCP 3.50 2003

NSW Subtotal 3.50 1 Project/siteFOOD AND AGRICULTURAL WET WASTE Subtotal 3.50 1 Project/site

LANDFILL GAS

ACTEnergy Developments Mugga Lane Operating RCP 2 x 1.03 2.10 1999Energy Developments Belconnen Operating RCP 1 x 1.03 1.00 1999

ACT Subtotal 3.10 2 Projects/sites


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WASTE-TO-ENERGY PROJECTS FOR LOCAL AUTHORITIES GUIDEPOWER PLANTS OPERATING AND UNDER CONSTRUCTION AS AT 31 DEC 04Listed by primary fuelEquipment Types: ST: Steam turbine

RCP: Reciprocating engineGT: Gas turbine


LANDFILL GAS (continued)

NSWAGL West Nowra Operating RCP 1 x 1 1.00 2002AGL Shoalhaven Operating RCP 1 x 1 1.00 2002Collex Woodlawn Construction 25.00 2005Energy Developments Eastern Creek Operating RCP 3 x 1.225 3.80 2002Energy Developments Lucas Heights II Operating RCP 11 x 1.15 12.70 1998Energy Developments Eastern Creek II Operating RCP 2.00 2004Energy Developments Lucas Heights I Operating RCP 5 x 1.03 5.20 1994Energy Developments Jacks Gully Operating RCP 1 x 1.03 1.00 2001Energy Developments Belrose Operating RCP 2 x 1.03 2.10 1995

NSW Subtotal 53.80 9 Projects/sitesQLDCollex Ti Tree Construction 20.00 2005Energy Developments Browns Plains Operating RCP 1 x 1.03 1.00 1997Energy Impact Stapylton Operating RCP 1 x 1 1.00 2002Energy Impact Suntown Operating RCP 1 x 1.0 1.00 2002Energy Impact Molendinar Operating RCP 1 x 0.7 0.70 2002Energy Impact Reedy Creek Operating RCP 1 x 0.55 0.55 2003Landfill Management Services Rochedale Construction RCP 3 x 1 3.30 2005Landfill Management Services Ipswich Operating RCP 1 x 1 1.00 2004

QLD Subtotal 28.55 8 Projects/sitesSAEnergy Developments Highbury Operating RCP 1 x 0.975 1.00 1995Energy Developments Pedler Creek Operating RCP 3 x 0.975 2.90 1996Energy Developments Tea Tree Gully Operating RCP 1 x 0.975 1.00 1995Energy Developments Wingfield I Operating RCP 4 x various 4.00 1994Energy Developments Wingfield II Operating RCP 2 x 1.03 2.10 1994

SA Subtotal 11.00 5 Projects/sites


58




LANDFILL GAS (continued)

VICEnergy Developments Berwick Operating RCP 7 x 1.03 7.20 1992 Horticulture FoodEnergy Developments Springvale Operating RCP 8 x various 7.90 1995Energy Developments Corio Operating RCP 1 x 1 1.00 1992Energy Developments Clayton Operating RCP 11 x 1.00 11.00 1995Energy Developments Broadmeadows Operating RCP 7 x various 6.90 1993Energy Developments Brooklyn Operating RCP 1 x 0.15 1.15 2002Energy Impact Wyndham Operating RCP 1 x 1 1.00 2003Energy Impact Mornington Operating RCP 1 x 0.7 0.70 2002Mill Park Leisure Centre Epping Operating RCP 1 x 0.104 0.10 1996 Mill Park Leisure Centre Recreation

VIC Subtotal 36.95 9 Projects/sitesWAAGL Millar Road, Operating RCP 1 x 1, 1 x 0.6 1.60 2003 RockinghamAGL Kevin Road, Gosnells Operating RCP 2 x 1 2.10 2003Landfill Gas and Power Tamala Park Operating RCP 1.65 2004Landfill Gas and Power Red Hill Operating RCP 1 x 2.65 2.65 1993Landfill Gas and Power Canning Vale Operating RCP 1 x 4 4.00 1995–96Landfill Gas and Power Kalamunda Operating RCP 1 x 1.9 1.90 1996Landfill Gas and Power Brockway Operating RCP 1 x 1 1.00 1994Landfill Management Services Malaga Construction RCP 1 x 1 1.00 2005Landfill Management Services South Cardup Construction RCP 2.20 2005

WA Subtotal 18.10 9 Projects/sitesLANDFILL GAS Subtotal 151.50 42 Projects/sites


59




MUNICIPAL SOLID WASTE COMBUSTION

NSWGlobal Renewables Eastern Creek UR-3R Operating RCP 3.00 2004

NSW Subtotal 3.00 1 Project/siteMUNICIPAL SOLID WASTE COMBUSTION Subtotal 3.00 1 Project/site

SEWAGE GAS

NSWSydney Water Malabar Operating RCP 3 x 1.0 3.00 1999 Sydney Water Waste waterSydney Water Cronulla Operating RCP 1 x 0.47 0.49 2001 Sydney Water Waste water

NSW Subtotal 3.49 2 Projects/sitesQLDBrisbane City Council Luggage Point Operating RCP 2 x 1.5 3.00 1979 Brisbane Water Waste waterStanwell Corporation Townsville – Cleveland Operating RCP 2 x 0.12 0.23 2000 Citiwater Waste water

Bay & Mount St JohnQLD Subtotal 3.23 2 Projects/sites

SASouth Australian Water Bolivar Operating GT 1 x 3.5 3.50 1993 United Water Bolivar Waste water

Corporation Wastewater Treatment PlantSouth Australian Water Glenelg Operating RCP 3 x 0.65 1.95 1994 United Water, Glenelg Waste water

Corporation Treatment PlantSA Subtotal 5.45 2 Projects/sites

TASHobart City Council Hobart Operating RCP 1 x 0.14 0.14 Macquarie PT Wastewater Waste water

Treatment Plant Tas Subtotal 0.14 1 Project/site


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SEWAGE GAS (continued)

VICAGL Werribee II Operating RCP 2 x 1.25 2.50 2001 Melbourne Water Waste waterAGL Werribee Operating RCP 2 x 0.63 1.26 1997 Waste waterCharles IFE Ballarat Operating RCP 1 x 0.075, 1 x 0.15 0.22 1994 Charles IFE Pty Ltd FoodMelbourne Water Carrum Downs Operating RCP 5 x 1.5 7.50 1975 Melbourne Water Waste water

VIC Subtotal 11.48 4 Projects/sitesWAWA Water Corp Woodman Point Operating RCP 3 x 0.6 1.80 1998 WA Water Corp Waste water

WA Subtotal 1.80 1 Project/siteSEWAGE GAS Subtotal 25.59 12 Projects/sites

WOOD WASTE

QLDGreen Pacific Energy Stapylton Operating ST 1 x 5 5.00 2004Green Pacific Energy Stapylton II Construction ST 20.00 2005

QLD Subtotal 25.00 2 Projects/sitesSACarter Holt Harvey Mount Gambier Operating ST 3.50 1968 Bell Bay Timber

SA Subtotal 3.50 1 Projects/sitesWOOD WASTE Subtotal 28.50 3 Projects/sites

GRAND TOTAL 772.51 97 PROJECTS/SITES

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