weisberg deruyter feasibility brownbag
DESCRIPTION
TRANSCRIPT
DeRuyter Digester Feasibility Study:
Transportation Fuel and
Nutrient Recovery
Peter Weisberg
The Climate Trust BrownbagPortland, OR
June 11, 2012
DeRuyter Digester:GHD/DVO/ Andgar modified plug-flow
1.2 mW CHP engine
Avoided Cost Power Price from PacifiCorp
• 2012: $0.065/kWh• 2013: $0.035/kWh
• Generator operations and maintenance: $0.027/kWh
Current Net Cash Flow(Revenue - Operating Cost – Debt
Service)
Power price2012: $0.065/kwh, 2013: $0.035/kwh
Fra
cti
on
of
Net
Reven
ue
Key RevenueFiber (Peat Moss) and Nutrients (Phosphorus)
Biogas to Transportation Fuel
Renewable Identification
Number
Projects that clean and compress biogas into transportation fuel can earn
Renewable Identification Numbers.
Barrier 1: Getting enough gas
• Need 500 cubic feet per minute of biogas
• Have 269 cubic feet per minute of biogas
• Need up to 70,000 gallons of substrate
Barrier 2: Capital cost
• Gas cleaning: $2.5 million• Transportation: $1.2-$1.7
million• Injection: $1.2 million• Station: $0.3 million
• Total: $4.9 – $5.7 million
Barrier 3: Environmental Market UncertaintyRenewable Fuel Standard 2
Biogas RIN Prices
• 77,000 BTUs = 1 Advanced Biofuel RIN
• Advanced Biofuel RIN prices:Worst Case Projection Current Price
$0.02/RIN$0.26/MMBTU
$0.25/RIN$3.25/MMBTU
$0.74/RIN$9.61/MMBTU
Gas Price ($/MMBTU)
RIN Price Total($/MMBTU)
Commodity$3.87/MMBTU
Worst Case$0/RIN=$0/MBBTU
$3.87
Projection$0.25/RIN=$3.25/MMBTU
$7.12
Current$0.74/RIN=$9.61/MMBTU
$13.48
Retail$16.23/MMBTU
Worst Case$0/RIN=$0/MBBTU
$16.23
Projection$0.25/RIN=$3.25/MMBTU
$19.48
Current$0.74/RIN=$9.61/MMBTU
$25.84
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
$-
$500,000.0
$1,000,000.0
$1,500,000.0
$2,000,000.0
$2,500,000.0
$3,000,000.0
$3,500,000.0
$4,000,000.0
$4,500,000.0
$5,000,000.0
Net Cash Flow(Revenue - Operating Cost – Debt Service)
Retail Gas Price- $0.74/RIN
Retail Gas Price ($16.23/MMBTU)- $0.25/RIN
Commodity Gas Price- $0.74/RIN
Commodity Gas Price- $0.25/RIN
Electricity
Commodity Gas Price ($3.87/MMBTU)- No RIN
Biogas to Transportation Fuel Take Away
1) Potentially more profitable
2) Barriers• Substrates• Debt• Environmental market uncertainty
$
Nutrient Management
• Anaerobic digestion ≠ nutrient management– Before digestion: 1/2 organic N, 1/2
ammonia– After digestion: 1/3 organic N, 2/3
ammonia– Total N stays the same!
Nitrogen flows
• Ammonia striping system can recover 50% of the nitrogen – Before: 419 tons
of nitrogen applied to nearby fields
– After: 209 tons of nitrogen applied to nearby fields
Not financially viable
Low Price Medium Price
High Price
-$303,611 -$9,282 $38,316
Net cash flow of WSU nutrient recovery system in 2016 at different fertilizer price assumptions
N to N2O Emissions Factors:
Insufficient carbon
• Reduction in 209 tons of N (tier 1)
=1,224 mt CO2e reduced
Further research
• Tier 2?• Tier 3-
Biogeochemical modeling of timing, place, type?
Nutrient Management Take Away
1. Livestock operations want a nutrient management solution.
2. Current nutrient recovery technologies are struggling to be financially viable.
3. Further research is needed to monetize N2O reductions and push these projects towards profitability.
