Deep Blue NRG Inc.
Contact: [email protected]
About Deep Blue NRG
 25 years of experience in Process Optimization, Test and
Measurement, Technology Development, and Project
Financial Assessment.
 A portfolio of projects with Biogas Applications, Energy
Efficient Technologies, and Renewables.
 Customers include WTE Developers, Utilities,
Municipalities, Provincial and Federal Government
organizations, Technology Development and
Manufacturing companies.
 Developed biogas Standards for North American utilities for
biomethane injections (2009)- Over 18 sites sampled. More
than 150 samples analyzed to date
Deep Blue NRG Inc.
Contact: [email protected]
2
Services
A.R.C Technologies
 Biomethane/Biogas off-take contracts
 Utility interconnection agreements
 Gas Sampling and Lab Analysis
 WTE biogas site assessment
 Technology selection for WTE
applications
 Statistical Analysis and Process Controls
 Prototype Testing and Product
Performance Analysis (product
development)
Deep Blue NRG Inc.
Contact: [email protected]
3
Biogas Options
1. Power Only – 38% Electrical efficiency
2. CHP – (~65% Eff)
3. Heat – DE (60% Eff)
4. Heat – Biogas direct use (H2S removal)
5. CNG – Direct Use
6. Pipeline + CNG
Deep Blue NRG Inc.
Contact: [email protected]
4
Economic Drivers
Tipping Fees
North East (Rhode Island – $57/t, Penn – $55/t, NJ $50/t,
NH $75/t, Conn – $44/t)- 2004 + Transportation
BC ~ $80/t
RPS (Renewable Power Standards)
Renewable Fuel Standards
Diesel Prices
Deep Blue NRG Inc.
Contact: [email protected]
5
Tipping Fees and Annual MSW Generation by State
(USA)
•
•
Tipping Fee data source: Chartwell Information, 2003. The data has been adjusted to 2010 by CPI.
MSW Generated data source: Kaufman et al., 2004
Deep Blue NRG Inc.
Contact: [email protected]
6
Economic Drivers – Renewable Portfolio Standard
RPS Summary for WECC
WECC
RPS
RPS Target
Mandatory
WREGIS
Membership
RPS
Compliance
RPS
Participants
%
Year
(State/Province)
2010/2011
AB
x
BC
x
2.5%
AZ
x
x
15%
2025
20%
CA
x
x
33%
2030
x
5%
CO
x
x
20%
2020
x
ID
x
10%
MT
x
x
15%
2015
x
ND
x
10%
2015
10%
NM
x
x
20%
2020
x
12%
NV
x
x
25%
2025
x
5%
OR
x
x
25%
2025
x
SD
x
10%
2015
x
TX
x
x
10,000MW 2025 4,264MW
x
UT
x
20%
2025
x
1-3%
WA
x
x
15%
2020
x
WY
Source: Database for State Incentives for Renewables and Efficiency
Deep Blue NRG Inc.
Contact: [email protected]
7
Economic Drivers – Renewable Fuels
California - 1 January 2011: Effective date of the carbon
intensity reference values for the Low-Carbon Fuel Standards
(LCFS) determined in 2009 by CARB.
Deep Blue NRG Inc.
Contact: [email protected]
8
Economic Driver - Diesel Prices
Electricity & gas prices to
remain flat through 2020
2011 - $/MMBTU
30
26.6
25
22
20
15
12
10
6.7
5
0
Diesel
Biomethane
Electricity
Natural Gas
Fuel Prices continue
to Climb Through 2020
Deep Blue NRG Inc.
Contact: [email protected]
9
Value of Biomethane
 Fixed 10 year term contracts
Biomethane Pricing $/MMBTU
Normal
14
Mean
StDev
N
12
9.034
1.367
40
Frequency
10
8
6
4
2
0
$ 6.00
$ 7.00
$ 8.00
Deep Blue NRG Inc.
$ 9.00
A
$ 10.00
$ 11.00
$ 12.00
Contact: [email protected]
10
Business Model – Overview
• Biogas sold to a Developer
• No custody transfer for biogas; Biogas-to-Energy Processing is outsourced;
Processing fee to Biogas-to-Energy Facility
• Biogas and Biogas-to-Energy Facility owned by the City; end product
(electricity, biomethane) sold to Open Market and/or used for own load
displacement.
Deep Blue NRG Inc.
Contact: [email protected]
11
Summary of Project Financials (Injection Assets)
 Landfill Sites (More than 2,000 Scfm)
O&M $2.50/MMBTU (excluding royalty payment)
Annualized Capex $1/MMBTU
Total Production Cost $3.50/MMBTU
IRR 25%-35%
 Digesters (less than 1,000 Scfm)
O&M $4.80/MMBTU
Annualized Capex $1/MMBTU (high H2S)
Total Production Cost $5.80/MMBTU
IRR 15%-20%
Deep Blue NRG Inc.
Contact: [email protected]
12
Biomethane Specifications
Parameter
Methane %
Heating Value (BTU/Scf)
Wobbe Number (BTU/Scf)
Carbon Dioxide %
Nitrogen %
Total Inerts %
Oxygen %
Hydrogen Sulfide (mg/m3)
Total Sulfur (mg/m3)
Siloxanes (mg/m3)
Moisture (mg/m3)
Vinyl Chloride (ppmv)
TCPL (NGas)
Min
Max
95.6%
967
1110
1268
2.0%
SoCal
Min
Max
97.8%
990
1150
4.0%
0.4%
23 (7)
115
4%
0.2%
2.5
7.5
0.1
112
1.17
65
3%
NGrid
Min
Max
95.0%
961
2%
2.75%
0.2%
5.5
112
Alabama
Min
Max
93.9%
950
1234
1395
3%
3%
4%
1%
5.5
18
0.4
112
Fortis BC
Min
Max
95.6%
967
NW Williams
Min
Max
97.3%
985
2%
2%
0.4%
6
23
3%
0.2%
5.3
106.0
65
112
CNG vehicle refueling 90%+ CH4 required, CO2 and
O2 are limits are not restrictive, H2S and Moisture are
require pre-treatment.
Deep Blue NRG Inc.
Contact: [email protected]
13
SoCal Gas Spec
Deep Blue NRG Inc.
Contact: [email protected]
14
Site Selection
 Methane Content (Transient)
Deep Blue NRG Inc.
Contact: [email protected]
Sun Tzu: “Every battle is won before it is ever fought”
15
Site Selection
 H2S can be the largest cost driver in terms of
emission requirements and odor control
 Siloxanes & VOCs
Deep Blue NRG Inc.
Contact: [email protected]
16
Lab selection and data collection
Deep Blue NRG Inc.
Contact: [email protected]
17
Repeatability of gas measurements
Histogram of CH4
Normal
55
1, LF5
56
57
58
59
60
61
62
1, LF6
4.8
3.6
Frequency
2.4
1.2
2, LF5
2, LF6
4.8
3.6
2.4
1, LF6
Mean
55.96
StDev 0.3359
N
7
2, LF5
Mean 57.46
StDev 1.394
N
7
2, LF6
Mean 58.26
StDev 1.552
N
7
1.2
0.0
0.0
1, LF5
Mean
56.16
StDev 0.7976
N
7
55
56
57
58
59
60
61
62
CH4
Panel variables: Lab, Lfill
Deep Blue NRG Inc.
Contact: [email protected]
18
Sampling test and turnaround time
Deep Blue NRG Inc.
Contact: [email protected]
19
Equipment Selection
Comparison To Power Generation
ROA_injecton /ROA_powergen
Deep Blue NRG Inc.
Contact: [email protected]
20
Process Characteristics – Biomethane
 H2S removal (Odor)
Tail gas treatment
 Water Knockout (65 mg/m3)
 NMOC removal ( Carbon, Silica Gel…)
 CO2 removal (2% max)
Tail Gas management
 O2 removal * (0.4%)
 N2 removal
 End Compression
Deep Blue NRG Inc.
Contact: [email protected]
21
Project Requirements
 Utility Interconnection Agreement
Capital Allocation and Roles and responsibilities
 Biomethane Off-take contract(s)
Free of any objectionable materials
 Transportation agreement
 Project financing
Deep Blue NRG Inc.
Contact: [email protected]
22
Level 2 Analysis
Level 2 Analysis ( Technology Assessment)
Purity & Recoverability
Process Considerations (Flow rates, %O2 and %N2,
etc.)
Manufacturer Claims vs Performance
Quality Monitoring
Sampling Process
Lab selection
Process Control
Deep Blue NRG Inc.
Contact: [email protected]
23
Level 2- Purity & Recoverability
 These are the two most important factors in your
process selection due diligence – direct impact on
your project economics.
 Integrators do not guarantee performance.
 Looking at some examples:
Deep Blue NRG Inc.
Contact: [email protected]
24
Technology Assessment Breakdown
96% CH4 injection Spec
Deep Blue NRG Inc.
Contact: [email protected]
25
Recovery Vs Methane Content Landfill
Recovery
100%
90%
80%
70%
60%
50%
Recovery
40%
30%
20%
10%
0%
40%
42%
44%
46%
48%
Deep Blue NRG Inc.
50%
52%
54%
56%
58%
60%
Contact: [email protected]
26
Project Performance (CH4% & Flow rates)
Investor IRR
50.43%
50%
52%
53%
54%
55%
56%
57%
58%
59%
Methane Content
3,850
#NUM!
27.69%
32.10%
37.64%
40.33%
43.07%
45.89%
47.66%
49.44%
Deep Blue NRG Inc.
Flow (SCFM)
4,500
5.79%
21.28%
25.73%
31.39%
33.70%
36.04%
38.42%
39.58%
40.74%
5,000
13.63%
26.95%
31.74%
37.97%
40.47%
43.01%
45.62%
46.84%
48.04%
5,800
24.52%
34.94%
40.38%
47.62%
50.43%
53.30%
56.25%
57.51%
58.76%
6,300
31.05%
39.34%
45.21%
53.10%
56.09%
59.15%
62.29%
63.56%
64.80%
Contact: [email protected]
27
Biomethane - Lessons Learned and Projections
 Biomethane injection will take the lions share of current and
future waste-to-energy projects (1603)
 Not all technologies are created equal, but all technologies can
work
 Integration is more important than hardware
 Baseline utility specifications do not effectively account for
NMOCs, but your equipment will
 Biomethane injection is far better than Power Generation at
threshold methane concentrations and biogas flowrates.
 A process working on one site cannot be cut and pasted to
another site.
 WWTP, SSO Digesters, Lanfill sites have different processing
requirements
 Renewale fuel (CNG) will derive the most benefit from
biomethane injection
Deep Blue NRG Inc.
Contact: [email protected]
28