Landfill Gas to Energy (LFGTE) Project
– A Winning Combination of
Renewable Clean Power with
Greenhouse Gas (GHG) Reduction
Hong Sima, Ph.D., P.E.
Jan C. Hutwelker, P.E.
Samuel A. Dean
David R. Horvath, P.G.
7137 Old Easton Road
Pipersville, PA 18947, USA
AWMA International Specialty Conference
Leapfrogging Opportunities for Air Quality Improvement
May 10-14, 2010
Xi’an, China
Introduction
Landfills are major human-made sources of CH4
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2nd largest CH4 source in the U.S./3rd largest in the world
CH4 as a GHG is >20x more potent than CO2
CH4 has a short lifetime (~ 12 years) in atmosphere
Representing the greatest total GHG reduction potential
of all M2M sectors for actions at $0 - 60/MTCO2E
LFG = ~50% CH4 + ~50% CO2 + <1% NMOCs
In the U.S., 1 million tons of MSW => ~ 0.8 MW electricity
or => ~ 432,000 ft3/day = 12,234 m3/day of LFG
LFGTE – A Winning Combination
• Reduce GHG + Generate Clean Power + Savings + Jobs
• 24/7 production + >90% online reliability
• Cost competitive ($0.04-0.06/kWh in the U.S. market)
Estimated Global Anthropogenic
Methane Emissions by Source, 2005
U.S. EPA, Global Anthropogenic Emissions of Non-CO2
Greenhouse Gases: 1990-2020 (EPA Report 430-R-06-003)
Modern Sanitary Landfill
Intermediate/Final Cover
Gas Header Pipe
Flare/LFGTE
Plant
Leachate
Plant
Liner
System
Gas
Extraction
Wells
MSW Cells
GW Monitoring Wells
LFG Recovery Methods and Use Opportunities
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Electricity – 2/3 of LFGTE Projects
(Reciprocating engines, Gas turbine, Microturbine, and Others)
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Direct-Use – Growing Very Fast
(Boilers, Combined heat & power, Direct thermal, Greenhouse,
Leachate evaporation, Artist studio, Hydroponics, Aquaculture)
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Pipeline Injection w/ Purification
(High and medium BTU only, special treatment required)
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Alternative Vehicle Fuel
(LNG, CNG – High/medium BTU only, special treatment required)
LFG Recovery and Use Options
Increasing
Degree of
processing:
Removal of
moisture
Removal of
particulate
CO2
Separation
Removal of
impurities
Innovative LFG Uses – Growing
The list of innovative uses for LFG continues to grow; currently
there are at least 30 different applications for LFG:
Gas engine
Gas turbine
Microturbine
Cogeneration
Combined cycle
Leachate evaporator
Condensate evaporator
Greenhouse heat
Clay dryer
Cement kiln
Fuel cell
Pipeline gas
Vehicle fuel
Compressed natural gas
Boiler
Infrared tube heater
Steam turbine Thermal oxidizer
Brick kiln
Paint shop oven burner
Incinerator fuel Paint evaporator
Asphalt heater Blacksmith forge
Lime kiln
Sludge dryer
Glass kiln
Ceramic kiln
Metal furnace
Liquefied natural gas
7137 Old Easton Road, Pipersville, PA 18947, USA
• Multidisciplinary, full-range environmental firm
• >60% of technical staff are licensed PEs/PGs, etc.
• Highly specialized in solid waste management,
landfill engineering and LFGTE/LLT projects
• Successfully implemented all phases and steps
of various types in the LFGTE project cycle
• Familiar with Carbon Finance/Carbon Credits
• Active in the U.S. EPA-LMOP and M2M programs
• Award of U.S. EPA-LMOP Project of the Year
• Award of SWANA Excellence in Technologies
LFGTE Case Study #1
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Green Knight Energy Plant, USA
LFG design, permitting and CQA
U.S. EPA-LMOP Project of the Year
$9.2 million
Main Features: Electricity
• 4,200 scfm (7,137 m3/hr) => 10 MW
• 500-ft (153 m) pipeline
GHG Reduction: 13,400 MTCO2E/yr
which is equivalent to
• powering 6,300 single family houses
• or planting 11,200 ac (4,536 ha) trees
• or eliminating 9,000 passenger cars
• or reducing uses of oil by 114,300
barrels (18,059,400 L)
LFGTE Case Study #2
• CES Landfill/Keystone Potato Co., USA
• Fully Automated LFG Control System
• $2.0 million
Main Features: Direct Use
• 1,200 scfm (2,039 m3/hr) => Heat
26.4 MBTUs/hr (7,730 kW)
• 2,700-ft (825 m) pipeline
• Automatically controlled LFG system
• Gas boiler at 10 psig (68,948 Pa)
GHG Reduction: 3,829 MTCO2E/yr
which is equivalent to
• powering 1,800 single family houses
• or planting 3,200 ac (1,296 ha) trees
LFGTE Case Study #3
• DCO Energy Plant at CES Landfill, USA
• LFGTE Design and Construction
• $13.0 million
Main Features: Electricity
• P1: 4,600 scfm (7,816 m3/hr) => 12 MW
• P2: 6,900 scfm (11,724 m3/hr) => 16.5 MW
• 550-ft (168 m) 14-in (35.6 cm) pipeline
• Integration with existing LFG systems
• LFG treatment (siloxane removal)
GHG Reduction: 22,014 MTCO2E/yr
which is equivalent to
• powering 10,350 single family houses
• or planting 18,400 ac (7,452 ha) trees
LFGTE Case Study #4
• Waste Mgmt Alliance Landfill, USA
• Modular Design/Integration of LFGTE
• $7.0 million (partial costs to date)
Main Features: Pipeline to Power Plant
• 8,000 scfm (13,594 m3/hr) => 15 MW
• 21-mile (34 km) pipeline
• Integration with existing LFG systems
• LFG compression/chilling station
• LFG condensate treatment
GHG Reduction: 25,524 MTCO2E/yr
which is equivalent to
• powering 12,000 single family houses
• or planting 21,333 ac (8,640 ha) trees
LFGTE Case Study #5
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Chrin Brothers Landfill, USA
Green Energy Park Development
$8.8 million (estimated)
$1.0 million PA-SRE Grant (17%)
Main Features: Cogeneration
• 2,000 scfm (3,398 m3/hr) => 3.2 MW
+ 35,000 MMBTUs (10.3 GWh)
• 1-mile (1.6 km) pipeline
• Air Quality/Risk Assessment Models
GHG Reduction: 18,000 MTCO2E/yr
estimated as equivalent to
• powering 2,500 single family houses
• or planting 4,000 ac (1,620 ha) trees
Also: Create 160 new local jobs
Landfill Methane to Markets (M2M) in
The Context of Global Carbon Markets
Global Carbon Market Scales
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$
$
$
Cost
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CERs by reducing CO2
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$
$
CERs by reducing CH4
$
$
Revenue
from
LFGTE
Revenue
Note that
the U.S.
and
Canada
are not
included
here.
Global Carbon Market Structure and Potential
Complex Highly Regulated Global Carbon Markets
Clean Development Mechanism (CDM)
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Project Idea Note (PIN) – Based on pre-feasibility studies
Letter of Intent (LoI) – Ideally, with Project Concept Note (PCN)
Environmental Impact Assessment (EIA)
Project Design Document (PDD) – Overestimated CERs potential
Project Development, EPC, and O&M Service Contract(s)
Utility Interconnection Plan/Agreement
Public Hearing and Comments
Identification of CER Buyer(s)
Validation – A major cause of delays
Emission Reduction Purchase Agreement (ERPA)
Letter of Approval (LOA) from the DNA of Host Country
Registration by the UNFCCC’s CDM Executive Board
Implementation/Monitoring – Usually, (much) less CERs delivered
LFG Recovery Operations Start-up
Verification, Certification and Issuance of CERs
How Can Carbon Credits Finance CDM Projects?
Equity Requirement
Loan Prepayments
Hedge Interest Risk
Impacts of Regulations/Policies
U.S. Voluntary Carbon Market
in the Context of Pre-Compliance
(CCX, VCS, CAR, ACR, GS, and OTC, etc.)
Renewable Portfolio Standards (RPSs) –
35 state mandate renewable energy programs
Production Tax Credits (PTCs) – Corp. tax
credits of $0.011/kWh (in service by 12/31/08)
Renewable Energy Certificates (RECs) –
Can be traded as a commodity at $5-50 per
MW as energy equivalent ($0.005-0.05/kWh)
Clean Renewable Energy Bonds (CREBs) –
National allocation $1.2 million, 2007-2008
Renewable Energy Production Incentive
(REPI) – Online by 10/1/2016, for 1st 10 years
The Methane to Market (M2M) Partnership
U.S. M2M Project Network
U.S. Carbon Market: $1 Trillion by 2020
In 2008, landfill sources represented 16% of total
U.S. M2M transactions; and 20% of total volume
of U.S. GHG credits came from LFGTE projects
Global Carbon Market Trends
Regional Cap-and-Trade Programs
In the United States and Canada
LFGTE Project Development Steps
1. Estimate LFG Recovery Potential through Initial Technical
and Economic Assessments and Feasibility Studies
2. Evaluate Project Economics with Identification of the
Potential End Users/Sales
3. Establish Project Structure – Who will Develop/Manage the
Project? Need a Partner? Etc.
4. Draft Development Contract – Determine Gas/CER Rights
5. Assess Financial Options and Technological Alternatives
6. Negotiate and Sign Energy Sales Contract
7. Secure All the Necessary Permits and Approvals with A
Proper Utility Interconnection Plan/Agreement
8. Contract for Engineering, Procurement and Construction
(EPC) and Operation and Maintenance (O&M) Services
9. Implement Project and Start Up Commercial Operations
LFGTE Project Development Issues
• Lack of financing and/or understanding of how to apply for funding or
investment from multilateral organizations or other financial institutions
• Insufficient local/in-country knowledge and/or experience developing methane
recovery and use projects (i.e., local/national capacity)
• Lack of understanding about the legal, regulatory, economic, and policy
frameworks in various states/regions/countries (e.g., LFG ownership
rights, taxes, or incentives, as well as general investment environment)
• Lack of localized or country-specific information on the current status of
methane recovery and use activities (e.g., market assessments) as well
as needs, opportunities, and priorities (e.g., sector profiles)
• Insufficient identification of suitable candidate sites/facilities for potential
methane recovery and use project assessment and development
• Lack of available/appropriate technologies (e.g., best practices) and/or
technical knowledge/expertise as needed
• Lack of demonstrated technical or economic feasibility of technologies and/or
projects (e.g., feasibility studies, demonstration projects)
• Difficulty accessing existing data, documents, tools, and other resources
characterizing methane recovery and use
Landfill Gas and Green Power
A Winning Combination
• Greenhouse gas reductions – destroy methane (CH4)
and other organic compounds (NMOCs) in LFG
• Avoided/reduced fossil energy emissions – offset
use of nonrenewable resources (coal, oil, and gas, etc.)
• Leapfrogging opportunities for air quality improvement
– directly and/or indirectly reduce emissions of CH4,
VOCs, other organics, SO2 , NOX , PM, and CO2 , etc.
• Valuable energy source – recognized renewable energy
• Sustainability – generated 24/7 with online reliability
over 90%; cost competitive; can act as a long-term
price and volatility hedge against fossil fuels
• LFGTE projects create jobs, revenues, and cost savings
For further information please contact
Hong Sima, Ph.D., P.E. [email protected]
Jan C. Hutwelker, P.E. [email protected]
Samuel A. Dean [email protected]
David R. Horvath, P.G. [email protected]
001-215-766-1211 (Office)
001-215-766-1245 (Fax)
P.O. Box 468
7137 Old Easton Road
Pipersville, PA 18947, USA
AWMA International Specialty Conference
Leapfrogging Opportunities for Air Quality Improvement
May 10-14, 2010
Xi’an, China