Current Trends in Energy-from-WasteNJ SWANA Spring Conference 2012

Atlantic City, NJ

By Kenneth E. Armellino, P.E.Director , Environmental Science and Community Affairs

Agenda

• Who am I & who is Covanta• Energy-from-Waste (EfW) Synopsis• Greenhouse Gas Benefits• Current Emissions Trends• Market Picture from EfW perspective• Alternative Technologies• Looking Forward

Who Am I & Who Is Covanta?

Who is Covanta Energy?

ME

MAOR

WA

OK

MN

AL

IN

MI

FLHI

NJPA

VA

CT

NY

BC

CA

EfW facilities

Ashfills and landfills

Transfer stations

BiomassHydroelectric

Landfill gas-to-energy

Development projects

Corporate headquarters

CT

NJ

MA

NY

VA

PA

MEOntario

MD

• # 1 EfW Company in North America

– NYSE Company (CVA)– Over two-thirds of EfW capacity– Dispose of 6% of U.S. waste– 8% on non-hydro renewable power

– Focus on attractive, densely-populated Northeast markets

– High waste disposal prices– Liquid electricity markets

Portfolio

• 41 EfW facilities• Other renewable generation

– 8 wood biomass facilities– 3 landfill gas projects– 4 hydroelectric facilities

• Complementary waste operations– 13 transfer stations– 4 landfills (primarily for ash disposal)

Energy-from-Waste (EfW) Synopsis

Solid Waste Management Hierarchy

After Recycling, Composting, Producer Responsibility, Product Stewardship, etc.?

Two Paths Remain:

Energy-from-Waste Landfills

550 kWh of Power

50 lbs of Recycled Metal

Ash: 10% of Original VolumeOne Ton of MSW

The Energy-from-Waste Process• Provide disposal of non-hazardous post recycled waste

• Technologically advanced facilities combust waste at high

temperatures

• Steam is sold directly or used to produce electricity for sale

• Metals are retrieved from the process and sold to recyclers

Environmental Management System

Continuous Emission Monitoring System

(CEMS)

Odors Burned in Boilers

Enclosed Unloading and Storage Areas Ash Quench

SystemHigh-temperature

Combustion

Flue Gas Scrubbers

Particulate Control

NOx Control

Carbon InjectionAnnual Stack Testing

Radiation Detectors at Scalehouse

Storm Water/Waste Water Reuse*

* Some Facilities

Turbine Generator

EfW – A Solution to Key Challenges

• Sustainable Waste Management– Most attractive solution after recycling– Waste volume reduced by 90% – Avoids impacts of landfills

• Generates Renewable Energy– Reliable baseload power 24/7; located near demand centers– Advances goals of domestic energy security

• Combats Climate Change– 1:1 CO2 offset for each ton of waste processed

• Fewer fossil fuels burned: 1 ton of waste ≈ ¼ ton of coal– Methane from landfills: 20+ times more potent than CO2 as a greenhouse gas

• Green Jobs – Average plant construction can produce approximately 300-500 construction jobs and

50 permanent jobs– New plant construction: hundreds of millions in economic activity for a community

Global Waste Management

EfW 0.2 Billion tons Recycling 0.5 Billion tons Landfill 1.2 Billion tons

U.S.

Denm

ark

Swed

en

Neth

erla

nds

Ger

man

y

Aver

age

Italy

U.K.

Irela

nd

Japa

n

Taiw

an

Sing

apor

e

Chin

a

U.S.≈90 EfW facilities

Western Europe≈400 EfW facilities

Asia≈300 EfW facilities

Landfill

Recycling/Composting

EfW

Greenhouse Gas Benefits

EfW is a net Reducer of GHGs• Benefits recognized by U.S. EPA:

– EPA Scientists: “Is it Better to Burn or Bury?”

– Office of Solid Waste Webpage: http://www.epa.gov/epawaste/nonhaz/municipal/wte/airem.htm#7

• Benefits are well recognized internationally:

– Recognized as a “key GHG mitigation measure” by the Nobel Prize winning IPCC

– Exempted from the EU Emissions Trading Scheme

– Eligible to generate carbon offsets under the Kyoto Protocol

– Recent U.S. expansions generating & selling carbon offsets under a voluntary program

EfW is a Net Reducer of GHG

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

CO2 from combustion of MSW

Fossil CO2 avoided by EfW power

Methane avoided by EfW

Net GHG factor

Ton

CO

2e /

ton

MSW

EfW Life Cycle Unit Operations

CO2 from the combustion of biomass not counted as an emission

CO2 from the combustion of plastics counted as an emission

DATA FROM JOURNAL OF ENVIRONMENTAL ENGINEERING © ASCE / AUGUST 2010

Energy-from-Waste GHG Savings

Current Emissions Trends

Air Emissions - Dioxins

Air Emissions - Mercury

Market Picture from EfW Perspective

Revenue Generation• Revenue generation from 3 main sources:

– Fees charged for waste disposal or operating projects

– Sale of electricity and steam

– Sale of recycled ferrous and non-ferrous metals

Revenue by Source

Waste &Service

Revenue57%

Metals3%

Energy & Steam Sales 34%

Other6%

Waste (Fuel) Market Drivers

• Decreasing volumes– Economy– Recycling

• Abundant landfill capacity• Rail and bail increase disposal range• Transportation costs• Flow Control• NYC Interim to Long Term Transition

Highly Contracted Revenues

• Over 75% of waste and service revenue contracted

• Long-term strategy: seek to maintain majority of facility capacity

under long-term contracts

• Over 70% of energy revenue contracted and not subject to market

price fluctuation

Alternative Technologies

Alternative Technology Development• Covanta R&D continues to lead the state of the art for

conventional EfW– High Pressure boilers with increased energy output– Advanced APC for lower emissions– Semi-dry ash systems– Improved metal recovery

Durham / York, Ontario Canada

Ince Park, UK

Alternative Technology Development

• Covanta Investments in alternative technologies– Goal of smaller physical and environmental footprint– Gasification– Waste to diesel– Organics recovery and conversion– Improved metal recovery– Ash reuse

Pilot and demonstration project investments have positioned Covanta for continued

leadership in generating energy from waste

MSW Gasification Processes

1. GASIFICATION / COMBUSTION – Goal of Improved Emissions and Higher Energy Efficiency

2. GASIFICATION TO SYNGAS – Goal of Combined-Cycle Power or High-Value End-Products

PostCombustion

MSW Low TemperatureGasification

ConventionalBoiler, APC,Power Gen

Air

Low QualitySyngas

Reduced NOx , CO & gas flow

High TemperatureGasification

MSW

HydrogenProduction

CombinedCycle Power

SyngasCleaning

Liquid FuelsProduction

O2/Air

High QualitySyngas

Looking Forward

Energy from Waste Looking Forward

• Public Acceptance

– Science based decision-making(?)

• Efficiency/Output

– Lowest net energy use/greatest energy output target

• Climate sensitive

– Lowest net GHG target

• Emissions Improvement – round 2 of MACT

• Valuation of costs of alternatives to the public