joseph c. cleary, p.e., bcee principal hydroqual, inc. 1200 macarthur boulevard, mahwah, nj 07430
DESCRIPTION
Optimizing the Digestion Process to Maximize Methane, Power and Payback – A Discussion of Treatment, Co-Generation and the Evolving Methods of Paying Off the System. Joseph C. Cleary, P.E., BCEE Principal HydroQual, Inc. 1200 MacArthur Boulevard, Mahwah, NJ 07430 [email protected] - PowerPoint PPT PresentationTRANSCRIPT
Optimizing the Digestion Process to Maximize Methane, Power and Payback – A Discussion of
Treatment, Co-Generation and the Evolving Methods of Paying Off the System
Optimizing the Digestion Process to Maximize Methane, Power and Payback – A Discussion of
Treatment, Co-Generation and the Evolving Methods of Paying Off the System
Joseph C. Cleary, P.E., BCEE
Principal
HydroQual, Inc.
1200 MacArthur Boulevard, Mahwah, NJ 07430
Michael Curtis, Ph.D., P.E.
Senior Vice President
Fuss & O’Neill
146 Hartford Road, Manchester, CT 06040
OutlineOutline
Anaerobic Digestion Overview and History Available Technologies and Configurations Design Considerations & Optimization Project Delivery Approach Paying for Alternative Energy Upgrade Renewable Energy, Carbon Credits and Bonds Entrepreneurial Approach and Investor Partnering Summary
Anaerobic Digestion Overviewand History
Anaerobic Digestion Process
HistoryHistory
1940’s – Low rate anaerobic municipal sludge digesters
1950-60’s – Two stage and heated digesters 7 Thermophilic
1960-70’s – Anaerobic contact process used in meat packing and food industry wastewater.
1965-85 – Development of Egg-Shaped Digesters for municipal sludges
1966-68 – Fixed film reactor lab studies 1972 – First full-scale anaerobic filter with pall
rings (Celanese)
HistoryHistory
1980-85 – Hybrid anaerobic filter (ADI)
Downflow filter (Bacardi)
Upflow anaerobic sludge blanket (UASB)
(Biothane & Paques)
Fluidized Bed 1990s – Expanded Granular Sludge Bed (EGSB)
(Biothane) 1990s-2000 – Pulsed sand bed system (Ecovation) 2000-Present - Co-Gen Advancements, “Carbon
Engineering” TM
Number of Industrial InstallationsNumber of Industrial Installations
Industrial Sector Number
Beverage 623
Food 310
Pulp and paper 137
Chemical/pharmaceutical 107
Dairy/Ice Cream/cheese 67
Sewage 67
Meat/poultry/fish 23
Other 265
TOTAL 1599Reference: Chemical Engineering April 2003
Typical Industrial Application Typical Industrial Application
Reactor ConfigurationsReactor Configurations
Reference: R.E. Speece, 1996
Design ConsiderationsDesign Considerations
Organic loading rate (e.g. Kg COD/M3-day) Gas production rate Alkalinity & pH balance Reactor configuration / mixing Concentration of biomass inventory Volatile Solids / Mass Reduction Temperature / Heating Toxicity Inhibition Biosolids Quality – Pathogen Destruction
Digester Process OptimizationDigester Process Optimization
Improved Mixing New Low-Energy Mixing Enhancements Increase Methane Production / VS Reduction Staged Reactors Temperature (meso / thermophilic) pH / Alkalinity Feed Rate Optimization Co-Digestion – Carbon Engineering TM
Project Delivery ApproachesProject Delivery Approaches
Design/Bid/Build (most traditional) Design/Build (D/B) Design/Build/Operate/Maintain (DBOM) Design/Build/Own/Operate/Maintain
(DBOOM)
So How do You Pay for it ??
Paying for Alternate Energy UpgradePaying for Alternate Energy Upgrade
Resource is Methane Payback Based Upon Avoided Power Purchase
and Much More 1 mgd plant with Flared, well-maintained
digester 20,000 SCFD – 60% Methane – 30 kW $45K per year at $0.16 per kWhour Helps – but will not pay for $ 0.5 – 1M
investment
Paying for Alternate Energy UpgradePaying for Alternate Energy Upgrade
Must Install Gas Treatment – Sulfur and Siloxanes Condensate Collection Pressurization Co-Generation Unit (turbine, engine, etc.) Electric Switch Gear Heat Exchange Capabilities (Exhaust / Engine Jacket
Heat to Process)
Not Rocket Science – but Not Trivial!
Co-Gen UnitsCo-Gen Units
Fuel Cell – 7K per kW Micro Turbine4 K per kW
80-90% EfficientPower and Heat
Paying for Alternate Energy UpgradePaying for Alternate Energy Upgrade
First Consideration – app. / up to 50 % Sludge Mass Reduction – sizable Sludge Disposal Cost Reduction
Possible Elimination of some / all Fossil Fuel Use to Maintain Digester Temperature
Avoided Power Purchase – Power Parasitized On-Site - Highest Value
Low Energy Plants (RBC’s, Trickling Filters) can actually export Power to Grid - Net Metering Research
Renewable Energy Credits and Carbon Credits
Renewable Energy Credits and Carbon Credits
Renewable Energy Credits (REC’s) for generated power
Current value approx 3-7 cents per kWh Based Upon Utility Mandates to Offer
Increasing levels of Renewable Power Capitalism at Work – Given Market Brokers – Buyers - Sellers Value of Power ($0.05 per kWh)
$0.21 per kWH $55K for 30 kW Installation
Renewable Energy Credits and Carbon Credits
Renewable Energy Credits and Carbon Credits
Carbon Credits market still very young Adds some revenue now Has Potential to add very significant
revenue stream for larger projects Example – Mid-Size Digester Offsetting 500,000 gal fuel oil per year Reducing 5,000 tons/year CO2 Ten year period Total value approx $500,000
Renewable Energy Credits and Carbon Credits
Renewable Energy Credits and Carbon Credits
Purchase of Carbon Credits and REC’s Lump Sum Up front – Buy Down Capital Long-Term Annuity Approach Need Good Financial Analyst Long-Term - Carbon Costs Going to Rise
New Jersey ProgramsNew Jersey Programs
http://www.njcleanenergy.com/renewable-energy/programs/renewable-energy-incentive-program
New Jersey Clean Energy Program Large and Growing Never Take ANYTHING on Face Value Programs Set up for Flexibility and Success NJ BPU BioPower Rebate Program
$1,500 - $2,000 per kW at Typical Installation
Clean Renewable Energy BondsClean Renewable Energy Bonds
The Energy Policy Act of 2005 (P.L. 109-58) establishes Clean Renewable Energy Bonds. A "CREB" is a special type of tax credit bond providing the equivalent of an interest-free
loan for financing qualified energy projects.
Clean Renewable Energy BondsClean Renewable Energy Bonds
For the 2007 round of awards, there were 786 applicants from 40 states seeking a total of $2.5 billion in bond authorization (three times what was available).
610 projects were approved including 78 private projects in 24 states ranged from $120,000 to $31 million.
25% of the applicants were in California (presumably high solar pv project count); other active states were New Mexico, Montana, Minnesota and Colorado. There were few applicants from the East and South other than Massachusetts.
Entrepreneurial ApproachEntrepreneurial Approach
Well run Digester an Environmental Bonanza Can Take Organic Wastes and Treat for Money CA – Food Wastes New England –
Flammable Hazardous Petroleum / Waste Wastes Food and More
Pluses – Tipping Fees – Can Greatly Increase Methane Production Power Payback
Essex Junction VT
Investor PartneringInvestor Partnering
Digester Projects are Wanted Commodities by the Investment Community
Shared-Savings – Open Book Approach ESCO’s Value of Carbon seen as ‘sure thing’ Private – Public Partnership can make project
happen
SummarySummary
Trend towards Increased Sludge Digestion in US and World
Reverses Trends (EPA) of Previous 25 years Alternate Energy Market – Driven If you Have Methane – Easy Analysis to Develop If you are Planning Stages, my belief is that
Switch to Digestion Will and Can Pay Expert-Driven Field Integrating Design,
Construction and Financing
QUESTIONSQUESTIONS