Issue 11 September 2008

To read this newsletter online, visit www.methanetomarkets.org/resources/news/index.htm.

What’s Inside: • Join Us in Mexico! • Welcome New Partners • Update From Methane to Markets Subcommittee Meetings • Methane to Markets Landfill Activities in India and Brazil • Feature Article: Upgrading Agriculture and Landfill Methane to Natural Gas Pipeline Quality Becomes

More Feasible and Economic • Methane in the News • What’s New on www.methanetomarkets.org • Upcoming Methane to Markets Conferences and Related Events

Join Us in Mexico!

MMeetthhaannee ttoo MMaarrkkeettss SStteeeerriinngg CCoommmmiitttteeee aanndd SSuubbccoommmmiitttteeee MMeeeettiinnggss SScchheedduulleedd ffoorr JJaannuuaarryy 22000099 The next Methane to Markets Joint Steering Committee and Subcommittee Meetings will be held on 27-29 January 2009 in Monterrey, Mexico. They will include site tours, sector-

specific workshops, and networking opportunities.

Visit www.methane tomarkets.org/

events/index.htm

for further meeting details.

Mexico’s Secretaría de Medio Ambiente y Recursos Naturales (SEMARNAT) is hosting this meeting. Many other sponsorship opportunities are available for this meeting. Sponsors will enjoy a host of benefits, including free exhibit space. For more information about sponsoring, please contact the Administrative Support Group (ASG) at asg@methanetomarkets.org.

About Methane International Methane International is the quarterly newsletter of the Methane to Markets Partnership. Published by the Administrative Support Group (ASG), Methane International delivers news and information about the Methane to Markets community of Partners and Project Network members. We welcome your news, commentary, and contributions. Please send them to the ASG at asg@methanetomarkets.org.

September 2008

Welcome New Partners

The Partnership would like to welcome its newest Partner Countries, Finland and Kazakhstan. Finland brings extensive expertise to the Partnership. The government

promotes methane use and recovery to farmers by providing grants of up to 40 percent of the cost of the methane project. In addition, 33 landfills in Finland already use landfill methane as an energy source. Finland plans to participate in both the Agriculture and Landfills Subcommittees. Kazakhstan is rich in project development potential, particularly in the coal mines and landfills sectors, and plans to participate in the subcommittees for those sectors. Capturing and using methane from coal mines would provide a welcome source of local energy as well as prevent atmospheric releases.

To learn more, view press releases from new Partner Countries.

Update From Methane to Markets Subcommittee Meetings

AAggrriiccuullttuurree The Methane to Markets Agriculture Subcommittee’s latest meeting took place in April 2008 in Morelia, Mexico. Mexico’s SEMARNAT hosted the meeting in conjunction with a two-day workshop, Overcoming the Barriers for the Implementation of Anaerobic Digestion in the Agriculture Sector.

The meeting focused on determining the future work of the Agriculture Subcommittee based on the input of the meeting participants. Participants also discussed creating country-specific strategic plans, strategies to increase Project Network membership and participation

in the Agriculture sector, expanding the Subcommittee’s scope to include agro-industrial waste (such as food and slaughterhouse waste), and investigating other sources of methane emissions from agriculture (e.g., enteric fermentation and rice cultivation). Event details are posted on the Methane to Markets Web site.

CCooaall MMiinneess The Coal Mines Subcommittee’s most recent meeting took place in Cagliari, Sardinia, Italy, in April 2008. More than 30 participants attended to discuss coal mine methane (CMM) project development activities in Australia, China, India, Italy, Mexico, Russia, Ukraine, and the United States; review country-specific strategies, which will be posted on the Methane to Markets Web site; and explore strategies for more effectively engaging the private sector in the Partnership. In addition, the Subcommittee presented updates on the current status and future of carbon finance mechanisms for CMM projects after 2012 and under voluntary regimes. Project Network participants presented updates on their CMM-related activities and projects.

Carbosulcis, which is owned by the Autonomous Government of Sardinia and manages the concession for mining activities in the only active coal mine in Italy, hosted a field trip after the meeting to the Italian Center of Coal Culture in Carbonia. Carbonia’s mayor greeted participants, who subsequently took an underground tour of the closed, historical Serbariu mine. Event details are posted on the Methane to Markets Web site.

LLaannddffiillllss In June 2008, the Landfills Subcommittee’s most recent annual meeting was held in Buenos Aires, Argentina. The meeting was held in conjunction with the International Solid Waste Association’s Beacon Conference on Sanitary Landfills, which drew more than 300 attendees.

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September 2008

The meeting centered on presentations and discussions of country-specific strategies for promoting landfill gas (LFG) projects. Partner Countries reached a consensus that the country-specific strategies should outline both domestic and international activities and offers of support relating to LFG recovery and use. The U.S. delegate discussed new developments with the International Landfill Database, which now includes a users guide. The Subcommittee decided that the database will track landfill technical data as well as basic project data for LFG energy projects that are operational and under construction. Event details are posted on the Methane to Markets Web site.

OOiill aanndd GGaass SSyysstteemmss The Oil and Gas Systems Subcommittee’s most recent meeting took place in Rome, Italy, in May 2008. Eni—an Italian multinational oil and gas company, with a presence in 70 countries worldwide—hosted a tour of its Research Center of Monterotondo. Participants learned about and shared leak detection and emissions reduction experiences. Following the tour, the Subcommittee met to discuss updates on country-specific strategic plans and how best to engage and improve communications with the Project Network and the oil and gas industry as a whole. The meeting also included various presentations, such as a case study on vapor recovery and the capture of associated gas. Event details are posted on the Methane to Markets Web site.

Methane to Markets Landfill Activities in India and Brazil

LLaannddffiillll GGaass WWoorrkksshhoopp iinn BBrraazziill HHeellppss IIddeennttiiffyy NNeeww OOppppoorrttuunniittiieess In June 2008, the Brazilian Technology Center for Environment Conservation (CETESB), the U.S. EPA’s Landfill Methane Outreach Program

(LMOP), and the U.S. Embassy in Brazil sponsored a LFG workshop in São Paulo, Brazil. The goal of the workshop was to disseminate the information and tools necessary for stakeholders to evaluate the potential of an LFG utilization project. More than 125 participants from government, the nonprofit sector, universities, and municipal landfills across Latin America attended sessions on topics such as technologies for LFG utilization, approaches in landfill methane emissions monitoring, and case studies detailing LFG projects in the United States and Latin America. The workshop provided participants with the information and tools necessary to evaluate a landfill’s potential for project development and assess which utilization technology would be appropriate for a certain landfill.

IInnddiiaa LLaannddffiillll SSuubbjjeecctt ooff PPrree--FFeeaassiibbiilliittyy SSttuuddyy In April 2008, EPA commissioned a preliminary feasibility study of a landfill in the city of Ahmedabad, India. The study evaluated the potential implementation of an LFG collection, control, and utilization project at the Pirana Landfill. Three different projects were examined to determine the most cost-effective use of the methane produced at the landfill. Two projects proposed using the collected LFG as energy; the other was a flaring-only project. Charts were created for each scenario to provide potential project developers with the information needed to assess the economics of developing a project at the landfill. The full study is available on the Methane to Markets project tracking database.

Methane to Markets/CETESB landfill workshop in São Paulo, Brazil.

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September 2008

Feature Article: Upgrading Agriculture and Landfill Methane to Natural Gas Pipeline Quality Becomes More Feasible and Economic Changes in the technologies, price, and demand associated with methane and natural gas extraction are driving a new trend: upgrading captured methane to natural gas pipeline quality (i.e., high-Btu) so it can be transported in existing infrastructure and used in all forms of natural gas-burning applications. Developers and owners of agriculture (i.e., manure management) and landfill projects are realizing that upgrading captured methane is making economic sense, given advances in less expensive membrane and adsorption technologies, as well as the current and anticipated future price of natural gas.

TTeecchhnnoollooggiiccaall AAddvvaanncceess SSppuurr UUppggrraaddee AAccttiivviittiieess Recent technological advances are making it easier and cheaper for agriculture and landfill methane capture projects to upgrade methane to pipeline quality. Advances in membrane and adsorption technologies have helped reduce costs and improve the quality of the methane so it meets stringent, high-Btu pipeline standards. Membrane-separation techniques leverage the varying permeability of biogas components to isolate the less-permeable methane from carbon dioxide (CO2) and hydrogen sulfide (H2S), which easily pass through the membrane. A single-stage membrane will produce gas composed of nearly 90 percent methane.1

A second technique, pressure swing adsorption (PSA), involves a type of molecular sieve, which improves methane quality by passing the gas

Methane UpgradeTechnology From the Landfill Perspective

The Greentree LFG gas energy project in Kersey, Pennsylvania, employs several innovative technologies to ensure efficient collection and processing of LFG into pipeline-quality natural gas. Such innovation earned the Greentree LFG energy project honors as a 2007 U.S. Environmental Protection Agency (EPA) Landfill Methane Outreach Program Project of theYear.

A newly designed and expanded gas collection system applies a constant vacuum, while patented wellhead boots work to prevent air intrusion. Air Liquide-MEDAL’s proprietary membrane technology removes 98 percent of the CO2 and about half of the remaining oxygen. A PSA system and other plant operations remove remaining impurities and water, then properly compress and pre-condition the raw gas stream.The high-Btu gas is transported to a utility where it is utilized in combined-cycle equipment to generate power.

mixture under pressure through a vessel containing an adsorbent bed that preferentially adsorbs contaminants (e.g., CO2, H2S). Gases under pressure tend to adsorb on solid surfaces and PSA utilizes the affinity of gases for a given solid surface. PSA boasts recovery rates as high as 90 to 95 percent, which can shrink project payback periods dramatically.

TThhee IImmppaacctt ooff tthhee RRiissiinngg NNaattuurraall GGaass PPrriicceess oonn UUppggrraaddiinngg MMeetthhaannee With natural gas prices hovering at approximately $7.50 USD per million Btu at the time of publication, project developers in the agricultural and landfill sectors might now find it cost effective to invest in methane upgrade technology. Natural gas prices have

1Nagl, Gary, “From LFG to Btus,” MSW Management, January/February 2008, www.forester.net/mw_0801_from.html

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September 2008

Upgrading Methane in the Agriculture Sector

Environmental Power Corporation held a groundbreaking ceremony in June 2008 to announce the start of construction at its Rio Leche Estates Renewable Natural Gas Facility in Dublin, Texas. Codigesting cow manure and other food industry waste products, the facility is expected to generate 635,000 MMBtu of pipeline-quality natural gas per year. Rio Leche, owned and operated by Environmental Power subsidiary Microgy, Inc., will use a thermophilic, anaerobic digestion to generate the biogas, condition the gas to natural gas pipeline standards, and distribute it through a commercial pipeline system. Microgy expects construction of the facility to be completed by the end of the first quarter of 2009.

Huckabay Ridge near Stephenville,Texas, was Microgy’s first centralized biogas production and gas conditioning facility.That project entailed construction of eight digesters, sufficient to process the manure from up to 10,000 cows that is trucked in from nearby farms.The facility reached full production levels in January 2008 and is expected to produce an aggregate of 1 billion cubic feet of biogas per year with an energy content of 650,000 MMBtu.The gas is treated and compressed to produce and deliver pipeline-quality methane that is sold as a commodity directly into a nearby natural gas pipeline.

continued to climb in the past decade, peaking at around $15 USD per million Btu in 2006. Experts expect the price trend to continue upwards.

While higher natural gas prices increase the value of captured methane as a commodity, project developers should bear in mind that

numerous factors affect the economics of upgrading captured methane. These include:

• VVoolluummee ooff rreessoouurrccee.. The larger the methane reserve, the more methane it will generate at a predictable rate. This will help ensure a steady income. Methane upgrade might be more feasible at large facilities (which produce greater volumes of methane), where the economies of scale make gas upgrade projects cost-effective.2

• SSeelllliinngg pprriiccee.. Despite the economies of scale, smaller biogas producers might be able to sell upgraded gas for a profit if the selling price is high enough.3 Small farms may also aggregate to achieve the scales needed to support a successful biogas capture and upgrade project.

• QQuuaalliittyy ooff mmeetthhaannee.. High-quality methane requires less processing than low-quality methane. Meeting pipeline specifications can be costly. In general, the costs of upgrading are minimized when methane is recovered for a direct use, where standards are less stringent.

• DDiissttaannccee ffrroomm nnaattuurraall ggaass iinnffrraassttrruuccttuurree.. Potential income could be minimized if long-distance connective systems must be built to deliver the upgraded gas to existing pipelines.

• TTeecchhnnoollooggyy uusseedd.. Costs and payback time are typically greater when additional technologies, such as dehydration and compression, must be installed to clean up the methane to meet pipeline standards. There are also operation and maintenance issues (e.g., need for highly trained, qualified personnel) associated with upgrade technologies that most farmers or landfill operators typically cannot address.4

2 U.S. Climate Change Technology Program, Technology Options for the Near and Long Term, August 2005, page 4.1-4. 3 Saikkonen, Kelly, Technical and Economic Feasibility of Upgrading Dairy Manure-Derived Biogas for Natural Gas Pipeline, May 2006, http://ecommons.library.cornell.edu/handle/1813/2982.

4 Nagl, Gary. op. cit

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September 2008

• MMaarrkkeett ddeemmaanndd ffoorr eenndd pprroodduucctt.. Different local economies have varying energy needs and infrastructure. Long-range needs (e.g., growing communities, expanding or new manufacturing) might impact demand in different areas and should be considered.

• PPrroojjeecctt ffuunnddiinngg.. In some cases, contracts are made with additional partners to share both upgrade costs and profits.

BBeenneeffiittss ooff MMeetthhaannee CCaappttuurree AAppppllyy ttoo UUppggrraaddeedd MMeetthhaannee Many of the environmental benefits associated with methane capture apply to projects that succeed in upgrading methane. For example, methane upgrade projects reduce greenhouse gas emissions and odors from farms and landfills. And by using a local, renewable source of energy, developers often displace dirtier, imported, and more costly sources, depending on local circumstances.

If the methane source is located far from the natural gas infrastructure, developers should

assess environmental impacts associated with construction and operation of the project to ensure it does not create more environmental problems than it solves. Each project must carefully consider the associated costs and benefits in order to develop the most efficient use of resources. The cost and impact of developing such infrastructure is case sensitive.

CCoonncclluussiioonn Upgrading captured methane is technologically feasible yet highly dependent upon many factors specific to each project. Methane to Markets offers several resources to help you navigate these complexities. Join the Project Network to gain access to project development experts and methane engineers to share ideas, issues, and successes. Visit the Methane to Markets online resources to learn more about project opportunities and sector-specific data and developments from the Partnership. Finally, share your experiences with us to reach the broader Methane to Markets community. We share your commitment to projects of this nature and look forward to celebrating your success.

ASG Welcomes Ashley King The ASG warmly welcomes Ashley King, who has joined Henry Ferland as the ASG’s new Co-Director. Ashley comes from U.S. EPA’s Climate Protection Partnership Division where she was the Special Assistant to the Director.The ASG would also like to thank Erin Birgfeld for her four years of work as Co-Director. Erin has joined U.S. EPA’s AgSTAR team and will remain active in the Partnership but with a focus on agriculture-related methane activities.

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September 2008

Methane in the News • Project Network member GE has recently U.K. in 1994. The methane is used as fuel to

provided two of its Jenbacher gas engines generate electricity, which is delivered by for a new 2-MW LFG-to-energy plant to La the local grid to nearby businesses. Alkane Réunion in the Indian Ocean. The LFG operates seven mine gas plants in the U.K. project is important to La Réunion, as the and one in Germany. The company’s latest island is seeking to become completely project is a 5-MW power generation and independent from energy imports by 2025. gas supply project, completed in May 2008

• Australia’s Rural Industries Research at the abandoned Mansfield mine in

and Development Corporation and the Nottinghamshire.

Australian Department of Agriculture, • In the United States, the University of Fisheries and Forestry recently launched Texas in Austin recently released Cow a collaborative research and development Power: The Energy and Emissions Benefits program focused on the capture and of Converting Manure to Biogas, a study beneficial use of methane emitted by the that explores the idea of converting intensive livestock sectors. manure to biogas to power homes and

• With partial funding from the U.S. EPA, the reduce emissions. Authors suggest that Federal Agency for Science and converting livestock manure into a Innovation of the Russian Federation domestic renewable fuel source could recently established an information center produce nearly 1 quad of renewable to accumulate and disseminate information energy per year, amounting to about LFG utilization. approximately 1 percent of the total U.S.

• The China University of Petroleum energy consumption.

(Qingdao Campus), U.S. EPA, and RTI • In August 2008, Project Network member, International jointly organized The International Energy Agency published International Workshop on Methane Turning a Liability Into an Asset: Landfill Emissions Reduction Technologies in the Oil Methane Utilisation Potential in India to and Gas Industry in Huadong, China, in April show that LFG-to-energy projects can 2008. This two-day workshop focused on provide a viable source of electricity for reducing methane emissions from the India and turn a liability into an asset. production, processing, transmission, and distribution of oil and natural gas. Do you have any press releases or news to

• Alkane Energy started to capture methane share? Please e-mail your contributions to emissions from abandoned coal mines in the asg@methanetomarkets.org.

What’s New on www.methanetomarkets.org

The Methane to Markets Partnership has recently made some enhancements to the Project Network members pages of the

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Methane to Markets Web site. You can now search for Project Network members and update your contact information, including your geographic area of interest and your organization’s description of services.

This new search feature will allow visitors to search the description of services field and

September 2008

geographic area of interest for potential project partners, so it is important that these fields are accurate and complete. By default, the geographic area of interest field is set to your address country.

Upcoming Methane to Markets Conferences and Related Events

Visit www.methanetomarkets.org for the most up-to-date information on Partnership conferences and events.

MMeetthhaannee ttoo MMaarrkkeettss MMeeeettiinnggss

27–29 January 2009 Methane to Markets Joint Steering Committee and Subcommittee Meeting Monterrey, Mexico www.methanetomarkets.org/events/2008/index.htm

1-4 November 2008 Methane to Markets Landfill Subcommittee Roundtable Discussion on Barriers to Landfill Biogas Project Development in Asia Singapore, Indonesia www.methanetomarkets.org/events/2008/landfill

OOtthheerr RReellaatteedd MMeeeettiinnggss

AAggrriiccuullttuurree MMeeeettiinnggss

11–14 November 2008 International Dairy Federation World Dairy Summit Mexico City, Mexico www.wds2008mexico.com

CCooaall MMiinnee MMeeeettiinnggss

28–30 October 2008 2008 U.S. Coal Mine Methane Conference Pittsburgh, Pennsylvania, United States www.epa.gov/cmop/conf/cmm_conference_oct08.htm

LLaannddffiillll MMeeeettiinnggss

21–23 October 2008 WASTECON 2008, SWANA’s 46th Annual Solid Waste Exhibition Tampa Bay, Florida, United States wastecon.swana.org

OOiill aanndd GGaass SSyysstteemmss MMeeeettiinnggss

11–13 November 2008 15th Annual Natural Gas STAR Implementation Workshop San Antonio, Texas, United States www.epa.gov/gasstar/workshops/imp_workshops.htm

3-5 December 2008 Flaring and Venting Reduction & Natural Gas Utilization Forum Amsterdam, Netherlands www.flaringreductionforum.org

OOtthheerr CClliimmaattee--RReellaatteedd CCoonnffeerreenncceess

29–30 September 2008 Carbon Markets India 2008 Mumbai, India www.greenpowerconferences.com/carbonmarkets/ carbonmarkets_india_2008.html

14–15 October 2008 Voluntary Carbon Markets 2008 London, United Kingdom www.greenpowerconferences.com/carbonmarkets/ vcm_2008.html

1–12 December 2008 United Nations Climate Change Conference Poznan, Poland unfccc.int/meetings/items/2654.php

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