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Next Generation Technology Swine Waste-to-Energy Project

Renewable Energy Generation and GHG Emission Reductions via Innovative Waste Management

Presented To:From Waste to Worth:

“Spreading” Science & SolutionsApril 4, 2013

Presented By: William G. “Gus” Simmons, Jr., P.E.

Cavanaugh & Associates, P.A.

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Why is NC Looking at Alternative Energy / Fuels from Ag Waste???

• NC Ranks 2nd in the US in pigs produced, with 15% of the US pig crop (IA)

• NC Ranks 2nd in the US in turkeys produced, with 13% of the US turkey crop (MN)

• NC Ranks 4th in the US in broilers produced, with 9% of the US broiler crop (GA)

• NC Ranks 10th in the US in residential electricity consumption, per capita

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So, Why Agricultural WTE in NC???• With the passage of Senate Bill 3 (2007), North Carolina

became the first state in the Southeast to adopt a Renewable Energy and Energy Efficiency Portfolio Standard (REPS).

• SB3 requires:– investor-owned utilities in North Carolina to provide up to 12.5% of

their energy through renewable energy resources or energy efficiency measures.

– Rural electric cooperatives and municipal electric suppliers are subject to a 10% REPS requirement.

• Agree or Disagree – a linkage was made between the potential for the development of renewable energy (biogas / biomass) and all the pig farms in North Carolina

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NC IOU* Renewable Obligation*** Investor Owned Utility** Under Senate Bill 3

Year Total REPS Solar Swine Waste

Poultry Waste

2010 0.02%

2012 3% 0.07% 0.07% 170k MWh

2013 700k MWh

2014 900k MWh

2015 6% 0.14% 0.14%

2018 10% 0.20% 0.20%

2021 12.5%

Out of State REC Cap = 25% of Requirement

To meet obligations of SB3, Duke Energy would need ~123,000 MWh of Swine Waste Fueled Electricity Needed by 2018 (pre-merger values)

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North Carolina Swine Energy Potential

Data provided by Duke University Carbon Offsets Initiative

Asheville

Triad Raleigh/RTP

Charlotte Wilmington

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The North Carolina Potential - What Can We Expect from Swine

Waste to Energy Systems?• About 1.1 M MWh electricity annually• About 6.3 M tons GHGs reduced annually• Potential for major nutrient management

strides and pathogen reductions • Improved animal health, reduced

mortalities, greater farm productivity • Creation of new acres of cash croplandData provided by Duke University Carbon Offsets Initiative

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How to turn pig waste into electrons?

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Case Study:Digester Systems for Animal Waste Solids –

Loyd Ray Farms Project

GHG Emission Reductions and Renewable Energy Generation via Innovative Waste Management

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Step 1: Establish the TargetProject Goals: (2006) • Make it “Market Feasible” – farm owners perspective• Energy Generation + Water Quality Improvement + Air

Emissions Improvement• Make it flexible - different farm sizes & types• Process based, not technology based• Innovative waste management : Achieve

environmental performance standards as described by NC legislation– Substantial elimination of odor, ammonia, total nitrogen,

and pathogens

BioEnergy Digesters in North Carolina

Commercial-Scale Demonstration Project:Loyd Ray Farms Swine Waste-to-Energy ProjectConverts waste from 9,000 pigs into electricityImproved Environmental Management

Raw

Was

teMixed Digester

Biog

as Liqu

ids

Treated Water

How it Works

Existing StorageLagoon

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How it Works:~65% CH4

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Photos by: Marc Deshusses, Duke University, 2011

What it looks like… After Construction

What it looks like… Steady State

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Covered Anaerobic Digester

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Aeration System

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Gas Conditioning System & Microturbine

Microturbine Specifications:•65 kilowatt Generative Capacity•First Scheduled Service @ 8,000 Hrs•Only one moving part @ >90,000 RPM•Air bearings – no lubricant or coolant required

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Expected Outcomes:5,000± Carbon Offsets per Year, registered with Climate

Action Reserve Duke University & Google: Retire to meet carbon

neutrality goal, retire for immediate internal demand, and/or sell when strong market signal arises

500± Renewable Energy Credits per Year Utility: Motivated by NC Renewable Energy and Energy

Efficiency Portfolio Standard Swine Waste Set AsideElectricity Generation

Farm: Energy to offset increased demand from innovative system and offset baseline electricity demand (projected to offset up to half of farm’s existing electricity demand)

Compliance with Environmental Performance Standards for New & Expanded Swine Farms (ammonia, nutrients, pathogens, odors, metals and zero discharge of waste to surface and groundwater); Ensures compliance with offset standard to meet all air and water quality standards by controlling nutrient loads

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RESULTS

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6/1/

2011

5:1

56/

4/20

11 1

7:15

6/8/

2011

5:1

56/

11/2

011

17:1

56/

15/2

011

5:15

6/18

/201

1 17

:15

6/22

/201

1 5:

156/

25/2

011

17:1

56/

29/2

011

5:15

7/2/

2011

17:

157/

6/20

11 5

:15

7/9/

2011

17:

157/

13/2

011

5:15

7/16

/201

1 17

:15

7/20

/201

1 5:

157/

23/2

011

17:1

57/

27/2

011

5:15

7/30

/201

1 17

:15

8/3/

2011

5:3

08/

6/20

11 1

7:30

8/10

/201

1 5:

308/

13/2

011

17:3

08/

17/2

011

5:30

8/20

/201

1 17

:30

8/24

/201

1 5:

308/

27/2

011

17:3

08/

31/2

011

5:30

9/3/

2011

17:

459/

7/20

11 5

:45

9/10

/201

1 17

:45

9/14

/201

1 5:

459/

17/2

011

17:4

59/

21/2

011

5:45

9/24

/201

1 17

:45

9/28

/201

1 5:

4510

/1/2

011

17:4

510

/5/2

011

5:45

10/8

/201

1 17

:45

10/1

2/20

11 5

:45

10/1

5/20

11 1

7:45

10/1

9/20

11 5

:45

10/2

2/20

11 1

7:45

10/2

6/20

11 5

:45

10/2

9/20

11 1

7:45

11/2

/201

1 6:

0011

/5/2

011

18:0

011

/9/2

011

6:00

11/1

2/20

11 1

8:00

11/1

6/20

11 6

:00

11/1

9/20

11 1

8:00

11/2

3/20

11 6

:00

11/2

6/20

11 1

8:00

11/3

0/20

11 6

:00

12/3

/201

1 18

:00

12/7

/201

1 6:

0012

/10/

2011

18:

0012

/14/

2011

6:0

012

/17/

2011

18:

0012

/21/

2011

6:0

012

/24/

2011

18:

0012

/28/

2011

6:0

012

/31/

2011

18:

00

0

10

20

30

40

50

60

70

Electricity Production Rate - 2011Po

wer

(kW

)

Condensate flooded compressor,

required rebuild

Controls system issues, supplier

‘tweaks’

Condensate pump issues

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1/1/

2012

7:0

01/

6/20

12 9

:00

1/11

/201

2 11

:00

1/16

/201

2 13

:00

1/21

/201

2 15

:00

1/26

/201

2 17

:00

1/31

/201

2 19

:00

2/5/

2012

21:

002/

10/2

012

23:0

02/

16/2

012

1:00

2/21

/201

2 3:

002/

26/2

012

5:00

3/2/

2012

7:1

53/

7/20

12 9

:15

3/12

/201

2 11

:15

3/17

/201

2 13

:15

3/22

/201

2 15

:15

3/27

/201

2 17

:15

4/1/

2012

19:

304/

6/20

12 2

1:30

4/11

/201

2 23

:30

4/17

/201

2 1:

304/

22/2

012

3:30

4/27

/201

2 5:

305/

2/20

12 7

:45

5/7/

2012

9:4

55/

12/2

012

11:4

55/

17/2

012

13:4

55/

22/2

012

15:4

55/

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012

17:4

56/

1/20

12 1

9:45

6/6/

2012

21:

456/

11/2

012

23:4

56/

17/2

012

1:45

6/22

/201

2 3:

456/

27/2

012

5:45

7/2/

2012

7:4

57/

7/20

12 9

:45

7/12

/201

2 11

:45

7/17

/201

2 13

:45

7/22

/201

2 15

:45

7/27

/201

2 17

:45

8/1/

2012

20:

008/

6/20

12 2

2:00

8/12

/201

2 0:

008/

17/2

012

2:00

8/22

/201

2 4:

008/

27/2

012

6:00

0

10

20

30

40

50

60

70

Electricity Production Rate - 2012Po

wer

(kW

)

Compressor cooler failure, controls

Manual Operation Only – Gas Skid Replacement

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ScorecardParameter Goal Actual Success Gauge

RECs learned that we have more potential

500 344 69%

Carbon Offsets deductions due to venting, metering

5,000 Tons 2,500 Tons 50%

Environmental Performance - Surface Water Protection

Substantial Elimination Accomplished by Permit

Passed

Environmental Performance - Ground Water Protection

Substantial Elimination Accomplished by Permit

Passed

Environmental Performance - Odor Emissions

>7:1 D/T 2:1 D/T Passed

Environmental Performance - Ammonia Emissions

WWTP =Farm =

106 kg/wk476 kg/wk

23 kg/wk341 kg/wk

460% (Passed)140% (Passed)

Environmental Performance - Vector Reduction

<7,000 mpn/100mL <5,000 mpn/100mL

140%(Passed)

Costs and BenefitsCosts• Capital: $1.7M • O&M: $80,000/year

Funding sources• NCACSP LCP• CCPI/EQIP• Sale of RECs to Utility• Sale of Carbon Offsets

(voluntary market)

• Note: No capital or operating costs passed on to farm owner! Farm owner receives excess electricity!!!

Benefits• Cash flow for farm owner• Improved animal health• Other ecosystem services (N, P

control)• Variability in nitrogen output for

fertilizer• Reduced sludge management

cost• Improved air quality on-site• Reduction of odors off site• More choice in cropping plan• Sustaining NC Agriculture• Reduced GHG Emissions

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A couple of firsts…• First Swine Waste-to-energy project in the State

of North Carolina to place RECs on the North Carolina Utilities Commission REC Tracking System

• First Transfer of RECs from a NC Swine Farm to Duke Energy

• First ‘Innovative Swine Waste Treatment System’ permitted that utilizes digester

• First Expansion Permit Since 1997???

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Ongoing Research & Analysis:• Digester Performance – DU is conducting continuous

research of digester biogas composition, loading rates, and carbon destruction efficiency (monthly)

• Environmental System Performance – Water quality analysis by DU and Private Labs (monthly / quarterly)

• Emissions – DU performing flux analysis of ammonia and odor emissions (twice annually)

• Animal Productivity – Mortality rates, feed conversion rates, days to market, etc.

• Economic Performance – DU / DE / Cavanaugh

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Challenges & Lessons Learned:• Gas Skid Challenges – Gas skid has suffered from

multiple outages, which prevents REC generation. Numerous issues with gas skid controls system and condensate removal.

• Abundance of Gas – Very conservative on gas production expectations – have not been able to utilize all gas produced.

• Electrical Load Balancing – Environmental system operating at full capacity requires more electricity (demand) than MT produces. Adjusted operational schedule to resolve.

• CAR Protocol Requirements – Adding additional gas flow meters, thermocouples on flare, etc.

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Special Thanks

Mr. Loyd Bryant, Loyd Ray FarmsLNH Farms