How VEECs reward bioenergy projects in Victoria · 2017. 12. 6. · •E.g. biogas flaring, biomass...
Transcript of How VEECs reward bioenergy projects in Victoria · 2017. 12. 6. · •E.g. biogas flaring, biomass...
How VEECs reward bioenergy
projects in Victoria
Sydney, 22 November 2017
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Agenda
• About us
• Challenges for bioenergy developers
• Biomass opportunity for industry
• Certificate summary
• Emissions Reduction Fund (ACCUs)
• Renewable Energy Certificates (LGCs, STCs)
• Energy Savings Scheme (ESCs)
• Victorian Energy Upgrades (VEECs)
• Examples
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About Wattly & Northmore
Gordon
• Wattly: helps business and householders unlock funding
from government schemes for energy and carbon
projects
• Accredited Certificate Provider
• ~2.5 million certificates (VEEC, ESC, STC, LGC, ACCU)
• $50m in funding
• Northmore Gordon: helps industry and large
commercial business reduce energy costs by 30%
• Energy efficiency
• Bioenergy
• Solar 3
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Challenges for bioenergy
developers• Fuels can be diverse, difficult, or disappear
• Every project is unique
• Everyone wants to be second
• Payback is too long
• Technology isn’t trusted
• Regulators don’t understand it
• Permitting is a problem
• Biomass invites concerns over social licence
• So…
• Complexity kills deals
• Money does not like uncertainty
• Traditional sources of debt or project finance are hard to find
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The Biomass opportunity
• ARENA Study “Renewable
energy options for
industrial gas users”
• $2.4bn spend on
gas for industry
• Gas is $6-$20+ / GJ
• Biomass is $-ve to $12+/GJ
• Best suited to high temperature
thermal loads
• Steam
• Hot water
• Power generation 5
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Major long term schemes
LRET
• For renewable electricity projects such as biogas power generation, embedded biomass STG, or solar PV.
• Uncertain LGC price outlook for current projects.
• Can create annually to 2030
SRES
• Solar PV <100kW
• Solar thermal unlimited size
• Allows forward creation of STCs to 2030.
ERF
• Broad scope captures GHG emissions reductions not eligible for above programs, i.e. any state.
• Potential for ACCU market to grow as Safeguard Mechanism of ERF comes into force, and following Paris?
• E.g. biogas flaring, biomass boilers for heat
ESS• Electricity or gas saving projects in NSW (but you can’t create ESCs by using biomass instead).
VEET• Electricity or gas saving projects in VIC (non-EREP sites), and CAN create VEECs by using biomass
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Renewable Energy Target
• Certificates
• Large-scale Generation Certificates (LGCs)
• Small-scale Technology Certificates (STCs)
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Emission Reduction Fund
• Certificate = Australian Carbon Credit Unit (ACCUs)
• Methods
• Agriculture
• Energy Efficiency
• Facilities
• Mining, oil and gas
• Transport
• Vegetation Management
• Waste and wastewater
Register ProjectRun project, report, audit
Claim ACCUs
Hold or sell ACCUs
•Fed Govt
•Secondary market
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Emissions Reduction Fund
• $2.2 billion committed, $300 million remaining, 189 million tonnes CO2e
• Example biomass projects:
• Biogas to electricity - Piggery anaerobic digestion
• Biogas flaring – Piggery
• Refuse derived fuel – Cement plant
• Organic food source-separation – avoiding landfill methane9
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Energy Savings Scheme
ACCREDITED Person (ACP)
Creates certificates and sells to Liable Parties
Liable Party -Registered Certificate holdings
ENERGY RETAILERS
Buys certificates at most competitive prices
Pays $$ for registered certificates
Customer assigns certificate rights ACP –
Certificates Pending
Registration
ACP –Certificates
fully registered
ACP sells registered certificates
Aggregates and submits certificates for creation
ELECTRICITY CUSTOMERS
Every customer pays a little bit extra on each bill $$
Pays $$ for completed paperwork after project is done
ELECTRICITY CUSTOMERS doing energy
projects
AD
MIN
ISTRA
TOR
/REG
ULA
TOR
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VEECs for biomass heating
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30/06/2017 Blue lake Milling – Technical Proposal rev 0 / 1. 08841 Page 1 / 41
Technical Proposal
FOR A 14 TPH OAT HULL FIRED STEAM BOILER
1.08841
30/06/2017
A SOLUTION FOR
• Biomass to replace natural gas in Victoria
• Baseline:
• 5 MWth average load
• 5,000 hour p.a. operation
• 106,000 GJ of natural gas p.a.
• $1m of natural gas at $10/GJ
• With biomass
• $500k of biomass at $5/GJ
• 5,850 tonne CO2e saving p.a.
• VEECs @$14 each (net after fees) for 10 years
• Max VEEC benefit = $819,000 within 1 year
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VEECs for Biomass cogen
• Biomass cogeneration
• Baseline:
• 2 MWe engine / 1.5 MWth thermal
• 5,000 hour p.a. operation
• 82,000 GJ of natural gas p.a.
• $820k of natural gas at $10/GJ
• With biomass wood gas
• $500k of biomass at $5/GJ
• 1,350 TCO2e saving p.a. from heat recovery / 10,000 MWhe
• VEECs @$14 each (net after fees) for 10 years
• LGCs @ $60 each (net after fees) for 4 years
• VEEC (heat recovery) benefit = $189,000, 1y after start
• LGC benefit = $600,000, over 4 years
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Your AirClean Representative: Craig Morgan Northmore Gordon +61 1300 854 561 [email protected]
Blue Lake Milling c/o Energy Action Page 4 of 14 ACQ-17135-BLM
6/27/2017 Confidential and Proprietary Information of AirClean Technologies, Inc.
Copyright © 2017 AirClean Technologies, Inc. All Rights Reserved
Proposal: ACQ-17135-BLM
2.0 TURBINE SELECTION For your application, we have selected an SST-110, dual steam turbine. This unit has two separate turbine wheels which turn a centralized shaft which operates the generator. This unit has the advantage of being both highly efficient for its size and designed to accommodate the extraction steam you require of 500 kg/h.
SST-110 Dual Turbine
Backpressure Steam Turbines
Stage #1
Mass flow 15000 kg/h
Inlet pressure 29 bar(a)
Inlet temperature 380 °C
Extraction pressure 11 bar(a)
Extraction temperature 292 °C
Stage #2
Mass flow 14500 kg/h
Inlet pressure 11 bar(a)
Inlet temperature 292 °C
Exhaust pressure 0.15 bar(a)
Exhaust temperature 54 °C
Generator Performance
Outlet speed 1,500 RPM
Estimated power at terminals 2,440 kWe This system includes:
• Siemens SST-110 dual turbine drive • 2.5 MWe Generator • Control panel with a complete PLC based
turbine steam control scheme • Quick acting inlet trip valve • Bearing temperature monitoring • Vibration monitoring for gearbox housing
and generator bearings • Skid mounted water-cooled forced
lubrication system • Turbines mounted on a structural steel
base plate • All skid piping and wiring brought to edge
of the skid for a single point of connection
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The VEEC process is
complicated
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Spot prices
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