Landfill Gas to Energy (LFGTE) Project

– A Winning Combination of

Renewable Clean Power with

Greenhouse Gas (GHG) Reduction

7137 Old Easton RoadPipersville, PA 18947, USA

Hong Sima, Ph.D., P.E.Jan C. Hutwelker, P.E.Samuel A. DeanDavid R. Horvath, P.G.

AWMA International Specialty ConferenceLeapfrogging Opportunities for Air Quality Improvement

May 10-14, 2010 Xi’an, China

Introduction

� Landfills are major human-made sources of CH4• 2nd largest CH4 source in the U.S./3rd largest in the world• CH4 as a GHG is >20x more potent than CO2

• CH4 has a short lifetime (~ 12 years) in atmosphere• Representing the greatest total GHG reduction potential

of all M2M sectors for actions at $0 - 60/MTCO2E

� LFG = ~50% CH4 + ~50% CO2 + <1% NMOCsIn the U.S., 1 million tons of MSW => ~ 0.8 MW electricity

or => ~ 432,000 ft3/day = 12,234 m3/day of LFG

� LFGTE – A Winning Combination• Reduce GHG + Generate Clean Power + Savings + Jobs• 24/7 production + >90% online reliability• Cost competitive ($0.04-0.06/kWh in the U.S. market)

Estimated Global Anthropogenic Methane Emissions by Source, 2005

U.S. EPA, Global Anthropogenic Emissions of Non-CO2

Greenhouse Gases: 1990-2020 (EPA Report 430-R-06-003)

Gas Header PipeIntermediate/Final Cover

Flare/LFGTE Plant

Leachate Plant

Gas Extraction Wells

GW Monitoring Wells

Liner System

MSW Cells

Modern Sanitary Landfill

LFG Recovery Methods and Use Opportunities

• Electricity – 2/3 of LFGTE Projects(Reciprocating engines, Gas turbine, Microturbine, and Others)

• Direct-Use – Growing Very Fast(Boilers, Combined heat & power, Direct thermal, Greenhouse, Leachate evaporation, Artist studio, Hydroponics, Aquaculture)

• Pipeline Injection w/ Purification(High and medium BTU only, special treatment required)

• Alternative Vehicle Fuel(LNG, CNG – High/medium BTU only, special treatment required)

IncreasingDegree of processing:

Removal ofmoisture

Removal of particulate

CO2Separation

Removal ofimpurities

LFG Recovery and Use Options

The list of innovative uses for LFG continues to grow; currentlythere are at least 30 different applications for LFG:

Gas engine Vehicle fuel Compressed natural gasGas turbine Boiler Infrared tube heaterMicroturbine Steam turbine Thermal oxidizerCogeneration Brick kiln Paint shop oven burnerCombined cycle Incinerator fuel Paint evaporatorLeachate evaporator Asphalt heater Blacksmith forgeCondensate evaporator Lime kiln Greenhouse heat Sludge dryerClay dryer Glass kilnCement kiln Ceramic kilnFuel cell Metal furnacePipeline gas Liquefied natural gas

Innovative LFG Uses – Growing

• Multidisciplinary, full-range environmental firm

• >60% of technical staff are licensed PEs/PGs, etc.

• Highly specialized in solid waste management, landfill engineering and LFGTE/LLT projects

• Successfully implemented all phases and steps of various types in the LFGTE project cycle

• Familiar with Carbon Finance/Carbon Credits

• Active in the U.S. EPA-LMOP and M2M programs

• Award of U.S. EPA-LMOP Project of the Year

• Award of SWANA Excellence in Technologies

7137 Old Easton Road, Pipersville, PA 18947, USA

LFGTE Case Study #1

• Green Knight Energy Plant, USA• LFG design, permitting and CQA• U.S. EPA-LMOP Project of the Year• $9.2 million

Main Features: Electricity• 4,200 scfm (7,137 m3/hr) => 10 MW• 500-ft (153 m) pipeline

GHG Reduction: 13,400 MTCO2E/yrwhich is equivalent to

• powering 6,300 single family houses• or planting 11,200 ac (4,536 ha) trees• or eliminating 9,000 passenger cars• or reducing uses of oil by 114,300

barrels (18,059,400 L)

LFGTE Case Study #2

• CES Landfill/Keystone Potato Co., USA• Fully Automated LFG Control System• $2.0 million

Main Features: Direct Use• 1,200 scfm (2,039 m3/hr) => Heat

26.4 MBTUs/hr (7,730 kW)• 2,700-ft (825 m) pipeline

• Automatically controlled LFG system• Gas boiler at 10 psig (68,948 Pa)

GHG Reduction: 3,829 MTCO2E/yrwhich is equivalent to

• powering 1,800 single family houses• or planting 3,200 ac (1,296 ha) trees

LFGTE Case Study #3

• DCO Energy Plant at CES Landfill, USA• LFGTE Design and Construction• $13.0 million

Main Features: Electricity• P1: 4,600 scfm (7,816 m3/hr) => 12 MW• P2: 6,900 scfm (11,724 m3/hr) => 16.5 MW• 550-ft (168 m) 14-in (35.6 cm) pipeline• Integration with existing LFG systems• LFG treatment (siloxane removal)

GHG Reduction: 22,014 MTCO2E/yrwhich is equivalent to

• powering 10,350 single family houses• or planting 18,400 ac (7,452 ha) trees

LFGTE Case Study #4

• Waste Mgmt Alliance Landfill, USA• Modular Design/Integration of LFGTE• $7.0 million (partial costs to date)

Main Features: Pipeline to Power Plant• 8,000 scfm (13,594 m3/hr) => 15 MW• 21-mile (34 km) pipeline• Integration with existing LFG systems• LFG compression/chilling station• LFG condensate treatment

GHG Reduction: 25,524 MTCO2E/yrwhich is equivalent to

• powering 12,000 single family houses• or planting 21,333 ac (8,640 ha) trees

LFGTE Case Study #5

• Chrin Brothers Landfill, USA• Green Energy Park Development• $8.8 million (estimated)• $1.0 million PA-SRE Grant (17%)

Main Features: Cogeneration• 2,000 scfm (3,398 m3/hr) => 3.2 MW

+ 35,000 MMBTUs (10.3 GWh)• 1-mile (1.6 km) pipeline• Air Quality/Risk Assessment Models

GHG Reduction: 18,000 MTCO2E/yrestimated as equivalent to

• powering 2,500 single family houses• or planting 4,000 ac (1,620 ha) trees

Also: Create 160 new local jobs

Landfill Methane to Markets (M2M) inThe Context of Global Carbon Markets

Global Carbon Market Scales

Cost Revenue

$$$$

$$

$$$

$ CERs by reducing CO2

CERs by reducing CH4

Revenue fromLFGTE

Note that

the U.S.

and Canada

are not

included

here.

Global Carbon Market Structure and Potential

Complex Highly Regulated Global Carbon Markets

Clean Development Mechanism (CDM)

• Project Idea Note (PIN) – Based on pre-feasibility studies • Letter of Intent (LoI) – Ideally, with Project Concept Note (PCN)• Environmental Impact Assessment (EIA)• Project Design Document (PDD) – Overestimated CERs potential• Project Development, EPC, and O&M Service Contract(s)• Utility Interconnection Plan/Agreement• Public Hearing and Comments• Identification of CER Buyer(s)• Validation – A major cause of delays • Emission Reduction Purchase Agreement (ERPA)• Letter of Approval (LOA) from the DNA of Host Country• Registration by the UNFCCC’s CDM Executive Board• Implementation/Monitoring – Usually, (much) less CERs delivered• LFG Recovery Operations Start-up• Verification, Certification and Issuance of CERs

How Can Carbon Credits Finance CDM Projects?

Equity Requirement Loan Prepayments Hedge Interest Risk

Impacts of Regulations/Policies

U.S. Voluntary Carbon Marketin the Context of Pre-Compliance

(CCX, VCS, CAR, ACR, GS, and OTC, etc.)

Renewable Portfolio Standards (RPSs) –35 state mandate renewable energy programsProduction Tax Credits (PTCs) – Corp. tax credits of $0.011/kWh (in service by 12/31/08)Renewable Energy Certificates (RECs) –Can be traded as a commodity at $5-50 per MW as energy equivalent ($0.005-0.05/kWh)Clean Renewable Energy Bonds (CREBs) –National allocation $1.2 million, 2007-2008Renewable Energy Production Incentive (REPI) – Online by 10/1/2016, for 1st 10 years

The Methane to Market (M2M) Partnership

U.S. M2M Project Network

In 2008, landfill sources represented 16% of total U.S. M2M transactions; and 20% of total volume of U.S. GHG credits came from LFGTE projects

U.S. Carbon Market: $1 Trillion by 2020

Global Carbon Market Trends

Regional Cap-and-Trade Programs In the United States and Canada

LFGTE Project Development Steps

1. Estimate LFG Recovery Potential through Initial Technical and Economic Assessments and Feasibility Studies

2. Evaluate Project Economics with Identification of the Potential End Users/Sales

3. Establish Project Structure – Who will Develop/Manage the Project? Need a Partner? Etc.

4. Draft Development Contract – Determine Gas/CER Rights5. Assess Financial Options and Technological Alternatives6. Negotiate and Sign Energy Sales Contract7. Secure All the Necessary Permits and Approvals with A

Proper Utility Interconnection Plan/Agreement8. Contract for Engineering, Procurement and Construction

(EPC) and Operation and Maintenance (O&M) Services9. Implement Project and Start Up Commercial Operations

LFGTE Project Development Issues

• Lack of financing and/or understanding of how to apply for funding or investment from multilateral organizations or other financial institutions

• Insufficient local/in-country knowledge and/or experience developing methane recovery and use projects (i.e., local/national capacity)

• Lack of understanding about the legal, regulatory, economic, and policy frameworks in various states/regions/countries (e.g., LFG ownership rights, taxes, or incentives, as well as general investment environment)

• Lack of localized or country-specific information on the current status of methane recovery and use activities (e.g., market assessments) as well as needs, opportunities, and priorities (e.g., sector profiles)

• Insufficient identification of suitable candidate sites/facilities for potential methane recovery and use project assessment and development

• Lack of available/appropriate technologies (e.g., best practices) and/or technical knowledge/expertise as needed

• Lack of demonstrated technical or economic feasibility of technologies and/or projects (e.g., feasibility studies, demonstration projects)

• Difficulty accessing existing data, documents, tools, and other resources characterizing methane recovery and use

Landfill Gas and Green PowerA Winning Combination

• Greenhouse gas reductions – destroy methane (CH4) and other organic compounds (NMOCs) in LFG

• Avoided/reduced fossil energy emissions – offset use of nonrenewable resources (coal, oil, and gas, etc.)

• Leapfrogging opportunities for air quality improvement – directly and/or indirectly reduce emissions of CH4,

VOCs, other organics, SO2 , NOX , PM, and CO2 , etc.• Valuable energy source – recognized renewable energy • Sustainability – generated 24/7 with online reliability

over 90%; cost competitive; can act as a long-term price and volatility hedge against fossil fuels

• LFGTE projects create jobs, revenues, and cost savings

For further information please contact

Hong Sima, Ph.D., P.E. hsima@earthres.com

Jan C. Hutwelker, P.E. jhutwelker@earthres.com

Samuel A. Dean sdean@earthres.com

David R. Horvath, P.G. dhorvath@earthres.com

001-215-766-1211 (Office) 001-215-766-1245 (Fax)

P.O. Box 4687137 Old Easton RoadPipersville, PA 18947, USA

AWMA International Specialty ConferenceLeapfrogging Opportunities for Air Quality Improvement

May 10-14, 2010 Xi’an, China