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Safe Waste Disposal and Clean Energy Solutions
… For Generations To Come.
Florida Public Service Commission Workshop
Renewable Electrical Generation
from Municipal Solid Waste
Presented by
Joseph R. Treshler
Covanta Energy, Inc.
July 26, 2007
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Introduction
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Highlight the current contribution Energy from
Waste (EFW) makes to Renewable Energy
Production
Quantify the potential for EFW to provide
additional Renewable Energy
Identify vehicles to promote Renewable
Energy growth
Background on Covanta Energy
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The Role of Renewable Electricity
Generation in the United States
U.S. Non-Hydro
Renewable
Generation
Total U.S.
Electricity
Generation
Solar
1%
Nuclear
20%
Wind
16%
Geothermal
16%
Non-Hydro
Renewable
2%
Coal
50%
Hydro
7%
Biomass
67%
Natural Gas
18%
Oil
3%
3,970,000 GWh
Source: US Department of Energy, Energy
Information Administration 2004 Report
9% of
electrical
generation
is
renewable
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88,000 GWh
88,000 GWh
Energy from Waste Generates 34% of the
Nation’s Biomass Renewable Electricity
Other BioMass 4%
• is a leader in renewable
generation
Wood 62%
• 7,800 GWh produced from Covanta
owned and operated facilities
• 32 Energy from Waste Facilities
Biomass
• 6 Wood Waste Facilities
67%
• 6 Biogas Facilities
Energy From Waste
34%
• Provides nearly 10% of the Nation’s
Non-Hydro Renewable Energy
Source: US Department of Energy, Energy
Information Administration 2004 Report
60,000 GWh
= Total U.S Biomass Renewable Generation
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EfW Technology
EfW is a specially designed energy generation facility that uses household
waste as fuel and helps solve some of society’s big challenges
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Dependence on fossil fuels
Climate change
Population growth
Resource management
Clean, renewable electricity
Reduces greenhouse gas emissions
Safe, reliable waste disposal
Recover metal, preserves land and
Ground water
Power: 550 kWh
Municipal Solid Waste
(MSW): 2000 lbs
Metal: 50 lbs
Ash: 10% of original volume
Inert - no methane
generation
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Industry Overview of Energy from Waste
 US EPA -- EFW
disposes of 13% of
the nation’s waste
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89 facilities
29 million tons per year
36 million people served
27 states
Generation capacity in
excess of 2,700 MW
16 million MWhrs of
renewable power
generated annually
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Proven, Utility Grade Technology
Exclusive North American licensee for Martin GmbH Reverse Acting Stoker Grate technology
– successfully processed more refuse worldwide than any other system available,
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Florida’s Renewable Generation
Capacity is Quite Low
Current FL generation Capacity
Current FL renewable generation Capacity
51,569 MW
1,081 MW or 2% of the state’s capacity
8% Interchange
7.2% Non-Utility
& Other*
17%
Other Biomass
175.6 MW
12.2%
Oil
13.4%
Nuclear
47% EFW
506 MW
29.9%
Natural Gas
29.4%
Coal
22%
Black Liquior
230.7 MW
11%
Waste Heat
114 MW
1% Waste Water
10 MW
*Includes 1080.7 MW Renewable Energy Generation
Source: FL PSC
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2% Landfill Gas
20.4 MW
The “Power” of EFW in Florida
One ton of MSW
Has the energy equivalent of
One barrel of fossil fuel oil or 10 MCF of natural gas!
 EFW is a proven source of Florida renewable energy
 Annually Floridians generate 31.2 million tons of MSW which is
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the energy equivalent of 31.2 million barrels of oil.
Currently 6.5 million tons (17,900 tons per day) of MSW can be
processed annually by Florida’s 12 EFW Facilities.
This eliminates the need for 6.5 million barrels of oil or 65
million MCF of natural gas.
506 MW of renewable electrical energy is generated on a daily
basis by Florida’s EFW Facilities
Saving annually over 8,125 acre feet of precious landfill space
through volume reduction.
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The Environmental Benefits of EFW
Produces renewable electricity with less environmental impact than
almost any other source of electricity
US EPA April 14, 2003
Provides a net reduction in Green House Gas Emissions (GHG)
 Displaces CO2 (GHG eqv 1) that would otherwise be
generated as a result of producing electricity from other fossil
fuels sources
 Eliminates the release of uncollectible Methane (GHG eqv 21)
from raw Municipal Solid Waste Landfills
 Recycling of the Ferrous and Non-ferrous metals recovered
following the EFW process avoids the GHG emissions that
would be associated with the smelting of virgin ores
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More EFW is Being Done…
 By 2010, Renewable Energy from Florida EFW is
planned to increase by 85 MW:
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Lee County
Hillsborough County
Palm Beach County
Pasco County
20 MW
17 MW
28 MW
20 MW
 Bringing to 591 MW the EFW Renewable Energy made
available while processing less than 25% of the Florida
MSW being generated.
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More EFW Can Still Be Done…
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Over 18 million tons of raw MSW is still being landfilled every year in
Florida.
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EFW Technology can convert this waste into approximately 1130 MW of
new Renewable Energy
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A significant number of highly developed areas of the State still heavily dependent
on land filling raw MSW as their primary method of solid waste management.
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Orange County
Duval County
Brevard County
Volusia County
Collier County
Manatee County
Seminole County
Sarasota County
1,820,638 TPY
1,483,456 TPY
704,476 TPY
499,242 TPY
477,095 TPY
343,095 TPY
303,015 TPY
297,421 TPY
Developing new EFW capacity to manage the nearly 6 million tons of MSW
available from these areas alone would increase the State’s Renewable Energy
generation by approximately 372 MW while increasing our energy independence
by the equivalent of approximately 6 million barrels of oil each year.
This will only be possible with the right incentives
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Encouraging Florida Renewables
 Current Situation
 63% of Florida’s electrical generation is fueled by
oil and gas
 Low energy payment rates and contracting
structures that have been offered since the early
1990’s for new EFW capacity inhibited further
development
 Florida has no functional wholesale electricity
markets to support EFW or other renewable
energy development; local utilities are the only
buyers
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Encouraging Florida Renewables
 The Future
 81% of Florida capacity additions are currently
proposed to be fueled by oil and natural gas
 Renewables including EFW must be a part of
changing this future
 Executive Order 07-127 signed by Governor Crist
at the Climate Change Conference limits allowable
GHG for electric utilities
 Executive Order 07-127 requires utilities to
produce substantial additional amounts of
electricity from renewable sources
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Encouraging Florida Renewables
 The Future (Continued)
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Recent Supreme Court Ruling United Haulers Association
Inc. vs. Oneida-Herkimer affecting the landmark 1994 flowcontrol decision in C&A Carbone vs Clarkstown
New (and renewed) EFW contracted energy generation must
be valued based on avoiding the most expensive fossil fuels
Development of a functional and liquid wholesale electricity
and renewable credit trading markets will stimulate growth
Long-Term fairly priced energy contracts will encourage new
project financing
Encourage/require Renewable Portfolio Standard (“RPS”) to
encourage the development of new renewable energy
generation in the state
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DSIRE: www.dsireusa.org
June 2007
Renewables Portfolio Standards
ME: 30% by 2000
MN: 25% by 2025
*WA: 15% by 2020
(Xcel: 30% by 2020)
VT: RE meets load
growth by 2012
10% by 2017 goal - new RE
☼ NH: 23.8% in 2025
WI: requirement varies by
utility; 10% by 2015 goal
MT: 15% by 2015
MA: 4% by 2009 +
1% annual increase
OR: 25% by 2025 (large utilities)
RI: 15% by 2020
5% - 10% by 2025 for smaller utilities
☼ NV: 20% by 2015
CT: 23% by 2020
IA: 105 MW
☼ CO: 20% by 2020 (IOUs)
CA: 20% by 2010
☼ NY: 24% by 2013
IL: 8% by 2013
*10% by 2020 (co-ops & large munis)
MO: 11% by 2020
☼ NJ: 22.5% by 2021
☼ PA: 18%¹ by 2020
☼ MD: 9.5% in 2022
☼ AZ: 15% by 2025
*NM: 20% by 2020 (IOUs)
*DE: 10% by 2019
10% by 2020 (co-ops)
☼ DC: 11% by 2022
*VA: 12% by 2022
TX: 5,880 MW by 2015
State RPS
HI: 20% by 2020
State Goal
☼ Minimum solar or customer-sited RE requirement
* Increased credit for solar or customer-sited RE
¹PA: 8% Tier I / 10% Tier II (includes non-renewables); SWH is a Tier II resource
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Solar water heating
(SWH) eligible
EFW: A Proven Component of
Florida’s Renewable Energy Future
 Florida (+ 22 other states and Washington DC) define EFW as
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Renewable Energy
To date 12 states and Washington DC define EFW as eligible for
Renewable Portfolio Standards
Efficiently recovers/exports over 550 KWhrs/per ton of MSW
processed
EFW is clean - “Exceeds requirements of the Clean Air Act” – US
EPA
Most advanced pollution controls of any energy generation
source
Reduces landfill requirements in excess of 90%
Eliminates the release of toxic emissions and GHG’s (especially
methane) from “raw waste” landfills
EFW and recycling are compatible: Recycling rate of EFW
communities exceeds the national average by over 5%
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Key Elements of a Successful
Renewable Portfolio Standard
 Establishes clear annual targets that must be met by any load serving
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entity selling electricity to end-users in the state (private, public, munis,
etc.)
Ensures aggressive targets to foster renewable energy innovation and
development
Clearly defines qualifying technologies/fuels
Allows markets to foster technology development without favoring
specific technologies or fuels
Allows Renewable Energy Certificate (“REC”) trading as separate
product from traditional capacity, energy, and ancillary service produced
by a generator
Establishes independently operated entity to operate trading markets
and monitor/verify REC generation, use, and load serving entity
compliance
Contains compliance, enforcement, and penalty provisions
 Defines Alternative Compliance Payment (“ACP”) in the $50 to
$80/MWh range to be paid by any load serving entity that does not
meet the RPS annual target
 Uses the funds generated by the ACP to support renewable
generation R&D and energy efficiency programs
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“Florida
has a beautiful
precious environment that
needs to be protected. This
should be our issue”
Gov. Charlie Crist
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Additional Information
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Covanta Energy Corporation
 The 32 EFW facilities Covanta operates:
 Dispose of nearly 5% of nation’s waste
 Process about 15 million tons
 Produce about 1,200 megawatts of clean, renewable energy.
 Generate nearly 10% of the Nation’s Non-Hydro Renewable
Energy
 In Florida, Covanta operates:
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4 EFW facilities:
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Pasco County, FL
Hillsborough County, FL
Lee County, FL
Lake County, FL
These facilities:
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Process over 1.25 million tons per year of MSW
Generate about 114.5 megawatts per hour
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EFW Energy is Renewable Energy
Municipal Solid Waste (MSW) is a sustainable
resource for “local” power
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MSW is biomass.
EFW efficiently converts energy value of MSW to electricity and/or
steam
EFW contributes to fuel diversity
EFW facilities are located near power users, increasing cost efficiency.
EFW avoids vehicle fuel consumption/emissions associated with
increasingly distant transportation to landfills.
EFW avoids landfill greenhouse gases and toxic emissions
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EFW: A Success Story
“Upgrading of the emissions control
systems of large combustors to exceed
the requirements of the Clean Air Act
Section 129 standards is an impressive
accomplishment. The completion of
retrofits of the large combustion units
enables us to continue to rely on
municipal solid waste as a clean,
reliable, renewable source of energy.
With the capacity to handle
approximately 15 percent of the waste
generated in the US, these plants
produce 2,800 megawatts of electricity
with less environmental impact than
almost any other source of electricity.”
-- letter to IWSA from Assistant Administrators Jeff
Holmstead and Marianne Horinko, US EPA
February 2003
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