Transcript REALIZING THE BENEFITS OF LANDFILL GAS TO ENERGY …

Discover the Power Potential of
Landfill Gas
MWMA Annual Meeting
March 5, 2001
Shelley Cohen
Landfill Methane Outreach Program
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Presentation Summary
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What is the LMOP
What is Landfill Gas?
How can Landfill Gas (LFG) be Used?
Why is the EPA is promoting LFG utilization
State of the Industry
What Does the Future Hold: Issues and
incentives driving the Landfill Gas Industry
How Can the LMOP Help
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What is the LMOP?
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Voluntary public/private outreach program
Mission: Create alliances between States,
energy users, communities, and the LFG
industry to help them overcome barriers to
project development.
Works hand-in-hand with regulations to
ensure low-cost compliance
Provides a range of products and services
to facilitate project development
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Why is EPA Promoting
Landfill Gas Utilization?
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Methane is a potent greenhouse gas
There are many cost effective options for
reducing and controlling emissions
Helps offset cost of compliance with
NSPS/EG
Other benefits
Improves landfill management
— Reduces local air pollution
— Reduces odors
— Creates jobs
— Improves economic
development near landfills
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Why is EPA Promoting
Landfill Gas Utilization?
Tangible community
environmental initiative
 Helps meet Utility Climate
Challenge goals
 Reductions may be reported
under 1605(b)
 Enhances public relations
internally and externally
 Lowest cost renewable resource
on a levelized kWh basis
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What is Landfill Gas?
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Landfill Gas (LFG) is created when waste in a
landfill decomposes under anaerobic -- or
oxygen free -- conditions
Air toxins
5%
Methane
LFG is approximately:
50%
— 50% methane
Carbon
Dioxide
— 47% carbon dioxide
45%
— 3% air toxins
LFG has the heat value of medium BTU fuel
Landfills are the largest human made methane
source
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How Can Landfill Gas
(LFG) be used?
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Landfill gas can be used
a variety of ways:
— boiler fuel
— electricity
— leachate evaporation
— niche applications: to heat
a greenhouse, vehicle fuel,
upgrade to pipeline quality
LFG is the only energy source
that, when used, actually
removes pollution from the air
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Direct Gas Sales
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Cleaver Brooks 20,000 lb/hr Boiler
Gas pumped to nearby
customer for use in boiler
100+ operational projects
Pipelines 1 - 5 miles
Easy, proven technology
minimal processing
requirements
cost effective
— $1.50 to 3.50 per MMBtu
 Pipeline length
 Collection system in8
place
Electrical Generation
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Caterpillar 3516 800 kW genset
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Over 200 projects
Electricity sold to utility,
nearby customer, or on-site
869 MW on-line
Size - 500 kW - 50 MW
Tend to have high avoided
costs
Utilities can be difficult to
deal with
$1,000-$1,500 per KW
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(capital costs)
Combustion Gas
Turbine
Solar 3 MW
Gas Turbine
Milwaukee, WI
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Steam Turbine
50 MW
Steam
Turbine
Whittier, CA
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Pipeline Quality Gas
Upgrades
10 MMcfd Selexol Plant, Fresh Kills, NY
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Inject into natural gas pipeline
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14 projects on-line
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Cost effective at larger landfills
(>4 mill cf/day landfill gas)
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Beneficial in areas where
natural gas prices are high
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High capital costs due to
processing requirements to
remove nitrogen, other
constituents
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Strict quality specifications
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$3.60 to $4.15 per MMBtu
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Fuel Cells
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Chemically convert gas to
electricity
Demonstration phase
High efficiency
Minimal emissions
High cost
Limited track record of
performance
Approximately $3,000 per
kW
Northeast Utilities 200 kW Fuel Cell
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Microturbines
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A high speed turbo-charged generator
that produces stationary power
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Available in sizes ranging between 25kW
to 75 kW.
Low emissions
Multiple fuel capacity
Light weight/small size
Does not require pretreatment of the fuel
Lower maintenance costs ($.01 per KWhr)
Limited track record of performance
$700 to $1200 per kW
Cost is expected to reduce to half in the
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next five years
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Allied Signal Parallon 75
Vehicle Fuel
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Compressed landfill gas (CNG)
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Liquified landfill gas (LNG) - CryoFuels®
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Early stages of development
LNG/CNG price lower than diesel fuel
cost
Reduce use of fossil fuels
Reduce local ozone pollution
Small percentage of alternative-fuel
vehicles
Limited track record of performance
Retrofit = $3,500 to $4,000 per vehicle
Fueling station = $1,000,000
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Fuel price = $.48 to $1.26 per gallon
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Niche Alternatives
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Great application for smaller
landfills
OTHERS
Leachate Treatment
Produce high purity carbon
dioxide
Greenhouse
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Summary of Technology
Applications
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Selection of technology is site specific
Technologies exist for low and high volumes of
LFG production
Many proven/cost effective ways to utilize LFG
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State of the Industry
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Landfill gas to energy project development
has been around in the US since the 1970s.
There are over 318 successful landfill gas
to energy projects in the US.
— 318 Operational Projects
— 56 Projects Under Construction
— 118 Planned Projects (approximately)
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State of the Industry
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Federal Legislation Driving
the LFG Industry
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New Source Performance Standards and
Emission Guidelines (NSPS/EG)
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LFs over 2.50 Million Tons of WIP
LFs emitting over 50 megagrams of Non-Methane Organic
Compounds (NMOCs)
Utility Deregulation Legislation (under debate)
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Consumers choose power provider, and power type
Consumers willing to pay more for renewables
LFG acknowledged by the Federal Government as renewable
Legislation may require power providers include renewable
energy as part of their power offerings
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Federal Incentives
Driving the LFG Industry
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Tax Credit
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Subsidy
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Renewable Energy Production Incentive (REPI): 1.5 cents
per kilowatt hour
Federal Grants
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Section 29: 1.0 -1.5 cents per kilowatt hour. Expired ‘98
Section 45: proposed legislation to provide a tax credit
for certain renewables, including landfill gas.
LFG qualifies for many Federal grants.
Other incentives such as grants and loans are
available at the state and local levels.
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Many states want to address local air quality concerns
while promoting sustainable community development.
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Incentives Continued
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Executive Order: requires Fed. facilities to examine
ways to increase energy efficiency and use
renewable energy
Case Study: EPA research facility in CA just signed an
agreement with SMUD to purchase 100% renewable
energy -- 40% is landfill gas
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Emission Reductions Reporting for Credits:
Potential legislation to provide credits for voluntarily
efforts to reduced ghg emissions. Credits may have
$ value.
Communities are interested in ways to clean the
environment, using LFG can help communities reach22
pollution reduction goals.
EPA Project Assistance Technical & Networking Support
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Technical information and support
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E-PLUS evaluation software
Project Development Handbook
Template of landfill profiles
Economic incentives information
LFGE networking and information
exchange
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Workshops
Industry Ally expert list
Ally Update fax-out
LMOP Report
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EPA Project Assistance Community Relations Support
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Public recognition and communications
support
— Promotional toolkit
— Trade press PSA’s
— Event support
— Communications support
Marketing information
— Green power information
— Community education materials
Pilot green pricing program support
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Interested? What
Next?
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Contact LMOP Territory Manager
Investigate candidate landfills in area ~ EPA
can help!
Create partnerships and gather support
Think about project options and opportunities
— Think about projects ‘of scale’
— Think out of the box
— Think sustainably: consider the economic,
environmental, and community benefits
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JOIN THE LMOP AS AN ALLY OR PARTNER!
Becoming an LMOP
Ally or Partner
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Four Ally/Partner Programs
— Energy Ally
— Industry Ally
— State Ally
— LMOP Partner
Voluntary/non-binding
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Contact Information
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Shelley Cohen
Program Manager
— 202.564.9797
— www.epa.gov/lmop
5ht Annual LMOP Conference & Project Expo
-- December 2001
-- Washington, DC
Watch the web site for more information
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