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Safe Waste Disposal and Clean Energy Solutions
… For Generations To Come.
Informational Workshop On Renewable Energy
Presentation
Before the Florida Public Services Commission
Presented by
Joseph R Treshler
Covanta Energy, Inc.
Undocketed
January 19, 2007
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Introduction
 Purpose
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Highlight the current contribution Waste to Energy makes to
the State’s Renewable Energy Production
Quantify the additional contribution Waste to Energy can
make going forward
Recommend actions that should be taken to assist further
development of new Florida Based Renewable Energy
Sources including Waste to Energy
 Presentation outline
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Background on Covanta Energy
The role of Waste-to-Energy (WTE) as renewable resource in
FL
Comments and Recommendations
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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
Waste-to-Energy Generates 34% of the Nation’s
Biomass Renewable Electricity
Other BioMass 4%
•is a leader in
•renewable generation
• 7,800 GWh produced from Covanta
owned and operated facilities
Wood 62%
• 31 Waste to Energy Facilities
Biomass
• 3 Wood Waste Facilities
67%
• 5 Biogas Facilities
Note: Waste to Energy energy value derived
from biomass and non-biomass sources.
Waste to Energy
34%
Source: US Department of Energy, Energy
Information Administration 2004 Report
60,000 GWh
= Total U.S Biomass Renewable Generation
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Covanta Energy Corporation
 The 31 WTE facilities Covanta operates:
 Dispose of nearly 7% of nation’s waste
 Process about 15 million tons
 Produce about 1,200 megawatts of clean, renewable energy.
 In FL, Covanta operates:
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4 WTE 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
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The “Power” of WTE in Florida
One ton of MSW
(energy equivalent)
One barrel of fossil fuel oil or 10 MCF of natural gas!
Saves 630 lbs of CO2!
 WTE is a proven large source of FL renewable energy
 The MSW Floridians generate every year is the energy
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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 WTE Facilities.
This eliminates the need for 6.5 million barrels of oil or 65
million MCF of natural gas & the generation of over 2 million
tons of CO2.
506 MW of renewable electrical energy is generated on a daily
basis by Florida’s WTE Facilities
This also saves annually over 8,125 acre feet of precious
landfill space through volume reduction.
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More Is Being Done…
 By 2010, Renewable Energy from FL WTE 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 WTE Renewable Energy made
available while processing less than 25% of the FL
MSW being generated.
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More Can Still Be Done…
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Over 18 million tons of raw MSW is still be landfilled every year in Florida.
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 WTE capacity to manage only half of the nearly 6 million tons
of MSW available from these areas would increase the State’s Renewable
Energy generation by approximately 186 MW while eliminating the need to
import approximately 3 million barrels of oil each year.
This will only be possible with the right incentives
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Encouraging FL Renewables
 Current Situation
 63% of Florida’s generation capacity is fueled by oil and gas
 Yet the low rates and contracting structures that have been offered since
the early 1990’s for new WTE capacity have inhibited further development
 FL has no functional wholesale electricity markets to support WTE or other
renewable energy development
 The Future
 81% of FL capacity additions will be fueled by oil and gas
 Must encourage renewables including WTE
 New (and renewed) WTE contracted energy generation should be valued
based on avoiding the most expensive fossil fuels
 Encourage the development of functional and liquid wholesale electricity
and renewable credit trading markets
 Offer Long-Term contracts to secure financing
 Encourage/require IOU portfolio with FL generated renewable energy
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FL Renewable SOC – Choice of
Avoided Unit/Avoided Cost
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Avoided Unit/Avoided Cost Choice – Encourages
Renewable Development
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Will encourage the development and commercialization of
renewable technologies.
Will provide incentives for development of capital intensive
renewable energy generation projects
Best matches the capital outlay/O&M profile to the various
renewable technologies.
Provide greater certainty of revenue streams for these capital
intensive projects
Allows low-cost financing
Provides flexible choices that match the financial requirement of
various types of renewable technologies
Provides WTE-served communities fair energy pricing to efficiently
address waste disposal issue.
Will reduce reliance on fossil fuels including natural gas
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FL SOC – Additional Concerns
Threshold question:
Do all operative provisions of proposed
SOCs fully and fairly support utilization of
existing FL renewable energy sources as
intended by FS 366.91, and fully and fairly
promote development and utilization of
new in-state renewable energy sources as
intended by FS 366.91 and by the
proposed FL DEP Energy Plan?
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FL Renewable SOC – More Issues to
be addressed
 Current SOC come with many issues
 Based on current “QF” standard offers that failed to
attract new development in the past five years (at the
least)
 Not clearly understood and do not meet the intent of FL
366.91
 Onerous terms and conditions, examples:
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Unreasonable availability and performance requirements
Some appear to require “QF” status
Projects undergo subjective “evaluation criteria” that might
result in the “rejection”
Payment terms and performance penalties that may totally
eliminate capacity payments.
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FL Renewable SOC - Our
Recommendations
 The Key Issues
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Develop and make available now a State-wide Coal
Avoided Cost Unit
Provide for SOC Terms of at least 20 years
Thorough SOC review to conform to Section 366.91
Establish Renewable Generation Goals (25%)
 Encouraging Renewables requires
“paradigm Shift”
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The old QF regime did not encourage new FL
renewables in the past 5 years (at least)
Repackaging the “old regime” will not encourage
substantial FL renewable development
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Additional Information
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WTE Energy IS Renewable Energy
MSW is sustainable resource for “local” power
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MSW is biomass.
WTE efficiently converts energy value of MSW to electricity and/or
steam
WTE contributes to fuel diversity
WTE facilities are located near power users, increasing cost efficiency.
WTE avoids vehicle fuel consumption/emissions associated with
increasingly distant transportation to landfills.
WTE avoids landfill greenhouse gases and toxic emissions
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Typical WTE Facility Process Inputs
and Outputs
CO2: biogenic,
nonbiogenic
Flue Gases
MSW
2000 lb
Power 550 kWh
Fe/non-Fe Metals:
55 lbs
Water
Air
Lime
Carbon
20% Thermal
Efficiency
Ash: 500 lb
Process Wastewater:
Typically zero
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WTE: 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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Industry Overview of Waste-to-Energy
 US EPA -- WTE
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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WTE: A Renewable Energy Component of
Comprehensive Waste Management
 FL (+ 11 other states and Washington DC) define WTE and/or
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municipal solid waste as eligible for Renewable Portfolio
Standards
Efficiently recovers/exports over 500 KWhrs/per ton of MSW
processed
WTE 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%
Offsets landfill release of toxic emissions and greenhouse gases
WTE and recycling are compatible: Recycling rate of WTE
communities exceeds the national average by over 5%
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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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