Transcript REALIZING THE BENEFITS OF LANDFILL GAS TO ENERGY …

An Overview of Landfill Gas
Energy in the U.S.
U.S. EPA Landfill Methane Outreach Program (LMOP)
Presented by John Carter (ERG)
U.S. Conference of Mayors
Municipal Waste Management Association
2005 Fall Summit
EPA’s Landfill Methane
Outreach Program (LMOP)
Established in 1994
 Voluntary program that creates alliances
among states, energy users/providers, the
landfill gas industry, and communities

Mission: To reduce methane emissions by
lowering barriers and promoting the
development of cost-effective and
environmentally beneficial landfill gas
energy (LFGE) projects.
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Topics of Discussion

What is landfill gas?

What can you do with landfill gas?

What are the benefits of using landfill gas?

How can LMOP assist you in developing a landfill
gas to energy project?
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What is Landfill Gas?


Landfill gas (LFG) is a by-product of the
decomposition of municipal solid waste (MSW).
LFG:




For every 1 million tons of MSW:



~ 50% methane (CH4).
~ 50% carbon dioxide (CO2).
<1% non-methane organic compounds (NMOCs).
~ 0.8 MW of electricity
~ 432,000 cubic feet per day of landfill gas.
If uncontrolled, LFG contributes to smog and
global warming, and may cause health and safety
concerns.
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Modern Municipal
Solid Waste Landfill
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Why Does EPA Care
About LFG?
Methane is a potent heat-trapping gas.
 Landfills are the largest human-made
source of methane in the US.
 There are many cost effective options for
reducing methane emissions while
generating energy.
 Projects reduce local air pollution.
 Projects create jobs, revenues, and cost
savings.

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LFG Projects Provide
Dual Benefits

Destroys methane and other organic compounds
in LFG


Each 1 MW of generation = planting ~11,300 acres of trees
per year, removing the emissions of ~7,300 cars per year, or
preventing the use of ~89,000 barrels of oil per year
Offsets use of nonrenewable resources (coal, oil,
gas) reducing emissions of:




SO2 - contributes to acid rain
NOx - contributes to ozone formation and smog
PM - respiratory health concern
CO2 - global warming gas
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Diversity of Project Types
Electricity Generation
Internal
Combustion
Engine
Gas
Turbine
Emerging Technologies
Microturbine
Organic Rankine
Cycle Engine
Stirling “External
Combustion” Engine
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Landfill Gas and Green Power
A Winning Combination

LFG is a recognized renewable energy resource
(Green-e, EPA Green Power Partnership).





LFG is generated 24/7 and available over 90% of the
time.
Serves as the “baseload renewable” for many green
power programs.
Levelized cost of 4–6 cents per kWh for new
electricity projects
LFG can act as a long-term price and volatility hedge
against fossil fuels.
Utilities are already using LFGE.
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3 MW Electric Project
Impacts:
Direct Project Employment (FTE)
Direct Project Expenditures ($ million)
Regional Employment (FTE)
Regional Output ($ million)
Direct State Tax Revenue ($)
Direct Local Tax Revenue ($)
National Employment (FTE)
National Output ($ million)
Construction
Phase
(One Time)
Operating
Phase
(Annually)
6.2
1.3
17.5 - 23.1
3.2 – 3.4
2.3
0.46
6.2 - 8.0
1.0 – 1.2
11,800 - 20,700
8,700 - 14,200
10.0
1.5
71.3
13.9
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Diversity of Project Types
Direct Use of LFG

Direct-use projects are growing!

Boiler applications - replace natural gas, coal, fuel oil

Combined heat & power (CHP)

Direct thermal (dryers, kilns)

Natural gas pipeline injection

Greenhouse Burlington, NJ
Medium and high-Btu

Greenhouse

Leachate evaporation

Vehicle fuel (LNG)

Artist studios

Hydroponics

Aquaculture (fish farming)
Pottery Studio Sugar Grove, NC
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LFG-fired Boiler Ft. Wayne, IN
5 Mile Direct Use Project
Impacts:
Direct Project Employment (FTE)
Direct Project Expenditures ($ million)
Regional Employment Impact (FTE)
Regional Output ($ million)
Direct State Tax Revenue ($)
Direct Local Tax Revenue ($)
National Employment Impact (FTE)
National Output Impact ($ million)
Construction
Phase
(One Time)
Operating
Phase
(Annually)
10.7
1.2
20.6 – 26.5
2.5 – 2.9
0.4
0.15
1.3 – 1.9
0.36 – 0.44
36,200 - 54,600
3,900 - 5,900
2.6
0.53
40.4
5.8
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State of the National LFGE
Project Industry (as of June 2005)
 More
than 380 operational projects in 38
states supplying:
9
billion kilowatt hours of electricity and 74
billion cubic feet of landfill gas to direct use
applications in 2004
 At
least 25 projects under construction with
many more in the advanced planning stages
 Currently over 600 candidate landfills with a
total MW potential of over 1,500 MW
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Look Who’s Using Landfill Gas
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Status of LFGE Project Development
and Candidate Landfills by State
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Environmental Benefits from
Current LFGE Projects Nationwide
(as of June 2005)
 Estimated
Annual Benefits:
Planting over 19,000,000 acres of forest,
 Preventing the use of over 150,000,000
barrels of oil,
 Removing emissions equivalent to over
14,000,000 cars, or
 Offsetting the use of 325,000 railcars of
coal.

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LFGE Project Incentives
Green pricing opportunities
 Tax credits



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Renewable Portfolio Standards (RPS)


Energy Policy Act of 2005 Section 45 Tax Credit
State-level renewable resources matching funds
20 States require utilities to supply a percentage of
power from renewable sources (LFG is included)
Renewable Energy Credits (RECs)

Companies looking to reduce environmental footprint
purchase RECs from utilities using LFG
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Looking to the Future
EIA predicts U.S. energy demand to
increase by 32% by 2020
 Increasing wholesale price of natural gas
 2003 the first year that natural gas demand
outstripped supply
 Increased demand for LFG means
increased revenue potential for landfills

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Natural Gas Prices Continue
to Rise and Remain Volatile
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$/MMBtu (nominal)
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8
D a ily p ric e h is t o ry o f firs t -n e a rb y
N Y M E X n a t u ra l g a s
N Y M E X n a t u ra l g a s fu t u re s c o n t ra c t
fu t u re s s t rip (fro m 1 2 / 1 8 / 0 3 )
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6
5
4
3
2
1
Feb-09
Mar-08
Mar-07
Mar-06
Apr-05
Apr-04
Apr-03
Apr-02
Apr-01
Apr-00
Apr-99
Apr-98
Apr-97
Apr-96
Apr-95
Apr-94
Apr-93
Apr-92
Apr-91
Apr-90
0
Sourc e: N YM EX
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How can LMOP assist you?
Analyze landfill resource
 Identify potential matches
 Assess landfill and end user facilities
 Look at project possibilities
 Initial feasibility analyses
 Facilitate networking
 Positive public relations

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Analyze Landfill Resources
Example Landfill LFG
(for VA landfill)
Current Year - 2004
LFG Production - 570 scfm
LFG Collection - 485 scfm
Available Heat Rate - 14.5 mmbtu/hr
800
700
25
20
LFG (scfm)
600
15
500
400
10
300
200
5
LFG Production
LFG Recovery
100
0
1970
Recovered LFG, Available Heat Rate
(mmbtu/hr)
900
1975
1980
1985
1990
1995
2000
2005
2010
2015
2020
0
2025
Available Heat Rate
Year
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Identify Potential Matches
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Additional LMOP
Tools and Services
Project and Candidate Database
 Peer Matching and Partner Networking
 Direct Project Assistance
 State Workshops/Conferences
 PR/Ribbon Cuttings
 Web Site (e.g., publications, database)
 Annual LMOP Conference, Project Expo,
and Partner Awards - January 18-19 2006
in Baltimore!

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For More Information…
John Carter
Eastern Research Group
(a contractor to EPA on LMOP)
919-468-7849
[email protected]
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For More Information
www.epa.gov/lmop - LMOP Hotline: 888-782-7937
T2 North: Chris
WA
ND
MT
MN
NH
WI
SD
OR
ID
MI
WY
NV
T3:
Brian
CO
KS
OH
IN
NJ
MO
CA
OK
AZ
DE
MD
WV
KY
NM
MA
PA
IL
UT
NY
IA
NE
VA
TN
AR
ME
VT
RI
CT
T1:
Rachel
NC
SC
MS
TX
AK
AL
GA
LA
PR
FL
T2 South:
Victoria
VI
HI
Brian Guzzone
[email protected], (202) 343-9248
Rachel Goldstein
[email protected], (202) 343-9391
Chris Voell
[email protected], (202) 343-9406
Victoria Ludwig
[email protected], (202) 343-9291
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