biogas from-food-waste

Sustainability & Manufacturing –

A focus on Renewable Energy Supply

through Anaerobic Digestion

Midlands Manufacturing

Group

Dr Barry McDermott

Campbell Stevens

PM Group

17.05.2012

Content

PM Group

What is Sustainability

Sustainable Manufacturing – Why ?

Sustainable Energy

Bioenergy & Anaerobic Digestion

Project Example

Finance & Business Case Development

Questions

Sustainability

“Global Warming”

“Low Carbon Systems”

“Energy Efficiency”

“Embodied Energy”

“Green Design”

“Life Cycle Analysis”

“Corporate Social Responsibility”

“Whole Life Costing”

“Climate Change”

“Resource Use”

“Zero Carbon”

“Sustainability”

“Carbon Footprint”

“Ecological Footprint”

1800’s 1900’s 1960 1970 1980 1990 1995 2000 2005

History of Sustainability

1800’s Transcendentalism

Social Revolution Environmental Revolution Sustainability

Industrial Revolution

1983 – UN World Commission on

Environment & Development

2002 – World Summit on Sustainable Development

Rachel Carson – Silent Spring

1972 – UN Conference on

Human Environment

1992 – UN Conference –Earth Summit

1987 Brundtland Report - Our

Common Future

Love Canal & Superfund Act

Sustainability Defined

“Humanity has the ability to make

development sustainable – to ensure it

meets the needs of the present without

compromising the ability of future

generations to meet their needs”

1987 World Commission on Environment and

Development

Concept of sustainability is much more than environmental protection in another guise

Sustainabilitys Goal: To achieve human and ecosystem well-being together

SUSTAINABILITY

So

cial

Eq

uit

y

Sustainability

ENVIRONMENTAL

ECONOMIC SOCIAL

SUSTAINABLE

DESIGN

Sustainable

Development

Environmental

SocialEconomic

LandManagement

Function &

Performance

Employment

Waste

WaterEnergy

Health & Well

Being

MaterialsEcology

Pollution

Profitability

Productivity

Construction

Time and Cost

Growth

Investment

Whole Life

Cost

Economic

Life

Insurance

Amenity

Security

Diversity

Health &

SafetyQuality

Access

Sustainable

Development

Environmental

SocialEconomic

LandManagement

Function &

Performance

Employment

Waste

WaterEnergy

Health & Well

Being

MaterialsEcology

Pollution

Profitability

Productivity

Construction

Time and Cost

Growth

Investment

Whole Life

Cost

Economic

Life

Insurance

Amenity

Security

Diversity

Health &

SafetyQuality

Access

One Living Planet

12bn hectares – 6.5bn people

Per capita global quota – 1.8 hectares

European footprint - 6 hectares; North American footprint – 10 hectares

Overpopulation

Global Consumption Rates are rising…

Humanity’s Ecological Footprint, 1961-2005

Source: WWF Living Planet Report 2008

World Biocapacity

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

1960 1970 1980 1990 2000

Num

ber

of

pla

net

Eart

hs

Number of planet Earths

The Global Demand for Energy is Rising…

Source Data: Energy Information Administration (EIA), International Energy Annual 2006 (June-December 2008),

website http://www.eia.doe.gov/iea/wecbtu.html

Population

Growth

Enhanced

Lifestyles Industrialisation

World Marketed Energy Consumption

Projections

0

50

100

150

200

250

million G

Wh

1980 1985 1990 1995 2000 2006 2010 2015 2020 2025 2030

Rising CO2 Emissions

World Energy-Related Carbon Dioxide Emissions by Fuel Type, 1990-2030

Source: Energy Information Administration (EIA)

Projections

Total

Coal

Liquids

Natural Gas

History

0

10

20

30

40

50

1990 1995 2000 2005 2010 2015 2020 2025 2030

Billion M

etr

ic T

ons

Liquids Natural Gas Coal Total

Need for Change…

ENERGY EFFICIENCY

CONSERVATION CLEAN

ELECTRONS

Visual Evidence !

Other Drivers for Sustainable development……...

Why Should a Manufacturing Facility Change ?

Risk Management

Future Proofing

Professional Ethics

Reduce Environmental Impact

Best Engineering Practice

Cost Savings – lower product unit cost

Energy Security

Customer Driven

Legislative Driven

Corporate Sustainability goals inc footprint

Branding & Marketing

Energy Security

Energy Costs

- Average

domestic gas

bill has doubled

since 2000

Guarantee of

Energy Supply

- Blackout

concerns

- Unavailable

imports

Reference: DECC & OFWAT

Sustainability – Some Focus Areas in Design &

Manufacturing

Innovation Sustainable

Sites

Water

Efficiency Energy &

Atmosphere

Materials &

Resources

Indoor

Environmental

Quality

Opportunities…. Technology

Fuels &

Feedstocks

Alternative /

Renewables

Energy

Efficiency

Emission

Reduction

Green buildings

Low energy

appliances

Building control

Smart meters and

grids

Smart homes

Energy

management

T&D

infrastructure

Air pollution

control

Coal to gas

Carbon capture

and storage

Waste

Management

W&WWT

Wind Power

Solar

Biomass

Fuel Cells

Energy Storage

Hydro

Wave, tidal, deep-

lake

Geothermal

Biofuels

Hydrogen

Biomass

Waste to Energy

Energy

Efficiency &

Renewables

Demand Side End-of-pipe Supply-side SOLUTIONS

Anaerobic Digestion Technology

Anaerobic Digestion

Natural process which occurs in river and lake

sediments, soils and the gastrointestinal tract of

animals

Degradation of organic material by bacteria in the

absence of oxygen.

One of the oldest forms of biological wastewater

treatment - 1850’s

Traditionally part of sludge stabilisation process

Anaerobic Digestion Process

*calculated from Department of Energy & Climate Change Regional Gas Consumption Statistics - 2007

Generator / CHP

Grid

Transport Biofuel

Composting

Soil Conditioner

Fertiliser

Storage/

Handling

Scrubbing

Digestion

Process Dewatering

Biogas

Digestate Feed

How it works…..

Source: IEA Bioenergy Task 24

Methane

CO2

H2S

NH3

Heat & Biomass

Digestion Technology

Process Temperature

– Mesophilic 38 – 42 °C

– Thermophilic 55 – 65 °C

Feedstock

– Mono-digestion or Co-digestion

Plant Design/System

– Batch or Continuous; Tank or Lagoon

Digestion

– Dry (>30% DM) or Wet (6 – 30%DM)

Digestion Technology

CSTR Tanks, Germany CSTR, Biogas Farm, Germany

CSTR, Hungry Horizontal Plug Flow System, USA

… Digestion Technology

Completed 200,000m3 lagoon,

10m depth, Asia Lagoon system – HDPE roof system

with gas collection, Asia

70,000 m3 lagoon system,

Scotland

… Digestion Technology

High rate UASB/IC type –

Low solids reactor

Domestic digester, Indonesia

No high-end engineering required!

Feedstocks & Operations

Feedstock

Organic waste

– Biodegradable Municipal Waste

– Sewage Sludge

– Agricultural slurries

– Silage Crops

– Industrial effluents

Feedstock characteristics determines gas yield

Biogas Yields

Feedstock %Dry Matter

Biogas Yield

(m3/t)

Cattle Slurry 10 25

Pig Slurry 7 26

Sour Whey 6 37

Food Waste 15 46

Veg waste 15 57

Broiler Manure 60 80

Laying Hen Litter 30 90

Grass Silage 25 150

Sugar Pulp 28 200

Maize 30 200

Cheese Whey 79 670

Biogas as a Biofuel potential

Composition

– Methane 50 – 75%

– Carbon Dioxide 45 – 25%

– Water Vapour 2 – 5%

Trace Amounts: <1%

– Ammonia

– Hydrogen Sulphide

1m3 of biogas (70% CH4) calorific value 20MJ/m3:

– 0.6 L of Petrol; 2.5kWh of heat; 1.7kWh of electricity

– Electricity; Heat or Biofuel

Beware! ATEX Regulations

Digestate

Comprises feedstock not fully

converted to biogas & biomass

May be dewatered to fibre and

liquor fractions

Fibre:

– May be aerobically composted to provide a stable,

marketable peat moss substitute

– Alternatively, landspreading as a soil conditioner or low

grade fertiliser

Digestate

Liquor:

– Separated liquid fraction

contains large proportion

of nutrients

– Ideal for use as a liquid

fertiliser as part of a Nutrient

Management Plan

Disposal of Digestate can be a limiting factor

Beware! Biosolids Code of Practice

& Animal By-Products Regulations

Anaerobic Digestion Process – Potential Industry Options

*calculated from Department of Energy & Climate Change Regional Gas Consumption Statistics - 2007

Gas Engine

Composting

Soil Conditioner

Fertiliser

Storage/

Handling Digestion

Process Dewatering

Biogas

Digestate Feed

Boiler for

Steam

Electricity

Pasteurisation

Cooling/Chillers

Electricity

Exhaust

Exhaust

Green House

Project Study Example

Project Bioenergy

Primary Objective – To reduce the Client’s exposure to the volatility and overall cost of

energy.

– Driving fuel independence

Secondary Objectives

– Develop a working biogas

business model for replication

across other facilities

Additional Benefits

– Reduction in Carbon footprint

– Demonstrable move towards a

sustainable business

This project will deliver a robust, ‘fit for purpose’

facility for the client to produce biogas from

processing co-products.

Overview

Replacing 25% of factory natural gas requirements – equivalent to 66% of the household consumption in local region

*calculated from Department of Energy & Climate Change Regional Gas Consumption Statistics - 2007

AD Technology – 2 Options:

1.Continuous Stirred Tank Reactor

2. Lagoon

Feedstock

Handling

ANAEROBIC

DIGESTION

Biogas

Cleaning

Digestate

Separation

Effluent

Treatment

Feedstock Biogas

To CHP

Fertiliser

For sale

Water

to river

Feedstock

Ensiling

Key Figures

Inputs

– Feedstocks

• Agriculture industry

• Organic By-product of process

– 2450tpd by-product ex process

• ca. 1000tpd direct to AD

• 1450tpd to ensiling

– Lagoon configuration reactor

• Ca 200,000m3 volume

Outputs

– Biogas

• 12.5M therms per annum

• 50MWth/12.8MWe installed capacity

• 50:50 CH4:CO2

• Up to 10,000Nm3/h

– Digestate

• Dewatering Plant required

• Fertiliser product for market sale

– Effluent

• 800k-900k m3 p.a.

• 8000-12000mg/l COD

• 3000mg/l NH3

• Full scale effluent treatment plant required

£60m investment

5 Year Payback (IRR >20%)

Construction due Q3 2012

Financing & Business Case

Considerations

Global Total New Investment In Clean Energy

What technology is this money being spent on ?

Energy Storage & Smart Grid (R&D)

Wind (Mature)

Solar

Biofuel

Biomass & Waste (Mature)

Geothermal

Tidal (Developing)

Efficiency

Follow the money………………?

Business Case Considerations

Drivers for Development – Business cost avoidance/Financial Returns

– Planning

– Replacement of end-of-life assets

Feedstock Availability – Guarantee of supply

– Cost security

By Products – Cost of disposal

Gas Utilisation – Use on site or Export? Fuel Security

Process/Project risks – Pass the ticking parcel?

Grants & Tariffs – moving sands or easy money?

Feasibility Study & Business Case Development

General Overview of Funding Support

Generation Funding Tariffs

– Renewable Electrical Generation

– FIT if < 5MWe (Feed-in Tariff + £30/MWhe, if exported), or

– RO (Renewable Obligation, 20-year Grandfathering)

RHI (Renewable Heat Incentive, 20-year Grandfathering)

– £10/MWhth for dedicated biomass

– £68/MWhth for Biogas upgraded to Biomethane (grid export

quality)

Several Other Sources, eg

– ECA (Enhanced Capital Allowance)

• for verified “Good Quality” CHP

• 100% Year 1 Tax incentive against validated capital value

Cost Avoidance Examples

Carbon Floor Price

Climate Change Levy

Gas purchase offset

Electricity offset (CHP)

Gas/Elec conveyance (eg, capacity reserve, ToP, MDQ reduction)

Waste disposal – eg, stock food transportation

– effluent treatment, PPC

$

EXAMPLE PROJECT: Possible configurations; which one?

1 2 3

Biogas to

Boiler or

CHP

Biogas to

Gas Engine

CHP

Biomethane

to Boiler or

CHP

Biomethane

to Grid

4

• Contamination

issues?

• ECA

• £ Offsets;

• CCL

• ETS/Carbon

Floor Price

• Gas

purchase

• HW to site

• ECA

• FIT for MWhe

• £ Offsets;

• CCL

• ETS/Carbon

Floor Price

• Gas

purchase

• ECA

•FIT for MWhe (for

CHP)

• £ Offsets;

• CCL

• ETS/Carbon

Floor Price

• Gas

purchase

• RHI £68 MWhth +

£MWh base gas price

• Reduces any

operational issues, eg

matching demand

profiles, etc, as operates

discretely from site

• option to switch to total

site consumption in

future

OPTIONS

Most Feasible AD Configuration?

AD BOILER/CHP or

GAS ENGINE?

GAS GRID SITE

UPGRADE?

?

?

?

FEASIBLE / VIABLE?

Sustainable?......in the classic context?

– Feedstocks

– Offtakes

– CapEx / OpEx

Funding & Risk

– Internal/off balance-sheet?

– Ability to take direct process/technology risk?

– BOO/ESCo?

Evolve the Financial Model from outset

– Build simple but sound case – communicate the value (or

otherwise)

– Measure it how you need to….

• Simple payback, NPV, IRR, etc

Summary

Sustainability is a balance of environmental, economic and social concerns.

Energy will be a prime focus of environmental sustainability in the manufacturing industry.

Renewable energy supply can provide environmental & economic sustainability benefits in the manufacturing industry.

Bioenergy Options such as Anaerobic Digestion offer significant potential benefits for producers of organic waste.

Business Case Development to ensure viability of the project should be established early in the project and evolve with the project development to ensure success.

THANK YOU & QUESTIONS

www.pmgroup-global.com

Barry.McFarlane@pmgroup-global.com

Campbell.Stevens@pmgroup-global.com

Barry.McDermott@pmgroup-global.com