biogas from-food-waste
DESCRIPTION
anaerobic digestion for cost reduction and sustainable food manufacturingFood manufacturers are turning to biogas installations to reduce waste, energy and operating costs, CO2 emissions, and to produce green energy that can be sold. Biogas from food waste and sustainable manufacturing in the Food industry was the focus of a lecture at Warwick University by PM Group’s Barry McDermott and Campbell Stevens.TRANSCRIPT
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
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