Biogas Upgrading Technologies: May 21, :15 pm ET

Transcription

1 Biogas Upgrading Technologies: Selection Criteria Ci i and Economics May 21, :15 pm ET

2 Quick knotes Two Audio Options: Streaming Audio and Dial In. 1. Streaming Audio/Computer Speakers (Default) 2. Dial In: Use the Audio Panel (right side of screen) to see dial in instructions. Call in separately from your telephone. Ask questions using the Questions Panel on the right side of your screen. The recording of the webinar and the slideswill beavailableafter after the event. Registrants will be notified by .

3 Promoting the use of Biogas and Anaerobic Digestion O 208 Members from the U.S., Germany, Italy, Canada, UK O All Industry Sectors Represented Key Industry Goals: O Promote biogas markets, technologies and infrastructure O Achieve policy parity O Promote as a best practice for environmental stewardship and greenhouse gas reduction

4 Changing the Biogas Industry through: o Legislative and Regulatory Affairs o Federal Committee o State Committee o Sharing Expertise o Specialized Working Groups o Education and Outreach o Briefings, presentations, and webinars for customers, policy makers, and the general public o Large Industry Network 208 company members o Entire supply chain of production, processing and use Join Today! Josh Lieberman at jlieberman@ttcorp.com or call

5 Presenters Tim Robinson President, Robinson Group, LLC Robert Lems Manager of the Americas, DMT Environmental Technology Ashwani Kumar Global Director, Process Engineering, Anaergia

6 Tim Robinson President, Robinson Group, LLC Robinson Group LLC custom designs, installs, fine-tunes and operates biogas-to-energy systems for manufacturers, consultants, municipalities and energy companies. We are recognized as the worldwide leader in conditioning and recouping waste stream biogas - including chilling; compressing; and removal of sulfur, carbon dioxide and siloxane - with the end goal for our customers of clean power generation and a stronger bottom line. We can help you with straightforward solutions to complex problems, whether you have an existing system with gas purification problems or want to realize the financial and power benefits of a complete biogas conditioning system.

7 Upgrading Technologies Sponsored by: The American Biogas Council May, 2014 Timothy D. Robinson Robinson Group, LLC. Go om

8 What Should I take Home From Today? 1. A general understanding of upgrading technologies and the key indicators for each technology 2. Detailed Understanding of the technical differentiators and economic drivers between the two most relevant technologies currently being leveraged for biogas projects 3. The economics of deploying upgrading technologies to maximize i the value of waste methane May 2014 American BioGas Council Presentation 8

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10 Company Description Robinson Group, LLC (RG) is a technology provider to the alternative energy, oil & gas and emissions control industries. RG has a strong portfolio of intellectual t l property related to the sensing and removal of organic and volatile organic compounds from gaseous waste streams. Patent 7,26,4648 Removing siloxanes from a gas using a segmented filtration system customized to the gas composition Patent 7,393, Removing siloxanes from a gas stream using a mineral based absorption media Patent 7,410,524 Regenerable purification system for removal of siloxanes and volatile organic carbons Provisional Patent A real-time detection system Provisional Patent A device to clean siloxane from biogas May 2014 American BioGas Council Presentation 10

11 Value Proposition Since 1996 RG and acquired operations have custom-designed, installed, fine- tuned and/or maintained biogas-to-energy systems for hundreds of manufacturers, consultants, municipalities and energy companies worldwide. Our integrated gas conditioning systems dramatically increase the value of waste gases and protect the industry from the release of highly damaging contaminants. May 2014 American BioGas Council Presentation 11

12 MOOOOWR BioGas Please When biogas is conditioned into biomethane, it potentially sells at a higher price than natural gas. For example, Southern California Gas Company (SoCalGas ) had an average gas price of $3.89 per MMBTU in 2013, while hl biomethane could have been sold for in the range between $10 to $13 per MMBTU. May 2014 American BioGas Council Presentation 12

13 What is the market doing? New projects and data are demonstrating that biogas as a transportation fuel is no longer a vision, but a market reality. Under both the federal renewable fuel standard 2 (RFS2) and California s Low Carbon Fuel Standard, biogas is an emerging contributor to a diverse, low-carbon fuel mix. While progress is encouraging, there is still a large amount of untapped potential, leaving plenty of room for expansion and opportunity for innovative project models. Biogas as Transportation Fuel: A Strong Start Biomass Magazine; By Amanda Bilek July 22, 2013 May 2014 American BioGas Council Presentation 13

14 All Technologies are Not Equal The current biogas technologies have different strengths and weaknesses. Membrane systems are competitive i at the low capacity range of applications. i Water scrubbing strengths are for larger projects, especially for higher H2S streams. PSA is able to remove O2 and N2 along with CO2 and other contaminants. Amine systems can deliver very high CH4 yields and can use waste heat. Sean Mezei Dekany Consulting May 2014 American BioGas Council Presentation 14

15 Technology Selection Drivers Cost Complexity Operation Regulation The solution must be aligned with the reality of energy costs Too many technologies from too many vendors have a narcotizing effect This technology is a means not an end. It cannot be burdensome to operate The rules that the technology must address are getting more complex and intrusive 15

16 Pressure Swing Adsorption (PSA) Adsorption by moleculair l sieves N2 & O2 removal possible 3 or 4 lines needed High methane loss May 2014 American BioGas Council Presentation

17 Cryogenic, CO 2 Liquefaction (CL) Liquifying of CO 2 Complex p technique Liquid CO 2 May 2014 American BioGas Council Presentation 17

18 Chemical Adsorption (CA) Catalytic absorption of CO 2 into water High selectivity for CO 2 Regeneration at high temperatures May 2014 American BioGas Council Presentation 18

19 PWS, Pressurized Water Scrubbing Absorption in water at high pressure Simple system High g towers May 2014 American BioGas Council Presentation 19

20 Membrane Gas Adsorption Selective Membrane diffusion Compact Some methane loss Pre-Treatment Required Low power Consumption May 2014 American BioGas Council Presentation 20

21 High selective Membrane separation (MS-HS) Multi stage membrane system with high selective membranes Lowest energy consumption <0.22kwh/Nm 3 Highest h t energy recovery >98% Lowest methane slip +/- 0,3% 0-100% flow flexibility May 2014 American BioGas Council Presentation 21

22 What Are the Leading Technologies and Why A Detailed Look at Water Wash and Membrane Technology May 2014 American BioGas Council Presentation 22

23 Why Choose Membrane Technology Low investment and operational cost Low methane slip <0.5% Highest energy efficiency >98% Can handle some O2 Highest operational up time Plug & play configuration Compact Simple on/off Best for low and Medium Flows May 2014 American BioGas Council Presentation

24 Why Choose Water Scrubbing Technology Low investment and operational cost Low methane slip 0.8 % High energy efficiency >96% Best in Medium and Large Applications Can be Sensitive to Environmental Conditions Can add O2 (CAN BE A DEAL KILLER) Proven technology Robust system Flexible system May 2014 American BioGas Council Presentation

25 Availability and OPEX Uptime OpEx May 2014 American BioGas Council Presentation

26 Thanks for your attention and Get Ready for the Smart (and handsome) Engineers Robert Lems and dashwani Kumar to show you how these concepts work. 1 If you are interested in BioMethane do not forget tomorrows webinar Making Pipeline Gas Work In California 2 If you are interested in other Technologies that help drive the value of biogas do not miss the webinar on H2S removal scheduled for June 18 th H2S Removal Technology: Selection Criteria and Ecenomics or the July 23 rd webinar Filtration Media: Selection Criteria and Economics May 2014 American BioGas Council Presentation 26

27 Robert Lems Manager of the Americas, DMT Environmental Technology Robert Lems has been working for DMT for almost 10 years now. Developing plants for air, water and biogas treatment. As R&D manager he helped to develop several technologies for desulphurization and biogas upgrading. He has been involved in the first and biggest upgrading plant in the UK using high selective membranes. Now he is planning on moving to the US to help develop successful biogas project with his technological expertise and knowledge.

28 Carborex-MS: Biogas upgrading made simple Robert Lems, Area Manager N/S America

29 Biogas conditioning Biogas Desulphurisation Biogas Upgrading

30 Why use Carborex PWS 1. Large scale plants 2. Most common known technology 3. No Chemicals 4. Professional site Why use Carborex MS 1. Small to medium scale plants 2. Most simple technology 3. Containerized 4. High reliability and easy of control

31 Why use Carborex PWS 1. Large scale plants 2. Most common known technology 3. No Chemicals 4. Professional site Why use Carborex MS 1. Small to medium scale plants 2. Most simple technology 3. Containerized 4. High reliability and easy of control General System performance 1. CH 4 enrichment 90-98% 2. CH 4 loss % 3. Energy use ± 0,22-0,24 kwh/nm3 4. Up-time >95% General System performance 1. CH 4 enrichment 98-99% 2. CH 4 loss % 3. Energy use ± 0,23-0,24 kwh/nm3 4. Up-time >98%

32 1500SCFM Water Wash System Membrane System Units Investment 3,000,000.= 4,000,000.= Dollar Depreciation and interest 310,000.= 410,000.= Dollar/ Year OPEX 375,000.= 360,0000.= Dollar/ Year Revenues 2,500, = 2,600, = Dollar/ Year Profit 1,815,000.= 1,830,000.= Dollar/ Year

33 1500SCFM Water Wash System Membrane System Units Investment 3,000,000.= 4,000,000.= Dollar Depreciation and interest 310,000.= 410,000.= Dollar/ Year OPEX 375,000.= 360,0000.= Dollar/ Year Revenues 2,500, = 2,600, = Dollar/ Year Profit 1,815,000.= 1,830,000.= Dollar/ Year At higher flows water wash is getting better econmics. At lower flow membranes are getting better economics BUT.

34 Sensitivity analyses 1500SCFM unit Methane slip 0,5-2,5%: +/- 50,000.= Dollar/ Year Power consumption 0,12-0,16 kwh/scfm: +/- 60,000.= Dollar/ Year Investment price 3-4 Mi Dollar: +/-100,000.= Dollar/ Year

35 Sensitivity analyses 1500SCFM unit Methane slip 0,5-2,5%: +/- 50,000.= Dollar/ Year Power consumption 0,12-0,16 kwh/scfm: +/- 60,000.= Dollar/ Year Investment price 3-4 Mi Dollar: +/-100,000.= Dollar/ Year Grid injection time 85-98%*: +/-400,000.= Dollar/ Year *Actual time to grid *Case was 95-98%) 1 Day running = 10,000 Dollar!

36 Membrane separation CO 2 Biogas CH 4

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39 Multi stage- high selective ec e

40 The Poundbury project Full-scale plant at Poundbury 400 SCFM Gas-to-Grid 40 ft container Compressor Propane injection H 2 S filter

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43 Site specification Parameter / Biogas Production and use Anaerobic Digester biogas production 530 SCFM CHP biogas consumption 130 SCFM Inlet flow upgrading installation 400 SCFM Biogas quality A.D. CH 4 content 53 %

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45 Time to grid Gas on specification: 2-5 min. Propane injection: 2 min. Grid opens: 3-4 on spec. measurements (9-12 min.) Total time to grid ± 20 min.

46 Daily updated CV SP CV deviation from set point ±0.05 MJ/m 3

47 Average time to grid 97.8% last 2 years Following years expected >98%

48 (Product) Gas Quality

49 (Product) Gas Quality (2) Trace components: Oxygen <0,1% limit values 0,15-0,2%, H 2 S <1 ppm limit value 5 ppm Water (dewpoint) 80ºC Limit -10ºC

50 Energy consumption

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52 Or almost halfway to the sun (Based on the fuel consumption of and Ecofuel Volkswagen Passat.)

53 Conclusion: Highest gas to grid time is the key! In your design pay attention to: Biogas composition (oxygen, H 2 S, siloxanes, Hydro Carbons) Biogas flow variation Available staff (level of education) Site condition (space, climate, seismic zone) Take in account biogas pre-conditioning Take in account interaction various units, most important Gas-2-grid Keep it simple, keep it reliable

54 THANK YOU FOR YOUR ATTENTION t

55 Ashwani Kumar Global Director, Process Engineering, Anaergia Mr. Ashwani has over 20 years of multifaceted experience in offering sustainable solutions for the generation of renewable energy and the conversion of waste to resources in Industrial, Agricultural and Municipal Sector. Presently he lead a team of design engineers, design managers and project managers throughout the project life cycle - project development, construction and operation at Anaergia Inc. He brings the global experience in design, construction and operation of renewable energy projects and holds distinction in designing organic processing systems that make the best use of available process technologies and thus maximizing ROI for end customers.

56 Biogas Upgrading Technologies: Selection Criteria and Economics Ashwani Kumar, P.Eng. Andrew Kasza May 21, 2014

57 Anaergia s Mantra for Sustainability Energy Solid & Liquid Wastes Resources Private and Confidential 57

58 Biogas Upgrading g Technology Selection

59 RNG Production Biogas Compression Biogas Cleaning ~ 4000 psig ~ 120 to 750 psig Fueling RNG Biogas &/OR Stations Injection Upgrading

60 Selection of Biogas Cleaning Technology Quantity and quality of biogas will depend on the feed stock digested Various components mustbe removed prior to pipelineinjection/vehicleinjection/vehicle use Water Condensate traps, adsorption, absorption Hydrogen Sulphide Precipitation, activated carbon adsorption, chemical adsorption (NaOH), biological treatment Limitation in feasible technologies when producing RNG Oxygen & Nitrogen Activated carbon adsorption, membranes $$$ to remove Ammonia Separated during upgrading process separate step not usually required Siloxanes Gas cooling, activated carbon adsorption, activated aluminum/silica gel Particulates Mechanical filters

61 Selection of Biogas Upgrading Technologies Adsorption of CO 2 Pressure Swing Adsorption (PSA) Under pressure, CO 2 is adsorbed on an activated carbon or zeolite surface Adsorbing media is regenerated by a sequential decrease in pressure H 2S will irreversibly adsorb to the adsorbing material Water present in the raw gas can destroy the structure of the absorbing material Absorption of CO 2 Water Scrubbing CO 2 is more soluble in water then CH 4 CO 2 dissolves into the water phase CO 2 is flashed off from the water in a flash vessel Water is recycled through a desorption column using air to remove remaining CO 2 Most common upgrading technology Can also remove residual H 2 S found in the cleaned biogas

62 Selection of Biogas Upgrading Technologies Absorption of CO 2 Organic Physical Scrubbing Similar to water scrubbing but use organic solvent (polyethylene glycol) instead of water CO 2 is more soluble in polyethylene glycol than water Smaller, more compact systems Polyethylene y glycol gy is regenerated using heat or a reduction in pressure Residual H 2 S, water, O 2 and N 2 can also be removed Chemical Scrubbing Use amine solution (MEA or DMEA) to absorb and chemically react with CO 2 Strongly selective reaction Methane loss is <0.1% Portion of liquid is lost to evaporation and must be replaced Solution can be regenerated using heat Residual lh 2 S can lead dto increased dheating requirements during solution regeneration

63 Selection of Biogas Upgrading Technologies Membranes High pressure (~8 bar) hollow fibredesign Made of materials which are permeable to CO 2, water and ammonia H 2 S and O 2 permeate through the membrane to some extent as well Methane losses can be substantial (newer designs haveminimized losses)

64 Summary of Biogas Upgrading Technologies Source: Urban, et al., 2008, as quoted in Petersson, et al., 2009

65 RNG Production at Fair Oaks, IN Greenlane process 65

66 Challenges with RNG Production Customers The potential end user fleets and the challenge of getting the gas to them Distribution Pipeline or cryogenic compression is required for transporting RNG from the production site to the pipeline system (in the case of pipeline injection) or to the final user (in the case of motor vehicle fleets) Size of the project Standards for RNG quality e.g.. Minimum LHV, Blending LPG/Propane. Stringent and complex monitoring scheme Gas clean up technologies

67 Variation in RNG Quality

68 Economics of RNG Production

69 Cost Breakdown of Producing RNG Cost of RNG Production Biogas Production Feedstock (optional) Biogas Upgrading Compression & Transportation Cost of Borrowing

70 Case Studies Hypothetical Biogas Projects Agricultural (manure based) < 500 kwe < 1,500 kwe Co digestion/merchant Plants 2.5 MWe SSO Digestion (Contaminated) 50,000 tonne/year 100, tonne/year

71 Case Studies: RNG Production Type of Plant Agricultural projects Merchant Plants SSO Digestion Capacity ~ 500 ekw ~ ekw ~ 3000 ekw ~ 1600 ekw ~ 3200 ekw Plant/Farm Size 2200 to to ,000 T/Year (50,000 MT/y or (100,000 MT/y or Heads Heads feed more) more) Manure/Substrate Available 151,MT/d 431,MT/d 165,MT/d 137,MT/d 274,MT/d Biogas Production 245,NM3/hr 701,NM3/hr 1026,NM3/hr 685,NM3/hr 1370,NM3/hr RNG Production (95% availability, 97% CH 4 recovery) 128,NM3/hr 366,NM3/hr 604,NM3/hr 390,NM3/hr 781,NM3/hr RNG Energy Value (MMBTU/hr) Note : Typical Biogas CapEx. As summarized from Industrial reports 71

72 Case Studies: CapEx Summary Type of Plant Agricultural l Merchant SSO Digestion i Capacity ~500 ekw ~1500 ekw 60,000 tpy 50,000 tpy 100,000 tpy RNG Generation, ($/MMBTU) Biogas Biomethane Injection TOTAL $103.4 $83.7 $139.9 $372.6 $260.1 Note : Typical CapEx as summarized in various Industrial reports

73 Case Studies: OpEx Summary Type of Plant Agricultural Merchant SSO Digestion Capacity ~500 ekw ~1500 ekw 60,000 tpy 50,000 tpy 100,000 tpy RNG Generation, ($/MMBTU) Biogas Biomethane Compression Cost of Borrowing* TOTAL ($/MMBTU) (*) 8% Interest rate for 15 Year Term; Note : Typical OpEx as summarized in various Industrial reports

74 Case Studies: OpEx Summary (No Biogas) Type of Plant Agricultural Merchant SSO Digestion Capacity ~500 ekw ~1500 ekw 60,000 tpy 50,000 tpy 100,000 tpy RNG Generation, ($/MMBTU) Biogas Biomethane Compression Cost of Borrowing* TOTAL ($/MMBTU) (*) 8% Interest rate for 15 Year Term; Note : Typical OpEx as summarized in various Industrial reports

75 Case Studies: OpEx Market Comparison Operating Costs of Various AD Systems Current Market Price for Diesel* Operating Co ost ($/MMBTU) Current Market Price for Natural Gas 0.00 Agricultural Agricultural Merchant SSO Digestion SSO Digestion (~500 ekw) (~1500 ekw) (60,000 tpy) (50,000 tpy) (100,000 tpy) Diesel BTU/gallon ; $4/gallon

76 RNG Market Drivers

77 Incentive/Support Mechanism Required RNG is roughly one sixth to half the cost of diesel Compared with natural gas as a source of compressed natural gas (CNG) for vehicles, RNG is higher than the cost of natural gas Quantifying and supporting mechanisms that value or monetize the renewable attributes of biomethane are crucial to its success in the market

78 RNG Drivers: GHG Emissions Type of Plant Agricultural lprojects Merchant Plants SSO Digestion Capacity ~ 500 ekw ~ 1500 ekw ~ 3000 ekw ~ 1600 ekw ~ 3200 ekw Biomethane Energy value (Million MMBTU/hr) Natural Gas Equivalent GHG Emission MT /Year Diesel Equivalent GHG Emission MT /Year ,972 5,632 9,296 6,005 12,014 2,718 7,763 12,814 8,277 16,560 Cars taken off the Road 566 1,617 2,670 1,725 3,450 78

79 RNG Drivers: GHG Emissions Greenhouse Gas Reductions Near term (10 years) potential of GHG emissions reduction from RNG in Ontario alone is 13 million tonnes of CO2 e/year, or more than 45% of Ontario s 2020 GHG emissions reduction target.

80 RNG Drivers: Waste Diversion Annual MSW Production by Continent (Million TPY) 3,000 2,500 45% Oceania Africa of Tons Millions 2,000 1,500 1, Latin America Middle East Europe North America Asia Sources: Adapted from UNEP, BCC Research, EPA, J.W. Levis, IMF, ITAU

81 RNG Drivers: GHG Emissions Greenhouse Gas Reductions Near term (10 years) potential of GHG emissions reduction from RNG in Ontario alone is 13 million tonnes of CO2 e/year, or more than 45% of Ontario s 2020 GHG emissions reduction target.

82 RNG Drivers: Waste Diversion Annual MSW Production by Continent (Million TPY) 3,000 2,500 45% Oceania Africa of Tons Millions 2,000 1,500 1, Latin America Middle East Europe North America Asia Sources: Adapted from UNEP, BCC Research, EPA, J.W. Levis, IMF, ITAU

83 RNG Drivers: Waste Diversion Recovery from MSW as a % of Generation (EPA, 100% 2010) 80% 60% 40% 20% 0% 63% 97% of organic 35% s is 27% wasted 8% 3% Paper and Metals Glass Plastics Organics Paperboard Sources: EPA

84 RNG Drivers: Waste Diversion Residential Organics Programs >120 cities in North America >40 cities in Southwest US Statewide Initiatives CA AB341 California MA/CT ICIFoodWaste Ban Nova Scotia has had provincial legislation banning organics from landfills since The Province of Quebec has an ambitious goal to divert all organic materials from landfills by

85 Renewable Energy Incentives Functioning Mandated/Traded USA Renewable Fuel Standard (RFS2) under Energy Independence and Security Act of 2007 (EISA) Renewable Identification Numbers (RINs) Some State uses - Low-Carbon Fuel Standard

86 Benefits of RNG Incentives Promotes organic waste diversion Offer greater choice for energy consumers Opportunity to maximize the efficient use of biogas resources Increased energy utilization efficiency (95 to 97%) relative to generating electric power (max 41%) Boost to local economy, employment and energy security RNG displaces conventional natural gas, resulting in conservation of non-renewable natural resources and reduction of GHG emissions i

87 Thank You Privileged, Private, and Confidential

88 Q&A Ask questions using the Questions Panel on the right side of your screen. All questions and comments will be recorded and incorporated in the webinar summary report. Also, please a few moments to answer the survey questions. This webinar (recording and slides) will be available within 3 working days.

89 Upcoming Webinars Making Pipeline Biogas work in California May 22, :30 1:30 pm ET (9:30 10:30 am PT) Presented in cooperation with the Bioenergy Association of California H2S Removal Technologies: Selection Criteria and Economics June18 18, :15 pm ET Filtration Media: Selection Criteria and Economics July 23, :15 pm ET For more information, visit americanbiogascouncil.org/about_webinars.asp or call (202)

90 More Information Don t forget to fill out our survey! Sign up to receive ABC news on our website, Consider Joining ABC Receive regulatory and policy intelligence Connect with other biogas and anaerobic digestion leaders Support the industry s growth and outreach

91 Thank You Tim Robinson President, Robinson Group, LLC group.com Robert Lems Manager of the Americas, DMT Environmental Technology et.nl Ashwani Kumar Global Director, Process Engineering, Anaergia Josh Lieberman American Biogas Council Josh Lieberman American Biogas Council (202)