Turning Waste Organics Into Energy:

Transcription

1 Turning Waste Organics Into Energy: Joint Venture between: South Davis Sewer District and ALPRO Energy & Water 1380 West Center Street North Salt Lake, UT 84054

2

3 It is in health that cities grow: in sunshine that their monuments are builded. It is in disease that they are wrecked; in pestilence that effort ceases and hope dies. Annual Report of the Commissioner of Health, Milwaukee, 1911

4 Public health is purchasable. Within natural limitations a community can determine its own death-rate...no duty of society, acting through its governmental agencies, is paramount to this obligation to attack the removable causes of disease. Dr. Hermann Biggs, New York State Commissioner of Health, 1913

5 South Davis Sewer District Created by the Cities in South Davis in 1959 Lowest sewer rates in the State of Utah The last rate increase was in 1988, 28 years ago No debt The Treatment Plants and Collection System are in excellent condition Sufficient reserves for operation, repair & replacement, known capital needs & emergencies, subject to any major changes in discharge permit requirements Sufficient capacity for build-out at current permit limits

6 ALPRO Energy & Water Founded in 2014 by Alder Construction & Aqua Engineering Alder Construction has been building water & wastewater plants since Alder-Child built the District s two plants in the early 1960s Aqua Engineering was founded in 1997 Aqua has provided innovative wastewater engineering throughout Utah, So. Idaho, & Arizona ALRPO has been working actively on the development of this project since 2012

7 North Plant Looking west towards Antelope Island

8 View from Charter View school looking north from the Legacy Preparatory Academy

9 Collection System Operations Facility

10 Food Waste US produces $185 Billion worth (35 million tons) of food waste per year Single largest & least recovered waste stream in the US 97% of food waste goes into landfills 15%-30% of total land fill capacity is used for food waste Contributes to greenhouse gas emissions from landfills Food is energy 730 to 1,300 kwh per ton of food waste

11 EPA Best-Use Hierarchy

12 Wastewater Treatment & Resource Recovery Co - Location / Digestion Food waste Anaerobic Digestion Electricity Gas/Fuel Sewage sludge Fertilizer Sewage Wastewater treatment Water

13 Project Location

14 Project Site Plan

15 FEEDSTOCK OPTIONS Liquid Food Processing Waste Fats, Oils, & Greases (FOG) Out of Date / Spec. Canned & Bottled Drinks Packaged Food Waste Food Waste from Wasatch Integrated Energy Mgt. Misc: Carp, Zoo Poo Municipal Waste Activated Sludge

16 Wasatch Front / Back Food Waste Population: 2,276,297 (2012) 0.94 Tons MSW/Person/Year in Utah 20.5% Food Waste (EPA) Wasatch Front/Back: 438,642 Tons/Year Project is Based on 109,000 Tons/Year of Food Waste or 30% of the Available Waste Food Processing Waste will account for another 200,000 to 250,000 tons/year

17

18 Source Separated Waste

19 De-packaging

20 Where do all the packages go?

21 Beverage / Cans Crusher

22 Anaerobic Digestion

23 WHAT IS THE PROCESS? Anaerobic Digestion

24 Energy Consumption POTWs generally represent a community s largest power consumption POTWs consume 24 billion kilowatt hours per year in the US The District s facilities consume $250,000 of electricity per year The District s treatment plants will ultimately produce all of their own power

25 Energy Off-Take Options BioGas Conditioning, Compression and Renewable Natural Gas (RNG) Pipeline Injection Or Renewable Power Production Fed Into The Electrical Grid

26 Bio-based Fertilizer The Project will ultimately produce 40,000 tons of biosolids per year Nitrogen and Phosphorus will be recovered from all process streams These nutrients will be added to the biosolids produced by the digesters These bio-solids will then be pelletized and dried The final product is a valuable agricultural fertilizer that will be marketed through existing fertilizer distributers and/or directly to large farming operations.

27 Total Project Costs Capital cost $55,000,000 Operating and maintenance costs $9,300,000 Revenue $18,100,000 Net revenue $8,800,000 Debt service $3,900,000 Net annual cash flow $5,200,000

28 Phase I Costs Capital cost $25,000,000 Operating and maintenance costs $3,900,000 Revenue $8,800,000 Net revenue $4,900,000 Debt service $1,700,000 Net annual cash flow $3,200,000

29 Public Private Partnership Both parties will provide a 10% equity investment in the project Each party will provide 50% of project debt financing All project operating and maintenance costs will be shared equally The District will operate and maintain the project facilities ALPRO will be responsible for procurement of feed stock ALPRO will be responsible for collection of tipping fees, energy sales and fertilizer marketing and sales.

30 Potential Impacts Traffic increased traffic volume on Center Street Air Quality Odors Visual esthetics of physical facility Competition with landfills for food waste Explosion hazard from handling methane and hydrogen sulfide Toxicity hazard from methane and hydrogen sulfide

31 Risks Permitting Utah Division of Solid & Hazardous Waste permit Utah Division of Air Quality permit Utah Division of Water Quality biosolids permit Davis County Solid Waste Permit North Salt Lake City zoning & building South Davis Sewer District Industrial Pretreatment Permit Pipeline crossing at Jordan River ROW license for pipeline

32 Risks - Continued Public Opposition Air emissions Odors Traffic Noise Light NIMBY

33 Risks - Continued Feed Stock Availability & volume Reliability & quality Competition RCRA-Hazardous materials

34 Risks - Continued Plant Engineering Perspective Cost Errors Plant Construction Perspective Cost Quality Schedule

35 Risks - Continued Plant process performance Capacity & performance of all process units Gas production vs. loading rates Biosolids dewatering Operations & maintenance Meeting budgets and overall cost Asset preservation Up-time performance & reliability Maintain process efficiency, reliable gas production Achieve gas quality requirements Achieve biosolids quality Biosolids disposition Regulatory compliance

36 Risks - Continued Impacts on the South Plant Capacity to treat energy plant wastewater of 0.3 to 0.5 mgd Effect of nutrients in wastewater on South Plant effluent quality Maintenance resources-personnel & shop facilities Personnel resources-trained, experienced & productive Biosolids beneficial use options

37 Risks - Continued Revenue Energy sales National & regional economy National & regional market forces Regulatory actions Technology/industry changes Tipping fees National & regional economy Regional market forces Competing waste to energy projects Technology/industry changes

38 Risks - Continued Legal Issues Authority to engage in solid waste management Public Private Partnership authority Employment Premises Environmental Contracts Unknown risks could affect success of project and District rates

39 Our best risk mitigation assets Strong design team in Aqua Engineering Strong construction team in Alder Construction Strong business management skills in the ALPRO organization Strong operation & maintenance team in South Davis Sewer District Strong legal team in Fabian Van Cott and Chapman and Cutler Strong financial team in George K. Baum and Stifel, Nicolaus & Company Both partners are financially strong

40 Project Benefits Production of renewable energy (carbon neutral) Over 3 billion BTUs of energy every day Enough natural gas to supply a city of 40,000 Enough electricity to supply 15,000 homes Divert waste from landfills which will extend the life of the landfills Reduced disposal cost for organic waste due to the value of energy and fertilizer Reduced carbon dioxide, sulfur dioxide, and methane emissions from landfills

41 Project Benefits Continued Reduced mileage for waste transportation, leading to reduced costs and air emissions Recover important and valuable plant nutrients; nitrogen, phosphorus and potassium Employment The project will create 12 to 16 full time jobs The Project will provide the District with more sustainable biosolids options for the future The Project will help to stabilize District sewer rates This is a renewable energy project that pencils with the revenues generated from tipping fees, and energy & fertilizer sales. The project is viable without grants or other governmental subsidies to be financially viable.

42 Challenges Financial Staying Power During the Development Process Long Term Contracts Not Common In Waste Handling Low Tipping Fees Low Energy Costs No Ordinances in Place to Require Organics Diversion. Participation is Voluntary.