Importance of Digestate for the Biogas Industry



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Importance of Digestate for the Biogas Industry Ola Hall Senior Business Development E.ON Gas Sverige AB Email. ola.hall@eon.se IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall 1

Road transport in Sweden a Gigant Challenge! Ca 90 TWh 22 % of Swedish energy use Ca 45 % of oil use in Sweden Ca 35 % of CO 2 emissions IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall 2

E.ON Invests ~100 MSEK/year in vehicle gas market Volume (GWh) Stations(st) Market share (%) 400 37 public/19 depot ~30% We reduce GHG in transport sector Eskilstuna Stockholm In 2012 400GWh vehicle gas was sold to 3000 vehicles 50% biogas and 50% natural gas Falutorget Mölndalsvägen Norrköping Future focus Depots for heavy vehicles Public stations in Stockholm, Göteborg & Malmö Market share 25-30% Gnosjö Gislaved Ullared Värnamo Falkenberg Halmstad Båstad Laholm Älmhult Ängelholm Broby Olofström Hässleholm Karlshamn Landskrona Eslöv Kristianstad Löddeköpinge Åhus Lund Malmö Svedala Trelleborg Ystad Kalmar IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall 3

E.ON Production and Long term contracts in Sweden Digestate Laholm, UBG Norrköping, UBG Kristianstad, LTC Eslöv, LTC Bjuv, Prod. 50 kton Sjölunda, UBG Kalmar, LTC Falkenberg, Prod. 85 kton Grödinge,LTC Jordberga,Prod. (2014) 110 kton Västblekinge,LTC More,LTC Sävsjö,LTC Totalt 295 GWh 245 kton Befintliga anläggningar Biogas is needed at a competitive price to continue the expansion IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall 4

Most important items in Biogas production Permits Biogas sales contract Substrate contract Digestate contract Digestate handling can be a show stopper for a biogas project 5 IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall

Digestate cost is vital for project economy Biogas price in public stations should be below 1000SEK/MWh Production cost should be below 650 SEK/MWh The digestate cost today is 20-50SEK/ton, i.e. 20-130SEK/MWh incl. the fertilizer value With a low energy content the cost for handling digestate will be high Substrate and digestate cost have to be evaluated together Digestate cost can be up to 20% of the production cost 6 IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall

Local conditions decide digestate handling Type of substrate The amount of digestate Fertilizer content in digestate Localisation Available land with crops Animal density Other biogas plants E.ON has looked into digestate up-grading 7 IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall

Overview Digestate up-grading Digestion De-watering Ev. Struvite Stripping/RO/etc. Substrat Reject Reject Reject WWTP Irrigation Recycling Product/ Solids Struvite Concentrate Substrate Cost Value IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall 8

Avialable technologies for digestate up-grading De-watering + evaporation + WWTP/Irrigation De-watering + ultrafilter+ro/ Contact membrane De-watering + stripping + WWTP/Irrigation De-watering + struvite + stripping + WWTP/Irrigation De-watering + struvite (addition of phosphor acid) + WWTP 9 IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall

Products and rest fractions Products Solid fraction after de-watering (P,N) Evaporated digestate (10-25% TS) (NPK) Concentrate from membrane and RO (10% TS) (NPK) Ammoniumsulfat (38-45% solution) (N,S) Ammoniumnitrat (55% solution) (N,K) Struvite (P,N,Mg) Rest fractions Condens water from evaporation(n) Reject after stripping (N,P,K etc.) 10 IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall

E.ON Digestate up-grading studies in Sweden Investigation and evaporation test i Nöbbelöv project, 130GWh, 550kton digestate Prestudy of bio-fertilizer production, NEAB, Lantmännen och Göteborg Energi Workshop Malmö hamn 1, 300 GWh, 1 Mton digestate Production of bio-fertilizer via struvite (SGC-projekt) Initiated Biogödselförädling Tekniker och leverantörer (SGC-projekt) Evaluation of digestate up-grading for Malmö Hamn 2, 50 GWh, 120 kton rötrest 11 IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall

Results The evaluation of evaporation in the Nöbbelöv project led to a cost of 55SEK/ton or 225SEK/MWh Production of bio-fertilizer via struvite is not interesting due to high acid costs The evaluation of digestate up-grading by stripping in Malmö hamn 2 led to a cost of 70-115SEK/ton or 170-272SEK/MWh 12 IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall

Fertilizer value Wholesaler (kr/kg) Farmer (kr/kg) Organic retail trade NH4OH 9 11? P 18 23? K 8 8? Fertilier value as NPK for the farmer is ca 30-50 SEK/ton digestate from digester using de-watering and stripping Fertilier value as NPK for the farmer is after evaporation is ca 25% of NPKvalue i.e. ca 10 SEK/ton digestate from digester 13 IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall

Possibilities and challenges with digestate up-grading With a cost of 70 SEK/ton for stripping the cost incl. the fertilizer value will be around 20-30 SEK/ton digestate, same level as for direct distribution The possibilities of selling the product as organic bio-fertilizer in the retail market should be investigated The OPEX incl. cost of chemicals is still uncertain The most promising method today seems to be stripping. To be efficient polymer is needed in the de-watering step. This is not yet compatible with the certification SPCR-120 With digeste up-grading you might loose trace elements that over time is good for the farmland yield 14 IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall

Reflexions Digestate handling is essential in a biogas project The digestate should enhance the environmental profile of biogas It is very important to have a good dialogue with the farmers Together the biogas industry and the farmers have to exchange information how to best use the digeste and create value for both parties When calculating the GHG reduction you have to include the reduced demand of commercial fertilizer The technology delopment of up-grading the digestate should continue We should strive to create an organic bio-fertilizer product 15 IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall

Importance of Digestate for the Biogas Industry Back up OH 16 IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall

SWOT-Analys Malmö Hamn 1 Technology D S % Invest -ment OP EX Suppliers Develop stage Risk Product value Total 1. De-watering + stripping + WWTP 3 2 5 4 3 3 20 2. De-watering + evaporation + WWTP 15 2 2 5 5 3 2 19 3. De-watering + UF + RO + recepient 10 3 3 3 2 1 2 14 4. De-watering + struvite + WWTP 2 1 3 3 3 5 17 5. De-watering + WWTP 5 4 1 5 5 0 20 6. De-watering + Anamox or similar 3 4 5 3 4 0 19 Page 17 IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall

Evaporation IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall 18

Membrane Macro filter MF Centrifuge + filter Ultra filter UF Revers osmosis RO Particles>100 mm Phosphor rich fraction All particles All salts Kalium and Ammonium rich IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall 19

Stripper - function Air without ammonium Air with ammonium Sulphuric acid Ammonium sulfate Reject water IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall 20

Struvite Ostara Magnesiumammoniumfosfate (MgNH 4 PO 4 ) IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall 21

Biogas plant Wrams Gunnarstorp Owners: Production E.ON Gas AB Rudolf Tornerhjelm Bigadan A/S 51% 24,5% 24,5% Up-grading E.ON Gas AB: 100% Capacity: 25 GWh/year Substrate: 65 000 ton/year (Manure, slaughter house waste, waste from food industry) 22 IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall

Biogas plant in Falkenberg Owner Biogas- och up-gradering E.ON 65% Falkenbergs kommun 20% Gekås 15% Capacity: 37 GWh/år Substrate: 120 000 ton/år (Manure, waste from food industri, househould waste) 23 IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall

Jordberga - Project Production Net connection EON 20% share Netdistribution Filling stations Vehicle gas SBI Jordberga AB EON Gas Sverige EON Gas Sverige EON Biofor SBI Main owner SB3 EON NS - connection pipe -Net distribution to filling stations - Biogas purchase - 110 GWh/år 24 - Connection to SWG + compressor station IBBA Digestate Workshop, 5th September 2013, Höör,Ola Hall