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Sustainability & Manufacturing – A focus on Renewable Energy Supply through Anaerobic Digestion

Dr Barry McDermott Campbell Stevens PM Group 17.05.2012

Midlands Manufacturing Group


Content        

PM Group What is Sustainability Sustainable Manufacturing – Why ? Sustainable Energy Bioenergy & Anaerobic Digestion Project Example Finance & Business Case Development Questions


Sustainability “Global Warming”

“Resource Use”

“Climate Change”

“Carbon Footprint”

“Ecological Footprint”

“Low Carbon Systems”

“Energy Efficiency”

“Sustainability” “Whole Life Costing”

“Zero Carbon” “Green Design” “Life Cycle Analysis”

“Corporate Social Responsibility”

“Embodied Energy”


History of Sustainability 1972 – UN Conference on Human Environment

1800’s

Transcendentalism

1800’s

1900’s

Rachel Carson – Silent Spring

1960

Industrial Revolution

Social Revolution

1992 – UN Conference – Earth Summit

1987 Brundtland Report - Our Common Future

1970

1980

1990

1995

2000

2005

Love Canal & Superfund Act 1983 – UN World Commission on Environment & Development

2002 – World Summit on Sustainable Development

Environmental Revolution

Sustainability


Sustainability Defined

1987 World Commission on Environment and Development

SUSTAINABILITY Social Equity

“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”

Concept of sustainability is much more than environmental protection in another guise Sustainabilitys Goal: To achieve human and ecosystem well-being together


Sustainability

Ecology

Materials

ENVIRONMENTAL

Waste Energy

Construction Time and Cost Whole Life Cost

Management

Growth

Economic Profitability

SOCIAL

Land

Sustainable Development

Productivity

Economic Life

SUSTAINABLE Health & Well Being DESIGN

Environmental

Pollution

Insurance

Water

Amenity Social

Function & Performance

Diversity Security

Health & Safety

Investment Employment

ECONOMIC

Quality 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

Number of planet Earths

1.8 1.6 1.4 1.2

World Biocapacity

1 0.8 0.6 0.4 0.2 0 1960

1970

1980

1990

Number of planet Earths

Source: WWF Living Planet Report 2008

2000


The Global Demand for Energy is Rising‌ World Marketed Energy Consumption 250 Projections

million GWh

200 150 100

50 0 1980

1985 1990

Industrialisation

Source Data:

1995 2000

2006 2010

2015 2020 2025 2030

Population Growth

Energy Information Administration (EIA), International Energy Annual 2006 (June-December 2008), website http://www.eia.doe.gov/iea/wecbtu.html

Enhanced Lifestyles


Rising CO2 Emissions World Energy-Related Carbon Dioxide Emissions by Fuel Type, 1990-2030 50 Projections

History

Billion Metric Tons

40

Total

30 20

Coal Liquids

10 Natural Gas

0 1990

1995

2000

Liquids

Source: Energy Information Administration (EIA)

2005

2010

Natural Gas

2015

2020 Coal

2025 Total

2030


Need for Change… ENERGY EFFICIENCY

CLEAN ELECTRONS

CONSERVATION


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

Sustainable Sites

Energy & Atmosphere

Water Efficiency

Innovation Indoor Materials & Resources Environmental Quality


Opportunities…. Technology

Fuels & Feedstocks SOLUTIONS

Energy Efficiency & Renewables

Alternative / Renewables

Emission Reduction

Supply-side  Biofuels

 Wind Power

 Hydrogen

 Solar

 Biomass

 Biomass

 Waste to Energy

 Fuel Cells  Energy Storage  Hydro  Wave, tidal, deeplake  Geothermal

End-of-pipe  Air pollution control  Coal to gas  Carbon capture and storage  Waste Management  W&WWT

Energy Efficiency Demand Side  Green buildings  Low energy appliances  Building control  Smart meters and grids  Smart homes  Energy management  T&D infrastructure


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

Generator / CHP Scrubbing

Grid Transport Biofuel

Biogas Digestate

Feed

Storage/ Handling

Digestion Process

Dewatering

Composting

Soil Conditioner Fertiliser

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


How it works‌..

Methane CO2 H2S NH3 Heat & Biomass

Source: IEA Bioenergy Task 24


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, Hungry

CSTR, Biogas Farm, Germany

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 – Carbon Dioxide – Water Vapour

Trace Amounts:

50 – 75% 45 – 25% 2 – 5% <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 â&#x20AC;&#x201C; Potential Industry Options Electricity Boiler for Gas Engine

Steam

Exhaust

Electricity Pasteurisation Cooling/Chillers

Exhaust

Biogas

Green House

Digestate

Feed Storage/ Handling

Digestion Process

Dewatering

Composting Soil Conditioner Fertiliser

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


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

Feedstock

Feedstock Handling

Feedstock Ensiling

ANAEROBIC DIGESTION

Digestate Separation

Biogas Cleaning

Fertiliser For sale

AD Technology – 2 Options: 1.Continuous Stirred Tank Reactor 2. Lagoon

Effluent Treatment

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

Water to river

Biogas To CHP


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

£60m investment 5 Year Payback (IRR >20%) Construction due Q3 2012

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


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

4

OPTIONS

Biogas to Boiler or CHP

Biogas to Gas Engine CHP

Biomethane to Boiler or CHP

• Contamination issues?

• HW to site

• ECA

• ECA

• ECA

• FIT for MWhe

•FIT for MWhe (for CHP)

• £ Offsets;

• £ Offsets;

• £ Offsets;

• CCL

• CCL

• CCL

• ETS/Carbon Floor Price

• ETS/Carbon Floor Price

• ETS/Carbon Floor Price

• Gas purchase

• Gas purchase

• Gas purchase

Biomethane to Grid • 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


Most Feasible AD Configuration?

BOILER/CHP or GAS ENGINE?

AD

? UPGRADE?

? ?

GAS GRID

SITE


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


Biogas from Food Waste, Anaerobic Digestion in Food Manufacturing